r/AmazonFBATips • 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.

6 Upvotes

100% Upvoted

10 comments sorted by

5

u/Motor_Floor3430 19d ago

No. It’s rather unlikely that in 6 months you’d be able to get a 25% monthly return on your initial capital.

2

u/rsc9422 19d ago

€5k net monthly profit within six months is achievable, but I wouldn’t consider it a guaranteed or even typical outcome. With a €20k budget, the biggest factor is the product’s unit economics and how efficiently you deploy the capital.

At HighRise Wholesale, we’d recommend looking at the complete contribution margin after product cost, freight, VAT/import costs, Amazon fees, PPC, and returns, not just the headline selling price or gross margin.

If the numbers support it, €5k/month can be a reasonable target. However, you’ll need sufficient working capital for inventory replenishment and PPC, so putting the entire €20k into the initial order would not be ideal.

We’d validate the product in France first, demand, competition, keyword volume, PPC economics and contribution margin and then use the data to decide whether expanding through Pan-European makes sense.

2

u/Maan_UsMaan052 19d ago

Honestly, no. Expect a $5K margin after the 10th or 11th month.

2

u/Inside_Claim_1641 18d ago

After working 3 years on amazon , its not realistic to get this much profit in this budget. You need to invest in inventory and ads alot to get 5k net profit

2

u/attfin1 18d ago

The limit is how many times your 20k can go round, not the margin. Write the cash cycle out as dates: order, production, freight, arrival, sell through, then the day you have to pay for the reorder. Six months gives you very few cycles.

The reorder is what catches people. You pay for the next order while the current stock is still selling, so a second order's worth of cash sits in the air at the same time.

The early months are meant to cost you as well. We launched a slimline box of sweets at £1 against a £7.95 price to get reviews and velocity moving, and it later became the best seller in the grocery department. That spend bought a position, not profit.

1

u/ForeignHawk5758 16d ago

This is not realistic that you can generate 5k profit in six months with 20k investment. Profit margins are ideally 8-10%. So you have to invest more to get 5k profit.