Pennies Per Litre – is profit overrated?

This week, Mannol is offering 20 litres of Energy 5W-30 Engine Oil for £38.99 with free delivery on Amazon.

According to the fulfilment cost calculator, Amazon's fulfilment fees amount to £23.10.

£38.99 - £23.10 = £15.89.

This equates to just 79p per litre.

(£15.89/20 = £0.79)

Taking into account a 2% import duty, freight, insurance, and storage costs, the question is, is it really possible to manufacture and profit from this product at such a low cost per litre?

Furthermore, evidence from an online product tracker shows the listing plummeted to just £30.37 on 12th June 2024. Taking into consideration the above calculations and fulfilment costs this would equate to just £0.36 per litre!