What's an ideal price range for a new product on FBA?


#1

Hey!

I started my own postcard line recently on Etsy, and I sent a few products to Amazon just to see how they’d sell on FBA. One of my products is $6 for 5 postcards, which is more than I want to charge, and the other is $15 for a value pack of 30. I tried to figure out the FBA fees before I got to Amazon and they didn’t seem too bad, but the $6 product has a projected $4.47 in fees. The $15 product has a more reasonable $5.65 in fees. Postcards are cheap to print, but I don’t think I’ll break even on that $6 pack even though I want to lower the price, and I definitely won’t be compensated for my time. I only sent them five of each product, and I felt like that was a reasonable gamble, so I’m not out much no matter what happens.

Is there an ideal price that you shoot for when you’re developing your new products?


#2

It depends on your profit margin. I don’t sell any items above $25 and I’m mostly FBA


#3

Is there a graph of the projected fees? It seems like there’s a spot between $5 and $15 that could be good too, but I feel like I can’t tell what the fees are for my products until I send something to FBA, and that’s not a great way to find out the fees. My products don’t take up a lot of space (since they’re five sheets of paper wrapped in plastic), and I didn’t find a good fee guide before I sent these in.


#4

Inexpensive items are poorly suited for selling on Amazon no whether you or Amazon fulfill.

FBA is only suitable for fast moving products. Most postcards are not fast moving. Fortunately they are small enough so the storage charges and long term storage fees won’t kill you but they could seriously impact a way too small dollar margin anyway.

As many of the handmade@amazon sellers have discovered, a transition from Etsy to Amazon is not smooth, and most Etsy sellers do not find this to be a market which they can succeed in.

Good luck


#5

Try the FBA fee calculator

https://sellercentral.amazon.com/fba/profitabilitycalculator/index


#6

Thanks everyone for the speedy answers!

Using that calculator, I can see that my $6 objects lost money as soon as I shipped them to Amazon and that there are more fees than they include on the calculator, so that’s a mistake I won’t make again. I know that there are a few postcard pack sellers on Amazon, but this explains why there aren’t a ton and why they mostly do packs of 25/50/100.

I’m just doing this as a side hustle, but I do want my products to do well. I’ll keep this lesson in mind as I come up with new designs.


#7

In case you’re still confused why the cheap product got hit so hard, it’s because the pull/pack/weight fees are flat rate, so it’s the same rate for your 6 buck item as your 15 buck or a 100 buck item of the same size and weight.

Think about it. It costs you $2.61 to ship 6 postcards USPS; correct? And probably about the same for 12. The post office didn’t say, “Oh, this is a cheap item; we’ll reduce the fees.”

Amazon’s pull/pack/weight based fee is about the same as if you shipped it yourself; only difference is if you did ship yourself, you would charge a shipping fee. With Amazon, you get no shipping concession, so you have to either roll it into your item price or send pricier items.

It is only the commission that varies, since it’s based on a percentage.

I send a few fast moving $12 items, but usually it’s $15 to $35 items that I send.


#8

$20 to $30 is my sweet spot.


#9

You are looking at it the wrong way.

  1. FBA will always cost you more than shipping it your self.
  2. Don’t send anything to FBA until you have sold it your elf and decided it is a good daily seller.
  3. The longer the item sits at FAB, the more you will pay in fees, always greatly reducing your profit.
  4. Retailers (which you are) set their price points based on the salability of the product in the local market. That is why Wal-Mart advertises we sell for less, and products are priced differently in different geographical parts of the country. There is no ideal price range per say, it is all product based.
  5. No retailer is in business to sell at a break even point., unless they use the product as a loss leader knowing they will make extra profit on the other items the customer will purchase.

#10

Why wouldn’t we have different accounts? I started mine before I was married. It’s my seller history and I’m selling my products.


#11

Ummmm…are you both using the same account or different ones? Do you have permission from Amazon to have 2 accounts?

If you have 2 accounts without permission it is only a matter of time (and a short one) before Amazon links them. Both will be suspended.


#12

You’re right in a way – I’m not looking at this as a business, which is why FBA is a bad choice for me. On Etsy, I pay 20¢ for a listing, 6% for transaction fees and $2.61 in shipping and it doesn’t make me piles of money, but it’s a hobby that’s paying for itself.

On FBA, the fees are so high that I can’t even put in the lower price point I use at Etsy. I was looking around before I sent things in and didn’t find that calculator someone had above – I only saw the storage fees. I’m just lucky that I only gambled with a handful of my products. I’ve been lurking on boards where people buy postcards like mine, and there were people there recommending specific things because they could buy them through Prime. It definitely explains why other people aren’t selling this sort of product here and instead doing Etsy or setting up their own sites.

My husband has been selling his documentaries on DVD here for years through FBA and he’s had a great experience with it even though he only sells a few a week. The film costs are paid off at this point, so the listing is essentially an ad and we get a payment with each user who streams it elsewhere. DVD production costs are cheap and they sell high. He doesn’t have to do fulfillment when people buy it, and we don’t have boxes of them in our basement.


#13

> My husband has been selling his documentaries on DVD here for years through FBA and he’s had a great experience with it even though he only sells a few a week. The film costs are paid off at this point, so the listing is essentially an ad and we get a payment with each user who streams it elsewhere. DVD production costs are cheap and they sell high. He doesn’t have to do fulfillment when people buy it, and we don’t have boxes of them in our basement.
Documentary DVD sound interesting. Do You sell them on Educational Contractual Sites?


#14

One account per household for life. At some point they will link the accounts and suspend both of them.


closed #15