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Difference between Amazon Fees and FBA Fees

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I'm trying to understand my first report and it looks as though I'm losing money, which means I'm not even paying for the goods that I purchased. Can anyone explain the difference between the two? Also, in my first month I sold two products and the selling fees were higher than the products themselves. Can anyone also explain why? I'm totally confused. View the reply santosal selected as correct


santosal wrote:
I'm trying to understand my first report and it looks as though I'm losing money, which means I'm not even paying for the goods that I purchased. Can anyone explain the difference between the two? Also, in my first month I sold two products and the selling fees were higher than the products themselves. Can anyone also explain why? I'm totally confused.


Amazon fees include commision, shipping to Customer, and handling. Anything not including those specific arenas are generally under FBA fees. Examples include, storage fees, monthly membership fees, as well as fees involved in shipping the item to FBA centers.

Look at it like this, Amazon Fees involve an actual sale, from commission to delivery and any customer issues after that. FBA fees involve all the other expenses related to getting your product listed and ready for sale. FBA is not for everyone, even the best sellers take a loss here and there, but all in all if you have the right product and price its probably the best way to go to move units at a better pace. Good Luck!


Great post


Dave, thanks for your thorough answer!

I think you're right in that my pricing strategy is not the best, however, after digging in a little more, I learned that each time I create a shipping label, it goes as operating expenses right away in the current statement, and if I haven't sold many items yet then my balance will be negative. It's a matter of learning how to read the balance statement. Anyways, I'll work on my pricing strategy. Thanks!


Thank you! This is the best answer for sure. That's what I needed to understand. I was confused with Amazon fees vs FBA fees but you clarified a lot.

Thanks!


santosal wrote:Dave, thanks for your thorough answer!

I think you're right in that my pricing strategy is not the best, however, after digging in a little more, I learned that each time I create a shipping label, it goes as operating expenses right away in the current statement, and if I haven't sold many items yet then my balance will be negative. It's a matter of learning how to read the balance statement. Anyways, I'll work on my pricing strategy. Thanks!



"Also keep in mind if you go FBA you should not list or sell items under $10, "

It's hard to understand the business model of those who list stuff on FBA for $3.99.


keziak wrote:
"Also keep in mind if you go FBA you should not list or sell items under $10, "

It's hard to understand the business model of those who list stuff on FBA for $3.99.



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