Detailed examples, real numbers and the costs most sellers forget.
Many new Amazon sellers focus on product selection. Others focus on advertising. But most miscalculations happen when estimating actual costs.
A product can sell brilliantly and still barely make a profit. The reason lies in the many cost factors that only become visible after the launch.
In this article, we look at three typical product examples and analyse what costs Amazon sellers in Germany can really expect.
Example 1: Kitchen Product
Selling price: €24.99
| Product cost (manufacturer) | 4,50 € |
| Shipping costs | 0,80 € |
| Customs and import costs | 0,30 € |
| Preparation and packaging | 0,20 € |
| Amazon referral fee | 3,75 € |
| FBA | 4,10 € |
| PPC | 3,50 € |
| Returns reserve | 0,75 € |
| Storage and misc. costs | 0,50 € |
| Packaging compliance | 0,05 € |
| Profit | 7,04 € (28%) |
Example 2: Beauty Product
Selling price: €19.99
| Product & logistics | 3,90 € |
| Amazon fees | 6,50 € |
| PPC | 4,50 € |
| Returns reserve | 1,00 € |
| Other costs | 0,50 € |
| Compliance | 0,03 € |
| Profit | 4,06 € (20%) |
Example 3: Low-Cost Product
Selling price: €9.99
Many beginners believe cheap products are easier to sell. In reality, they are often among the most difficult business models.
| Product & logistics | 1,90 € |
| Amazon fees | 3,50 € |
| PPC | 2,00 € |
| Returns reserve | 0,40 € |
| Other costs | 0,30 € |
| Compliance | 0,02 € |
| Profit | 2,08 € (21%) |
Why Low-Cost Products Are Often Dangerous
With a profit of just around €2 per sale, only a few problems can destroy the entire calculation: higher advertising costs, increasing returns, price wars, damaged goods or additional storage costs.
A single return can wipe out the profit of several orders. That is why many experienced Amazon sellers avoid extremely cheap products.
Costs New Sellers Most Often Forget
1. PPC Advertising
Many products do not sell without advertising. In competitive categories, advertising costs can reach 10–30% of revenue. For new products, the share is often even higher.
2. Returns
Returns are often completely forgotten — especially for clothing, jewellery, shoes and beauty products. A high return rate can quickly turn a profitable item into a loss-maker.
3. Storage Fees
Amazon charges fees for storing goods. Products that sell slowly cause additional costs and tie up capital.
4. Capital Tied Up
Many Amazon businesses fail not because of lack of sales, but because of lack of cash flow. The faster a business grows, the more important liquidity planning becomes.
5. Compliance
This area is underestimated by many international sellers — VAT, Packaging Act, LUCID registration, packaging licensing and EPR requirements. The direct costs are often low, but the consequences of mistakes can be much more expensive.
Recommended Starting Capital
€7,500 to €10,000
First order (€3,000) · Shipping (€800) · Product photos (€300) · Listing (€300) · Ad budget (€2,000) · Compliance (€100–300) · Unexpected costs (€1,000)
Conclusion
Amazon Germany continues to offer enormous opportunities. But long-term success depends not only on a good product. Successful sellers understand their costs, their margins, their cash flow and their compliance obligations. Those who calculate all costs realistically make better decisions and build a much more stable business.