We worked out the cost of getting there and advised against going to Amazon.
We’ve worked out the cost of getting there and We advised against Amazon.
A manufacturer of gardening equipment approached us with a ready-made budget for Amazon.de. After analysing it, we showed them a spreadsheet which indicated that they would earn… nothing on that platform.
The challenge
The client had spare production capacity outside the domestic peak season and the management board had decided: we’re launching on Amazon.de. The budget had been approved, the deadline set, and our task was simply to carry it out.
We spotted the problem with the first spreadsheet. In its category on Amazon.de, the price level was set by sellers with warehouses in Germany – not FBA sellers. When shipping from Poland, factoring in the platform’s commission and the cost of potential returns, the margin fell below zero on most product listings.
About the client
A Polish manufacturer of gardening equipment with its own production facility. Mid-range pricing, a product range that includes some bulky items, and a distinct seasonal peak in the spring.
Before the partnership, he sold exclusively in Poland and had no one on his team responsible for overseas markets.
What we’ve done
The decisions that determined the outcome.
We showed the client the cost estimate before they spent a single zloty
Rather than starting by setting up an account, we calculated the cost of selling on three platforms: commission, logistics, a reserve for returns, and the price level required to appear on the first page of search results.
On Amazon.de, the price level in the category meant we had to drop the price to 158 EUR. After deducting the base commission of 15%, not to mention marketing costs, logistics costs and the provision for returns, we were left with −5.30 EUR per item, selling below the cost of production.
The same calculation for Kaufland.de yielded €49.80 per unit, representing a margin of 23.3%. Three factors made the difference: a lower commission rate in this category, the absence of pressure from sellers with warehouses in Germany, and the fact that end customers there accept longer delivery times – although this is the least of the problems.
We reorganised the product data before listing anything
The product pages were written with Polish retail customers in mind: heavy on marketing, with incomplete dimensions and a lack of the technical specifications favoured by German platforms. We supplemented the attributes, standardised the naming of variants and translated the content using industry-specific terminology, rather than relying on a literal machine translation.
We carried out the work in one go, for both channels at the same time. As a result, it took only 11 days.
We entered via one channel; we added the second one after the result had been confirmed
The launch on Kaufland.de covered 340 SKUs selected on the basis of profit margin and size – not the entire catalogue. It was only in May, once we saw repeat sales and stable account metrics, that we added the remaining 500 SKUs. We launched on OTTO Market in August, using products that had already proven successful on the first channel.
Course
Key stages.
- February 2026 Calculation of the cost of reach Analysis of three platforms: commission rates, logistics, pricing levels and local competition. Recommendation to deviate from the original plan and a meeting with the client’s management.
- February, March 2026 Product details and paperwork Technical specifications, translations, recycling registrations and documentation required for the German market.
- March 2026 Get started at Kaufland.de The first 340 SKUs. The first sale took place 16 days after publication.
- April, May 2026 Season and optimisation The peak of the spring sales season, price adjustments, and the first campaigns in the category. The remaining 500 indices will be added in May.
- August 2026 OTTO Market The second channel was launched using verified data within 11 days. A catalogue of 840 SKUs across both channels.
- September, October 2026 Preparing for the next season Shifting the product range to autumn categories; analysing items that have not sold even once.
Results
Monthly turnover by channel.
The decline following June is down to the seasonal nature of the category, not a deterioration in performance. Year-on-year, the client does not yet have a basis for comparison, as this is their first season in this market.
Pre-launch calculation. Benchmark index, production cost: 125 EUR.
| Credits | Amazon.de | Kaufland.de | Change |
|---|---|---|---|
| Commission in the category | 15,0% | 11,5% | −3.5 percentage points. |
| The price required to appear on the first page | 158 EUR | 214 EUR | +56 EUR |
| Logistics cost per parcel | 12.60 EUR | 12.60 EUR | , |
| Provision for returns, per item | 2.00 EUR | 2.00 EUR | , |
| Profit margin per unit | −5.30 EUR | €49.80 | +55.10 EUR |
| Percentage margin | −3.4% | 23,3% | +26.7 percentage points. |
| Retailers with a local warehouse in the TOP 10 | 7 | 2 | −5 |
How we did it.
We began by challenging a decision that had already been made; that was the most difficult part of the project. Calculating the cost of reach took two weeks and saved the client a season on a platform where they would have earned nothing. We then organised the product data once, for both channels, and that was the only task we didn’t have to revisit. We added the channels one by one, each based on the already verified data.
Repeatability
Why do we think it wasn’t a coincidence?.
Calculate before you go on the platform, not afterwards
Commission, logistics, return costs and the required price level can all be calculated before an account is set up. This spreadsheet takes a few days’ work and is often the only thing standing between a client and a lost season.
One set of product data, multiple channels
A well-organised attribute database means that a second marketplace can be launched in a matter of days or weeks, rather than months. The cost of this work is incurred only once, whilst the benefits are realised with every subsequent channel.
One channel at a time
A simultaneous launch across three platforms triples the number of data errors. A sequential rollout extends the schedule by weeks and reduces the list of fixes by a further few weeks.
What this case does not prove: That is not a reason to avoid Amazon. In a category with a different pricing structure and smaller product dimensions, the same calculation would point to Amazon as the channel of first choice.
Do you know how much it really costs to reach a customer on your platform?
We’ll calculate the commission, logistics, return costs and the required price level for your category across several markets. You’ll receive a spreadsheet and our recommendation, even if our conclusion is that you shouldn’t enter the market.
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