Learn about eBay from Skip McGrath Follow Skip on Facebook
Follow Skip on Twitter

Sell Used Books Online for Profit


Blog Search


Categories

Archives

See Also

Our Most Popular Posts

Resources at Amazon

 

Twenty Tips For Selling on Amazon – Tip # 13

December 21st, 2013 by Skip McGrath

13.  Raise your Average Selling Price (ASP) to reduce your fees and increase profit margins – Two of the fees you encounter in FBA are the Order handling fee ($1.00) and the Pick and Pack fee ($1.02). That totals $2.02.  Now if you are selling an item for $12.99, those two fees combined take 15.5% of your margin.  But sell an item for $27.95 and those two fees are only 7.2% of your margin.

Here is another example.  These are three products I am selling in Amazon FBA and their fees:

Item

Selling Price

Fees

Fees as a % of Margin

Silk wrap bracelet     $14.99     $5.42

36.2%

Salt & Pepper Mill Set

$89.97

$16.87

18.7%

Stick Blender  $144.00   $23.35

16.2%

So as you can see, the higher you go up in price the lower your fees as a percentage of your sale.  So as you source inventory, look for products with a higher average selling price.

My goal is $35.00.  I have not hit that yet but am working towards it.  Currently I am just over $29 ASP.  The reason is I have several fashion jewelry products that sell for just under $20, but I keep them because they are insanely profitable.  My cost on those items is between $3.50 and $6.00, so even with the high fees, I am still making good money.

If you want to learn how to sell on Amazon professionally, take a look at my latest training course – The Complete Amazon Marketing System.

Write a comment






Popular Pages

Free Newsletter
News, Tips & Tools for Online Sellers.

Newsletter for online sellers 

20 Tips for Selling on Amazon

Amazon Selling Tips 

77 Tips & Tools for Selling on eBay

Tips & tools for Selling on eBay 

Learn How To Sell on eBay

Learn how to sell on eBay 

Want to sell on Amazon?

Learn to sell on Amazon


My Top 99 Wholesale Sources

 

Personal eBay & Amazon Coaching Program
Would you like personal coaching?

Coaching for online sellers 



FREE SUBSCRIPTION
 The Online Seller's News is the oldest & largest newsletter for eBay, Amazon & Online Sellers. Get news, tips, tricks & learn online selling strategies.
New Wholesale Sources in every issue.

 
Email::

 
First Name:

 
Last Name:

 
iDrive Cloud Backup
 
 
 
 
 
Mailers USA
 
 
 
Terapeak
 

 
Skip's Newsletter
 
Own Your eBay Traffic
 
Complete ebay Marketing System
 
Niche Markets
 
Wholesale Buying System
 
Cleer Platinum
 
eBay Consignment Business
 
Site Build It!
© 1999- Harry McGrath, Inc., DBA Skip McGrath, Auction Seller's Resource and Vision-One Marketing. All Rights Reserved.

eBay Tools and Resources | Contact Us | Privacy Policy | Guest Contributions | Shipping & Return Policies
 
Home | Newsletters | eBay Training | Free Articles | Tools & Resources | Web Wholesale SearchTestimonialsBlog