Whether selling on Amazon is profitable or not is a major concern for anyone considering launching on Jeff Bezos’ platform.

There’s no simple answer like yes or no.

The profitability and return on investment that you can expect depends on a certain number of factors such as the selling price of your products, your margin rate, your logistical costs. However, profitability is often the result of the strategic choices you make and it is the role of our consultants to guide you towards the right distribution and pricing model to make your business profitable.

Created in 1994 by Jeff Bezos, the website represents today 20% of the e-commerce in France. 1 out of 3 French people buy on this marketplace, that is to say nearly 22 million French people, which gives you an idea of the potential market!

Many US and European brands and SMEs are successful!

Their success and profits come from an excellent understanding of the marketplace. Most often, they delegate the strategy and the account management to our agency so that we can put our expertise to work on behalf of their business, allowing them to focus on high value-added tasks such as sourcing or product development.

If you want to find out whether it is profitable or not to sell on Amazon, contact eTAIL agency. We will be able to offer you a customized strategy that will meet your sales performance objectives.

A commission is taken from each sale made by third-party sellers. You have to know the amount of this commission to be able to estimate your profit from your sales.

The percentage of the commission varies depending on the type of products you sell. For example, a percentage of 15.4% will be charged on sales of childcare equipment with a total sales price of over €10, while the sales fee is 7.2% on computer equipment.

The commission fee table is available here.

In addition to the sales fee, there are: 

• Management fees
• Monthly subscription fees for the Seller Central service

There are also specific fees such as closing costs for the multimedia category or fees for large volumes.

Depending on the chosen distribution model, storage and shipping costs will have to be included. This is an additional cost that will allow you to be eligible for Amazon Prime.

The sales charts are complex, and it is not always easy to find your way around them, nor to know how to calculate your final margin. We know all about it! We can make it easier for you to understand and advise you on the best strategy to exploit this huge market.

You can directly create a seller account online, on this page. You just have to click on “create a business account” and follow the steps.

You will need to prove your identity by uploading your ID and will have to provide the necessary proof of your companies registration.

However, creating a seller’s account is a simple online process that does not guarantee your success on Amazon. Before you start the registration process, there are a number of questions you should ask yourself:

• Which distribution model should I use: FBA or FBM?
• Which category should I register my products in?
• Do I need to create EAN codes?
• Which carrier should I use to ship my stock or products?

We will review all of these elements with you. Our years of experience allow us to have a comprehensive view of the factors for success on the platform, and our consulting role is to offer custom strategies to all of our clients.

Thanks to Amazon’s logistics program, the marketplace is increasing the number of parcel delivery sites via partner delivery agencies.

Amazon’s delivery agencies enable faster and more efficient delivery. They receive packages from sorting and distribution centers during the night so that they can be delivered the next morning.

What’s in it for third-party sellers?

If you choose Amazon FBA, your items are shipped by Amazon. And you can benefit from Amazon Prime label, a true advantage to improving your results. The faster the delivery, the more the consumer is willing to buy.

Other logistics players can also help you, such as Shippingbo, the 1st omnichannel e-commerce logistics technology that optimizes your parcel shipments by connecting all your e-commerce sites and marketplaces.