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Seller_SUeXRkVNeom5V

Losing 60% revenue to Amazon

Hi,

I do not use forums much but I need some help now.

I started selling on Amazon in 2008, I use to make lot of profit in the beginning but now making huge loses.

Initially Amazon expenses including fulfilment was 30% and I use to get 70% of the total sales revenue and my cost was 40% and I made 30% profit but over the years Amazon costs gone way too high and my profits were eroded, now the situation is Amazon taking 60 to 70% of total sales revenue and I am getting 40 or 30% of the total sales revenue and making huge loses.

I cannot close the business as I have lot of stock and 10 employees but I am wondering is it same for other sellers?

How are you managing it? I am struggling to make profits on Amazon, My sales are ok but If I increase price my sales go down immediately.

Please help me with this, I may survive few more months and I am more worried about my employees…

Please let me know if any one had this situation if yes how did you come out of it?

Please help…

Thanks in advance…

1.1K views
52 replies
Tags:Fulfilment, Lost shipment
00
Reply
user profile
Seller_SUeXRkVNeom5V

Losing 60% revenue to Amazon

Hi,

I do not use forums much but I need some help now.

I started selling on Amazon in 2008, I use to make lot of profit in the beginning but now making huge loses.

Initially Amazon expenses including fulfilment was 30% and I use to get 70% of the total sales revenue and my cost was 40% and I made 30% profit but over the years Amazon costs gone way too high and my profits were eroded, now the situation is Amazon taking 60 to 70% of total sales revenue and I am getting 40 or 30% of the total sales revenue and making huge loses.

I cannot close the business as I have lot of stock and 10 employees but I am wondering is it same for other sellers?

How are you managing it? I am struggling to make profits on Amazon, My sales are ok but If I increase price my sales go down immediately.

Please help me with this, I may survive few more months and I am more worried about my employees…

Please let me know if any one had this situation if yes how did you come out of it?

Please help…

Thanks in advance…

1.1K views
52 replies
Tags:Fulfilment, Lost shipment
00
Reply
52 replies
user profile
Seller_7VbclcPFFRTnc

Presumably at that rate its FBA ?
Do you raise your prices every time your costs go up ?

Have you looked at the efficiency of your staff and their costs ? Presumably that’s not even included in the 60% amazon costs ?

00
user profile
Seller_esvgLzKXw2YAl

Whilst prices have gone up, it does seem that the proportion of your costs has grown considerably.
Have you absorbed the price increases in your selling price? It does sound very much like you have done that, rather than increase it.

00
user profile
Seller_tRuvBEHDedp4q

The other thing to check is do you sell internationally across Europe? If so are you VAT registered?

Amazon now has to collect VAT on such sales and so anything you sell to the EU will have VAT deducted by Amazon - so you will be losing the VAT part of the proceeds on any disbursement on these sales. If you are VAT registered then it wont make much difference as you would have incorporated VAT into your prices, but if you are not VAT registered it can make a massive difference.

10
user profile
Seller_J2H5GprhaORbt

The Uk marketplace on Amazon is highly completive . I have been selling on Amazon for 15 years and my stock is totally different now to even 3 years ago let alone at the start
!5 years ago i had a best selling product that retailed for around £36,95 , sold 100’s . we don’t even stock this product anymore .
Change
Adapt
Constantly
Is the key to Amazon sucess

30
user profile
Seller_uK2aGVnqbtliE

Forgive me if I have posted this before! I sell knitting patterns for £2 each plus Amazon’s added £2.80 postage fee. Total £4.80.

For every one I sell Amazon collects £2.39 which is 49.8% - massive charge!! It also includes some of the postage fee, which I think should be made illegal!

I know you’re all trying to help the OP but the PROBLEM is that Amazon is now in a monopoly position and it has become greedy! Regulation of the multinationals is well overdue!

20
user profile
Seller_3u63TG7fpfnG6

You only have one option get rid of most of your staff
the only way I can make money is it’s me and my husband and I pay him for tax reasons

00
There are no more posts to display
user profile
Seller_SUeXRkVNeom5V

Losing 60% revenue to Amazon

Hi,

I do not use forums much but I need some help now.

I started selling on Amazon in 2008, I use to make lot of profit in the beginning but now making huge loses.

