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Read onlyHow are you sellers standing up in today’s market with HIGH Amazon Fees, delivery charges with poor service, tough competition it seems impossible to make any money with such tight margins??? Perhaps it is just my business model - most likely it is that but… I am struggling on here to be honest.
Lately, I think to myself, the fact that we live at the bottom of a deep gravity well, on the surface of a gas covered planet going around a nuclear fireball 90 million miles away with a very low profit margin from Amazon and think this to be normal is obviously some indication of how skewed our perspective tends to be.
Buying products at wholesale prices with a margin of 20 to 30% is completely wiped out after you factor in all these fees, delivery charges and of course - 5 to 10% customer ‘buyer remorse’ return rate…
How do you guys make any money, serious question? Is it a case of volume-based sales with tiny margins - is this silver bullet to a successful business on Amazon? This to me seems like a lot of hard work for little returns. I like to work hard for my money but also like to work smarter so open this question to the floor on this forum, anyone?
The answer you will get to that question is going to be really quite varied.
Some will sell the odd thing with a massive margin, but only occasionally.
Some will sell with reasonable sales, with reasonable margins.
And others will sell vast quantities, with tiny margins.
The trick at the end of the day, is to know your market. To choose products wisely.
And don’t knock volume based sales, it’s not such a bad thing at all. If it was, you certainly wouldn’t see the mega sellers on here.
Many of us make a decent amount from selling on here, and what you have to do for that is dependent on the categories you sell in, and the products you select. Research is key - know the product you sell, and check you can make a decent margin before you even think about buying and selling it.
One thing for certain though, and others I am sure will agree, it is NOT easy, never has been and it only gets harder the more red tape that Amazon brings in every year.
Forget about being a millionaire this time next year - never worked for Delboy and it won’t work on here.
Product with 20-30% markup to sales price that you quoted will probably not make you any money - postage costs, packaging materials, labour, Amazon Fees and customer fraud will certainly see this off.
you should be calculating your margins to include your fees and postage etc
Been here 10yrs+ & dont seem to have a problem making a profit.All of my asins have a margin of 150% minimum up to 1000% + on item cost…You need to find the right products.
For me it is about volume of sales rather than making a big profit on individual items.
It is hard work but my sales on Amazon are three times what they were last year and my profit is growing at a slightly higher rate. I have seen growth every month so far this year.
I make a good profit on what I sell and I can easily live on what I make on Amazon.
The only thing really holding me back now from being more successful is time, I just don’t have any more hours left in the day. There is myself and my partner working on the business and I am seriously considering employing someone to take me to the next step.
I’ve been here for 8 years and always made a good living on Amazon. In fact, 99% of all sales are on this platform. It is becoming harder to find vintage toys and games (which was our main area) so some diversification in the toy and game market has taken place over the years. However, if you try to keep “on trend” all of the time, you will inevitably end up in a “race to the bottom price war”.
All I would say is to have a good variety of products; don’t rely on just a few because even if they make you money, somebody will spot this and undercut you (even Amazon themselves sometimes). Keep things fresh, always look at niche markets. Sometimes the most unlikely things make really good money; we’ve discovered this quite often.