I recently posted on my Facebook page about having a TON of orders to ship out via Merchant Fulfill. I know that came as a big shock to a lot of people because I am always talking about Fulfillment By Amazon and how awesome it is. So, I wanted to share why I chose to do this item as Merchant Fulfilled instead.
The item in question is this Cork Pops Refill. My cost per item was $1. I purchased 93 of these Cork Pops Refills. The going rate is $8 (inc shipping). The box only weighs 2 ounces and with packaging it weight 3 ounces, so I could ship one anywhere in the US for $1.69. After Amazon fees and my cost, I would net $4.10/ea when sold as a single. If I chose to have the item Fulfilled By Amazon my net pay after Amazon fees and my cost, would be $3.12/ea. So, if I had sold each of them individually, I would be ahead around $93.
I had a feeling that these would sell fast and in multiples. I was correct. This item sold out over the course of 2 days. The sales were as follows: 23 singles, 13 doubles, 1 four, 4 fives and 2 tens.
Here is where Merchant Fulfilling really makes a difference. When someone buys more than one of an item, you ship it in the same box, so you make more per item than if the same amount were sold to individuals. For example, I was able to ship 10 in a Flat Rate Envelope for $5.05 leaving me a profit of $57.78 for those 10. If Amazon was to fulfill those same 10 for me in one order I would have only made $32.20. So, for packing that package I made an extra $25.
I hope this all makes sense. I know it gets confusing when I start speaking in word problems 🙂
After it was all said and done, we had to package 43 orders, but we made an extra $168.54. Cliff and I packed the orders in less than 1 hour. So, if you are concerned with the time vs. money factor, we were at $80/hr each for that work.
Have you found any items that are more profitable to Merchant Fulfill than to have Amazon Fulfill for you? I would love to hear about them!
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