What to send to FBA?


#1

Hi,

I have been selling on Amazon for more than 4 years and have been struggling with FBA. I would like help on what to send and how much to send so I don’t receive storage fee. As Amazon’s rules keep changing I struggle on the inventory. Is anyone else having this problem, if yes, how do we resolve this?

Thanks


#2

That question is very like “How long is a piece of string?”
Nobody can really tell you what or how much to send.
You can only base what your sending, on what you think you will sell. I’m afraid that it’s as simple as that.
You cannot avoid storage fees completely. You can minimise them, by not having too much stock there, but that’s about it.
As to the rules changing, I really don’t know what you mean by that.
The long term fees relatively recently changed, but that’s about it.


#3

Hi Neil,

Thanks for your reply

Amazon used to charge every 6 months but now they are charging every month, I pay more storage fees than I have sells.

Do you know if I could get a mentor to help run my Amazon account?


#4

If that is the case, then you need to reduce your inventory. So that you only have sufficient stock there, for maybe one month of sales and not an awful lot more.
Reduce your inventory at FBA. It’s only 25p (+VAT) per item to return it to you.
I’m guessing from your name, that your in clothing and that if so, you probably have a lot sat there, that are doing not very much at all.
If that is the case and you want to offer Prime delivery, why not look at using Seller Fulfilled Prime instead? No storage fees and just as much visibility.

As to a mentor, unless you know someone local, or a willing to pay one of these internet “Amazon experts” (Definitely not recommended), then just ask your questions on here. There is a lot of people that will help you. Also, take a look at the seller university. Lot’s of information there that will help.

Amazon is quite a steep learning curve, but once you get over the hurdle, it’s relatively easy to keep things in check.


#5

Based on my view, as a long time seller who has been doing FBA for years, I can tell you that you should definitely avoid selling any low profit items - regardless if with low or high overall price. The returns and issues with missing or damaged units will ruin you and you will end up complaining on the forums about FBA being unfair and the fees being high.

Find some items with a very low purchase price and then sell them with a high profit. This is the criteria which needs to be met for me to consider selling a product with a fulfillment by Amazon.

Then I don’t worry about customer returns or any occasional losses as this is barely costing me money and Amazon is still handling everything on my behalf, with me just pocketing the earnings.

Also, definitely don’t look for any mentors or experts but select all products wisely on your own.


#6

I’m sorry, but that is an ideal situation.
Low cost, high price.
In the real world, for most of us, the profit margin is not great on Amazon. It’s all about turnover.
I do reasonably well with an average mark-up of about 10%.
The market is different very much depending on what you are actually selling.
I have some makeup lines, that I’m selling with 150% profit, but others that are as low as 5%.
The difference being, I sell hundreds of the lower margin products, which builds into a nice little profit.
They are very competitive markets.