Anyone ever start an Amazon FBA store? What is everyone investing in these days?

[tubby_mcgee 700]

I"m thinking about doing it/trying it...but looking for info from someone who has or knows someone that has. 

I have a business that made gobs of money (well, gobs by my definition) for many years.  It's making "decent" money now...but due to regulations, and telecom carriers putting their feet in the ground, etc... its in its not what it was. 

It was what I call "silly money".  80k-115k per month after expenses (we really didn't have any expenses) and before income tax.   Its way the fock less than that now.  Luckily I saved much of it. I did because I knew it wasn't going to last forever.  I know I won't find this sort of thing again....and I don't need to...but...would like something else. 

I've been looking--even back then when the going was good, I was looking.  In this day and age, there isn't as much for opportunities, IMO  Maybe I'm just closed minded, But in a conversation with someone, I said...."now so much is delivered electronically and it's done by a handful of major companies. the little guy can't get started with that stuff.  As for physical product, you need to almost "invent" something or have something that you have proprietary rights to a product.  

Anyway...looking at opening a amazon store where you basically pay an upfront fee for someone to advise/guide you through the process/manage inventory/etc.  Then you pay them 30% of net profit to continue to maintain/manage product at Amazon.

Thoughts?



 

[BeenHereBefore 1,472]

Ask Mr. Wonderful.

[tubby_mcgee 700]

So...I pulled the trigger on this.

60k up front (franchise fee).   You can go in at different levels. anywhere from 30k to 70k. 

Then you purchase inventory that a group of "geeks that monitor trends, sales, etc" recommends. 

My first purchase was $9300 in:
White Out
Paper Clips
Click Pencils

It is ordered on its way to the 3rd party to be repacked and labeled according to Amazon's specs, then it gets shipped to Amazon, then it gets listed in my store.

 Once it is about sold (30-45 days for this initial inventory purchase), Amazon wires me money, then I wire 20% back to the 3rd party.  You can buy in at different levels. The one I bought in at, I only have to pay out 20% instead of the 30% I mentioned in my original post.   For $10k more...I coulda been at the "only pay out 10%" level. 

Process repeats itself.  The anticipation is that the turnover becomes very close to every 30 days....and that the amount grows from a $9300 inventory purchase up to over 100,000 inventory purchase. 

Ultimately, the inventor purchases should NET me (after Amazon takes their cut, after I pay the 3rd party 20%) 20%.  So that $9300 purchase, should put $1800 in my pocket.
2nd months purchase will be hopefully around 20k instead of 10k.  And that will net me $4k.  The 3rd months purchase is hopefully $30k

Of course each month, I need to put additional $ in. My numbers show that after month 7 I'm not putting any additional of my own money. My numbers show that after month 10-12, my initial franchise fee has been paid back to me, and I'm now taking a good sum out every month and putting in my pocket. (I'm not taking anything out until then--all profits are going to be reinvested). 

And you don't have to put in 9300k the first month. You could go with $500...but then of course....well...your net profit is gonna be $100. 

I bought an "established" store.  That's why it was 60k.  A "new" store is 30k.  But with a new store, you simply can NOT buy say $9200 the first month.  Amazon won't allow you, as a new store to have that much inventory in your store/allow you to move that much volume.  You have to ramp up a new store. I was told if you get an "existing" store,  you'll have about a 9-12 month head start vs starting with a new store and going through the ramp up phase.

I stuck $0 in stock market this year.  I think over the past 2 years, even WITH putting money into the market, my portfolio is down 200-300k.  Part of my brain says "the market is going to start going up soon....and its going to go up for a long time" -- because of how focking flat its been.   it's "due" isn't  it?

 

[Drizzay 699]

If this falls through, there's always Only Fans. 

[tubby_mcgee 700]

2 minutes ago, Drizzay said:

If this falls through, there's always Only Fans. 

Supposedly I can get my money 60k back if I want at 12 months.  But then they take over the store.   They've told me that as long as I have enough to purchase the inventory amounts they recommend, I will not want my money back.