How are people buying from costco and selling on amazon
I was doing some math on the costco products and I am wondering how are people profitable buying from costco and selling them on amazon. I am looking at this ASIN for example.
B00J04NUIG
FBA sellers are selling it for $37 and the cost of it is $23. Teh FBA fees are $12.35 so basically you are making .04 a unit, basically breaking even. Why would someone buy from Costco and sell it on amazon. The margins aren't there and yet people are doing it. Am I missing something?
How are people buying from costco and selling on amazon
I was doing some math on the costco products and I am wondering how are people profitable buying from costco and selling them on amazon. I am looking at this ASIN for example.
B00J04NUIG
FBA sellers are selling it for $37 and the cost of it is $23. Teh FBA fees are $12.35 so basically you are making .04 a unit, basically breaking even. Why would someone buy from Costco and sell it on amazon. The margins aren't there and yet people are doing it. Am I missing something?
37 respuestas
Seller_IFRrkIcoHoGF8
because their price tanking. They tank the price so low to the point where nobody profits anything. Costco is wholesale & not everyone has access to shop there so it's awesome you can sell it on here to reach a bigger audience BUT then you have all these "new people " who were poorly trained, don't know half of what their doing & they start fighting for the buybox lowering & lowering the price. PPL NEED TO UUNDERSTAND= YOU DONT NEED TO FIGHT & PRICE TANK FOR THE BUYBOX! THE BUYBOX ROTATES EVENLY AMONG BUYERS SO JUST PRICE THE SAME AS EVERYONE OR RAISE IT A FEW DOLLARS BUT NEVER GO LOWER THAN THE BUYBOX!
Michelle_Amazon
Hello @Seller_rAtH18VN0PwXJ,
Michelle at Amazon here. Amazon does not accept receipts from Costco, you have to have an invoice from an authorized distributor to list on Amazon. These sellers are likely buying from an authorized distributor or directly from the brand.
I hope this information is helpful.
Regards,
Michelle
Seller_zONeO5hiTh1px
Maybe they're not. Maybe they have a repricer set to conditionally lower their price until the inventory is sold. I am sure there are many sellers who use a similar strategy to get rid of stale inventory. Just because a seller sells some items at a loss doesn't imply their business isn't profitable. It just means they want to free up capital to purchase other goods.
Seller_C9TzOxTwGSFUQ
That is SUPER easy to figure out. It is from 1 of only 3 groups of people making money on Amazon. Here is your clue, the sellers cost of goods is $0 so they are actually making $24.65 off of every single one they can get there hands on.
Seller_Rn2Wp18w9HiyF
What I like about that listing is the return policy:
Non-returnable due to hazmat safety reasons
Not really what you want to see on a food product...
Seller_WtOwWhtSrFjva
I would not do it. It is drop shipping and will get you banned.
Seller_zyG3AlejdFqKL
Buying something from Costco /Walmart is the fastest way to get your selling account terminated
Refer
Can I sell products from WalMart at Amazon?
https://sellercentral.amazon.com/seller-forums/discussions/t/66c19e04-42bd-4816-8534-f7e50d1b0ff0
Seller_UHVnOVHF8YpEx
I don't understand why people go FBM with those absurd fees.
Seller_Z0dv68cIXhV7j
Thats the magic of selling on Amazon. Beautiful sales numbers, mouth watering seller app screenshots with orange bars, and 0 to negative net income tax forms.
Seller_8rOgsPUpFF9g3
They may have a wholesale buying account from Cosco with better pricing.
