Amazon FBA / FBM - Can you make a reasonably good income from it?

by Johnny1975 21 replies
Does anyone have any experience with Amazon FBA or FBM? Could you give me a rough idea of what kind of income you can make from it?

Obviously it varies and there are many factors to consider, but I'm just looking for rough figures. Anything that will give me some indication of what to expect. Thanks.
#ecommerce sites, wholesaling & drop shipping #amazon #fba #fbm #good #income #make
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  • Profile picture of the author MValmont
    You can make a lot of money, there is no limits to how much you can make.

    I prefer dopshipping because I can test a product for much cheaper, but Amazon fBA is good
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    • Profile picture of the author robofx
      Says the guy who juuuuuust happens to be selling.. A DROPSHIPPING COURSE! LOL Warriorforum: swamp filled with snakes.
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      • Profile picture of the author MValmont
        Originally Posted by robofx View Post

        Says the guy who juuuuuust happens to be selling.. A DROPSHIPPING COURSE! LOL Warriorforum: swamp filled with snakes.
        So a Pharmacist selling you some Tylenols is a snake because he used them in the past and is selling them to you also?

        I used to sell on Amazon. This is a good business model, but you need a lot of money to test every product you want to test.

        Try to have a counter-argument for this, can you?

        Probably not because you probably don't know, but I do. I'm actually on of the few on this forum that actually is a real online marketer, not just a forum browser.

        Hard to argue with good facts.
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        • Profile picture of the author robofx
          Yeah I'm sure you're a quadrillionaire "internet marketer." LOL

          Don't you miss the good old days when that useless asshole Paul Myers would prevent his fellow scammers from being exposed with one swing of his mighty banhammer? LOL
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  • Profile picture of the author DWaters
    The amount you can make depends on how much you scale up your business and the inventory sourcing you are able to do it with.

    Amazon is the largest online retailer, They have huge buyer traffic as well as outstanding customer confidence and loyalty. IMO it is completely logical to have your inventory listed on Amazon. The majority of people looking to buy something online go directly to Amazon and make a purchase, never interacting with any site except Amazon.
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    • Profile picture of the author Rocking Raj
      There are similar website building up, i heared some point that amazon delivers a duplicate product, but some products are good too. Electronic goods are higher in Amazon & Home appliances too. I would rather try new comers in market. Y should rich become richer y not give hand for new comers if they do decent business.
      No body goes directly to AMAZON, people check and if they are satisfied then they go. i also like amazon products but not all.
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  • Profile picture of the author Johnny1975
    I've asked this same question on the amazon seller forum, and all I'm hearing is that unless you're a big player you're not going to make any money, or that you need to have a supplier who will only sell to you (unrealistic, unless you're a big player), or that your product has to be really unique. It all sounds very negative and it makes me wonder if it's worth it or if they're just giving advice for the sake of giving advice.

    Can anyone give me a realistic view of what to expect when you're new?
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    • Profile picture of the author DWaters
      Originally Posted by Johnny1975 View Post

      I've asked this same question on the amazon seller forum, and all I'm hearing is that unless you're a big player you're not going to make any money, or that you need to have a supplier who will only sell to you (unrealistic, unless you're a big player), or that your product has to be really unique. It all sounds very negative and it makes me wonder if it's worth it or if they're just giving advice for the sake of giving advice.

      Can anyone give me a realistic view of what to expect when you're new?

      In my opinion all of the negative things you mention above are incorrect.


      My first suggestion is simply to set up your account and to start small, learn the process of operating the FBA business, get familiar with your seller central account and begin to scale up from there. Do no worry about having a unique private label item as that can come later.
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      • Profile picture of the author Johnny1975
        Actually I will be listing my own product. By that I mean a product from a factory in China (where else?) which will eventually have a logo but not yet (I need to order 500 units to be able to have a logo on the product).

        Someone told me on the seller central forum that it's a bad idea to sell your own product as opposed to selling something that is already listed.

        My thoughts : The advantage of listing an existing product is that if it's doing well, you might get a piece of the pie. Maybe. Possibly. Or maybe not.

        The disadvantage is that you're competing with lots of other sellers and if the potential customer likes the product then that basically means there's not much to compete on except price (which in my opinion is always a bad idea).

        The disadvantage of listing your own product under your own brand (even if it's already on Amazon somewhere under someone else's brand - which is the case with my product) is that you're a nobody and who knows how long it will take for things to pick up.

        The advantage however is that you're not competing on price and once someone lands on your page their decision is based purely on the quality of your presentation (photos, description, bullet points), and since they're already there, if the price is reasonable, why not buy there and then.

        I think it's best to do your own product. What do you think? I'll be fulfilling myself to start with.
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    • Profile picture of the author Importexport
      Originally Posted by Johnny1975 View Post

      I've asked this same question on the amazon seller forum, and all I'm hearing is that unless you're a big player you're not going to make any money, or that you need to have a supplier who will only sell to you (unrealistic, unless you're a big player), or that your product has to be really unique. It all sounds very negative and it makes me wonder if it's worth it or if they're just giving advice for the sake of giving advice.

