Do Sellers Even make profit with £5-10 products

Assume you are doing FBM, selling a product for £9.99 with free shipping. Shipping costs approximately £3-4 (via Royal Mail/Evri). Amazon charges around £2 in fees, and VAT amounts to £2 (at a 20% standard rate). Additionally, the cost of the item is about £2-3.

How do sellers manage to profit from selling products priced between £5-10 on Amazon?

Am I missing something? Any advice is welcome please