September 14, 2015
Tracy uses Profit Bandit to analyze a couple products as examples. One item was a TiVo and the other was a Lego City.
TiVo was $119 and Lego City was $16. Using the scanning app breaks down all the selling fees involved in the product. Keep in mind the monthly seller account fee $39.99 is not part of the mix when when scanning app is breaking down the fee.
In Tracy’s example she puts down the purchase price of the products being a $1 each. Many times when going to garage sales you can pick up new items for extremely cheap. You have to keep in mind how long it takes you to find the product, process the items and get it shipped. If you find an item with a $10 profit and it took you an hour to find it, then consider that you made $10 an hour, but would be less than that since you have to take the time to list it and ship it to Amazon.
Otherwise you could try to focus your time on finding higher priced items that have a bigger profit margin and it took the same hour to find the product and it had a $50 profit then you made $50 an hour. See how the hourly rate changes?
The Amazon FBA fees when broken down, the pick and pack fee and the handling fee are the same regardless of the product cost.
Things that makes a difference in Amazon FBA selling fees are the size, weight, price the item sells for. 15% of the selling price is just one of the Amazon FBA selling fees.
When Tracy uses the example of the Lego City with a $16 selling price, the fees come out to be 40% . The TiVO was 17%.
See the difference when choosing higher value products to sell on Amazon? Your time is better served to find those higher priced items which gives better profit margins.
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