I’ve been thinking about starting an Amazon FBA business but I’m trying to set realistic expectations. I see so many success stories, but I’m curious—how profitable are Amazon sellers on average? Is it really sustainable, or are most just breaking even after fees and ads?
Answer by: abdullah-al-naim
3 weeks ago
To answer the question, I’d talk about the profit margins of an average seller on Amazon. In most of the common niches Amazon sellers have tendency to sell the item at three times of the cost. The selling price is so high from the cost of the items because almost one third of the selling price is deducted by the Amazon in terms of fees for different services it provides to sellers. So, in order to make a good profit sellers sell an item at $30 which is sourced at around $10.
If we do not take into consideration the fees of Amazon then seller can make good profit specially in the case of individual seller which is not selling through FBA. With FBA most sellers end up making around 30% profit margin on each sale.
Again, this can vary even within the same niche because some smart sellers use several different Amazon seller tools in order to gather business intelligence data. Which helps them to set better prices and to develop better promotional plans to maximize the profit. So, it also varies from seller to seller and category to category. Form you Amazon seller account In minutes
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