Latest / High Voltage Business Builders Podcast
EP271: Understanding Unit Economics: TikTok Shop vs. Amazon
Amazon's 8% referral fee on a $40 health product should make any seller pause. Add FBA costs, and you're paying $4.50 to $6.00 per unit before making a sale. Neil Twa breaks down the core insight: Amazon charges you to exist, while TikTok Shop charges you to sell. This distinction is crucial for sellers at every level. Consider two sellers in the same category with different outcomes. A husband-and-wife team sells a $38 facial tool, pulling in $22,000 monthly. Compare this to another seller with a similar product but different strategy. Neil shares three actionable moves for sellers: run a…
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