Thank you!
A good ballpark for net profit after all costs is usually around 10-15%. So that’s roughly £6,000 to £9,000 a month.
Net profit on £60 k monthly Amazon revenue varies widely by model and efficiency, but a well‑run private‑label or optimized wholesale operation typically nets around 10–20 % after COGS, FBA fees, PPC, VAT, and overheads, while a lower‑margin arbitrage or basic wholesale setup often sees 5–10 %; that means roughly £3 k–£6 k at 5–10 % or £6 k–£12 k at 10–20 %, provided inventory turns smoothly and advertising spend is controlled.
I’d say about 9k after 12 months if done correctly, maybe more depending on the category and individual product.
A true bottom line would be about 6k. Maybe less.
Do you mind if I ask you if you are still successfully selling FBA? I’ve been selling on the platform for about 3 years and between the VAT on fees and becoming VAT registered my product that was once doing ok has been losing money.
Thank you
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Yes, I have a few brands I have built selling via FBA.
Why has your product been losing money?
I make around 3k with 10k sales. My margins after fees and COGS are around 29%.
Depends on the business model, hopefully at least £15k if done correctly with Private label.
Assumptions are that you’re above the VAT threshold and therefore pay VAT, Amazon fees, packaging costs (yours appear to be more than just standard postable boxes), advertising, as you appear as a sponsored listing and postage costs, assuming your products are postable rather than parcel-sized. I believe your COGS are likely quite low, but I’m not convinced you’ve calculated them correctly. I stand to be corrected.
An example of my best seller. No advertising. Price £6.95. VAT:
£1.16 COGS. £1.00 Amazon fees Total £2.81.
I budget my advertising at £8 per day.
