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Amazon 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
by ikeboy 7y ago
Amazon 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.