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How can you sell low cost items with FBA

by orangescamper
5 replies
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As the title says. How can you sell an item for $8 and make anything? At least half is gone in fees.
#cost #fba #items #low #sell
  • Profile picture of the author Laura Ann
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    • Profile picture of the author Silas Hart
      FBA offers sellers (larger ones more specifically) less operations costs because overhead is lower. No large warehouse, no need for more than 1 or 2 employees to process larger amounts of inventory.

      Someone who sells a cell phone case can buy 2000 cell phone cases at .80 each, pay out $1600 for their inventory, and make a return of $8640 at the rate of $8.00 per sale, per phone case - After the cost of fee's. That is still enough to pay for a small warehouse and 1 full time employee to do all of work for you. If you were paying for a large warehouse and 4 employees, you are looking at little to no profit at all unless you sell the case for more.
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  • Profile picture of the author James Foster
    Simple solution...

    Don't sell products under 8 bucks.

    Best case scenario - even if you had no cost of goods and no fees to pay, you're still only making a measly 8 dollars.
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    • Profile picture of the author orangescamper
      Originally Posted by James Foster View Post

      Simple solution...

      Don't sell products under 8 bucks.

      Best case scenario - even if you had no cost of goods and no fees to pay, you're still only making a measly 8 dollars.
      I see part of what your saying but I would sell a product that made $8 all day.
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  • Profile picture of the author upnya
    ^^ This.

    One of my first (and best selling items) sells for $14.97 and I'll never sell an item that cheap again. I shoot for $25-40 range.
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  • Profile picture of the author DWaters
    I generally tend to shy away from any low cost items. I prefer having a selling price of over $40. If you are selling products that are priced under $10 you will want to be sure that they sell fast and the volume will be high. This is tough becasue of price flucuations by other sellers. Something that sells fast at $8 may stop selling if other sellers temporatily go lower. You would have to wait until their inventory is gone or lower your own price which reduces an already small profit margin.

    My suggest - sell higher priced products or atleast have a mix of high and low priced items.
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