Initially Amazon expenses including fulfilment was 30% and I use to get 70% of the total sales revenue and my cost was 40% and I made 30% profit but over the years Amazon costs gone way too high and my profits were eroded, now the situation is Amazon taking 60 to 70% of total sales revenue and I am getting 40 or 30% of the total sales revenue and making huge loses.

I cannot close the business as I have lot of stock and 10 employees but I am wondering is it same for other sellers?

How are you managing it? I am struggling to make profits on Amazon, My sales are ok but If I increase price my sales go down immediately.

Please help me with this, I may survive few more months and I am more worried about my employees…

Please let me know if any one had this situation if yes how did you come out of it?

Please help…

Thanks in advance…

1.1K views
52 replies
Tags:Fulfilment, Lost shipment
00
Reply
user profile
Seller_SUeXRkVNeom5V

Losing 60% revenue to Amazon

Hi,

I do not use forums much but I need some help now.

I started selling on Amazon in 2008, I use to make lot of profit in the beginning but now making huge loses.

Initially Amazon expenses including fulfilment was 30% and I use to get 70% of the total sales revenue and my cost was 40% and I made 30% profit but over the years Amazon costs gone way too high and my profits were eroded, now the situation is Amazon taking 60 to 70% of total sales revenue and I am getting 40 or 30% of the total sales revenue and making huge loses.

I cannot close the business as I have lot of stock and 10 employees but I am wondering is it same for other sellers?

How are you managing it? I am struggling to make profits on Amazon, My sales are ok but If I increase price my sales go down immediately.

Please help me with this, I may survive few more months and I am more worried about my employees…

Please let me know if any one had this situation if yes how did you come out of it?

Please help…

Thanks in advance…

1.1K views
52 replies
Tags:Fulfilment, Lost shipment
00
Reply
user profile

Losing 60% revenue to Amazon

by Seller_SUeXRkVNeom5V

Hi,

I do not use forums much but I need some help now.

I started selling on Amazon in 2008, I use to make lot of profit in the beginning but now making huge loses.

Initially Amazon expenses including fulfilment was 30% and I use to get 70% of the total sales revenue and my cost was 40% and I made 30% profit but over the years Amazon costs gone way too high and my profits were eroded, now the situation is Amazon taking 60 to 70% of total sales revenue and I am getting 40 or 30% of the total sales revenue and making huge loses.

I cannot close the business as I have lot of stock and 10 employees but I am wondering is it same for other sellers?

How are you managing it? I am struggling to make profits on Amazon, My sales are ok but If I increase price my sales go down immediately.

Please help me with this, I may survive few more months and I am more worried about my employees…

Please let me know if any one had this situation if yes how did you come out of it?

Please help…

Thanks in advance…

Tags:Fulfilment, Lost shipment
00
1.1K views
52 replies
Reply
52 replies
52 replies
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user profile
Seller_7VbclcPFFRTnc

Presumably at that rate its FBA ?
Do you raise your prices every time your costs go up ?

Have you looked at the efficiency of your staff and their costs ? Presumably that’s not even included in the 60% amazon costs ?

00
user profile
Seller_esvgLzKXw2YAl

Whilst prices have gone up, it does seem that the proportion of your costs has grown considerably.
Have you absorbed the price increases in your selling price? It does sound very much like you have done that, rather than increase it.

00
user profile
Seller_tRuvBEHDedp4q

The other thing to check is do you sell internationally across Europe? If so are you VAT registered?

Amazon now has to collect VAT on such sales and so anything you sell to the EU will have VAT deducted by Amazon - so you will be losing the VAT part of the proceeds on any disbursement on these sales. If you are VAT registered then it wont make much difference as you would have incorporated VAT into your prices, but if you are not VAT registered it can make a massive difference.

10
user profile
Seller_J2H5GprhaORbt

The Uk marketplace on Amazon is highly completive . I have been selling on Amazon for 15 years and my stock is totally different now to even 3 years ago let alone at the start
!5 years ago i had a best selling product that retailed for around £36,95 , sold 100’s . we don’t even stock this product anymore .
Change
Adapt
Constantly
Is the key to Amazon sucess

30
user profile
Seller_uK2aGVnqbtliE

Forgive me if I have posted this before! I sell knitting patterns for £2 each plus Amazon’s added £2.80 postage fee. Total £4.80.

For every one I sell Amazon collects £2.39 which is 49.8% - massive charge!! It also includes some of the postage fee, which I think should be made illegal!

