One of the questions that I get asked a lot from people who are trying to make money on Amazon is, “How much does Amazon Sponsored Products cost?” I get it, you’re dying to start selling Amazon products, but first let’s see what we’re talking about. When I say “on sponsored products cost” what I’m referring to is basically any product or service that you purchase on Amazon.
First of all, if you haven’t heard, Amazon has become one of the most popular websites on the internet. They’ve been around for over 15 years now and are a giant when it comes to e-commerce. Their global reach allows them to provide customers with all their shopping options right from their own home. What’s even more amazing is that this giant doesn’t sell everything on Amazon, they only sell select items.
They have two different ways to do business. The first way is where you can browse through all their items on their website. Once you find an item you want to buy, you click on the “purchase it now” button. Amazon will then charge your credit card. Then, you’ll be shipped the item directly to your home. Amazon has a drop shipping option available for some of their products, but for the most part you have to do it yourself.
The second way that Amazon lets you save money on these products cost is by cutting out the middle man. This means that you’ll be able to save on the cost of the product as well as the cost of the shipping. So, how does Amazon determine what their products cost?
Well, they don’t do it for you. Instead, they let you know up front what the cost will be. For example, if you order ten of a certain size, color, style or material, Amazon will tell you how much each item will cost. There’s no gray area. It’s right there on the spot.
Amazon keeps it competitive by having so many products in such a small market. They have to keep shipping costs as low as possible. That’s why they offer such a wide range of prices on their sites. The bottom line is, they need to make money in order to stay in business. That’s what makes them go around giving special discounts to keep you as a customer.
In addition, there are savings on other Amazon products. If you haven’t figured it out already, Amazon offers free two-day shipping on almost all of their products. Most people don’t take advantage of this benefit. But, for those that do, it adds up quickly. So, while Amazon doesn’t make any money off of your shipping, you will get a percentage of the purchase price in most cases.
When you look at the total cost of buying Amazon products, you can see that it’s significantly less expensive than buying them in retail stores. That’s why it’s such a good idea to take advantage of Amazon promotional pricing. Keep in mind that not every product is available on Amazon. So, if you can’t find the product you want, just search for it elsewhere. You can still get a good discount from most items.
What most people don’t know, though, is that some products are excluded from Amazon’s free two day shipping program. The list includes some popular high-end electronic gadgets like Apple laptops and iPads, Google Android phones, Microsoft Windows Phones, and more. So, it’s best to read their product descriptions to be sure you don’t qualify for these pricey products. Even if you qualify for them, the cost may be so low that you won’t want to buy them. You can always ask about alternatives if you get stuck.
Once you’ve found all the products you want, the next step is to figure out how much each product costs from Amazon. Again, there are many ways to do this. You could use a cost-based website like those found on eBay or through Amazon’s own marketplace. Or, you could use affiliate pricing where you only pay when a sale actually occurs. Regardless of which you choose, though, be sure you understand how Amazon Sponsored products cost you before purchasing them.
And finally, before you buy, make sure you know the cost of shipping. High priced Amazon products sometimes come with hefty shipping charges attached. If you’re unfamiliar with how much postage costs, search for “free shipping” or “ships using FedEx” on the product description. This will help you estimate how much your item will cost you. After you’ve figured all of this out, you’re ready to start making sales.