I would like to share my pain with y’all. 2018 was my first full year of selling on Amazon. At the end of 2017 just month after I started my venture on Amazon I went FBA. I sell both private label and non-private label products. Anyway, today I created an annual account activity report and I’m still in shock… I’ve been following the figures on a monthly basis but somehow it wasn’t so obvious how I’m loosing so much money on various fees. The bottom line is… Only 20% of my total sales ended up on my bank account and most of the money that was generated went to Amazon’s pocket to pay all the fees. This is the breakdown (highest to lowest)
- Cost of advertising (Amazon PPC) - since I’m a fairly new seller I don’t mind paying for it
- FBA transaction fees (ridiculously high)
- FBA selling fees
- Service fees
- FBA inventory and inbound services fees
- all the non-Amazon expenses, like shipping the products from China to FBA, packaging etc.
Now my question is, how on Earth can anyone make money here with all these ridiculously high Amazon expenses?
Maybe I’m doing something wrong… But the numbers don’t lie.
I would like to know if anyone has a profitable FBA schemed business here.