Bulky product – losing money on every sale but moving 500 units a month. Keep going or cut my losses?

If you’ve tried all the above and still don’t see a path to profit, just cut it. Don’t fall for the sunk cost trap – the money and time are already gone. Hanging on will only cost you more.
You’ve learned a lot from this product. Take that knowledge and use it on the next one.

Check if you can shrink your FBA fee by changing packaging. I had a product where a smaller box dropped the fee from $14 to $8.50.
Use Amazon’s FBA revenue calculator – plug in a competitor’s ASIN and see what they pay. Sometimes a small packaging tweak saves you $2‑3 a unit.
Also, look at your search term report. Are you wasting money on low‑converting keywords? Add negatives. Put your budget into exact match for the terms that actually convert.

I’ve been in a similar spot. You won’t fix it overnight with one big price jump.
Try this instead:

• Raise price slowly – maybe $1 every couple weeks.
• Lower your ad bids gradually, don't just cut them off.
• Focus on getting your organic rank up so you rely less on ads.

If your reviews are solid, you can eventually reach a price where you make profit even with fewer sales. But be honest with yourself – some products just aren't worth it for a small seller.

Bulky products are rough to start with – high FBA fees, storage adds up, and peak season surcharges hurt. Going low price + high ad spend as a solo seller is usually a bad idea.
If you can't get the price above $40‑50 with decent margin, I'd seriously consider walking away. Do the math: product + shipping $11, FBA $8.56, commission ~$3.77, storage ~$0.50, returns ~$0.60. That puts your break‑even before ads around $24.43. At $25.19, there’s basically no room for ads.
Best bet: either cut fulfillment cost (better packaging, smaller box) or drop the product. Otherwise you're just burning cash.

First, actually map out your costs. At 500 units/month, break it down: ad spend, FBA fees, discounts, product cost. See exactly where the bleed is.
If your FBA fee is already high for your category, no amount of ad tweaking will save you.
Check three things:
Which cost bucket is hurting the most?
If costs are normal, can you get traffic from somewhere other than PPC?
If both seem fine, maybe the product itself just doesn't fit the market.
If your FBA fee is already high for your category, no amount of ad tweaking will save you.
Check three things:

• Which cost bucket is hurting the most?
• If costs are normal, can you get traffic from somewhere other than PPC?
• If both seem fine, maybe the product itself just doesn't fit the market.