An Amazon seller breaks down their brand's finances: $390,000 in gross sales, but after paying $93,000 for goods, $63,000 in Amazon commission, $61,000 in shipping, $66,000 in ads, and other costs, net profit was just $66,000. Revenue and profit are not the same thing.
So I just made over $390,000 with my brand Maverick on Amazon over the last 30 days, but $390,000 didn't actually go into my pocket. So I'm going to express to you all the different types of fees associated with selling on Amazon and what I actually took home. So the first one being the cost of goods sold, actually buying these products and shipping them into an Amazon warehouse where I spent $93,000 over the last 30 days. After that is the Amazon commission. I have to pay 15% every time I sell an item. Which was $63,000. And I also have to pay to get these items shipped to a customer once they purchase it. That was $61,000. After that is advertising on just the Amazon platform itself. I spent over $66,000. Then we have payroll, which is around $12,000, miscellaneous fees, just like storage costs, promos the last 30 days, $20,000, and refunds and returns, $10,000. So all in all, I made just over $66,000 in profit, which is a 17% profit margin.
