Selling on Amazon ?
Discussion
Long time retailer seeks general advise on selling on Amazon.
I have shops and have avoided selling on Internet as with the branded goods I sell as it's a race to the bottom on price,nevertheless I feel I may be missing a trick.
Please let me know any info you have regarding the commision Amazon takes and any other relevant info or experiences.
I'd also like to know whether you agree that on branded goods,in my case outdoor clothing and equipment,there's a profit to be made.
I have particularly stated "branded" goods as obviously if you have your own label it's a different ball game.
I reference the quote " turnover is vanity,profit is sanity".
I have shops and have avoided selling on Internet as with the branded goods I sell as it's a race to the bottom on price,nevertheless I feel I may be missing a trick.
Please let me know any info you have regarding the commision Amazon takes and any other relevant info or experiences.
I'd also like to know whether you agree that on branded goods,in my case outdoor clothing and equipment,there's a profit to be made.
I have particularly stated "branded" goods as obviously if you have your own label it's a different ball game.
I reference the quote " turnover is vanity,profit is sanity".
Is there anyone else selling these items on Amazon already? If so can you compete at that price and what will you do when the competition notices you and reduces their prices?
Amazon takes quite a cut. We are actually wholesalers and sell our products at full retail on Amazon, my view is that they are just another retail outlet. Not a single one of our retailers sells on Amazon as there is no margin for them, even at full retail.
Amazon takes quite a cut. We are actually wholesalers and sell our products at full retail on Amazon, my view is that they are just another retail outlet. Not a single one of our retailers sells on Amazon as there is no margin for them, even at full retail.
I have done some research.
The commision on outdoor clothing is 15%.
I buy very competitively.
So taking an example.
A jacket I stock that get for £12 + 20% vat =£14.40....sells on Amazon for £29.96 to £33.00.
What other charges am I in for ,apart from the comm, with p.p. etc ?
I have read that it is not sensible to undercut the lowest price offered as that just starts a price war,that suits nobody.
What I can't understand is,why would the seller that sees his product is dearer than a competitor not price down accordingly.
Surely a buyer would choose the cheaper option.
The commision on outdoor clothing is 15%.
I buy very competitively.
So taking an example.
A jacket I stock that get for £12 + 20% vat =£14.40....sells on Amazon for £29.96 to £33.00.
What other charges am I in for ,apart from the comm, with p.p. etc ?
I have read that it is not sensible to undercut the lowest price offered as that just starts a price war,that suits nobody.
What I can't understand is,why would the seller that sees his product is dearer than a competitor not price down accordingly.
Surely a buyer would choose the cheaper option.
Ean218 said:
Is there anyone else selling these items on Amazon already? If so can you compete at that price and what will you do when the competition notices you and reduces their prices?
Amazon takes quite a cut. We are actually wholesalers and sell our products at full retail on Amazon, my view is that they are just another retail outlet. Not a single one of our retailers sells on Amazon as there is no margin for them, even at full retail.
Yes my product is quite available on Amazon and eBay.Amazon takes quite a cut. We are actually wholesalers and sell our products at full retail on Amazon, my view is that they are just another retail outlet. Not a single one of our retailers sells on Amazon as there is no margin for them, even at full retail.
That's why I've not got involved as I don't want to waste my time selling if I cannot see a fair return.
Having said that, I do buy very competitively so I can match the prices.
I'm interested in the costs involved and whether there's enough margin in it to make it worthwhile.
What about if a customer returns an item for a refund....do Amazon refund the seller the commision they have taken ?
When you say "full retail" do you mean doubling up, i.e. costs say £10 exc vat,sell at £20 ?
Edited by avinalarf on Saturday 28th October 18:23
If you google "how much does it cost to sell on Amazon" you will find a link to where you can play around with numbers to see how much Amazon will return you on a sale. If you plan/hope to sell more than 35 items per month you will be better opening a Pro Merchant Account (£25/month).
re refunds - Yes Amazon refunds the seller the sale commission
Best thing to do is give it a go and just crack on and list some popular items. If you are buying right then you may stand a chance. Main problem you find nowadays is every wholesaler also wants to be a retailer.. so be prepared to make very very small margins (if you are lucky).
re refunds - Yes Amazon refunds the seller the sale commission
Best thing to do is give it a go and just crack on and list some popular items. If you are buying right then you may stand a chance. Main problem you find nowadays is every wholesaler also wants to be a retailer.. so be prepared to make very very small margins (if you are lucky).
Factor in higher than average returns as Amazon makes it so easy - you have little option on the return if its been worn etc.
A useful tactic I advise on Amazon is bundling, say gloves, scarf and a beanie from the same range or pack of 5 t shirts.
