Home Forums Starting your journey FBA – Cheaper than self-fulfilment?

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  • #999771
    sletts02
    Member
    • Total posts: 12

    I am wanting to sell a physical product, relatively small at ~100g, starting in Aus before looking abroad.

    However, it appears Australia Post kills the idea of selling it via your own website when Amazon fulfilment pretty much the same price?

    Sale price – $17.99

    Aus Post
    – $7 postage at least to begin with ($5.40 seems to be the best rate otherwise?)
    – 3% PayPal fee

    vs

    Amazon
    – $3.10 postage
    – $1.70 listing fee

    Is there any point in setting up WooCommerce/Shopify etc, or does it make more sense to create a landing page and link it to an Amazon listing?

    #1221317
    LucasArthur
    Participant
    • Total posts: 3,158

    Howdy

    Curious on why AusPost kills this scenario? maybe its the overall margin that is causing the problem? or am i looking at it wrong.

    Granted.. Amazon have negotiated great rates, although your amazon calculations might be out a little? such as handling fees. storage etc etc.. and if not sell, storage increases and so forth.. Maybe also labelling requirements and costs to ship into amazon FBA as well.. just keep that in mind.

    Always a point in setting up your own website if your own brand, but hey… its completely up to you and your individual situation as well..

    Cheers
    Jason

    #1221318
    bb1
    Participant
    • Total posts: 4,472

    I think you are comparing strawberries with potatoes, as Arthur said there are more fee’s with FBA, but there are also a heap more fee’s for setting up your own website.

    I think you need to go back and do a full end to end analysis and not just blame Australia Post.

    #1221319
    JDSpring
    Member
    • Total posts: 10

    Hi Scott

    Bit of a side topic, but thought I would talk to your question about setting up a woocommerce/shopify.

    Pragmatically speaking, I would recommend going straight onto Amazon and use FBA, dont invest in your own site for now. (I can elaborate on why not, if you like, ie. Cost of driving site traffic is high compared to driving traffic to listings on markeptlaces such as Amazon [happy to share specific stats if you want])

    Reasons for going straight to Amazon + FBA model:
    1. Site traffic is growing month on month, approaching 20M visits per month (Happy to share stats on this)
    2. Product visibility is easy to achieve as content standards and visibility levers are not at a high standard on Amazon AU yet, most sellers not bothering with the details or realising how integral it is (PS. PPC words in Amazon are super cheap right now as most sellers are not utilising it)
    3. Fully integrated FBA service is easy and means your products are eligible for powerful super high visibility merchandising levers/oppportunies such as lightning deals/cyber monday/black friday events (which are free to particpate for FBA sellers)

    Hope that helps.

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