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Can anyone give me some insight on how this service works? I want to build my own business and eventually leave the office gig behind me...

I was talking to someone who said he makes $50k per year working 15-20 hours a week buying products from wholesalers and using amazon fba to drop ship. I couldnt get many details from the guy... is this a decent model that actually works?
#amazon #fba
  • Profile picture of the author blogmilla
    The Amazon FBA model is very good and there is a great deal of information on the site about the way it works.

    I recently watched a launch by Ezra Firestone, who created an in-depth training program about working in this market. It looked like it was well done. I think I would invest in this program if I decide to do anyathing in that market.
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  • Profile picture of the author MarginMetrics
    Welcome to the wonderful world of eCommerce!

    You're certainly not alone in wanting to leave the office world behind.

    Amazon FBA is a model that has been proven to work, but will certainly take sometime to get used to. My suggestion is create an Amazon Seller account and try it on a really small scale. Just to get used to the process. (you can spend less than $100 to test it out.

    Keep asking questions and trying new products until you'll understand how to identify products that work well for you.

    I've had a lot experience and success with Amazon FBA. Feel free to PM if you have specific questions.
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    • Profile picture of the author amcg
      Originally Posted by MarginMetrics View Post

      Welcome to the wonderful world of eCommerce!

      You're certainly not alone in wanting to leave the office world behind.

      Amazon FBA is a model that has been proven to work, but will certainly take sometime to get used to. My suggestion is create an Amazon Seller account and try it on a really small scale. Just to get used to the process. (you can spend less than $100 to test it out.

      Keep asking questions and trying new products until you'll understand how to identify products that work well for you.

      I've had a lot experience and success with Amazon FBA. Feel free to PM if you have specific questions.
      This is great advice. I did exactly the same thing and found out after a number of months that the type of inventory I was selling was not suited to drop-shipping or FBA. It pays to experiment for sure.

      As for FBA and third party shipping as a business model, I think it can work to get your business off the ground but eventually in retail, you'll need to own (or lease) a warehouse. Unfortunately unlike software and bits, dealing with physical items is both a much less profitable affair and much more mundane.

      You will want to do the warehouse thing; it will help you deal with stuff like returns and secondly, believe it or not most stuff is sold in a store which is something you might want to do eventually.
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    • Profile picture of the author DanielQ
      Your link is not working. Can you put workable link?
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  • Profile picture of the author DWaters
    I started my FBA business in April and I have made more money than in the previous three years of doing other business models online. I started small and I am still small but planning to grow.

    I have bought at some liquidation and thrift stores and strange as it sounds - mostly at yard sales. I regularly buy an item for $1 to $5 and sell it on Amazon for $25 to $50, even more sometimes. My next step is to make larger purchases from wholesalers.

    My first recommendation is to consider the FBA course by Jim Cockrum or at least spend time on his excellent forum. Amazon also has some excellent video and other info to learn how to run this business. I think Amazon does an excellent job of making it easy for the average person to work with them.
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  • Profile picture of the author Jim Cockrum
    Originally Posted by lmf8911 View Post

    Can anyone give me some insight on how this service works? I want to build my own business and eventually leave the office gig behind me...

    I was talking to someone who said he makes $50k per year working 15-20 hours a week buying products from wholesalers and using amazon fba to drop ship. I couldnt get many details from the guy... is this a decent model that actually works?
    Here's Amazon's own help info to get you started with FBA:
    Amazon.com Help: Fulfillment by Amazon

    You'll find it's not a complex biz model...it's just not "sexy" enough to attract much attention from those looking to "drive traffic" to affiliate link pages etc. The most common misconception about this biz model is that you have to spend a lot of time physically handling a bunch of products in order to do the biz. It may start out that way at first, but most of my top students quickly transition to more of a multiple income stream/hands free model as they begin to apply outsourcing, delegating, bulk buys, white labeling on auto-pilot etc. in their biz.

    Another reality to keep in mind is that the success rate among those trying to profitably selling physical products online (ebay/amazon etc.) is far higher than the success rate trying to play the ever changing affiliate marketing game. Those who are consistently making a killing in the affiliate marketing game are most often the full-time "how to" sellers peddling their courses. Most of the rest of the "affiliate marketers" are trudging along earning a few dollars per month trying idea after idea to improve on an income stream that could vanish overnight at any time anyway (I've seen it hundreds of times with each new Google algorithm shift).

