Amazon FBA - is it profitable?

by 11 replies
13
Is it a profitable business to sell physical goods on Amazon?
Particularly by sending the goods from the oversea-supplier directly to the Fulfillment by Amazon.
#main internet marketing discussion forum #amazon #dropship #fba #profitable
  • If it wasn't profitable, why would there be thousands of companies doing it?

    That being said, just because it's profitable for others doesn't mean it will necessarily be profitable for you. Do your research.
  • You cannot import products from an overseas manufacturer, directly to Amazon FBA. They (Amazon) will not pay any duties and taxes owed on the shipment, which could be required. You can, however, send it to other fulfillment centers that will put on UPC codes, proper packaging, etc., and send it to the fulfillment center(s) Amazon specifies. All this for a price, of course. Btw, why wouldn't you want to check the inventory of your products anyway, instead of sending it straight to Amazon FBA. Too many people do this blindly and end up having their items returned for refunds or rejected outright by Amazon, all because they never bothered to check the quality and quantity of their inventory! My two sense!
    • [1] reply
    • You can ship direct from China to Amazon FBA. They have detailed instructions on their site, including contact details for their approved Customs Broker, but I would prefer to use an FBA prepping service for two reasons.
      1. I would not want my Chinese supplier to know how I am selling and how to use the Amazon system.
      2. I would prefer to have the goods checked before they go to FBA for the reason mentioned by paulie123 above.
      Regarding the OPs question about profit, it should be noted that profit begins with buying right. That means buying direct from real manufacturers not from the traders listed in their thousands on the popular websites pretending to be manufacturers.
  • Is there an excellent guide about this? Probably WSO?
    Thanks
    • [1] reply
    • Well there was the recent ASM course a snip at $4K the cheaper proven amazon course from Jim Cockrum and the ecommerce section of this forum. Various Facebook groups, seek and you will find.
  • Since Amazon sales are around 75 BILLION per year I am going to say YES to this question. I believe about 45% of those sales are by third party sellers, both FBA and Mercahnt Fullfilled. There are certain guidlines you need to follow when sourcing from China. As mentioned above the shipments cannot go directly to Amazon.

    All my sourcing has bee US based so far and I find FBA to be excellent!
    • [1] reply
    • google jordan malik, he has a free pdf where he reviews 4 fba courses that are under $300.00 and just as good as, if not better than, ASM

      al
      • [1] reply
  • It can be very profitable. You may have to ship the inventory to your location first to properly label and prepare the inventory or instruct the overseas warehouse to do this.

    I think it is easier to just ship directly to my location and I reship to an amazon warehouse. Amazon's fullfillment rates are very competitive and you don't have to worry about customer service.
  • There is a lot of work involved. Is there any particular reason you would like to go with that method of making money with Amazon?
  • It depends on how you are trying to do and the promotional methods you are using.
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