Caution using FBA for products under $20

RepricerExpress looks at whether it’s worthwhile to sell low-priced items (defined as under $20 in this case) on Amazon. They caution against doing so when using Amazon FBA:

You might want to re-think this strategy. There are fees associated with Fulfillment by Amazon (FBA) that can cut into your profit margin, despite the ease and freedom that FBA offers. A general rule of thumb is you should be doubling your money after expenses, so figure out at which price point that stops happening. Remember, you also have to work in the cost of getting your item to the Amazon distribution centre.

 

While some fees are a percentage, there are minimum and per item fees that really cut into the margins for low priced items. For more info, read the post Is It Worth Selling Low Priced Goods on Amazon? at RepricerExpress

Andrew @ EcomLoop
Are you looking to start or grow a standalone ecommerce shop? I help independent businesses achieve success on the Shopify and WooCommerce platforms. As the owner of multiple ecommerce businesses, I've had the opportunity to get experience with nearly every aspect of the ecommerce industry. I started EcomLoop to help other quality independent businesses using my knowledge and experience. To stay on top of new ecommerce developments, I publish The EcomLoop Weekly Loop, a blog and email newsletter with original thoughts and curated links to help independent businesses improve their businesses.