The only constant on Amazon is change. And it isn’t easy keeping up with all these Amazon costs, fees, and policy changes. If you can’t wrap your head around inventory costs and margins on Amazon, the answer is simple: Sellery.
The question Amazon sellers ask us the most is “How do I price my item so that I cover my costs and avoid selling at a loss?”. We’ve been around long enough to know that what they really mean is “What are the latest Amazon inventory costs, commissions, and fees?”
For seasoned sellers, other business costs are relatively clear and accounted for. But when it comes to Amazon inventory costs and fees, there’s room to save money. The lower the price, the quicker the sale, and the lower the inventory costs. On the other hand, the lower the price, the smaller the profit margin.
Finding that ‘sweet spot’, where the price is low enough to sell, but high enough to make a profit – that’s what it’s all about. But make no mistake; Amazon inventory costs, commissions, and fees are complex. And when you don’t know them, you’re not selling; you’re gambling. We said so right here.
Amazon Fees, Commissions, and Costs
Let’s cut to the chase. Sellers on Amazon know that there are a few fees you simply can’t dodge. The Amazon Revenue Calculator can estimate your fulfillment and selling fees on Amazon.com, but it has its limitations.
In our post about hidden Amazon costs, we talked about selling fees, FBA fees, and high-volume listing fees. We also touched on the topic of miscellaneous costs. Removal fees, overage fees, return fees, refund fees, and minimum long-term storage fees fall squarely in that category.
But for anyone selling in more than one category, through multiple fulfilment channels, and on more than one venue, there are simply too many unknowns. Unfortunately, a full blog post on the topic would only scratch the surface. So, we’ll let Sellery do the talking.
Sellery Can Help With Amazon Costs and Profits
We developed Sellery over a decade ago. Ever since then, we’ve been working to make it faster, smarter, and better than any other repricer. But the fundamentals – the features that stop loss and boost profit – are the same:
1. Sellery Shows You Up-to-Date Costs. It automatically adds Amazon inventory costs, fees, and commissions. And whenever Amazon announces a change, you can be sure that Sellery will factor it in within hours. Simply scan an item or type in an ASIN to view the costs.
For instance, the shipping cost estimate (underlined below and demonstrated in this video) is based on the weight, dimensions of the product, the source, the venue, and the type of fulfilment used. This being an MFN product, Sellery shows the commission and the closing fee.
2. Sellery Lets You Tweak Costs. The Pricing Log above displays the original ‘cost’ of the item. But to get an idea of the real cost of an item, you need to add your monthly storage costs, overheads, overage, removal fees, VAT etc. To change this or other costs, simply make a new entry in the appropriate column. This video shows you how.
3. Sellery Lets You Make Edits in Bulk. To change any of these fields, simply create a spreadsheet and use the upload feature. It will match your columns, and help you fix discrepancies on the spot. As soon as you save your changes, the edits go live on Amazon.
4. Sellery Allows You to Apply Markups. Sellery can help you protect your investment with a markup. But if you’re happy to break even (e.g. liquidation), then simply set a negative markup to offset the original cost. Sellery then calculates your minimum listing price. And if you still make a profit after all that, even better.
5. Sellery Lets You Set Your Profit Margins. When all’s said and done, you wouldn’t mind a little something extra. That’s what the margin box above is for. Set your percentage, and rest assured Sellery will never take a bite out of your profits by selling for anything less.
6. Sellery Enforces MAP and Minimum Price Limits. Based on your choices, Sellery will calculate your minimum price. The final listing price will never drop below this minimum price.
The same goes for MAP. The video below shows you how to set MAP values so you don’t risk an account suspension. Unless you specifically set a rule that allows Sellery to lower the price for you (e.g. for testing purposes), you are always covered and in control.
7. Sellery Monitors Your Competition. It’s not just the seller with the cheapest offer you should keep an eye on. Luckily, you can work with Sellery to outsmart any number of competitors, be they FBA, MFN sellers, or even Amazon. Target them, filter them, adjust your prices based on theirs, and keep your edge with Pricing Strategies.
8. Sellery Works with Private LabelThis is what you call products manufactu… More. If you want to compete with sellers who have similar items to yours, you need a tool that understands your product. Sellery does. Use it to view listings back to back. Then add or remove them from your competitor pool. This video shows you how.
9. Sellery Sees the Buy BoxThis refers to the situation where a sel… More. These days, repricing automatically doesn’t make much of a difference if you or your competitor don’t own the Buy Box. That’s where Sellery comes in. It shows you the Buy Box for every ConditionProducts can only be listed on Amazon if… More, and lets you set your price point based on it.
10. Sellery Lets You Work with Batches. You can save a great deal of time by grouping your items into sets and then tweaking their listings in bulk. For instance, you can filter all the items that haven’t sold in the last month, and instantly change prices en masse. Here’s how.
11. Sellery Reprices in Real Time. Automatic repricing software is clever and fast. With it, a competitor can anticipate your price change and lower theirs even more, making a sale while your price is still updating. But there’s one tool that’s not affected by the old repricing lag.
Sellery is always 2 steps ahead of your competitor. So, any tweak you make with Sellery is up and running in a flash, however large the inventory. Any subsequent change (i.e. Buy BoxThis refers to the situation where a sel… More ownership, lowest price Simply the lowest price an Amazon… More change) is automatically factored in, and your price is updated instantly.
Long story short, Sellery is not like other repricers. It lets you take full control of your Amazon costs, sales, and profits. It also spares you the trouble of keeping up with all these Amazon fees and commissions. And it never ever goes rogue, dragging you through price wars. But don’t take our word for it. Try it for free today.
Melanie takes an active interest in all things Amazon. She keeps an eye on the latest developments and keeps Amazon sellers up to speed.
