The recent issue with sending Amazon 2x50 packs of cards, and them logging only 49 received was interesting. It was something like 3 weeks before I could raise an issue, and then 2 weeks to resolve. Even then they (a) recorded 99+0 cards, (b) blamed me for sending to wrong fulfilment centre (I didn't pick it, then did), then finally agreed it was sorted 49+50 cards, and refunded £3.91 for the missing pack. I have no idea where they got the £3.91 figure from!
I do think we are getting a pretty good handle on Amazon now, and I think building up our reputation with them is next step, so cards are good for that as not a lot can go wrong with them (though we have sold one FireBrick FB2900 which is nice). I am happy that the quality of the cards is good, and Ivory Graphics are doing a good job, as I would not want A&A or RevK branded goods not to be the best quality.
So, here are the latest I have listed...
They are here: A&A, FireBrick, Left handed, White. Some will not show until next week as we have only just shipped inventory, but do feel free to add to wish list :-) It would be great if people bought some and left honest feedback.
They are selling for £12 (inc VAT and postage), which seems a lot, so I thought I would break it down so people know what this is all about:
- In the quantities of only 100 these packs cost £5.62+VAT.
- Amazon charge £1.62 fulfilment charge
- There is also around £8.50 charge to send them to Amazon, so lets say 9p a pack for 100.
- There is a storage cost too, but probably only a few pence given the size of a pack of cards.
- Amazon also charge a referral fee (their commission basically) of £1.80
- And of course at £12, there is £2 VAT.
Sell for £12.00 - £2.00 VAT - £1.62 FBA - £1.80 Referral - 10p post/storage - £5.62 cost, leaves 86p profit per pack.
But, there is cost of advertising, without which they seem to literally just sit there and not sell. I was hoping some would sell just because of people searching for cards, but they show up in popularity order, so you have to advertise to get sales to get high in the list, and then maybe you can sell on inertia. 86p a pack is not really enough to cover any sort of advertising, though, so far, twitter seems to be the best for this. So I'll try some twitter advertising once they show in inventory. I'll do another post on that I expect.
It may be that the novelty packs (the minimalist and the left handed) do get some sales based on searches - we'll see. I saw one other minimalist pack sold by loads of people and selling around £20 a pack, so maybe novelty is key here.
All in all, these are going for almost no profit at all, and Amazon make way more than we do out of it.
Of course the economics are better if you buy 1000 at a time. The cost goes down to around £3+VAT then. Even so, you are still selling around £10 to make any sort of profit.
This allows nothing for my time on the designs, or even just the time for Mike at the office packing and sending to Amazon (thanks Mike).
It is a good job we are not trying to sell the cards as something profitable really, isn't it!
Update: As per comments, we have to get cards below £5.31 ex VAT cost price, which just means buying in slightly larger quantity. At that level selling at £8.94 means fees of £2.14 (including only 80p rather than £1.62 FBA fees for small and light). Any lower than £5.31 cost and we can make a profit at £8.94. As for the cards costing £5.62, selling at £10.56 is about cost price, so I have changed to that. Once this batch is sold, I'll get a larger batch and list at £8.94 or lower.