I am doing a cost analysis of our FBA items because it has not been done in a while. It turns out the company is losing money on many FBA items.
As I dig through the data I begin to question almost all of FBA for our stuff. Most of our FBA items tend to sell on average around 38 sales per month per item. Our Average cart value is low. Profit per item is low by dollar value.
Many of our items are small/ish and don’t have a large storage fee but they do cost something each month.
We do our own fulfillment in our own warehouse for our website sales. We have extra space for many/most of the items that are currently FBA.
I was always under the impression that FBA makes sense if your item has a lot of sales and is on the small side and you don’t mind giving up some profit. I am unsure where the tipping point is.
When I run the FBA vs FBM calc on Amazon it appears like I could double my net profit for every item I take away from FBA and just ship it out of my own warehouse. I am adding in all the costs and I still win.
Are my thoughts correct?
submitted by /u/MedalsOA
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