    I hope you'll give this model a try...I think you'll have a blast growing a reliable biz that can grow with unlimited potential.
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  • Profile picture of the author Chenhang
    we sell about $80k / month using FBA
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    • Profile picture of the author lotsofsnow
      Originally Posted by Chenhang View Post

      we sell about $80k / month using FBA
      That's very nice but what is the profit margin?
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    • Profile picture of the author astraler
      Originally Posted by Chenhang View Post

      we sell about $80k / month using FBA
      Nice, do you use dropshipping?
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      • Profile picture of the author Silas Hart
        Originally Posted by astraler View Post

        Nice, do you use dropshipping?
        With FBA, you have to send the inventory to Amazons' warehouse.
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    • Profile picture of the author wlb1979
      Originally Posted by Chenhang View Post

      we sell about $80k / month using FBA
      How much do you pay in fees from that $80K/month? I'm curious because this is something I am considering.
      Thanks,
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  • Profile picture of the author grambo
    Hi, Who has good success with Amazon FBA in the UK?

    Loads of good stories from people based in the US. I don't hear much from anyone in the UK.
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    • Profile picture of the author HarrisAndrea
      I also have a question about selling on amazon fba for people who live outside the USA or UK.

      Specifically, I live in a country which is a member of the European Union and I want to use either Amazon.com or Amazon.uk to start a business based on the FBA model (both of these two Amazon sites allow me to open a seller account).

      My major problem is how to source inventory and send it to Amazon FBA warehouse. Since I'm located outside the US or UK, what options do I have to buy inventory and send it to Amazon FBA (either in us or uk)?

      Any feedback on the above will be greatly appreciated.

      Thanks a lot

      Harris
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      • Profile picture of the author KatPD
        Was wondering the same thing. I too am not in the USA and was wondering about lead times and getting products to the fullfillment centres. Sourcing is not a huge problem but at lot of the profit is blown on shipping in my case
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      • Profile picture of the author Importexport
        Originally Posted by HarrisAndrea View Post

        I also have a question about selling on amazon fba for people who live outside the USA or UK.

        Specifically, I live in a country which is a member of the European Union and I want to use either Amazon.com or Amazon.uk to start a business based on the FBA model (both of these two Amazon sites allow me to open a seller account).

        My major problem is how to source inventory and send it to Amazon FBA warehouse. Since I'm located outside the US or UK, what options do I have to buy inventory and send it to Amazon FBA (either in us or uk)?

        Any feedback on the above will be greatly appreciated.

        Thanks a lot

        Harris
        I hope you have worked out your own solution by now, but I am replying because others have also mentioned that they need to know how to buy inventory.

        First, you might like to have a look at the thread Shipping directly from China to FBA where there is lots of information about that part of your question. I would just add that there are plenty of fulfillment services other than FBA. If you are not selling on Amazon it could save you a lot of money using another service.

        I have several of my students using an alternative service and they ship direct from China manufacturers. PM me if you would like more information.

        Regarding your question on how to buy inventory, I teach how to safely source small or large quantities direct from manufacturers overseas. Most people buy from China, but there are excellent products available in other countries at prices that can be extremely profitable.

        I refer to buying from manufacturers because the profit margins are so much better than if you buy from wholesalers. One of my students recently told me that he is buying a product that sells for 4 times landed cost. Another posted on this forum a few months ago about selling imported products at a profit margin of 1250%.

        Not everyone will achieve the same margins, but these examples show that learning to buy inventory direct from overseas manufacturers is worth the small effort.
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  • Profile picture of the author BKenn01
    My problem with FBA has always been the storage, etc cost is confusing to me. I find it hard to figure out what the real cost of the service is.
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  • Profile picture of the author johnbrown12
    WEll the profilt margin is huge but the key is to find out those stuff where you have few sallers for that product
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  • Profile picture of the author johnbrown12
    sorry *Sellers
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  • Profile picture of the author Silas Hart
    Originally Posted by lmf8911 View Post

    Can anyone give me some insight on how this service works? I want to build my own business and eventually leave the office gig behind me...

