I do wholesale FBA. I was on the verge of quitting a month ago, but thank God things started looking good and I've been expanding. It's very hard and complicated, and I need advice on four things:
Target profit margin. What should my target profit margin be? I currently average 15 to 17% monthly, and most of my products are priced between $5 and $70. I know this depends on category and other details, but I just want a general idea. I'm thinking of dropping my 17% repricer rule for profit margin to 13%, hoping to make more sales. Is that going to be worth it?
Competing against bigger sellers. I'm usually competing against much bigger sellers. I only have about 30 seller feedback reviews, and the sellers I compete with have anywhere from 10,000 to 240,000 feedback reviews. I struggle to get the buy box, and when one of them jumps on a listing I'm on, my sales drop by about 80%. Is there anything I can do to avoid that?
ROI vs. profit margin in the repricer. I've been told that setting up your repricer by ROI is usually better, but that stuff is confusing to me. I use SellerSnap as my repricer, if that makes any difference. Would you suggest going by ROI? If so, are there general numbers based on price range, or do you think profit margin percentage is usually easier?
Expanding to eBay, Walmart, and Shopify. I plan on expanding to eBay and Walmart and making my own Shopify website. I'm worried because I'll have to buy stock that I'm not sure will sell and just hold it. On Amazon, I send over 90% of my stock to FBA. Any advice on that?
Also small side note: Good sales during certain days were because of prime day. Don't usually do that much.
Thanks in advance!