I was actually buying it more as a favor for him... but I'm just curious, are the margins really that tight that 7% kills the deal?
Let's see. The watch normally is 269, you buy it for 200. 7% is 14. So when it reaches his hand he has $54 left on it (because he has to sell it at a lower price than Amazon, so minus$1).
Not 100% sure but seems like at least $25 to Amazon for a smartwatch sale with FBA at the time of the sale. And then there is over head for the reseller (boxes, tape, wages for employees, shipping...). Still seems like they're coming out ahead, no?
No. Because Amazon doesn't care when a person returns a FBA item (and boy do a lot get returned) and that is a hard hit on all resellers.
So only of you give yourself a large "profit" margin will you come out ahead.