    I was talking to someone who said he makes $50k per year working 15-20 hours a week buying products from wholesalers and using amazon fba to drop ship. I couldnt get many details from the guy... is this a decent model that actually works?
    making 50k a year is small change with FBA if you are talking about FBA being the entire amount you make. With something like someone who goes to garage sales and sends in large amount of inventory, its very possible they may only make 15-25% of that as profit. I know a guy who does $240k a year on Amazon FBA from mostly books, but only 8% of that is profit and thats not including the cost of items that sit there for 6 months or so.

    To BKenn01 - The process is really simple once you actually get some experience with it. Something like a book doesn't take much space and thus doesn't cost much monthly for FBA if you look at being able to increase your sales and profit margin with things like Free and Super Saver Shipping and offers for Amazon Prime members.

    Stay away from sending in junk. Lots of people send in bulk items, for example, a lamp - and it takes up a good deal of space and takes 6 months to sell. Sure, you might have only been able buy it for $10.00 at a yard sale and it sells for $40 on Amazon, but the fees and cost of shipping can really dwindle down your profit margin to the point where you have a low ROI that took 7 months to see a return on. A lot of people screw themselves over by sending in large amounts of stuff they just to want to house themselves and that they haven't been able to sell on eBay, and it never sells through FBA, and they have to pay to have it returned or thrown away.
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    • Profile picture of the author amcg
      Stay away from sending in junk. Lots of people send in bulk items, for example, a lamp - and it takes up a good deal of space and takes 6 months to sell. Sure, you might have only been able buy it for $10.00 at a yard sale and it sells for $40 on Amazon, but the fees and cost of shipping can really dwindle down your profit margin to the point where you have a low ROI that took 7 months to see a return on.
      I think this is a very good point in relation to FBA and other third part fulfilment services e.g Shipwire. If your stock turns over, by all means it can be very effective but as mentioned above, slower moving items will more than likely cost you money.
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  • Profile picture of the author Daniel J
    FBA is great in my opinion! I make an average of $200,000 per year (profit!) income (if you want the income reports etc, just click the link in my signature). As Jim Cockrum said, it's one of those "little secrets" since it's not as "sexy" as some of the other models, but it's certainly effective! I'm happy to help if you have any questions... just PM (I would recommend downloading the free ebook from my site first as it covers most of the details). Hope this helps!

    P.S. For those who want to sell from a different country, check out my post HERE
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    Click HERE to download my FREE guide and learn step by step how I make a 6 figure (profit) income selling real products online while automating and outsourcing most of the work! (no website necessary!)
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  • Profile picture of the author repricerexpress
    FBA works whether you're in the US or UK, provided you can get your hands on the right stock, as an FBA seller you're going to be preferred over other sellers (provided you have great feedback, low A-Z claims etc). As mentioned in the thread, get yourself registered as a seller first and try selling some items before jumping right into FBA.
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    • Profile picture of the author hawaii777
      I recently heard a very good episode on Smart Passive Income on creating an FBA business that might be helpful.
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  • Profile picture of the author eryeal
    If anyone wants to PM me for some advice, feel free. Not going to say where I find products to sell, but will certainly offer a little advice every now and then. But if you are just starting out - that's where I was a bit over 3 years ago. Had a nice, but stressful, full time gig and just got tired of the corporate BS, and basically turned a hobby into a business. My Amazon sales first year were $60k, second year over $500k, and last year Amazon was over $1 million in sales. Net profit last year was a touch under 20%. You can do the math. And that is only Amazon - I also sell on Ebay, but Ebay sales have gotten less and less each year, for a variety of reasons. I started out with nothing going to FBA, then some things around the holidays, and now about 50% of total inventory goes to FBA. The other 50% are items that are just too expensive to risk with FBA and returns. Small stuff goes FBA, expensive stuff I self-fulfill.

    Needless to say - it IS possible to make a very nice living by selling on the marketplaces. It does take a lot of work, and generally a good deal of capital if you really want to make the money. Hardest part in the beginning was just building capital to buy more inventory. But once you get over that hill - it's downhill all the way.
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  • Profile picture of the author ucables
    Yes i agree with CHris Andreta, you should start to test FBA service with an small scale and if you need your products are sent to Europe alternatively try FBS Fulfillment by SpainBOX, we have a negotiated prices with prermier carrier services UPS, DHL, Fedex and National Postal mail (Correos) and we can offer better shipping prices than FBA.