You will need GS1 EAN`s to do this but its one way to actually make money on the platform.
A useful tactic I advise on Amazon is bundling, say gloves, scarf and a beanie from the same range or pack of 5 t shirts.
You will need GS1 EAN`s to do this but its one way to actually make money on the platform.
mondeoman said:
15% on total value, including shipping? Wow.
No marketing, no software, no cost unless you sell (apart from £25 a month) its a very good deal as many ecommerce web sellers dont factor in the true cost of having a site and marketing it. Note 15% is not generic its higher and lower in certain cats.Downsides are you dont really own the customer as no email and as such its hard to capture the possible subsequent orders plus the customer has no seller loyalty cos your Amazon. To me the biggest downside is the FBA ease of return its no quibbler pay both ways suck it up which can jar a little.
I know nothing about this from the seller side, but as a buyer I usually pick the lowest cost option including postage - as I have Amazon Prime that triggers free delivery on some things so what may appear more expensive ends up a bit cheaper.
Where costs are even I go for the one that offers prime delivery, and if the difference in cost is not too much I will go prime as well.
How that works for you (FBA, other) in order to achieve Prime delivery, but might be one way to differentiate yourself if your competitors aren't doing this.
Where costs are even I go for the one that offers prime delivery, and if the difference in cost is not too much I will go prime as well.
How that works for you (FBA, other) in order to achieve Prime delivery, but might be one way to differentiate yourself if your competitors aren't doing this.
CrouchingWayne said:
I know nothing about this from the seller side, but as a buyer I usually pick the lowest cost option including postage - as I have Amazon Prime that triggers free delivery on some things so what may appear more expensive ends up a bit cheaper.
Where costs are even I go for the one that offers prime delivery, and if the difference in cost is not too much I will go prime as well.
How that works for you (FBA, other) in order to achieve Prime delivery, but might be one way to differentiate yourself if your competitors aren't doing this.
And on that PRIME point remember sellers the golden price is £20.01 which triggers Prime anything under that makes the buyer think.Where costs are even I go for the one that offers prime delivery, and if the difference in cost is not too much I will go prime as well.
How that works for you (FBA, other) in order to achieve Prime delivery, but might be one way to differentiate yourself if your competitors aren't doing this.
DSLiverpool said:
A useful tactic I advise on Amazon is bundling, say gloves, scarf and a beanie from the same range or pack of 5 t shirts. You will need GS1 EAN`s to do this but its one way to actually make money on the platform.
My understanding was that your new bundled EAN creates a new ASIN but Amazon "own" the ASIN so other sellers can still jump in and list on the same bundle - as long as the products are the same of course.If you are up against multiple sellers selling the same product you are going to have to cut that price. We do a lot through Amazon and know it pretty well - some of our products that are very popular (think 90+ offers) literally do not sell a single piece despite being on the first page of offers. There is an element of Buy Box rotation to keep you sweet, but nothing to get excited about.
If you are clever about it, pick your items (bundles can work well) and watch your prices closely then Amazon can make you a lot of money. But jump in with products every other bugger sells and you'll soon be working for nothing.
You may think you are buying well and you might well be - but I can guarantee you there will be somebody else willing to go cheaper (into a loss at your purchase price) or buying better - especially if Amazon retail said products too.
Good luck with it.
If you are clever about it, pick your items (bundles can work well) and watch your prices closely then Amazon can make you a lot of money. But jump in with products every other bugger sells and you'll soon be working for nothing.
You may think you are buying well and you might well be - but I can guarantee you there will be somebody else willing to go cheaper (into a loss at your purchase price) or buying better - especially if Amazon retail said products too.
Good luck with it.
What a surprise Steven, that we should meet on a different forum.
As you would expect of me, I am a very discerning customer, and I do regularly buy products using the Amazon website.
I cannot help you with GS1, EAN or ASIN, but am happy to speak from a customers view point.
Price is obviously the big attraction on branded goods, so presumably the lowest prices get most of the sales.
Last week I bought some branded garden irrigation products. I was just about to click, when I spotted a lower price, so they got my business. I presume the view is taken by the seller, that each sale is an additional sale, which otherwise would never have been secured. Small profit, but additional profit. My order was placed during an afternoon, with standard delivery. The very next day (after receiving an email stating a 1 hour delivery window), DPD delivered my package. All very efficient. Speed of delivery is not important to me, but quick service is often an impressive feature of online selling. Customer expectations etc. Need some good staff working quickly with all that bubble wrap and sticky tape.
I have rarely had to return anything, but have never bought clothing online. I suppose with clothing, returns might become a nightmare.
I have noticed that when an online seller is part of a traditional business, they often use a different trading name for the online part.
Best of luck. I think Oak Furniture began by selling on ebay not many years ago.
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