      Can anyone give me a realistic view of what to expect when you're new?
      My specialty is safe and profitable product sourcing. I know that having a unique product can avoid competition for a while, sometimes for years, but I also know that having a private label product can have a similar effect.

      There are ways to find suppliers who will only sell to you, even relatively small quantities, and the process is very simple. There are also ways to locate unique products, sometimes ones that will be very difficult to copy.

      The most important thing for you at this stage is whichever direction you take, you must be sure that you are buying at the best possible price. That means for a start, that you only buy from genuine manufacturers, not from the many thousands of suppliers on B2B sites who falsely claim to be manufacturers, but are in reality opportunistic traders.

      You also need to learn how to get suppliers to accept your orders for much less than the MOQ's they quote.

      For a general overview of what is involved in safe souring and easy importing, you might like to have a look at this thread: Ask Me Anything About Product Sourcing And Importing For Profit. ― Veteran Importer Here.

      Walter Hay
      Provenchinasourcing
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      Safely source from China and other countries and import the easy way http://provenchinasourcing.com

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      • Profile picture of the author Johnny1975
        I am buying from a manufacturer. I checked to make sure that they're not a trading company. I've got 5 samples and their MOQ is 100. I might just go with that or I might negotiate down to 50.

        There are a couple of things I'm confused about though.

        I have my samples but they're in packets with someone else's brand name. Obviously I can't sell these samples like that, so I'm thinking of getting poly bags. Is this the right way to do it?

        Also I bought barcodes. UPC and EAN. Which do I use?

        Should I get stickers made from my barcode? If so, where do I put them on the samples? I can't put them on the poly bags (or can I?), is it possible to stick them on the packing slips?
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        • Profile picture of the author Importexport
          Originally Posted by Johnny1975 View Post

          I am buying from a manufacturer. I checked to make sure that they're not a trading company. I've got 5 samples and their MOQ is 100. I might just go with that or I might negotiate down to 50.

          There are a couple of things I'm confused about though.

          I have my samples but they're in packets with someone else's brand name. Obviously I can't sell these samples like that, so I'm thinking of getting poly bags. Is this the right way to do it?

          Also I bought barcodes. UPC and EAN. Which do I use?

          Should I get stickers made from my barcode? If so, where do I put them on the samples? I can't put them on the poly bags (or can I?), is it possible to stick them on the packing slips?
          If you are doing business exclusively in the USA or Canada, I would choose UPC barcodes. If in Europe, would choose EAN.

          If you want to learn the difference between the two, you could read this complex article by the original designer of the UPC system and also the modifications he made in designing the EAN system for the Europeans: https://www.nationwidebarcode.com/ar...n-13-the-same/

          Regarding the supply of samples with someone else's brand name on them, I would see that as a red flag.

          First, if they send out samples with a competitor's brand on them, they will also send out yours to any of your competitors that inquire about the product.

          Second, It makes me think that they have tricked you and are really traders, because a factory would have better processes than that.

          Walter Hay
          Provenchinasourcing
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          Don't just slap on a label. Build a GREAT BRAND http://powerlabelsforprivatelabelingprofits.com/
          Safely source from China and other countries and import the easy way http://provenchinasourcing.com

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          • Profile picture of the author Johnny1975
            When I started chatting with my supplier, I asked them if they're a manufacturer. They said yes. I asked them if they could put my logo on the product and they said yes they can do engraving. For this reason, I believe that they are a factory. I've also seen photos.

            But I did notice that the same company whose logo is on my sample packets is selling the same product on Amazon. They are also selling on Ebay and elsewhere.

            I asked my supplier if this company is another of their customers and they said that it is their own brand. I also saw two other sellers on Amazon listing the same product. But I'm not concerned about this because my listing is far better than all of theirs.

            Also I've heard that sometimes suppliers send samples with other people's logos because it's just easier to do that than to manufacture a few units. However they did say that they will manufacture them, which I find confusing, but I have no reason to feel suspicious about anything. I think my supplier is legit and honest. And as long as I can get my product at a good price, with a logo, I have no problem.

            As for barcodes, what I'm confused about is how do I decide what type to put on? Is it based on where the customer is?

            Also should I get polybags, and put my products in them, and get stickers made from my barcodes and stick them on the polybags?
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            The Smart Man's Dating Checklist : What to Look for when Seeking a Good Woman :

            http://www.amazon.com/dp/B00K5ZHTCW

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            • Profile picture of the author Importexport
              Originally Posted by Johnny1975 View Post

              When I started chatting with my supplier, I asked them if they're a manufacturer. They said yes. I asked them if they could put my logo on the product and they said yes they can do engraving. For this reason, I believe that they are a factory. I've also seen photos.

              But I did notice that the same company whose logo is on my sample packets is selling the same product on Amazon. They are also selling on Ebay and elsewhere.

              I asked my supplier if this company is another of their customers and they said that it is their own brand. I also saw two other sellers on Amazon listing the same product. But I'm not concerned about this because my listing is far better than all of theirs.

