COMPARE LOGISTICS AND DETERMINE WHICH FULFILLMENT STRATEGY MAXIMIZES PROFIT.
With a selling price of £30.00, Amazon fees (referral, fulfillment, storage, and placement) consume 30% of your revenue. This leaves a healthy 25.3% profit margin (£7.60 per unit). Your largest Amazon expense is the Referral Fee (£4.50), representing the 15% commission category fee.
Your unit economics look healthy and viable. Capitalize on this honeymoon margin by deploying high-impact listing systems and targeted advertising.
🇬🇧 UK VAT Assumption: The VAT toggle assumes a standard 20% VAT-registered seller status, deducting VAT from a VAT-inclusive price. Sellers below the £90,000 threshold who are not VAT-registered should leave the VAT toggle turned off to avoid incorrect margins.
⚠️ Disclaimer: Fees shown are estimates based on standard Amazon schedules. Actual fees may vary in Seller Central based on specific shipping configurations.
