Amazon Fba Case Study
There are 6 basic steps you need to take in order to get started with the FBA program, these are;
- Register as a seller on Amazon,
- Create your own product listing, …show more content…
In this case, you are borrowing the Amazon brand name, and Amazon will handle the packaging, shipment and other handling procedures alongside customer services. In return for these services, Amazon will only deduct a percentage from the sales of your items alongside some minor fees. The basic thing you need to do here is to get the item being sold into any of the warehouses operated by Amazon, in the United States.
How is money made on Amazon FBA?
Making money on Amazon FBA is quite simple, all you have to do is to purchase the item at a low price from wholesalers, thrift shops or any other bulk-selling company, then package and ship it to any of the Amazon warehouse and let Amazon handle the rest. Here is a simple calculation on how you can make money on Amazon FBA;
If you manage to sell a box of 4 items for $4 for instance, then your profit margin for the box of items should be $3.95 on Amazon. Simply put, your profit margin is calculated as; The marginal impact, minus the price you bought the item (4$). Profits start adding up when you sell larger volumes of items. Amazon will normally send notifications to members once their items has been sold. One of the most amazing things about this program is that you can actually get everything done in less than an hour if you know where to get your