Another bright idea Amazon FBA, am I missing something.
Discussion
Long story short most days I'm trying my best to think of how I could make a few quid, many failed attempts hydro dipping, mobile detailing, forex to name a few amongst others.
Seems I'm late to the party here too, been doing quite a bit of market research I found a potential product that's selling well on Amazon at the moment and it's not a saturated market.
Can source the product for £1.53 per unit
Postage is quite expensive at £710 for 500 units
Putting the product at £2.95 per unit
With Amazon fees at 85p per unit storage and also 15% for my catagory, also the product supplier isn't able to add a barcode that's a extra 50p per unit.
Selling at £6.99 would be undercutting a main seller by 50p gives a net margin of 8.44% so 59p profit per unit so from an initial outlay of £1475 for £295 profit.
There's no guarantee my item will sell as a new seller with no reviews etc at 59p profit per item PPC is extremely limited for me it would soon eat up the little potential profit especially if clicks don't lead to sales.
I presume most FBA sellers are ordering by the shipload driving shipping and product cost right down, another option would be FBM but wouldn't have time with a full-time job that's why FBA initially appealed.
Any sellers on here ?
Onwards and upwards
Seems I'm late to the party here too, been doing quite a bit of market research I found a potential product that's selling well on Amazon at the moment and it's not a saturated market.
Can source the product for £1.53 per unit
Postage is quite expensive at £710 for 500 units
Putting the product at £2.95 per unit
With Amazon fees at 85p per unit storage and also 15% for my catagory, also the product supplier isn't able to add a barcode that's a extra 50p per unit.
Selling at £6.99 would be undercutting a main seller by 50p gives a net margin of 8.44% so 59p profit per unit so from an initial outlay of £1475 for £295 profit.
There's no guarantee my item will sell as a new seller with no reviews etc at 59p profit per item PPC is extremely limited for me it would soon eat up the little potential profit especially if clicks don't lead to sales.
I presume most FBA sellers are ordering by the shipload driving shipping and product cost right down, another option would be FBM but wouldn't have time with a full-time job that's why FBA initially appealed.
Any sellers on here ?
Onwards and upwards
When you say it's not a "saturated market" that may well be because demand is quite low. It might be worth stocking for the other supplier if it's something that naturally sits within their portfolio but it would make less sense if it's your one-and-only product and you're only making <10% on it. It only needs P&P to increase or your competitor to cut his price by 50p and you end ups tuck with a load of unsellable stock.
Not sure what it is, but returns? These cost money have you factored this cost in?
It costs money to ship stuff into Amazon too, is this in there?
Plus why would you undercut your competitor by nearly 10%? He’ll just do the same to you and within a week you’ll both make f all.
If it’s pocket money for you then yea, it’s a bit of fun. But if it’s a way to retire and get out of your main job then keep looking...
It costs money to ship stuff into Amazon too, is this in there?
Plus why would you undercut your competitor by nearly 10%? He’ll just do the same to you and within a week you’ll both make f all.
If it’s pocket money for you then yea, it’s a bit of fun. But if it’s a way to retire and get out of your main job then keep looking...
Edited by russy01 on Sunday 5th January 21:51
Countdown said:
When you say it's not a "saturated market" that may well be because demand is quite low. It might be worth stocking for the other supplier if it's something that naturally sits within their portfolio but it would make less sense if it's your one-and-only product and you're only making <10% on it. It only needs P&P to increase or your competitor to cut his price by 50p and you end ups tuck with a load of unsellable stock.
That would be my concern too, you have an established competitor with feedback that is possibly moving more units than you and as such could command a lower price or even tell their supplier to stop selling to you, if you try and muscle in.They may well be making £1 or £2+ so dropping by 75p until you go under would be no concern to them. Especially if this isn't the only thing in their portfolio.
smokeey said:
And what do you think will happen after you undercut the other sellers?
They’ll do the same to you and before you know it you’ll be making f
k all in something your already making fk all on.