    Regards,
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  • Profile picture of the author Solid Commerce
    Amazon FBA is a setup that involves Amazon warehousing and shipping items for you. The fulfill your orders, in the instance that you don't have the means or desire to warehouse and store all your own inventory.

    Many sellers eventually get to the point where they want to have their own warehouse space so that they can have a bit more control over their inventory and over the fulfillment process.

    For many sellers, though, Fulfillment by Amazon is a great way to expand your inventory without having to expand your warehouse space.
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  • Profile picture of the author Getchahadgets
    I'm doing quite well with them, averaging about $100K in sales a month. My monthly storage fees are beginning to get quite pricey, about $2000 a month but I really do have a lot of stuff stored in their warehouses..
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  • Profile picture of the author DWaters
    While overall I am happy with the FBA business that I set up over a year ago. The Amazon site has so many advantages such as huge buyer traffic, prompt shipping, easy to understand inventory information, etc.

    The main problem I have had is locating useful wholesalers to expand my business. I have looked into some wholesale resources but I expect my lack of success with this is from me not doing enough searching to find the right deals. The key would be to find products that are in relatively high demand with a decent profit margin. Most of the wholesale items I have viewed do not offer those two features.
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    • Profile picture of the author Importexport
      Originally Posted by DWaters View Post

      While overall I am happy with the FBA business that I set up over a year ago. The Amazon site has so many advantages such as huge buyer traffic, prompt shipping, easy to understand inventory information, etc.

      The main problem I have had is locating useful wholesalers to expand my business. I have looked into some wholesale resources but I expect my lack of success with this is from me not doing enough searching to find the right deals. The key would be to find products that are in relatively high demand with a decent profit margin. Most of the wholesale items I have viewed do not offer those two features.
      Forget wholesalers and go for the big money by buying direct from the manufacturers overseas.

      Then you will get a lot more than a "decent" profit margin. If you can find products that you really know you can sell, you can learn how to buy them direct at prices that the wholesalers pay.

      So many on the forum talk about their turnover but very few talk about their profit. Eryeal says he nets 20%. I would never bother with sales that only earned me such a low margin. The lowest I ever accepted was cost x 250%, but often a lot more. And yes, if anyone complains to the FTC, I can provide proof to that authority.

      Please see my post #21 above.
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      • Profile picture of the author ThomasTe
        Great thread! Do you do anything actively for drivning traffic to your amazon listings (AdWords, etc.), or do you simply add your product and that's it?
        I mean, can you do this without a list, facebook pages, etc.?

        Thanks.

        Best regards,
        Thomas
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      • Profile picture of the author Victor Cani
        Originally Posted by Importexport View Post

        Forget wholesalers and go for the big money by buying direct from the manufacturers overseas.

        Then you will get a lot more than a "decent" profit margin. If you can find products that you really know you can sell, you can learn how to buy them direct at prices that the wholesalers pay.

        So many on the forum talk about their turnover but very few talk about their profit. Eryeal says he nets 20%. I would never bother with sales that only earned me such a low margin. The lowest I ever accepted was cost x 250%, but often a lot more. And yes, if anyone complains to the FTC, I can provide proof to that authority.

        Please see my post #21 above.
        Importexport, can you help me to understand how customs and tasex works? As I'm from Brazil, and I'll ship from China to US, I dont understand how I'm going to be charged.

        Best regards
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        • Profile picture of the author Importexport
          Originally Posted by Victor Cani View Post

          Importexport, can you help me to understand how customs and tasex works? As I'm from Brazil, and I'll ship from China to US, I dont understand how I'm going to be charged.

          Best regards
          @Victor Cani

          I have PM'd you with an answer, but the short answer is that you will use a US based freight forwarder to handle your shipments to Amazon and you will pay the forwarder for the freight, Customs clearance, duty, and any taxes. There are other issues such as complying with Amazon's labeling and product coding rules and what I sent you should help with those.

          Please check your PMs.

          Regards,
          Walter
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  • Profile picture of the author itcruise
    Nice to meet Successful Amazon Sellers!

