Amazon FBA - Fulfillment By Amazon - More Trouble Than It's Worth?

Sept. 4, 2012 - PRLog -- Amazon FBA - Fulfillment By Amazon - More Trouble Than It's Worth? Okay, I will say what many of you are thinking but won't say...

I've been researching FBA for a relative who is looking at starting a business with them. They have a LOT of 'junk' that they wanted to unload. But felt that eBay was too time consuming. Since you can enter the ISBN/UPC number on Amazon and have the product description populate they felt it might be a better resource and asked me to do some research. (In fact, you will find an article about resources for finding products that I wrote a while back).

First, let me say that Amazon has some great programs. I personally believe that their Kindle Digital Publishing (KDP) is among the best ways to earn money online (more about that in a second).

BUT....

...when you walk through the scenario of offering products on FBA it takes a lot of effort to get to "the simplicity of having them ship the products for you".

Here's what I mean.

Let's say that you find a paperback book that you want to sell for $3.99. Let's go further and say that you can get the book for .60 cents. (Trying to determine WHICH paperbook books will sell on FBA, and FINDING THEM with margins that work, is a entirely different discussion).

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Here are the numbers:

$3.99 starting price
15% commission to Amazon
$1.35 Variable Closing Fee
.50 cent Fulfillment Fee
.40 cent per lb. weight base fee

Equals - $2.58 in Amazon commissions

$3.99 - $258 = a whoping profit of $1.41 for YOU!

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Let's take a look at the steps required to get you to that $1.41 profit.

- you had to find (source) the product (how much TIME will this take?)

- you had to find a product that would sell (more research TIME if you can find the product)

- you had to be prepared for any competitor to lower her price (some are willing to drive out competition (like you) by offering rock bottom prices to own the market. Then come back once you are gone).

- your products that DON'T sell are sitting in Amazon's warehouse and you are getting charged EACH month for boxes of products that are NOT selling.

- if you managed to secure 100 units of said product you are out of $60.00 dollars if you can't move them. (Plus, the storage fees just mentioned).

REALITY CHECK:

I would say that 95% of the websites that you visit talking about how GREAT it is to sell your products on FBA are trying to make money from products THEY are selling to you to do it!

The short list includes:

- scanners
- software for scanners
- books
- courses
- DVDs

Etc. (The tip of a very long list).

So, if there is Sooooo much money offering products on Amazon FBA why aren't they just doing FBA instead of selling you training about "how to make money on FBA"?

(Take a minute --- I'll wait).

Ding, Ding, Ding -- Time's up!

BECAUSE sourcing, and everything else in the list I just mentioned, is a REAL pain in the butt.

In fact, in some cases it can also be a pain in the lower back!

Lifting and shuffling boxes around is not fun. Oh yeah, almost forgot. Where are you going to store the boxes while you are getting them PREPARED to ship to Amazon's warehouse?

Hmmmm.....

I said it before, and I will say it again, the money online is primarily in teaching/training you how to do "the thing" not IN the thing.

In other words, the money is in the INFORMATION PRODUCT!

In this case, not the grunt work to do FBA. Yeah, I know. 10% of you are  screaming at the top of lungs..."But I DO make money with FBA!"

But what about the other 90%?

Think you got the cash, time, PATIENCE, and stamina to join the 10% who are making money with FBA?

Okay.

Frankly, when you do the MATH you may be better off creating DIGITAL products for KDP. That's what WE teach you how to do...WITHOUT the headaches of:

- sourcing
- heavy lifting
- shipping, packing
- warehouse fees
- spending, and more properly put WASTING Time
- spending money on products (BIG BENEFIT)!

In fact, you can get the 32 page book: "The Amazon Answer" at the link below that walks you through the KDP process. Your risks with KDP is very small compared to FBA.


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WHAT MAKES US DIFFERENT?

(Glad you asked)

Our program is different because YOU actually get paid on the TRAINING that we provide for our members PASSIVELY! (That's what our Member Match and second tier income is all about). Learn more at the link below:

http://www.moonlightwealth.com