Comments by "Piccalilli Pit" (@piccalillipit9211) on "CNBC Television"
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@nathanfleming1051 - Thats why items are $99 on Amazon and $75 on the company's own website as the OP comments.
The big issue is they are not upfront about the costs, they hide as many as possible. E.G. I had 7,000 tubes of fluoride toothpaste in an Amazon warehouse in America that went out of date. It was an error. They DONT return ship from an Amazon warehouse internationally, Fine just dispose of it - there was a "picking fee" for each item as if it would be sold, then there was a disposal fee and because it contained fluoride it was a hazardous material so it had to be disposed of "safely" - it cost me $35,000 to throw away 7,000 tubes of toothpaste it would have, in reality, cost them $300 to ship to me and I could have had disposed of locally for $500
There are endless things like this that they never mention, but you HAVE to pay as part of the business.
Then there is the storage fee - its free for the first year, but then its like $1 an item per month or something [can't remember the exact number] and they WONT return internationally - so you have a $35 face cream costing you $12 a year as its not selling. And they DONT tell you which items it is - its just your "stock holding cost" so it just goes up and up and up as you accumulate unsold stock.
so lets say its on the shelf for 3 years -= 2 you pay $12 for = $24
Then they charge you $5 to throw it away
It cost you $15
Shipping it to them cost you $1
Thats $45 you just lost
BUT AMAZON made $29 even though you never even sold the thing. If you had sold it for $35 they would have taken say 40% = $14
Can you see why they do this stuff...???
So you get $21 of the $35 - it costs you 15 +1 to ship it to Amazon = $16 you made $5
But the 1 that didnt sell lost you $45 so you have to sell 9 just to get back to ZERO profit - so on 10 $35 face creams you just made $0
And we were selling between 250k and 500k items a year, so imagine the complexity of the maths you have to do. This is why you have to be REALLY good at probability and statistics, the only way you can make money on Amazon is to be really good at probability, like a bookie or a casino.
sorry for the long rant - 10 years of my life spent worrying 24/7 about this crap. I am so pleased to be free of it.
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