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As I am growing an Amazon FBA business, it is becoming more evident everyday all the disillusion out there about profits and growth rates of Amazon based businesses.
I've only been selling on Amazon for 3 months, but I have 6 products, all imported from China, that are being sold through FBA. I'm still currently buying at "sample" quantities of 50-300 pieces, so my number are skewed. My gross profits per sale currently range from 0 to 23%. My product sales prices range from $25 to $105.
I'm working to target an average gross profit margin across all products of 20%. This is taking in to account purging low margin products, and increasing margins on others through bulk purchases. Thinking about it, Amazon takes at least 15%, up to 40% for FBA on oversized items. That a 60% markup over landed costs.
For the Amazon sellers on the forum, what are typical profit margins? I feel like every internet search on the topic produces someone bloating numbers to sell their webinar or book. What are the real numbers?
I think this is incredibly important for people thinking about starting an Amazon FBA business with $500 to their name, to know what the real numbers are.
I've only been selling on Amazon for 3 months, but I have 6 products, all imported from China, that are being sold through FBA. I'm still currently buying at "sample" quantities of 50-300 pieces, so my number are skewed. My gross profits per sale currently range from 0 to 23%. My product sales prices range from $25 to $105.
I'm working to target an average gross profit margin across all products of 20%. This is taking in to account purging low margin products, and increasing margins on others through bulk purchases. Thinking about it, Amazon takes at least 15%, up to 40% for FBA on oversized items. That a 60% markup over landed costs.
For the Amazon sellers on the forum, what are typical profit margins? I feel like every internet search on the topic produces someone bloating numbers to sell their webinar or book. What are the real numbers?
I think this is incredibly important for people thinking about starting an Amazon FBA business with $500 to their name, to know what the real numbers are.
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