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What kind of premium can you charge if you are the only one selling a product FBA / Prime?

by Caydel
2 replies
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I'm looking at a product to potentially sell on Amazon.ca.

The good:
  • 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 bad:
  • 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.
#charge #fba #kind #premium #prime #product #selling
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  • Profile picture of the author Caydel
    Oh, and just to mention before someone asks - the product is manufactured in Europe, and they don't want to deal with me directly, referring me to their Canadian distributor instead. I'm sure it would be different if I was asking about a $50k order.
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  • Profile picture of the author DWaters
    Even if the price is a fair amount higher than the other sellers I have seen that the only FBA seller will sometimes get the buy box. You can never be certain since the buy box seems like a bit of a mystery. If possible I would buy a small amount of inventory and see how it works for you.
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