Buy 1 Get 1 Free
We are going to try a Buy 1 Get 1 Free promotion for the first time. Will Amazon take full fees for the 2nd free item? I am assuming they will
Would I be correct in assuming I am simply cutting my profit by 50%? Or is there other hidden charges I am over looking
10 replies
Seller_EHYOwAkoZV3Hb
You need to rethink this as I think you’re way off.
For example, looking at it simplistically:
Product cost - £10
Sale price - £20
Amazon fee - £3
Profit - £7
Buy 1 get 1 free
Product cost - £20
Sale price £20
Amazon fee - £6
Loss - £6
If your original margin is massive, then you could still be in profit but your formula of halving your profit when doing a BOGOF promo is flawed. Or maybe I just need another coffee.
Or maybe I’m missing something.
Seller_msXOuFgmdtguf
No you dont need coffee…But I do need to go back to Maths Class I think !!!
Thanks so much for this for some reason I thought Amazon would exempt you from the fee of the free item, but that is not going to happen is it
Seller_msXOuFgmdtguf
We have run a test of this, the way it shows up in a transaction is
Sale Net Price and Tax are cut by 50% for both items
Commission Fee is reduced as per cut in Sale Net
FBA Fee remains the same
Hope that makes sense
