How Much Can We Earn on Amazon?

How much can I earn on Amazon? A lot of people ask this question. But this is a wrong question. Because there isn’t one answer for it. There are too many answers to this question. For example; you can earn $500, $5000 or $500K, or instead you can even make a loss or earn nothing or even go on a break. 

Correct question should be “How much can I earn if I invest $3K in inventory or $10K in inventory?” Or your question should be “I want to earn $1000 each month, how much should I invest?” Or “I want to earn $3000 each month, how much should be my investment?”

This video https://www.facebook.com/watch/?v=1357473631036121 gives you answers to the above questions. Please do not forget the purpose of this video, it is just to give you rough estimates only. In real life, you may go in loss if you invest in wrong products. You may make 10% on high moving brands or you may make 40% on your own private label brands or might end up paying a high storage fee or make nothing if your inventory moves very slow and is not ranked properly. There are just too many variables for you to understand. So this video just explains the basic calculations and concepts.

6 Examples are given to make you understand various scenarios.

First 2 examples are for you to understand what profit you expect when you buy a micro product worth $1 from China and by the time it reaches FBA it becomes $2.7 and you sell it for 3x or 4x for $9.9 and what is your profit? The 2nd example talks about a small product worth $10 and you sell for 2.5X for $25 and what is your expected profit.

Second 2 examples talk about if I invest $3k in inventory, what should be my expected return? Or if I invest $10K what should I expect?

Third 2 examples talk about your monthly income target. For example if you want to earn $500 per month, how much investment you should make? Or if you want to earn $3000 a month then what should be your investment?

Do not forget the fact that there are many variables here. Your monthly Amazon ID cost, Amazon $40 monthly charges, Storage fee or long term storage fee if your inventory is not moving faster, your ability to rank your listing to page 1 or your inability to rank. Investment on wrong inventory thus going into losses or you want to get rid of your inventory at 50% off if your inventory is not moving fast enough.

You may go in losses or do break even or make profit or make great profit. There are many variables involved and the purpose of this video is just to educate you on this subject and give you a very basic guideline only. it does not guarantee or give any firm numbers.

If you have questions, you are welcome to join our Facebook Group to ask any questions https://www.facebook.com/ExtremeCommerce/

To learn more about setting up your online business on Amazon, you can attend our upcoming seminar. Find more details  at https://ec.com.pk/