How can Amazon do it without losing money?
How can Amazon do it without losing money? I have been working for more than a year, and the advertising cost has been 70,000 to 80,000, and every penny has been confiscated. The same products are in China. Now this season, they sell a lot of orders. They are more affordable than others in Amazon, and no one buys them. Which senior has a way to guide them
How can Amazon do it without losing money?
How can Amazon do it without losing money? I have been working for more than a year, and the advertising cost has been 70,000 to 80,000, and every penny has been confiscated. The same products are in China. Now this season, they sell a lot of orders. They are more affordable than others in Amazon, and no one buys them. Which senior has a way to guide them
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Seller_kIukTwdhvntAp
" I have been working for more than a year, and the advertising cost has been 70,000 to 80,000, and every penny has been confiscated. "
If by 'confiscated' you mean that you didn't make a profit and all the cash from sales went for advertising, then YOU are the problem, not Amazon.
Estimates are that as many as 1/3 of all sellers here are losing money. Most can't/don't/won't do the math to see if they are operating profitably.
It sounds as if you have a pricing problem.
One of the first rules of business is to know ALL your costs BEFORE you establish a selling price.
Amazon profit margins suck due to competition from people that are willing to 'race to the bottom' as well as competing with Amazon.
I price my items so that I make a profit if/when they sell on here. If they don't sell here they will on one of the other sites I sell on that have LOWER FEES.
Jumping in and not knowing the costs is a self-inflicted wound no matter what site you choose to sell on.
Danny_Amazon
Hello @Seller_LW2dDtduK4vpu- thanks for looking to the forums for some context on advertising best practices. I have some resources here that could prove beneficial!
On the advertising console, they have some methods for optimizing your campaigns, and optimizing your budget, along with tips for keeping ACOS (Average cost of sales) low.
Finally, we do have an ongoing series, and upcoming Ask Amazon event with the Audience Shopper Insights team, where you can ask questions on how to use their tools to better differentiate you listings and reach new audiences!
I hope this helps,
Danny
