## Selling on Amazon

I have struggled with amazon’s calculations since beginning to sell books on Amazon. At first, I thought “Wow how cool is this”. Then I started to dig deeper into the way they charge what they charge
Amazon fees FBA Pick & Pack Fee (\$1.06)
Amazon fees FBA Weight Handling Fee (\$0.85)
Amazon fees Referral Fee on Item Price (\$1.21)
Amazon fees Variable Closing Fee (\$1.35)
Product charges \$8.09

In this example above: the cost to sell a book for \$8.09 is \$4.47 leaving a profit of \$3.62. This is amazons cost just for selling the book. If the book cost is \$1.00 you are now at \$2.62 but you’re not done yet you still have to get it to Amazon. If you’re like me, you will most likely get an average of 28 books into a box with a discounted shipping rate by courtesy of Amazon of nearly 35% to 40%. I pay around \$9.00 to \$11.00 per shipment which is an average of \$0.36 per book and if you subtract that from the \$3.62 it leaves you with \$2.26. You’re not done yet, though. If you factor in tape, boxes, and labels you will need to subtract that cost as well. For me, I average about \$0.08 per book leaving me with \$2.18 for a book that was sold for \$8.09.
Not bad right? Well, you can do better, much better by fulfilling your own orders it’s not as hard as you may think. Packaging mailers, you can get for free and you can eliminate most of the Amazon fees here is an example using the same example for the book above.
1 LB or less

Sale price for the book under 1 LB.
\$ 8.09
\$ 3.99 POSTAGE
_______
\$ 12.08 Total sale

\$ (1.35) Variable Closing Fee
\$ (1.21) Commission on sale
\$ (2.56) Total cost
\$ (2.72) mail postage (actual)
___________
\$ (5.28) Total cost to sell

\$ 6.80 Net