Amazon Product Case Scenarios 2017-11-20T14:03:57+00:00

Amazon Product Sales Case Scenarios

Below are a few examples of Amazon FBA program fees to give you an idea of what margins to expect based on your product’s weight and price.  This are actual rates from products currently selling on Amazon as of this writing.  Your individual case may vary.  Please contact us for specific information about your products.

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Case 1: Cleaning Product (Pack of 4), 6.75 lbs

Price: $17.24

15% Amazon Referral Fee – $2.59
Order Handling: $1.00
Pick & Pack: $1.04
Weight Handling: $3.54
30 Day Storage: $.11
Total profit: 8.96 or 52% Margin

Case 2: Consumer Electronic, 0.8 lbs

Price: $49.95

15% Amazon Referral Fee – $7.49
Order Handling: $1.00
Pick & Pack: $1.04
Weight Handling: $1.59
30 Day Storage: $.01
Total profit: 38.82 or 78% Margin

Case 3: Non-GMO Popcorn, 3.05 lbs

Price: $ 14.96

15% Amazon Referral Fee – $2.24
Order Handling: $1.00
Pick & Pack: $1.04
Weight Handling: $ 2.37
30 Day Storage: $.04
Total profit: 8.27 or 55% Margin

Case 4: Medical Device, 0.7 lbs

Price: $32.30

15% Amazon Referral Fee – $4.85
Order Handling: $1.00
Pick & Pack: $1.04
Weight Handling: $.63
30 Day Storage: $.05
Total profit: 24.73 or 77% Margin

Setting up an Amazon Store

Increase Your Revenues with Your Own Amazon Online Store

Online selling offers several advantages, attracting numerous enterprising individuals to join the fray. For one, overhead expenses are considerably fewer, which means that you can pass your savings on to your customers. The absence of a physical store can also work in your favor as you get to reach customers from faraway places at practically any hour or any day. Finally, there is a wide variety of tools that you can use to promote your products, some of which are free.

Of course, there are several hurdles you may have to face when you are just starting out with your online store. For one, if you are short-staffed, you may have to bear the brunt of performing a large number of tasks, especially those associated with fulfilling orders. Furthermore, if your niche is fairly congested, you will find yourself competing with larger and more trusted players. And speaking of trust, it can be particularly challenging to make potential customers see your business as a legitimate enterprise.

The Fulfilled by Amazon Program seeks to answer these problems and more. Using a third party store to sell your products is nothing new. In fact, a large number of online retailers have been using fulfillment companies to complete some aspects of the sales process — specifically, storage and shipping. Here are a few advantages of Fulfilled by Amazon Program or FBA.

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