You'd think raising prices on Amazon would make you more profit per sale.

Nope.

This product pictured below made less money by raising the price on Amazon.

They priced into an Amazon FBA Dead Zone.

But what's a dead zone? Why should you care?

If you like lower fees from Amazon, this is for you.

CONTEXT:

Amazon Sellers are accustomed to a 15% referral fee and a standard FBA fee. But in certain categories and certain price points that changes.

Amazon has a lower FBA fee if you're priced below $10. The FBA fee is $.77 less if you're priced below $10. That's pretty significant.

There are also other types of dead zones around referral fees. Everyone knows that Amazon charges 15% referral fees (sometimes called commission fees). But in some categories and some price points, they will go as low as 8%!

Here are the dead zones:

Any Item: $10-$12
Grocery: $15-17.50
Baby: $10-$12
Beauty Health & Personal Care: $10-$12
Clothing & Accessories: $15-$16.5 & $20-$22
Compact Appliances: $260-$299.99
Furniture: $175-$199.99

Shoutout to Max Sigurdson-Scott for this list. His hack list is a must-follow.

I remember when they introduced some of these referral fee breaks in Beauty and Grocery. My business benefitted so much from them that it offset all the FBA fee increases.

TAKEAWAYS:

Look at your products. Look at your client products. Avoid the dead zones. There are dozens of top-selling products here! Create awareness in your organization and make sure your products don't fall here. I'm not kidding.

Products that are at $10.01 that get pushed to $9.99 will make MORE money!