What he said. They’ll do the same to you and before you know it you’ll be making f
k all in something your already making fk all on.Why undercut the others by 10%? Simply sell the same product at the same price you automatically make 18% instead of 8! If I’m searching for the product you and him are selling it there’s a 50/50 chance I’m going to buy from you.
At those costs it’s worth a punt especially if there is only one other seller. If it sells quickly you can take a bigger risk next order buying more and lowering your shipping costs.
Danny4494 said:
Long story short most days I'm trying my best to think of how I could make a few quid, many failed attempts hydro dipping, mobile detailing, forex to name a few amongst others.
Seems I'm late to the party here too, been doing quite a bit of market research I found a potential product that's selling well on Amazon at the moment and it's not a saturated market.
Can source the product for £1.53 per unit
Postage is quite expensive at £710 for 500 units
Putting the product at £2.95 per unit
With Amazon fees at 85p per unit storage and also 15% for my catagory, also the product supplier isn't able to add a barcode that's a extra 50p per unit.
Selling at £6.99 would be undercutting a main seller by 50p gives a net margin of 8.44% so 59p profit per unit so from an initial outlay of £1475 for £295 profit.
There's no guarantee my item will sell as a new seller with no reviews etc at 59p profit per item PPC is extremely limited for me it would soon eat up the little potential profit especially if clicks don't lead to sales.
I presume most FBA sellers are ordering by the shipload driving shipping and product cost right down, another option would be FBM but wouldn't have time with a full-time job that's why FBA initially appealed.
Any sellers on here ?
Onwards and upwards
No disrespect intended but you'd need to be totally bonkers to invest at that rate of (potential!) return.Seems I'm late to the party here too, been doing quite a bit of market research I found a potential product that's selling well on Amazon at the moment and it's not a saturated market.
Can source the product for £1.53 per unit
Postage is quite expensive at £710 for 500 units
Putting the product at £2.95 per unit
With Amazon fees at 85p per unit storage and also 15% for my catagory, also the product supplier isn't able to add a barcode that's a extra 50p per unit.
Selling at £6.99 would be undercutting a main seller by 50p gives a net margin of 8.44% so 59p profit per unit so from an initial outlay of £1475 for £295 profit.
There's no guarantee my item will sell as a new seller with no reviews etc at 59p profit per item PPC is extremely limited for me it would soon eat up the little potential profit especially if clicks don't lead to sales.
I presume most FBA sellers are ordering by the shipload driving shipping and product cost right down, another option would be FBM but wouldn't have time with a full-time job that's why FBA initially appealed.
Any sellers on here ?
Onwards and upwards
Danny, save yourself (the inevitable) grief and look for something giving a MUCH higher margin.
Don't do it.
This item isn’t a goer but would people buy them in a pack of 5 ? If so create your own bundle and increase the profit per order.
Tip - how to see your competitors daily fba item sales.
At 1am add every one to your basket until it says they have no more, say it’s 700, 24 hours later try it again and deduct the latter figure from the former.
A linked in expert would charge you $$$ for that nugget lol lol
Tip - how to see your competitors daily fba item sales.
At 1am add every one to your basket until it says they have no more, say it’s 700, 24 hours later try it again and deduct the latter figure from the former.
A linked in expert would charge you $$$ for that nugget lol lol
DSLiverpool said:
This item isn’t a goer but would people buy them in a pack of 5 ? If so create your own bundle and increase the profit per order.
Tip - how to see your competitors daily fba item sales.
At 1am add every one to your basket until it says they have no more, say it’s 700, 24 hours later try it again and deduct the latter figure from the former.
A linked in expert would charge you $$$ for that nugget lol lol
Gold!! You never seem to stop helping me either directly or indirectly haha. Definitely sending you a beer one day!! Tip - how to see your competitors daily fba item sales.
At 1am add every one to your basket until it says they have no more, say it’s 700, 24 hours later try it again and deduct the latter figure from the former.
A linked in expert would charge you $$$ for that nugget lol lol
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