12/06/2017
New Brand in a New Territory
Webretailer Series
Hi Jean-Paul,
Before I tee-off on this reply, allow me to commiserate with you. You have been using Amazon FBA for two years and still consider yourself new to the model. That humility will serve you well, as it can be pivotal to long term success. I’ve worked in this industry for a decade, and I learn new things every week.
First let’s do some basic maths
These items retail between €300-450. Let’s convert this to dollars so currency conversions don’t trip us up. This is roughly $350-550 based on present conversions.
With the wholesale price at $120, you have a margin of 70-80%. So far, so good.
Let’s assume shipping and other associated costs of getting the product from Italy to Amazon FBA in the U.S. will eat into this by 20%. Likely too high, but let’s be conservative.
With a margin of 50%, the maths check out nicely. Reselling another company’s brand for a 50% margin is healthy.
No sand trap so far, but ...Read the full article here!;
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