Amazon US items under $25
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Created by: Ryan W
Modified on: Wed, 19 May, 2021 at 1:16 PM
The following margin and fee structure is only currently implemented for amazon US clients only.
RealArb ran successful tests with several Amazon accounts, over a long period of time, testing clients margins being set to $9 and the RealArb fee set to $4 on items that cost under $25. The results showed a 327% increase in sales of items costing under $25. This increase is in comparison to accounts that were not set to the $9 and $4, at the time, ensuring this increase in sales was directly related to selling these items at a lower price.
What does this mean for you?
We are making the following standard policy for all Amazon US client: For any RealArb sale where the item cost is under $25 from the source, the clients margin will be set to $9 and the RealArb fee will be set to $4.
Why does RealArb want to do this, even though they are making 47% less on each item?
Our analysis shows this adjustment will increase sales by 327% making up for our lost unit margin with a higher real dollar return.
Ryan is the author of this solution article.
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