I’ve found an item selling 150 times a month on Amazon. It’s listed on Amazon for £6.89, and I can source the same item for £1.16. Is it worth pursuing? This is my first time doing this.
What is the fulfillment cost?
What is your margin after all costs?
Then decide for yourself.
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Do your checks, and if all the boxes are good, then go for it! You’ll only know the outcome if you try.
To get the Buy Box, you’ll need to sell at a competitive price. Assuming you’re an FBA seller, test the waters by sending in around 10 units or so.
If it doesn’t sell at a profit, you can always clear it at cost price or sell it off on eBay and treat it as a learning experience.
In the past, I’ve managed to sell ASINs while directly competing with Amazon. It felt great cutting into Amazon’s sales and making a decent profit, lol!
(Normally, I don’t undercut other sellers; I prefer to share the Buy Box. But when I’m competing with Amazon, I don’t hold back. I just go for it, sell the stock, and move on.)
I’m no expert, but this is what I would do.
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It could be worth pursuing, but you need to calculate the potential profit after all expenses. Start by factoring in Amazon’s referral and FBA fees (typically 15% referral fee plus FBA fees based on weight and size), VAT if applicable, and shipping costs to Amazon’s warehouse. For example, if the total fees and costs leave you with at least a 30% profit margin or a minimum of £3 profit per unit, it’s a good opportunity. However, also check for competition, the number of sellers, and the likelihood of maintaining the Buy Box, as these factors will affect your sales potential. If the profit margin is too slim or competition is high, it might not be worth pursuing.
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Sounds like a good item if you can also figure out the selling fees, taxes and other expenses.
Go to fba calculator.
Do a proper analysis of expenses.
Create a dummy listing to check the FBA fee or use the Amazon FBA calculator.
Note: selling low-ticket items makes it hard to get profitable I recommend selling items higher than $12.
To be honest, I reckon it’s a no. The reason is that Amazon fees and, particularly, postage costs will be prohibitive. Even if you do make a bit of money, some competitor will likely jump on your listing and undercut you, taking away even a meager profit.
Just my advice—no need to follow it.
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Selling a product below $15 is not profitable at all due to Amazon fees.
You are only looking at how many units are sold, but you also need to consider how many sellers are offering this product and their review counts.
You need to conduct market analysis, competitor analysis, and product analysis.
We create a spreadsheet and make decisions based on that data.