Can I sell Food on Amazon Fba Part 2

Posted by Damian Roberti on

I'll show you what Amazon's going to charge you for FBA. So next one up is shipping. Now, when you go through Amazon FBA, are you going to be charging the shipping or you not? Okay. Now again, you have to figure out how much it costs for you to actually ship a product. And you have to know the difference of what you as a seller. If you were to fulfill the order compared to FBA. And again, all of this will make sense in a second. When I show you on the computer, how we actually create the price points themselves for profitability, number four, best by date. Now, one of the tricks about selling food through Amazon FBA is that it's the very trick of knowing that you're going to go through inventory before the best by date. Some products have a very long shelf life.

Selling Food On Amazon Reddit.

If you're selling spices, that's one of the best things. If you're doing granola dried nuts, you have a big window of expiry, right? The best by date by then. But if you're selling products that have a three months, four months, six months, a window of exploration or best buy that's going to be something that you need to monitor very carefully because as it approaches that best buy timeframe, Amazon sees it. It's in stock. They're going to pull it before the best by date. And I believe if I'm not mistaken, it's around 50 days. I'll double check on that specifically, but you want to make sure that it's you've got quite a bit of days prior to the actual best by date. Because what Amazon will do is either tell you, Hey, Damien, you need to actually create a pool loader. And we're going to pull the products.

We can send it back or disposal order, and guess what they charge you for both. If they're going to pull the product and they're going to pay an employee, they're going to charge me to pay them, to pull the product, because it's about to expire, which I now lose money on, right? Or they're going to dispose of it. So they're going to pay an employee to pull it and throw it in the trash. So be aware of that too. You need to be on top of each batch that you actually ship out to the Amazon facility. You need to be well aware of that. Batch is better by date. Otherwise you're going to lose money so best buy. So number five, shipping costs to Amazon. Now people don't realize this also. Whenever I create a, an FBA order that I ship out based upon how many units are going out in the total, in entire weight of those units, that's going to incur a cost in order for me to ship it.

Now, now granted, the more you ship the per unit price comes down dramatically. Now I'll give you an example. One time I shipped out a hundred units of some sprinkles that we did for holiday and event. So around, I think it was September, October. I started to put sprinkles into the FBA system for the holidays and to ship out. I was about two or 300 bags. It came down to about 10 cents or 5 cents a bag is what it averaged out to. So that's important to know because when you create your retail price and you want to know your overall costs, shipping directly to Amazon, that's going to be a cost that you have to incur. They're not going to do it for free. So from your facility ups, whoever it may be, that's shipping it mostly it's ups that we use from us to Amazon.

There's a fee involved. So you need to be aware of what that fee is because that's going to impact your per unit price point. When you create your FBA pricing, okay. Number six, ship to sell out best by date. This is another reason why I say this. My theory, and it's worked very well for us. My practice is I'd rather short myself in inventory than have too many that get thrown into the trash. We make everything ourselves here in our facility. We bag them. We make the labels. We even print all of that in house. Everything is done here. So why would I want to send a thousand units? If I know for sure that I may not sell a thousand units and I'm going to dispose of a couple hundred, I would rather send in about 400 units, sell out and then replenish and replenish and replenish.

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