I Tried Amazon FBA For 1 Year – The Honest Results

I Tried Amazon FBA For 1 Year – The Honest Results

This is an HONEST and PERSONAL video sharing the Truth about AMAZON FBA! Eman shares everything including costs to sell on Amazon, Amazon FBA Fees, and all his mistakes!

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3 Amazon FBA Mistakes:
https://www.youtube.com/watch?v=Wo67q18GUOg />
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10 thoughts on “I Tried Amazon FBA For 1 Year – The Honest Results”

  1. Thank you so much for this video and other videos!
    I've learned from your videos so much! and I thought about how I can "payback".
    So I want to share one of my secrets on my Amazon store and how I do it.
    I was looking for you'll talk about the manage stock. And how I got this.
    03:59 09:44

    First I like to say why I even thought about it, and why It troubles me.
    I didn't want to come even near to run out of stock.For beginning I didn't care even my stock will arrive in 90 days. I had no issue with that. But what if I'll run out of stock?
    So be the best thing is to ship it by air.
    But it's so expensive! For me. It cost 3.55$ USD per kilogram.
    By sea it is much cheaper. 1.62$ USD. per kilogram.
    But here's my problem. for the factory in China takes 14 days to produce and pack my product. 2 more days to ship it to the seaport, one day for custom clearance, 25 days to ship it to USA. One day for custom clearance in the US seaport. and 3 days to arrive at Amazon
    It's a lot of time!!! 46 days without having any issues in the factory, Shipment, i.e. So what if I'll have issues? That will be longer…
    For air shipment it takes: 14 days to produce and pack my product. one more day to ship it to the airport, one day for custom clearance, 3 days to ship it to USA. One day
    for custom cleaners in the US airport. and 2 days to arrive at Amazon.= 22 days to ship it.

    I wanted to have a fast shipment in case of emergency but still ship it the cheapest way I can.
    So I thought to myself what if I'll still ship it by sea, But make a reserved stock in a case of emergency and ship it till my sea shipment will arrive?
    For example. You're selling 10 units per day. And the ship by sea takes you 45 days. so 10*45=450 reserved units.
    I checked fulfillment storage in China. But close to the airport. Mine is 70 kilometers away from the airport.
    So in that case it takes: one day to arrive at the airport. one day for costume clearance in China 3 days ship by air. one day for costume clearance in the USA. And one day for the ship to Amazon.
    = 7 days for the shipment
    So for the example (10 units per day). you need to ship the reserved stock in case of emergency when you've 70 units left! and ask the factory for new stock.
    And how you can cover this expense?
    I did very simple math: Unit cost me X per one including any costs. I multiply it by a year. And add the Y reserved unit costs per year for the annual stock.
    Y is a reserved unit plus the storage cost per unit.
    So it: X+Y=Z. (Z is how much stock cost you till it sells on Amazon).
    Z/356 days/selles per day = Z1 (Z1 it the cost per unit)
    I hope I helped you guys to avoid running out of stock!
    Guys I don't recommend doing it for any new stock! Use it only in the case of an emergency. Try to manage your stock well.
    I use it for example when I have an issue with the factory when it has a problem with the package, Or one of my competitive ran out of stock and I get boosted on my sells because all his costumers came to me, etc. but make a reserve emergency stock and store in just any case will pop up.
    And Travis that is my gift, Thank you for being so nice and kind. You can use my idea however you like, Thank you

  2. Travis, 40 sales/day x $7 profit per unit = $280/day in lost profit (Not $400). He said he was out-of-stock for a whole month (10:30), A month has 30 days (not 365 days), so $280×30=$8,400 in lost profit for the month. Then you say "that's over $100K in lost sales". Huh? You're really confusing me. Glad you're not my CPA. Other than that, a good video.

  3. Thanks for sharing. We should also remember this was his gross profit, not net profit. So we also have to consider other business expenses such as bookkeeping, etc. It kinda worries me that his gross margin decreased from 40% to 20% even though his overall numbers increased. I'm aiming for 60-70% gross margin at that scale, so after my other business expenses, my NET profit margin would be in the 30-40% range. What do you guys think? Not trying to be a critic; just trying to start a convo and hear some other perspectives.

  4. Wait wait wait…you're telling me his total revenue was over 300k and after all fees his profit was less than 50k? that's horrible!! regardless of how effortless the business is…. lol the lessons learned are helpful though, thanks for the video!

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