Unit Economics for Amazon & Wholesale: Ensure Every SKU Is Profitable
Unit Economics refers to the revenue, costs, and profit associated with a single unit of product sold. It reveals whether scaling sales will increase or destroy profitability.
In miniature and toy categories, unit economics determine which items belong on an Amazon stocklist and which are viable Amazon FBA products after fees, freight, prep, and returns. Sellers calculate unit economics for trending toys and new SKUs sourced from a toy wholesale supplier to ensure they remain profitable toys wholesale before scaling.
Example in practice:
A terrain bundle sells for £35, but after a £16 landed cost and £9 FBA fee, the unit economics show £10 profit per unit.
Why does this matter?
Strong unit economics create sustainable, scalable businesses.