- Top 2K in Sports and Outdoors on Amazon.com.
- Only 2 competitive sellers. They are UK-based and FBM. They ship without tracking, with a 2-6 week delivery window.
- Product has 2k+ reviews on Amazon.com with a 4.5 star average.
- Product is well known among people who use this type of product. This product has been around for 100+ years, lots of consumer trust built up.
- The UK sellers are retailing for $16.50CAD incl. untracked international shipping. My cost would be $10 per unit, plus 15% referral fee, plus $5.60 FBA fee. If I sell for $20CAD, that gives me $1.40 margin per unit to ship from distributor to Amazon and profit. Half of any profit would go to income tax...
The bottom line:
I think this product has weaker sales, because the only two primary sellers are shipping internationally with a massive ship delay. I think this product would jump in sales rank if I sold it FBA and it was eligible for prime.
However, this will require me to charge a premium over the UK sellers. I basically need to sell for $20 to cover my costs, and I'd like to sell for $21 or $22 per unit. That price is certainly reasonable for what you get, and includes shipping for prime users...
The Buy Box is what matters. Assuming I maintain good seller ratings and am FBA, is it reasonable to expect to win the buy box with a 33% or $5 premium over the non-FBA sellers?
Thanks in advance for any thought on this.