How sellers earn on amazon and why amazon charge shipping for users?

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Deal Newbie
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Can anyone explain that if we want to sell a tshirt on amazon extra charges for a seller is 128rs including shipping amazon closing fees and other amazon charges, then how sellers are selling tshirts with prime id at 126rs and also cost for selling a card reader is 99rs then how sellers are selling it for 80rs?
One more thing if amazon is charging 66rs base charge plus extra money per 500gm from sellers then why they are charging money from users for order below 600?

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Deal Cadet
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A normal seller cannot go on amazon or fk and sell, and be profitable
The ones which you see are their own child companies

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Deal Cadet
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Just remember Jeff Bezos is the richest person in the world may be the universe.
You will get why they charge so much.

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karanoshan wrote:

A normal seller cannot go on amazon or fk and sell, and be profitable
The ones which you see are their own child companies

I think you are right only manufacturer are there

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DealBroker23 wrote:

Just remember Jeff Bezos is the richest person in the world may be the universe.
You will get why they charge so much.

Heheheh yup right

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Deal Subedar
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DealBroker23 wrote:

Just remember Jeff Bezos is the richest person in the world may be the universe.
You will get why they charge so much.

He is rich based on the valuation of his company which is completely based on growth projections and AWS. Amazon marketplace is not responsible for his richness. It has never posted a profit.

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Deal Subedar
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See dude, shipping is costly affair, it gets cheaper as they ship larger volumes.
This is called “Economies of scale” and it applies everywhere from manufacturing to shipping. As people order more, the economies of scale rise and it gets cheaper for them to ship. Hence they put that 600 shipping value for free orders.

And those sellers who sell card readers and other Chinese stuff buy it in bulk from China. Its really cheap for them when they buy it in bulk [again the economies of scale]. Hence they are able to sell it cheap.

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Deal Subedar
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The card reader you get at your local shop for 99 rupees had a long journey from factory in China to your shop. It may originally be as cheap as 10 rupees per piece to the person who buys it from the factory. They bring it to India, agencies buy from them, they resell, it gets shipped to cities, other agencies buy and they sell to shopkeepers. Everyone takes their margin making the 10 rupees product worth 99.

The sellers online get it directly from the Chinese factory and sell it with their margins, it still ends up cheaper than shop because a lot of middle men are cut off.

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F7-Dimer-Primer wrote:

The card reader you get at your local shop for 99 rupees had a long journey from factory in China to your shop. It may originally be as cheap as 10 rupees per piece to the person who buys it from the factory. They bring it to India, agencies buy from them, they resell, it gets shipped to cities, other agencies buy and they sell to shopkeepers. Everyone takes their margin making the 10 rupees product worth 99.

The sellers online get it directly from the Chinese factory and sell it with their margins, it still ends up cheaper than shop because a lot of middle men are cut off.

Nope I enquired, the price without any middle man is 6rs and cost for selling on amazon for national shipping is 99rs means total is 105 and if we want to earn profit we have to keep price more than 105 but sellers are selling for 80-90

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Deal Lieutenant
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DealBroker23 wrote:

Just remember Jeff Bezos is the richest person in the world may be the universe.
You will get why they charge so much.

Wrong. Ratan Tata is the richest person in the world. It’s just most of the Tata wealth is associated with charity n trust. 🤗

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bikidas2060 wrote:

Wrong. Ratan Tata is the richest person in the world. It’s just most of the Tata wealth is associated with charity n trust. 🤗

Source of this info ?

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rishavkwatra920506 wrote:

Nope I enquired, the price without any middle man is 6rs and cost for selling on amazon for national shipping is 99rs means total is 105 and if we want to earn profit we have to keep price more than 105 but sellers are selling for 80-90

If its Amazon’s own seller like Appario, then there must be huge incentives and waivers for them.

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DealBroker23 wrote:

Just remember Jeff Bezos is the richest person in the world may be the universe.
You will get why they charge so much.

sarcasm was intended.

currently bill gates is richest AFAIK keeping charity aside

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