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Read onlyI sell personalised items which I make myself - my question is how/what is the best way to enter into prime without raising my prices massively just to cover the postage cost? I dont understand how anyone can profit - my mugs are say £10, for a trakced next day/2 day postage is around £3.50-£4 on the item. ( UK BASED)
With product, packaging and printing costs i would basically be working for free?
I don't know how anyone is making this feasible with postage costs or am i missing something as i am assuming i cover the postage cost?
any experience, advice or help??? (UK BASED)
It's simple. Your selling price needs to include the postage cost. Same as everyone else doing prime or offering free P&P. There is no other way.
If the numbers don't stack up, you need to reduce your costs or change product lines that allow you to have the required margin.
BTW, I only do prime with FBA, not SFP but I believe that for SFP, you need to be sending with next day service, not 2-day. I could be mistaken.
If you cant make the delivery prices then you need to back away from prime. Send everything tracked 48 via rm. If your doing a decent amount of postage you can get them to reduce there price to a bit lower than the parcel rates.
With custom made stuff unless your mass producing in advance working with primes posting require,ments will be nigh on impossible tokeep up with.
The logic I imagine would be you sell more because of Prime so what you lose in margin, you'd make up in volume.
This model obviosuly won't work for everyone - so it just comes down to a business decision.