You can often read on Amazon Seller forums, on Reddit, or other online boards about new entrepreneurs selling on Amazon who can’t figure out why they aren’t making as much money as expected, or even why they are losing money. After all, they buy widgets for $3 in China that they resell for $15; how are they not making bank?
The world of business, e-commerce, and Amazon can sometimes be rough on beginners. And, to be fair, Amazon can make it even more challenging to understand where your money goes. The fees change every year, new fees appear while others disappear. Some are even challenging to keep track of due to their convoluted structure (Hello, low-inventory fee).
Fortunately, Amazon has released an interesting feature: the new SKU Economics Report, designed to help sellers evaluate their costs and profitability per item. So let’s take a look at this new tool and how it can assist you.
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