What is the appropriate gross profit margin for Amazon? How much profit can a product make?

After we open a store on Amazon, we need to pay attention to some of the operating conditions of our own store, such as some data analysis is very necessary. The profit of opening a store on Amazon is divided into gross profit and net profit. What is the appropriate gross profit margin of Amazon? The following is an introduction.

What is an appropriate gross profit margin for Amazon?

The gross profit of the accounting system is the sum of all products. It is recommended that sellers strive to achieve a gross profit margin of 30% for each product. However, not every product has the same performance. In your product portfolio, some high-performing products will increase the average, while others will reduce the average. After confirming that the inventory system data is consistent with the accounting system, take the time to understand the best performing products and the poor performing products.

How much profit does the product have?

1. The answer is don’t expect too much. To put it bluntly, it is generally within 10%, after deducting the purchase cost, first leg, FBA fees, Amazon commissions, advertising fees and other operating expenses, as well as return refunds and cash withdrawal fees. And this profit usually does not deduct office expenses such as labor, rent, and utilities.

2. Please note that the above statement is “generally speaking”. There are certainly people whose product profits are higher than 10%. For example, we now have products with profit margins of more than 50%.

3. But such products are naturally becoming less and less, and you need to look for them with a lantern. Because the process of doing Amazon is like a queue. When Amazon first came out, what products did the first batch of sellers make? They must be those products with large sales, light weight, small size, easy to transport and store, and not easy to break, such as the four major products that people often say are tempered film for mobile phones, mobile phone cases, mobile phone data cables, and mobile phone power banks, and must-have products for everyone such as water cups that are used in large quantities in daily life.

4. As time goes by, more and more people are doing it. At the same time, the products that can be made or are more likely to succeed are gradually those with lower sales, lighter weight, and smaller volume. Later, those that are not so easy to transport or store, and those that are also fragile, will be sold. No one is stupid, they just line up late and can only line up for the products behind them. Unless you are rich and determined, you will pull down the predecessors in front of you at any cost and grab their positions in front.

5. You may ask, what does what I said have to do with the profit mentioned in this article? It is directly related. Because of the queues and the competition for ranking, the overall Amazon profit has been declining.

6. On the other hand, Amazon has become bigger and bigger because of everyone's support, and its influence is becoming more and more far-reaching, so it has no worries about sellers. At the same time, in order to support their stock price to rise steadily and to continuously give their shareholders more returns, Amazon's expenses are rising every year.

7. This is a basic theory. On the one hand, costs are rising year by year. On the other hand, sales prices are gradually decreasing due to fierce competition. But can the actual profits not gradually decrease? It should be said that in the future, many products will become products that cannot be made without profits.

Now Amazon has developed very well in the cross-border e-commerce platform, and the profit in this industry is relatively high. Compared with the domestic e-commerce industry, the competition is not so fierce, so the development prospects of our partners are still very good.

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