Hello, I’m trying to start a business selling food on amazon with the production cost of about $8 per unit with shipping costs from the manufacturer and other costs, I’m guessing $10-11 per unit.
How much do I charge on Amazon FBA to make a profit? And this include advertising on amazon.
From what I see on the FBA page, I am looking around $8-$10 fees to amazon if I sell it for $30 Is that about right?
For return fees, it’d be $1 per unit but they won’t refund all the other fees right?
What is the usual percentage do you allocate selling on Amazon using FBA? I am still getting quotes from co-packer at the moment and Amazon would be addition to my main website selling subscription model. Thank you for spending time to read my post.
To make a profit while selling food on Amazon FBA, calculate your total cost per unit (around $10-11), including production, shipping, and FBA fees. Decide on a desired profit margin and consider advertising costs. Competitor analysis and price elasticity are essential factors. FBA fees for a $30 selling price might be around $8-$10. Be prepared for return fees. Allocate a percentage based on profit goals, production costs, and market competition. Regularly reassess pricing and costs for sustainability.
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