eCommerce Strategy Consultant - Rick Watson - RMW Commerce Consulting

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Selling On Amazon Requires 60% Margin

One of the top Amazon experts in my network said to me the other day - if you don't have 60 points of gross margin, you don't belong on Amazon. Agree or disagree but WOW. that's some statement!

But in some ways it reflects the game you are in now. Most brands need 30 points just to run the business. If you can't give at least 30 points to Amazon with a combination of logistics, advertising, and marketplace fees, you can't compete on new SKUs that you launch. You won't get noticed.

Now - if you have owned ASINs for years, that is a different story.