7 ms·
Maybe his profit quote was vague or excluding Amazon fees. That's not that far off without having to do liquidation. Which is also a viable way to make money se
by j-c-hewitt 7y ago
Maybe his profit quote was vague or excluding Amazon fees. That's not that far off without having to do liquidation. Which is also a viable way to make money selling on Amazon.
- ikeboy 7y agoAmazon fees using FBA typically run around 30% depending on average price. More if you do private label and have to pay advertising. Talking about gross profit without including fees is effectively meaningless. My rule of thumb for a successful wholesale business is 50% cogs, 30% Amazon fees, 20% margin. There are companies that do a lot worse, and I'm sure some that do better but it's extremely difficult to beat 30% margins at any kind of scale without doing liquidation, getting some lucrative exclusives, or otherwise find a very uncompetitive niche. Source: have done several million in sales across hundreds of thousands of units on Amazon in the last few years.
- davinic 7y agoYou were higher volume than I, and my Amazon fees across the board ran about 35%, so I completely agree with your assessment. However I was buying liquidation and my cogs tended to be lower, although my processing time/expense likely higher to compensate.