Hi all,
I am very stressed feel like I am paying Amazon money since I started my business. It’s been 2 months and this FBA fees is taking my money and net proceeds is in negative always.
Why I am loosing money?
I have also stopped campaigns, is it worth spending money on Ads and keep them enables all time?
Is your margin enough to cover for all the fees? Your roi calculation is wrong or product price dropped.
You’re losing money because your landed cost + FBA fees exceed your selling price. Two months is early, but you must recalc pricing, reduce COGS, or improve sell-through.
Ads only help if your margins already work, otherwise they accelerate losses. Adjust fundamentals first
Your margin is definitely too low. Even if you stop running ads, you will still end up at a loss, so you need to work on either increasing your prices or reducing your product costs to improve your margin. Alternatively, you may need to switch to selling different products or move from FBA to FBM, as that could lower your costs and give you more room for profit. At the moment, your margin is negative, so the priority is to bring it into a positive range by lowering costs, increasing prices, or choosing higher-margin products. Only once you are profitable does it make sense to turn ads back on, otherwise, advertising will simply increase your losses, so there is no point in keeping them running.
You might be looking at the right metrics…
but interpreting them with the wrong math.
This is where sellers slip up:
→ ACoS looks strangely low (or way too high)
→ CPC seems cheap (or suddenly expensive)
Here’s the real issue:
→ ACoS and CPC are averages, not totals
→ When you add them across products or campaigns, the numbers become misleading
And that leads to dangerous decisions:
→ You assume a campaign is profitable when it’s actually bleeding
→ You turn off a search term that’s quietly driving conversions
The lesson?
Always check how your metrics are calculated—
especially when you’re working with exports, bulk reports, or any aggregated dashboard.
Accurate data isn’t enough.
You have to interpret it correctly.
When was the last time you verified the math behind your ACoS or CPC?
Great point about averages being misleading. This is exactly why ‘just trust the algorithm’ PPC tools can be dangerous. Sellers can’t verify if the underlying logic is sound.
The fix isn’t more data. It’s understanding the reasoning behind each recommendation. If a tool says ‘lower this bid,’ you should be able to see: is it because of low CTR, poor conversion rate, or just insufficient sample size?
Statistical significance matters too. A keyword with 50 clicks and 2 conversions isn’t ‘4% CVR.’ It’s noise.
We’re building something that shows the WHY behind every bid change, not just the what. Happy to share more if anyone’s interested.
