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Does Amazon pay the same rates us simple people do?
Posted by on December 21, 2025 at 4:08 pmSerious question, I sell direct, FBM and some FBA. My direct channel is my biggest volume and most profitable, however there is no question Amazon is real part of business. I sell some of the same skus, tho the catalogs are not identical.
I sometimes end up running competing Google shopping ads against my own Amazon listings, where Amazon is running the ad….. I’m having to be very careful to prevent this.
The question is, how does Amazon afford to run that ad on 15% commission?
I make 50% GM on my direct channel and can barely afford the ad cost…. Or is Amazon just that much better at optimizing their campaigns?
Edit: this got an Amazon Ads tag – this was referring to Google Ads (mainly)
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1 Reply
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> The question is, how does Amazon afford to run that ad on 15% commission?
Cause Amazon doesn’t just make money on your product sale alone. Once a new customer signs up they can do endless cross- and upsells and make their money back over years.
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