The biggest mistake that many beginners make is not factoring in Amazon fees.įor example, beginners will look at an item they can buy for $15 and sell for $25 via FBA and assume that means they are making $10 profit with ~67% ROI – this is not the case! By the time all the FBA selling and shipping fees are factored in, the actual profit will be less than $5 with an ROI that is likely less than 30%. Whether or not your ROI is “good” depends on a lot of factors. If you only earned $2 profit, that would be a 20% ROI. So if you bought an item for $10 and earned $10 profit, that would be a 100% ROI. ROI is your profit per item divided by how much it cost to buy the item. Understanding your ROI and profit margin will help you with this. When you are first getting started on Amazon, all the fees and numbers can get overwhelming when you are trying to figure out how much money you are making and what you should be doing to make more.
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