Re:Amazon Takes a 50% Cut of Seller's Revenue
by thaumasiotes on Saturday February 18, 2023 @06:51PM
(#34852409)
> For me to ship 500x units to the warehouse, from my home in Australia, it costs around
> For me to ship 1x unit from my home in Australia to the US, it would cost around US$20 and take 2 weeks to get there. In this instance, I've paid $10,000 and the customer experience is worse.
Why are the units starting from your home? Is that where they're manufactured?
For me to ship 500x units to the warehouse, from my home in Australia, it costs around US$200. Factor in the FBA fee of around $3 per unit, and you get a total shipping and logistics cost per batch of $1700.
For me to ship 1x unit from my home in Australia to the US, it would cost around US$20 and take 2 weeks to get there. In this instance, I've paid $10,000 and the customer experience is worse.
Even if I were based in the US, I'd be looking at $6 per package via USPS, plus all the fucking around to label and box up those 500x units. (That's maybe $3200 total including packaging, plus about 10 hours' labour distributed over the course of two months.)
I guess the point is that making use of highly-efficient logistics services allows both small businesses and courier companies to access Amazon's economies of scale.