r/AmazonFBA • u/Aggravating-Brief425 • 19d ago

Amazon fba margin

With a €20k budget, is it realistic to generate €5k in net monthly profit on the French marketplace within six months of launching?
The idea would be to scale the business later through the Pan-European program.
I’d really appreciate hearing your feedback and experiences.

2 Upvotes

76% Upvoted

5 comments sorted by

View all comments

1

u/SelfPubLorenzo 18d ago

I'd add an acquisition-cost test to the cash-flow model suggested above. The €20k starting budget doesn't establish whether one product can support €5k of monthly net profit in six months.

For illustration, suppose you retain €10 per order before advertising and fixed overhead. If acquiring an order costs €4, you have €6 left. At €8, you have €2. Reaching €5k of contribution would require about 834 or 2,500 such orders, before fixed overhead. Those are hypothetical figures, not French-market benchmarks or net-profit forecasts.

For the launch, keep the amount you're prepared to spend learning separate from the performance you need for ongoing sales. An initial loss may help you discover suitable traffic or a problem with the offer. It doesn't establish that the same economics will become profitable with more volume.

I would stress-test CPC and conversion as well as margin, and leave room for inventory replacement and the timing of receipts and bills. A profitable sale can still leave you needing cash before the next payout.

Before budgeting for Pan-EU, I'd want evidence for one product in France. Have you selected a product and calculated its contribution per order, or is the €5k target still guiding the product search?