Case Study: Are These Products Suitable for Amazon Sellers?

Case Study: Are These Products Suitable for Amazon Sellers?



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What to sell is an age-old question for Amazon FBA sellers. In today’s article, we will introduce five products in detail, analyze their profits, and whether to recommend them to sellers.


1

Wooden Doll House Furniture Set


This type of toy set includes various wooden models of bedrooms, bathrooms, etc., which can help children understand the composition of the family and promote hands-on ability, making it very suitable as a gift.


Check the market demand: After searching with the tool, the results show that the average sales volume of this product is 4759, indicating good demand, and the average price is $31.39. The following are the search results:


After looking at different products, we found that each product has different sets of quantities and different prices. The products with close to the average price generally have five sets:

       

       

Let’s take a look at the actual price of this product:

product

5 wooden furniture play sets

Price

$31.39 (considering the average selling price)

FBA Fees

$6.98

Commission (15%)

$5.25

Actual price

$19.16


profit

Searching for this product on Alibaba, the price per set is between 3-6 USD, with an average price of 4.5 USD per set:


So according to the three cost scenarios, the profit of this product is as follows :

Lowest cost

Intermediate Cost

Highest cost

The prices of the five sets of products

$31.39

$31.39

$31.39

FBA Fees

$6.98

$6.98

$6.98

commission

$5.25

$5.25

$5.25

Actual prices of five groups of products

$19.16

$19.16

$19.16

The actual price of each group of products

$3.83

$3.83

$3.83

Cost per product group

$3.0

$4.5

$6.0

Actual profit of each product group

$ 0.83

-$0.67

-$2.17


Conclusion: Even if purchased at the lowest cost, the profit is very low, so it is not recommended for sellers to sell such products.



2

Cosmetic bag


The travel cosmetic bag is made of PVC waterproof material with a zipper on the top. It is used to store wet items such as swimsuits and towels, and is also suitable for storing cosmetics. The transparent bag is clear at a glance, making it easy for you to find what you need, and is very suitable for travel.

      

The tool shows that consumer demand for this product does not seem to be very high, and the average selling price is $15.32, but the price will be affected by size and product quantity.

      

A product with a price close to the average selling price was selected from the search results as a calculation sample :

product

6-piece cosmetic bag set

Price

$14.99

FBA Fees

$6.93

Commission (15%)

$2.25

Actual price

$4.81


Check the wholesale price of the product on Alibaba:

      

The products in the picture above are in groups of 3. Considering that there are 6 in a group, the wholesale price of each group is about 0.72 to 2 US dollars.


profit


So according to the three cost scenarios, the profit of this product is as follows:

Lowest cost

Intermediate Cost

Highest cost

Price per set of 6

$14.99

$14.99

$14.99

FBA Fees

$6.93

$6.93

$6.93

Referral Fee

$2.25

$2.25

$2.25

The actual price of a set

$4.81

$4.81

$4.81

cost

$0.72

$1.0

$2.0

profit

$ 4.09

$ 3.81

$2.81


in conclusion: From the table above, we can see that this is a profitable product. Even with the highest cost, the profit is more than $2.



3

Cow print party plates



Search data shows that the average sales volume of this product is 3999, which is a good sales volume. As shown in the following figure:

      


The average price of the products is 14.48. From the results, select the product closest to the average price, which has a quantity of 24:

      

So the actual price of this product is:

product

Party Cups and Plates (24 pieces)

Price

$14.48

FBA Fees

$6.29

Commission (15%)

$2.24

Actual price

$5.95


Now let's take a look at how much this product costs :

      


Calculated based on the highest and lowest costs, the profit of this product is as follows :

Lowest cost

Lowest cost

Product Price

$14.48

$14.48

FBA Fees

$6.29

$6.29

Commission (15%)

$2.24

$2.24

Actual prices of 24 products

$5.95

$5.95

The actual price of each product

$0.25

$0.25

Cost per product

$ 0.12

$0.25

Profit per product

$ 0.13

$ 0.00

Therefore, the profit of 24 products is only 3.07 US dollars. If the advertising costs are also taken into account, the final profit may be 0.


Conclusion: Although the product has good demand, the profit margin is low and unattractive, so it is not recommended to sell this product.



4


Banquet table cover roll



This tablecloth is made of plastic, is waterproof, and can be cut to any size. A quick search for this product yields the following results:

      

      

The average sales volume of this product is 1528, the demand is low, and the average price is 21.37.

The first product in the search results is a roll of 100 plastic tablecloths, priced at $15.99.

The FBA fee is $7.36 and the commission is 15%, or $2.4.

Check Alibaba's wholesale price , it's between 4.6 and 4.8 USD.


profit

Price per product

$15.99

FBA Fees

$7.36

commission

$2.3

Actual price

$6.33

Product Cost

$4.7

profit

$1.63


Conclusion : The profit is $1.63, which is not very profitable even without taking into account the advertising costs. From the perspective of demand and profit, this product is very average.


5


Mason jar measuring cups


This jar has a retro look and is suitable as a birthday or wedding gift. Searching for Mason jars shows that the average sales volume is 5,434 units and the average price is $24.57, indicating high demand.

      

      

Taking the fourth product in the search results as a reference, the FBA fee for four cups of different sizes is $5.46.

      

The wholesale price on Alibaba is US$1.2 to US$1.6 per piece.


profit

Lowest cost

Highest cost

Price per set of 4

$12.99

$12.99

FBA Fees

$5.46

$5.46

commission

$1.95

$1.95

A set of actual prices

$5.58

$5.58

Actual price per piece

$1.30

$1.30

Cost per piece

$1.20

$1.60

profit

$0.1

-$ 0.3

in conclusion : Sellers are not recommended to sell this product.


According to this routine, have you learned how to analyze whether the selected products are suitable for sale? Next, it’s your turn to analyze it yourself.


Text ✎ Mary/

Statement: When reprinting this article, the title and original text must not be modified, and the source and original link must be retained.

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