Amazon FBA getting way to expensive?

[MakeMoreMoves]

So I have been developing my product and got everything ready to send to FBA.

Was going to sell product for $20. My competitors are around $16. My jaw just dropped when I saw the FBA fee. I really don't remember it being that high, since I use to sell on there for fun years ago. $15 in fees... I didn't even put in the cost to make the product, shipping to FBA and advertising. I am in full negative now. If I increase my price $25, I will be the most expensive price out there and still my margin will be dead low. I am also kind of forced to FBA my product since every competitor is FBA.
How is anyone suppose to profit? I am also thinking of my competitors being in full negative as well because I know the price point to make my specific item. But I see their sponsored ads on amazon, so they definetly got wiggle room. What am I doing wrong here?

Every product I seem to import the shipping costs more than the actual product. My product is only the size of your hand. I use to think I knew tons about ecommerce, but this just smacked me in the face.

Discuss. anyone else in same boat?

 

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[amp0193]

So I have been developing my product and got everything ready to send to FBA.

Was going to sell product for $20. My competitors are around $16. My jaw just dropped when I saw the FBA fee. I really don't remember it being that high, since I use to sell on there for fun years ago. $15 in fees... I didn't even put in the cost to make the product, shipping to FBA and advertising. I am in full negative now. If I increase my price $25, I will be the most expensive price out there and still my margin will be dead low. I am also kind of forced to FBA my product since every competitor is FBA.
How is anyone suppose to profit? I am also thinking of my competitors being in full negative as well because I know the price point to make my specific item. But I see their sponsored ads on amazon, so they definetly got wiggle room. What am I doing wrong here?

Every product I seem to import the shipping costs more than the actual product. My product is only the size of your hand. I use to think I knew tons about ecommerce, but this just smacked me in the face.

Discuss. anyone else in same boat?

You're doing something wrong.

Here's a recent sale from a $19.99 item of mine.

Also, regardless of your price point or sales channel, you HAVE to know your costs before you even start working on a new product. Even if it was a $15 fee, it shouldn't have been a surprise to you.


FBA Fee Calculator: https://sellercentral.amazon.com/hz/fba/profitabilitycalculator/index?lang=en_US

FBA Fee Explanation: https://services.amazon.com/fulfillment-by-amazon/pricing.htm

 

[MakeMoreMoves]

You're doing something wrong.

Here's a recent sale from a $19.99 item of mine.

Also, regardless of your price point or sales channel, you HAVE to know your costs before you even start working on a new product. Even if it was a $15 fee, it shouldn't have been a surprise to you.


FBA Fee Calculator: https://sellercentral.amazon.com/hz/fba/profitabilitycalculator/index?lang=en_US

FBA Fee Explanation: https://services.amazon.com/fulfillment-by-amazon/pricing.htm

...yeah, probably. I just assummed Amazon would not be that high. But good news, as of checking right now. It seems that there was an update an the total fees are about $7. Had no idea why $15 came up before. Thanks

 

[Sanj Modha]

You need to negotiate better prices. Switch to ocean freight once a product takes off too.

It's all about the profit margin. Start with at least 50% out of the gate.

 

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[MotiveInMotion]

99% guarantee your product is registered as "oversized" because you put dimensions in wrong.

1. Edit item ---> "More details" tab ---> scroll down to PACKAGE & ITEM dimensions (check both)

2. Cross check them against this page under Glossary: http://www.amazon.com/gp/help/customer/display.html?nodeId=201648210

Hope it helps you

 

[ZeroExile]

I'm also suffering from this problem. Not because of any errors, mostly warehouse charges, FBA fees, inbound transportation fees, they are adding up a lot quicker than I imagined but I still have a very good profit margin considering my inventory is essentially free or very cheap.

 

[VS-Recruit]

I'm also suffering from this problem. Not because of any errors, mostly warehouse charges, FBA fees, inbound transportation fees, they are adding up a lot quicker than I imagined but I still have a very good profit margin considering my inventory is essentially free or very cheap.

Even if your competitors are selling at $16 you can still price it at $22-25 if you private label your product with a better packaging of your product.

 

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