Pricing & profit

How to price on Amazon.sa without losing money

Most new sellers copy the competitor’s price, then discover a month later they’ve been selling at a loss. Here’s a method that protects you.

AWJAN team 2026-10-20 · 2 min read

The right Amazon price doesn’t start from the competitor’s price — it starts from your true cost, which is far more than what you pay the supplier.

What eats into your selling price?

  • Referral fee: a percentage of the selling price, usually 5–15% depending on category.
  • Fulfilment fees: with FBA, every unit pays a fee by size and weight, plus monthly storage.
  • VAT: if you’re registered, 15% of the displayed price isn’t yours.
  • Returns: some orders come back, and some can’t be resold.
  • Ads: in a product’s first months, advertising is part of every order’s cost.

The simple formula

  1. Add product cost + inbound shipping + packaging.
  2. Add the per-unit fulfilment fee.
  3. Choose your target margin (say 20%).
  4. Find the price that, after referral fee and VAT, still covers all of the above plus the margin.

Don’t do it by hand: the seller pricing calculator does it and also gives your break-even price — the price you must never go below.

Mistakes we see often

  • Calculating commission on purchase price instead of selling price.
  • Forgetting VAT is inside the displayed price.
  • Joining a price war with a seller dumping stock at a loss.
  • Ignoring launch ad costs, then calling the product a “loser”.

When should you cut the price?

Only when you know exactly where break-even sits, and when the cut is part of a plan (a season, clearing a colour, launch). Before any promotion, run the promotion pricing calculator to see how many extra orders you need.

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