Amazon FBA

shmeeko69

I'm seriously thinking in adding Amazon FBA to my online business portfolio in February of next year and would like to ask any MSE forum members if they had first hand experience of selling products using the excellent "Fulfillment By Amazon" program or know of anyone who is involved in this?

Looking at the research I've carried out to date, it seems like the way forward and an excellent way in which to sell psychical products without concerning yourself about the usual hassles associated with other businesses like Ebay - storage, packing or mailing.

I found a couple of items that I think will sell judging by the feedback already at Amazon and the profit margin is excellent, so it would really be down to marketing the products which I don't have a problem with.

I look forward too hearing from anyone who has or still is involved in the Amazon FBA program.

lovewealthhappiness

It is a fairly easy process, but you really do have to make sure that your profit margin is high enough and makes it worthwhile enough to cover all the charges they add on as there are a LOT of them. We did this for a while at my previous work and knocked it on the head because the charges were too high compared to the money we were making off it.

shmeeko69

lovewealthhappiness wrote: »

It is a fairly easy process, but you really do have to make sure that your profit margin is high enough and makes it worthwhile enough to cover all the charges they add on as there are a LOT of them. We did this for a while at my previous work and knocked it on the head because the charges were too high compared to the money we were making off it.

Thanks for that. I'm trying to take on board any feedback I can get before I embark upon my FBA journey. I've been studying one person and their sales over the past few months on similar products that I would be promoting and they're getting lots of sales based on the feedback.

shmeeko69

Sethan wrote: »

There was a recent interview with FBA users on Bloomberg and if I remember right,they mentioned around 35% of the revenue goes to Amazon.I know for just looking at it seems high,but in reality it is not in any way worse than if you'd have a product and try to get it on the shelves of a regular retailer (not online). And ebay as another example,is not cheap.You have to consider there their cut (about 11% if I remember),shipping, listing fees no matter if you sell or not,transaction fees,stock,etc. Basically FBA just packs all of those in one bunch.
So I'd say FBA is a good enough process if you have a business on the side especially.But as lovewealthhappiness said,make sure your math adds up and figure out your margin.Amazon also has a bunch of videos on YouTube with explanation of different stages and processes of FBA

Thanks for your response. That's always the key what you buy for and what you hope to sell it for. You have to factor in other things with FBA like sending the goods to Amazon, order picking charges, storage and sending the goods out, but I still feel you can find products out there that can give you 100%+ mark up before Amazon fees.

shmeeko69

Sethan wrote: »

The idea with FBA would be that you send items in bulk.Then they will retain individually each item, sell, pack and mail them. FBA is not really for people that have to send an item at a time to them,cause then you might just as well sell it and dispatch it yourself on amazon or a similar site. FBA just eliminates the tedious tasks of storing,shipping,etc,and the costs that come with it.

I would only send items in bulk that have been carefully researched and have a good chance of selling at a decent price. I plan to sell items that cost between £7 and £20 that are popular and not bulky.