Amazon cost analysis

| February 7, 2019

Dropshippers, before scaling any product might have potential, the first thing you need to is figure out product cost. In most case, sell price should be at least Besides product cost, the price have to cover profit margin, online traffic, international shipping and whatnot.

Let’s do a price research. I’ll randomly pickup a product at Amazon as below.
amz case
16$ for 3 pack, lets find out product cost from 1688 supplier. amz case

Cost as below table:

cost item price in USD
product cost 7$
shipping 2.3
amazon CPC NA.
total cost 16$

Just say, selling price 16$, have to cover product cost + internetional shipping which is 9.3$, and Amazon FBA&CPC, and 20% gross profit on top of that. Gross profit margin depends on product.

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