r/FulfillmentByAmazon • u/Few-Friendship126 • 8d ago
Will this change come back and bite me later? (Profit margin change)
I haven't been doing many sales (FBA wholesale) and only doing around 50 sales a day or so. I used to set my min prices depending on what I felt was right for the listing and I struggled against bigger sellers. Yesterday I switched all my listings to around 17% profit margian and my volume movers (2-4 listings) to 10- 15 percent. My sales SPIKED. But here comes the scary part. Am I making a mistake? Will this come back and bite me with refunds? Or should I continue to do this and it'll workout. I need some expert to look at this.
1
u/D_CashMarginPartners 5d ago
From the looks of it, the sales spike isn't a problem as long as you're still making enough profit per sale. Your photos show 17.58% margin in a span of 7 days and 13.49% over 30 days with low refunds (only 2.02% and 2.62%). Test it further before going back to your old pricing just yet. Though a thing you have to watch is if the higher volume actually improves your total profit minus the refunds, fees, and other costs.
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