I thought I’d lay out all of my experience with selling on Amazon. Right up front, it’s simply not for me, but here’s how I did with two test products:
The first product is a Purple Princess Tent. Super cute. I really took my time to research, source and contract with a good quality supplier in China. It’s high quality and no one else offers a purple version. That was important to me – I wanted something that was unique.
So, here’s the details (USD funds):
Tent Cost: $7.29
Shipping per Tent: $6.42
Amazon Fees: $20.13 (right?!)
Total Costs: $33.84
About the Amazon fees: Amazon has a calculator to estimate fees. When I was doing my research, the calculator showed $12.85 total fees. That’s quite a difference, $7.28 – that’s the cost of the product for heaven’s sake!
So, I had the tent for sale for $49.99 and it took me a ton of advertising $$ and 5 months to sell 100 units. At the end of the day, I lost about $250.
The second product is a Smart Weighted Hula Hoop.
Tent Cost: $8.50
Shipping per Hoop: $6.70
Amazon Fees: $9.93
Total Costs: $25.13
It’s been so popular but the real problem is that a bunch of other sellers came on the market in the same month that I did and my product listed got completely buried. So, 5 months in, again, lots of advertising $$, I’ve sold one unit and that one was sold for $16.99. Yup, at a loss, but at this point, calling my initial cost already spent, I just want to get rid of these things. This isn’t something I thought I’d have to deal with but it’ll cost me so much more if Amazon “disposes” of it.
So, that’s my experience with Amazon. I worked with a “coach” in the beginning, to help me research and select my products and that was helpful but in the end, Amazon just isn’t for me. I’d rather sell in my own e-commerce store (it’s coming – ha!) and save those ridiculous Amazon fees.