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How do people make money selling on Amazon with such high fees?


stuckin2up2down

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I too find them very high.

I think the promise is that they'll get you so much more trade that the fees are worthwhile.  There's a sense in this, as well, but only if you've got sufficient margin in the first place.

[eg, the stuff I sell on Amazon is all very high margin.  But if they can manage to double the turnover compared with direct sales they're approaching being worthwhile.]

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1 hour ago, stuckin2up2down said:

I guess you need to sell something that has a cost of £5 for £50 to make it worthwhile. I often do the ordering on someones site rather than going through amazon, although it's often only 5-10% cheaper.

Strange how for so long they didn't make a profit with such high fees for just using a platform.

AFAIK it violates amazons seller agreement to privately sell at anything less than the amazon price. They are risking a ban from the platform

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1 hour ago, longgone said:

crazy margin. 

i only sell on ebay when it is £1 fvf + paypal so 3.6% + £1 good value.

sold £500 worth of crap last week  2 items so £2 fees ;)

Think I've mentioned this before, but if your personal eBay account doesn't get £1 selling fees offers then close it (or like me, get banned) and create a new one and you'll be able to chain the £1 offers :) Saves me £100+ some months.

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3 hours ago, stuckin2up2down said:

I guess you need to sell something that has a cost of £5 for £50 to make it worthwhile.

I'd suggest that is a good rule to follow.

People buy all sorts of [email protected] thinking they have bought a product. Or they get 40% off and think they have somehow got value for money. The truth is the same as always: you have bought that which is intangible and must be expended to resell it should you wish to: branding, packaging, shipping, shipping packaging, marketing, sales, advertising, taxes. There's virtually no value in the item itself, even when it is complex (thanks to mechanization and mass production). Only luxury goods have labour embedded in them, but nowadays that is largely labour for the sake of labour. And the raw materials? Peanuts.

In effect our houses are jammed full of supply chains. But haven't they largely always been? Does that make us 'ripped off'? Deluded maybe.

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1 hour ago, afly said:

AFAIK it violates amazons seller agreement to privately sell at anything less than the amazon price. They are risking a ban from the platform

Wow isn't that anti-competition or something? It's often with a voucher on the shops private site.

2 minutes ago, Sledgehead said:

I'd suggest that is a good rule to follow.

People buy all sorts of [email protected] thinking they have bought a product. Or they get 40% off and think they have somehow got value for money. The truth is the same as always: you have bought that which is intangible and must be expended to resell it should you wish to: packaging, shipping, shipping packaging, marketing, sales, taxes. There's virtually no value in the item itself, even when it is complex (thanks to mechanization and mass production). Only luxury goods have labour embedded in them, but nowadays that is largely labour for the sake of labour. And the raw materials? Peanuts.

In effect our houses are jammed full of supply chains. But haven't they largely always been? Does that make us 'ripped off'? Deluded maybe.

For some industries 90% markup is pretty standard, however in mine getting something landed and then delivered to the customer is about £15 and selling for £20. Means I can't sell on Amazon and should just stick to my own site.

Amazon are looking to get into the food business with its pantry and wholefoods. But the main supermarkets are operating on wafer-thin margins of a couple of a percent, so their standard model wont work with that.

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6 hours ago, dougless said:

Its a good question.  If there is something I want from a Market Place Seller, I try to find their own website and buy directly, rather than through Amazon. This dosen't help smaller sellers but anything that reduces amazon's grip on online retailing is a positive in my book.

That's a really good attitude.  It won't help you, but will help the retailer.

[It should help you as many retailers do the discount voucher thing for their own websites -- you still do better than the Amazon sale even with the voucher...]

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