I know you’re all trying to help the OP but the PROBLEM is that Amazon is now in a monopoly position and it has become greedy! Regulation of the multinationals is well overdue!

20
user profile
Seller_3u63TG7fpfnG6

You only have one option get rid of most of your staff
the only way I can make money is it’s me and my husband and I pay him for tax reasons

00
There are no more posts to display
user profile
Seller_7VbclcPFFRTnc

Presumably at that rate its FBA ?
Do you raise your prices every time your costs go up ?

Have you looked at the efficiency of your staff and their costs ? Presumably that’s not even included in the 60% amazon costs ?

00
user profile
Seller_7VbclcPFFRTnc

Presumably at that rate its FBA ?
Do you raise your prices every time your costs go up ?

Have you looked at the efficiency of your staff and their costs ? Presumably that’s not even included in the 60% amazon costs ?

00
Reply
user profile
Seller_esvgLzKXw2YAl

Whilst prices have gone up, it does seem that the proportion of your costs has grown considerably.
Have you absorbed the price increases in your selling price? It does sound very much like you have done that, rather than increase it.

00
user profile
Seller_esvgLzKXw2YAl

Whilst prices have gone up, it does seem that the proportion of your costs has grown considerably.
Have you absorbed the price increases in your selling price? It does sound very much like you have done that, rather than increase it.

00
Reply
user profile
Seller_tRuvBEHDedp4q

The other thing to check is do you sell internationally across Europe? If so are you VAT registered?

Amazon now has to collect VAT on such sales and so anything you sell to the EU will have VAT deducted by Amazon - so you will be losing the VAT part of the proceeds on any disbursement on these sales. If you are VAT registered then it wont make much difference as you would have incorporated VAT into your prices, but if you are not VAT registered it can make a massive difference.

10
user profile
Seller_tRuvBEHDedp4q

The other thing to check is do you sell internationally across Europe? If so are you VAT registered?

Amazon now has to collect VAT on such sales and so anything you sell to the EU will have VAT deducted by Amazon - so you will be losing the VAT part of the proceeds on any disbursement on these sales. If you are VAT registered then it wont make much difference as you would have incorporated VAT into your prices, but if you are not VAT registered it can make a massive difference.

10
Reply
user profile
Seller_J2H5GprhaORbt

The Uk marketplace on Amazon is highly completive . I have been selling on Amazon for 15 years and my stock is totally different now to even 3 years ago let alone at the start
!5 years ago i had a best selling product that retailed for around £36,95 , sold 100’s . we don’t even stock this product anymore .
Change
Adapt
Constantly
Is the key to Amazon sucess

30
user profile
Seller_J2H5GprhaORbt

The Uk marketplace on Amazon is highly completive . I have been selling on Amazon for 15 years and my stock is totally different now to even 3 years ago let alone at the start
!5 years ago i had a best selling product that retailed for around £36,95 , sold 100’s . we don’t even stock this product anymore .
Change
Adapt
Constantly
Is the key to Amazon sucess

30
Reply
user profile
Seller_uK2aGVnqbtliE

Forgive me if I have posted this before! I sell knitting patterns for £2 each plus Amazon’s added £2.80 postage fee. Total £4.80.

For every one I sell Amazon collects £2.39 which is 49.8% - massive charge!! It also includes some of the postage fee, which I think should be made illegal!

I know you’re all trying to help the OP but the PROBLEM is that Amazon is now in a monopoly position and it has become greedy! Regulation of the multinationals is well overdue!

20
user profile
Seller_uK2aGVnqbtliE

Forgive me if I have posted this before! I sell knitting patterns for £2 each plus Amazon’s added £2.80 postage fee. Total £4.80.

For every one I sell Amazon collects £2.39 which is 49.8% - massive charge!! It also includes some of the postage fee, which I think should be made illegal!

I know you’re all trying to help the OP but the PROBLEM is that Amazon is now in a monopoly position and it has become greedy! Regulation of the multinationals is well overdue!

20
Reply
user profile
Seller_3u63TG7fpfnG6

You only have one option get rid of most of your staff
the only way I can make money is it’s me and my husband and I pay him for tax reasons

00
user profile
Seller_3u63TG7fpfnG6

You only have one option get rid of most of your staff
the only way I can make money is it’s me and my husband and I pay him for tax reasons

00
Reply
There are no more posts to display

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