I considered fulfillment for a while, I mean how great is it to have Amazon ship your items for you! Your products are then opened up to Amazon Prime members and you just sit back and relax and make money right?
To my disappointment its not turning out like I expected.
We sent in some of our bags that were big sellers. We kept getting notifications about the item suggested for fulfillment. We were selling it on Amazon for just over $13, we ran calculations and it suggested that it was not a good idea but I wanted to try it out thinking we could move inventory quickly. We are not a huge operation and we use the USPS so our overhead is not that much, for now anyway.
We shipped 3 at first and left the price at just over $13. Within a day of them getting it, they sold all 3 of them. Then I checked the calculations, after all the fees Amazon was charging we were even, you cant run a business 'making even'. There is the cost of the item, inbound fright, outbound fright and all the fees Amazon charges. So I increased the price by just under $3 and shipped out 3 more. Those 3 sold quickly again so I shipped a dozen this time and within a few days of Amazon receiving it they sold 4 again. I looked again at what I was getting in and surprised to find that the fees increased and I was making even less then before! What the heck happened?
After calling them today I found out the items I sent are considered OVERSIZE by .3"... what the heck! I personally fold the bags and well they should not be OVERSIZE! Amazon is now charging me a fee for oversize so instead of fees just under $5 now fees are over $9!
Can I increase the prices of these items to $20? Should I request them to be returned? They would charge me 60 cents per item to return them. Im increasing the price to just under $18 lets see what happens. If they dont sell quickly I will just return lower price to sell them out and go back to selling them myself.
Ive also sent some toys I have sitting here which have not sold either. Its been a month so Im not too worried about it just yet.