Why Is It So Expensive on Amazon? (And How to Source It Directly)

Find a product on Amazon, then find the "same" thing on Alibaba/1688 at a third of the price. It feels like a scam — but it's just layers. Here's where your money goes.

The markup stack

1. Factory price — what it costs where it's made.
2. Exporter/trader margin — someone consolidates, handles export paperwork, takes a cut.
3. Amazon seller costs — referral fees (which vary by category), FBA fulfillment fees, storage, advertising. This alone often doubles the price.
4. Seller margin — the Amazon seller needs their profit too.

By the time it reaches you, the final price can end up several times the factory price. Nobody's robbing you; you're just paying for four businesses instead of one.

How to cut the layers

Buy closer to layer 1. That's the entire business model of a sourcing buyer: I purchase at the China wholesale price, check it, consolidate it, and ship it to you. You pay goods + 15% service fee + actual freight (plus a one-time first-order handling fee, credited against the service fee when your order completes). Layers 2–4 disappear.

When direct sourcing wins

• You need 10+ units (the freight math works better with a little volume).
• The product isn't brand-restricted.
• You can wait 7–15 days for delivery.

When Amazon still wins

• You need exactly one unit tomorrow.
• The price difference is small after shipping (cheap, heavy items — remember volumetric weight).
• You need Amazon's return policy as insurance.

The smart move most of my clients land on: source the winners directly, and keep Amazon for urgent one-offs. Send me an Amazon link and I'll tell you straight whether direct sourcing beats it — if it doesn't, I'll say so.

Frequently asked questions