Because after all fees, I can’t seem to cross 2-6$ profit on my products, please comment your average profit margins thanks
Pretty sure that you are losing money, that 2-6 range is only perceived as profit. In reality you would make more money working part time at a job. 8 hours x rate per hour, real money that will not be clawed back. You just made 2-6 dollars, EXACTLY how much time and money have you burned getting to that point. That margin would not be bad if you had several employees that are packing and shipping all day long, that level of volume will never be reached on amazon. If you do, look out, it will evaporate over night.
I started a few months ago. I have product that after all charges has no profit unfortunately, and product that has £10-15 profit per item. Just keep looking for better products. Good luck
Profit margins on Amazon can vary, but it’s not uncommon to have lower margins due to fees and competition. Some sellers achieve higher margins by optimizing listings and reducing costs. Keep hustling and experimenting to find what works for you!
Is there a minimum price that you suggest when listing on Amazon? Thanks.
That is extremely hard to answer and I believe nearly impossible to provide advice for.
Way too many unknowns and knowns at play on this.
- Keep in mind the lower price will attract trash, once you become a trash magnet expect plenty of feedback extortion, returns that never materialize, drama stories of how terrible your product is. That is just some of the BS when dealing with trash.
- Competitive pricing in the marketplace rules, next to the manipulation of your sales by the marketplace.
- You must use opportunity cost (the value of what you have to give up in order to get what you want) when making all decisions. In your relationship with the online marketplaces, your time is valuable and would be the dominant parameter in your opportunity cost model.
For example, you can work part time for $10 an hour or you can work 8 hours doing amazon & ebay tasks and make $10…
It is true that the fees can eat into your profits, making it difficult to achieve a high margin. However, there are many sellers who are able to make a good living selling on Amazon.
The average profit margin for Amazon sellers is between 10% and 25%. Of course, this can vary depending on a number of factors, such as the product category, the cost of goods sold, and the seller’s pricing strategy.
If you are only making a profit of $2-$6 per product, there are a few things you can do to try to increase your margins:
Reduce your cost of goods sold (COGS). This can be done by finding cheaper suppliers, negotiating better terms with your existing suppliers, or reducing your product wastage.
Increase your selling price. This can be a delicate balancing act, as you don’t want to price your products too high and lose sales. However, if you can find a price that is still competitive but that also gives you a better margin, it will be worth it.
Reduce your Amazon fees. There are a few ways to do this, such as opting for Fulfillment by Merchant (FBM) instead of Fulfillment by Amazon (FBA), or using a third-party repricing tool to help you optimize your prices.