              Also I've heard that sometimes suppliers send samples with other people's logos because it's just easier to do that than to manufacture a few units. However they did say that they will manufacture them, which I find confusing, but I have no reason to feel suspicious about anything. I think my supplier is legit and honest. And as long as I can get my product at a good price, with a logo, I have no problem.

              As for barcodes, what I'm confused about is how do I decide what type to put on? Is it based on where the customer is?

              Also should I get polybags, and put my products in them, and get stickers made from my barcodes and stick them on the polybags?
              Sorry, but asking a supplier if they are a manufacturer is no way to determine if they are. There are many thousands of traders listed on Alibaba and other B2B sites who will tell you they are manufacturers.

              I'm not saying your supplier is not a manufacturer, I'm just saying how the listings are very often not genuine and that it is almost universal practice that if asked they will say they are manufacturers.

              The fact that they will engrave a logo is not evidence that they are manufacturers, because many manufacturers subcontract such work.

              The best way to be sure is to use safe sites where you can be sure that if a supplier is listed as a manufacturer, that is what they are. Sorry, but I don't publish my list of safe sites online. For reasons, together with a lot of helpful information, see If your secret B2B portals are so safe why don't you share?

              It includes a checklist of things you need to know before you start product sourcing.

              If you deal with a real manufacturer, you will be able to get best prices. I have seen so many newbies buy from traders, impressed by the low prices, unaware that those prices are what they would pay the manufacturer plus the trader's margin. It's much better to buy direct.

              Yes it is not uncommon for suppliers to send samples with logos on, but if they are manufacturing, it shouldn't be too difficult for them to supply unbranded samples.

              Regarding the barcodes, if selling in Europe you must use the EAN because it has an extra digit that identifies the country. They will work in the US if you don't want to use both.

              If the polybags are the outer packaging in which the items are sold, that is the place to attach the barcodes.

              Regarding engraving. If they are subcontracting they will be charging you a big set up fee for that, so you might consider having them laser engraved locally, where the cost is likely to be less. There are plenty of laser engravers in most western countries. Also many trophy suppliers do that.

              Walter Hay
              Provenchinasourcing
              Signature
              Don't just slap on a label. Build a GREAT BRAND http://powerlabelsforprivatelabelingprofits.com/
              Safely source from China and other countries and import the easy way http://provenchinasourcing.com

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              • Profile picture of the author Johnny1975
                Well the price is very reasonable, so I'll just carry on for now. If there are any problems I'll just look for another supplier.

                My product is now listed on Amazon, since friday (26th May). Not surprisingly, I haven't had any sales yet.

                Yesterday I changed the price from $14.97 + $4.99 shipping to $0.99 + $4.99 shipping. If anyone does a search for this product, even without specifying the category or adding additional search terms, and they search for low to high price (cheapest first), I'm on the first page. But still, no sales. I find that strange. I would have thought I'd get a sale by now.
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  • Profile picture of the author begemot
    It is not as easy as it was, say in 2014... but you can still make a fortune.
    It is a complicated business and involves a lot of work. You gotta source good products, PL them, ship them, create awesome listings, and marketing, etc. etc. etc... but rewards at the end are abundant.
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  • Profile picture of the author makingyoungmoney720
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  • Profile picture of the author DWaters
    FBA is the business model where you ship you inventory to an Amazon warehouse and it is listed on their site. When a customer places an order then Amazon takes care of fulfilling the order, hence Fulfillment By Amazon, FBA. They also deal with customer satisfaction issues. As a seller this system makes a lot of sense for most types of products.

    FBM is Fulfillment By Merchant - this is when the order is placed on Amazon and the seller has the items and is responsible for shipping it to the customer in a timely manner.
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  • Profile picture of the author davidbrian
    Yes, of course, you can make decent money from FBA but I would suggest to go slow and test out all challenges.
    There is proven formula but carefully taking each step can help to scale.
    Make sure to full use of all free tools and seller central.
    • first simply set up the account for FBA.
    • Secondly, learn all challenges for operating in FBA business
    • find the good product to sell
    • source it from a supplier
    • get familiar with your seller account and begin to scale up
    • List your product listing and optimize your keywords.
    • Provide good service make a brand and then start Private labeling
    • Track your competitor and your sales
    • Make sure you make the profit and don't overspend on Adv.
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    • Profile picture of the author DWaters
      Originally Posted by davidbrian View Post

      Yes, of course, you can make decent money from FBA but I would suggest to go slow and test out all challenges.
      There is proven formula but carefully taking each step can help to scale.
      Make sure to full use of all free tools and seller central.
      • first simply set up the account for FBA.
      • Secondly, learn all challenges for operating in FBA business
      • find the good product to sell
      • source it from a supplier
      • get familiar with your seller account and begin to scale up
      • List your product listing and optimize your keywords.
      • Provide good service make a brand and then start Private labeling
      • Track your competitor and your sales
      • Make sure you make the profit and don't overspend on Adv.

      All his points are good advice and make a lot of sense. I have always been a big believer in starting small and scaling up. That is the way I started my Amazon business. There is a learning curve plus Amazon occasionally changes some of their rules.
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