I've seen brands with an 80% gross margin go broke selling a $10 product on Amaz
By Brandon Fishman · July 2, 2026 · Curated by George's Blog
I've seen brands with an 80% gross margin go broke selling a $10 product on Amazon. The reason is more obvious than you think.
On Amazon, survival comes down to dollar margin per order.
CPCs are going up. It's just too difficult to pay $3 per click for a $10 product. You can't buy enough traffic to scale before the math eats you.
Take a $100 product with an 80% margin.
Amazon takes close to $40 with all their fees.
Another 20% goes to TACoS.
With 20% to COGS, that leaves $20 left on a $100 order.
Best case scenario, you're making 20%. Most Amazon businesses end up making 10 to 15%.
Now do the same math on a $10 SKU. There's nothing left to work with.
Really, you need a product that's $25 and above. Below that, every order is losing money to Amazon's fees before it ships.
Before you touch your listing or your ad spend, look at your catalog by price. If your hero SKU is under $25, fix the price before anything else.
♻️ Repost if this changes how you think about your Amazon pricing.
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