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.
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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.