Barely Making a Profit with FBA
I feel like I did all the right things going into this. I picked a product in a specific niche without too much competition. I sought out a version of the product not everyone is selling. I invested in professional product images. I've written keyword rich copy in my title, bullet points, and description. I have almost 30 reviews, 92% of which are in the 5 star range and nothing below 3 stars. I'm doing PPC to get extra traffic.
Since I started selling a couple months ago, at least 15-20 other sellers have come into this niche. They all sell a low quality, cheap version of what I sell and are in a race to the bottom. Some of them have half as many reviews as me (and lower avg rating) and barely any text on their listing, yet are ranked higher than me organically. I can only assume it's because they're doing huge giveaways and have a much lower price.
My product goes for $40 and between COGS, shipping, FBA fees, and PPC I make around $8 profit per sale, and that number is shrinking. I don't sell that many units per day. Worse my sales rank is dropping fast, I assume because my item is priced higher. I'm beginning to worry I won't even break even on this order by the time I sell all my inventory.
I don't see how I can stick around on Amazon long. I may be able to use it as a channel where I can make a few extra sales per day, but the idea of building a long-term business here doesn't seem practical. I understand full-time sellers have lots of listings, but this is a capital issue for me and other small sellers.
Has anyone had similar experiences? What did you do?
Want to get rich with top rated FREE Super Affiliate Training?
https://www.facebook.com/groups/ASMEntrepreneurs/
We help sellers get the MAXIMUM amount for their websites and all buyers know that these sites are 100% vetted.
https://www.facebook.com/groups/ASMEntrepreneurs/
We help sellers get the MAXIMUM amount for their websites and all buyers know that these sites are 100% vetted.