On June 17th, Mannol Energy 5W30 5L was retailed at £11.02. At what may be considered an already low price for such a product, the Amazon fulfilment calculator challenges this price and the profitability of manufacturing the product even further.
Amazon's fulfilment calculator reveals the various costs involved in selling products on their platform, such as storage, packing, shipping, customer service, and returns processing.
Amazon's fulfilment cost for this product is £10.63, which excludes the cost of the product itself.
Considering these figures:
£11.02 (retail price) - £10.63 (fulfilment cost) = £0.39
This calculation raises several questions:
Is it feasible to manufacture and deliver 5 litres of 5W30 oil, including additives, import duty, base oil, labour, packaging, and delivery, for just 39p?
What is the impact of these fulfilment costs on Mannol's overall profitability?
How sustainable is this pricing model in the long term?
For those interested in exploring the financial implications of selling on Amazon, the fulfilment calculator provides a detailed breakdown of the costs involved.
Check out the fulfilment calculator here.
