Something that I understood very quickly when I heard about low inventory level fees and placement fees is that this can be a huge opportunity for me to make even more money. Why?
Because you need some financial power to be able to go deep so you can avoid the low inventory level, but at the same time, you want to avoid long storage fees, so you need fast-selling products and you need to find good suppliers and so on and so forth. I believe that getting started selling on Amazon is becoming harder and harder,which will slow down in competitors however selling on Amazon is still a business with lots of opportunities; we just need to become better and take this business more seriously.
I was looking at this listing which has tanked, and I guess that the cheapest sellers are scared of the low inventory level fee and are trying to get rid of stock, and it makes sense to do this (not blaming them). Then, in a month, I should be selling this ASIN at 20+ after these sellers are OOS.
Me selling at $20+ of course is going to bring other competitors , is just a matter of time as the profit is going to be quite attractive at that price , but if i set my price at 1 usd profit and keep a big inventory in stock all the time , this is going to wreck every single seller who cant afford to keep for this asin minimum 29 days in stock …
Referring to the low inventory fees + new shipping /inbound scheme - In the short term it will help amazon overcome the problem with the shortage of truck drivers. Long term, it will weed out the smaller sellers.
This is not a great opportunity for sellers. No additional fee or fee increases are good for sellers. A great opportunity for you does not mean it’s great for everyone.
I found a listing which is proving my point (it might be just a simple coincidence) but you can see that the price is going up, the competition is going out, and even myself, I increased the minimum because I need to avoid the low inventory level fee. AND very importantly, I believe that many sellers will think the same way as me… but let’s see if I am wrong or not!!
This particular product is a cheap item which was selling at 6-7 usd and we can see an increase in price …Selling at 6 -7 usd , will make it profitable if the low inventory fee is not applied , but otherwise is not profitable anymore so to see an increase in price makes all the sense
