Why is the same product profitable in one Amazon marketplace and not another?
Because almost everything in the calculation differs by marketplace: referral percentages, FBA fee tiers, shipping distance, storage rates, return behaviour and the price the market accepts. A product clearing 12% in one country can clear 2% in another. Reading marketplaces as one number averages the weak one into the strong one, and it keeps running because nobody can see it separately.
What differs, concretely
- Referral percentage. Category rates are not identical across marketplaces.
- Fulfilment fees. Size tiers and their prices differ by country.
- Shipping to the warehouse. Distance and duty change the landed cost.
- Returns. Return behaviour varies by market and category.
- Price. The same listing often cannot carry the same price everywhere.
Five variables, each moving independently. An average across them describes nothing.
Currency: convert, but do not rewrite history
If every past event is converted at today’s rate, last quarter’s profit changes every morning and nothing reconciles. Convert each event at the rate of the day it happened, then display the total in whichever currency you prefer.
The decision
Before closing a marketplace, separate the structural from the fixable:
- Structural: fees plus landed cost leave nothing at the price the market accepts.
- Fixable: ad spend above break-even, a size tier you can package out of, a price set by copying the home market.
Checklist
- Is profit calculated per marketplace, not as an account average?
- Is each event converted at its own day’s rate?
- Is landed cost different per destination, as it should be?
- Before closing a market, has the fixable/structural test been applied?
Frequently asked questions
Why does margin differ between Amazon marketplaces?
Referral percentages, FBA fees, storage rates, shipping distance, return rates and local price expectations all differ. The same product therefore has a different margin in each.
How should I compare marketplaces?
In one display currency, with each event converted at the rate of its own day, and with per-marketplace fees and returns applied rather than an account average.
Should I close a weak marketplace?
Only after checking whether the weakness is structural — fees and shipping — or fixable, such as price, ad spend or a size tier.