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
EcomLoop founder. I've worked in ecommerce since 2005, beginning with my own ebay store. I've run multiple independent ecommerce businesses on Magento, Joomla, and more recently, Shopify and WooCommerce. I believe marketplaces should be looked at as a sales channel and that all independent businesses should strive to build a direct connection with their audience for long-term success.

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