Selling small, low-priced items: is it worth it with Amazon FBA?

by 18 replies
25
Hi all,

I'm considering selling small items (stuff like key chains) on Amazon through their FBA service. I never used that before, so I did some research and I need some advice.

I basically found that Amazon's fees + shipping costs will be about $2 for every order. Considering that these items sell for about $2 - $3, I'm concluding that it's not worth it. Am I right or wrong about Amazon's fees??

Another question I have is about UPCs and labeling. Key chains come in several different designs, do I need to buy a different UPC for every design?
Also, do I need to label every single key chain before shipping the package to Amazon??

Any feedback is highly appreciated.
#ecommerce sites, wholesaling & drop shipping #amazon #fba #items #lowpriced #selling #small #worth
  • [DELETED]
    • [1] reply
    • Lastreporter is dead on. By the time you list the product have Amazon ship them and Amazon takes their percentage you will loose money.

      You may want to list them on E-bay but by the time you ship them and compete against others there. It may not be worth your time and effort.

      You have to figure that out. You will need to move a lot of volume and make a profit at the same time. Your Competition may use key chains or other small items to get a lot of sales to boost them to a top rated seller.
      • [ 1 ] Thanks
      • [1] reply
  • It hard to make money on orders under $10. Yes, there are some exceptions but in general it's better to focus on products that have a decent profit margin.
  • I did sell an item that was under $5 on Amazon. I didn't do it for the opportunity, I did it because I would buy a case of 144 to send to FBA. It was a consistent seller and it was an accessory to a product line I was already involved in. I think my net, after fees and cost, was between 0.50-0.75 per unit. The items didn't require UPCs and they didn't require individual labels at that time. When Amazon switched to wanting labels, I stopped. It was an item already listed in the Amazon so I didn't see it being a big deal to pack a case for $70 profit.

    In your case, I wouldn't consider it unless it met the above criteria.
    • [1] reply
    • I see folks selling products I too sell, on amazon fba for like $3. I just don't see how economically it's feasible. Even if they got the products for free you're still paying shipping to the warehouse, for labels, and storage fees, plus your time. Then add in their commission plus fees they charge per order? I can't wrap my head around it. I understands the concept of loss leaders but that doesn't apply for these products. How can it be worth it?
      • [1] reply
  • [DELETED]
  • I'd agree with Silas.

    Here's the thing, though. Amazon doesn't consider shipping as part of the price - and they often charge it when you're selling without your control. UNLESS you fill certain criteria.

    On eBay, though, you can always do free shipping.

    So, translate that into Amazon's philosophy against eBay's.

    You CANNOT sell anything for a price you choose. It has to be what people are willing to pay. Is that 5 dollars? In total? Or is it 5 dollars plus shipping, say, 5.00?

    That is 10 dollars then.

    5 dollars plus 5 dollars in shipping is the same as 10 dollars and free shipping.

    Unfortunately, Amazon doesn't publish sold prices (and I don't think they will since the prices fluctuate so much.)

    eBay does - you're able to calculate the total market worth, thereby accurately predict the price it will sell for.

    ALSO, you're able to calculate the total profit prior to listing.

    I do not recommend selling small products. It doesn't matter the price people pay for an item so much as what is your profit on the items?

    Also - your turnover isn't determined by the price either. It's the demand AND the rank.
    • [1] reply
    • there is a calculator on your sellers page in which you input the selling price of a product you want to sell and it will yell you how much you will receive from them minus all their fees (estimated of course) then you can see if it will be profitable or not.

      For low cost items it might be better to sell a multi-pack or bundle

      al
      • [1] reply
  • Personally I try to stay away from products that have a selling price under $20. Actually I prefer the over $50 range. It is just too much work for too little profit on the real low priced products. Of course if your low cost item is selling at a high volume that is a bit different. The bundling option makes a lot of sense. Perhaps bundle it with a product that it may go well with or sell in multiples such as a "3 pack", etc.
  • Amazon will pay you shipping credit of around $4 if I'm not mistaken. USPS postage is $2

    So you'll make about $1 per transaction minus COSG.

    If it's possible to somehow sell the item for more I'd do it if it's reasonable. If you can manage to make $1 net off each product, then focus on volume.

    My 2 cents..
    • [1] reply
    • The labor alone doesn't justify the profit.

      I don't want to work for 10-15 dollars an hour. I'd rather sell fewer high-profit items and do WAY better. I've been teaching this for years - mostly because it works way better than high-volume.
      • [2] replies
  • [DELETED]
  • The keychain is not suitable for FBA, but maybe you can sell them in pack, such as 5 items a pack or 10 items a pack.
  • Longterm lurker here. A lot of good information here. Thanks! I'll try to find something that I can sell for more dough.
Join the discussion

Next Topics on Trending Feed