    I want to start selling sports products on amazon and on my own ecommerce site. Should I use wholesaler directory, like "Worldwide Brands" or I can search the whole seller on search engine.
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  • Profile picture of the author DWaters
    Great thread! Do you do anything actively for drivning traffic to your amazon listings (AdWords, etc.), or do you simply add your product and that's it?
    I mean, can you do this without a list, facebook pages, etc.?
    Hi Thomas, In general there is no need to drive traffic to Amazon because a huge number of potential buyers are there all the time. Once on the site Amazon does an awesome job of helping their customer find the products they want to buy.
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    • Profile picture of the author luke1213
      Originally Posted by DWaters View Post

      Hi Thomas, In general there is no need to drive traffic to Amazon because a huge number of potential buyers are there all the time. Once on the site Amazon does an awesome job of helping their customer find the products they want to buy.
      Why most of this is true, getting traffic through amazon isn't that simple. Let's say the items you are selling fba are well known items like energizer batteries for example. Your listing, along with countless other people listing the same product will come up in the search results. Your position in amazon's search results is based largely on your price, ect.

      If you go the private label route, you will need to drive traffic to your products to get sales. Fortunately, amazon has a decent ppc format and it can really help people see your product.
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  • Profile picture of the author DWaters
    Nice to meet Successful Amazon Sellers!

    I want to start selling sports products on amazon and on my own ecommerce site. Should I use wholesaler directory, like "Worldwide Brands" or I can search the whole seller on search engine.
    Hi itcruise,

    For locating wholesale sources (there are tons of them!) you might want to try Skip McGrath's site, Every moth me puts up a post listing and describing lots of them. Jim Cockrum's site and services may also prove useful for you.
    For the Amazon portion I would definately suggest using FBA and than have a seperate portion of your inventory available for you to fulfill from your ecommerce site.
    Camelcamelcamel.com is a very useful site to show you what is selling on Amazon.
    Best of luck to you!
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    • Profile picture of the author planetgourmet
      Banned
      [QUOTE=DWaters;9301754]Hi itcruise,

      For locating wholesale sources (there are tons of them!) you might want to try Skip McGrath's site, Every moth me puts up a post listing and describing lots of them. Jim Cockrum's site and services may also prove useful for you.

      *
      first thank you for your helpful posts.

      i am a member of jim cockrum's proven amazon course.
      now have you ( or ) others also bought skip McGrath's course.

      i have also learned from skip very helpful !
      have you or importexport bought skip's coursel
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      • Profile picture of the author Importexport
        [quote=planetgourmet;9602942]
        Originally Posted by DWaters View Post

        Hi itcruise,

        For locating wholesale sources (there are tons of them!) you might want to try Skip McGrath's site, Every moth me puts up a post listing and describing lots of them. Jim Cockrum's site and services may also prove useful for you.

        *
        first thank you for your helpful posts.

        i am a member of jim cockrum's proven amazon course.
        now have you ( or ) others also bought skip McGrath's course.

        i have also learned from skip very helpful !
        have you or importexport bought skip's coursel
        Skip McGrath;s course has a lot of helpful stuff, but he concentrates mostly on wholesale suppliers. When he talks about importing he suggests sites that I would never recommend.

        Wholesale suppliers can never give you the big profit margins you can get by buying direct from overseas manufacturers.
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  • Profile picture of the author ThomasTe
    Anybody from Europe having experience in using FBA for amazon.co.uk?

    Cheers,
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  • Profile picture of the author ThomasTe
    Thanks for the feedback. I'm located in Denmark, and I've found out that amazon.co.uk requires that you have a bank account in one of monetary union countries (which Denmark isn't part of), so I guess I have to wait pursuing this route...
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  • Profile picture of the author DWaters
    A couple of suggestions for starting an FBA business would be to stay away from anything that could be considered "junk". Even though you can by used items on Amazon I try to only sell NEW items, Amazon is NOT Ebay.
    Be sure to keep close watch on your customer feedback as it can greatly effect your seller rating. Also if you are a newbie be sure to start out with the basic no fee account. You do not need a prefessional seller account until your monthly sales volumn is up.
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  • PM me i just started FBA and got some awesome info on how to do everything step by step
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    • Profile picture of the author ohgworld
      To: ProfitWithDeShayla: .....

      I think this is not the right place to solicit links that are clearly affiliate links !!!
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  • Profile picture of the author WilliamVillagran
    Amazon FBA is one of the best model's out there that actually work. The way I got started was by just selling my used DVDs and other item laying around the house while I got comfortable with using FBA. It is really easy to learn and as long as you apply what you learn you will make money.
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