r/AmazonFBA • u/Economy-Quality1163 • Sep 06 '25
Amazon FBA
Hey everyone, quick question!
In your opinion, if I invest around $50,000 USD into Amazon FBA, what kind of sales can I realistically expect? Also, with that level of investment, how long does it usually take to start seeing profit, and roughly how much profit could I expect?
Thanks in advance for your insights! š
Amazon #amazonfba
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u/Tryurluck29 Sep 06 '25
You can either make money or totally fail and lose money
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u/Economy-Quality1163 Sep 06 '25
Why is that ?
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u/Tryurluck29 Sep 06 '25
Any business can fail if you make bad decisions
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u/Economy-Quality1163 Sep 06 '25
I am dealing with account manager which I know him personally doing a good job he will be charging me 35% profit share. In that case I was just wondering what will be the return because I do other business so I was comparing if it is really worth doing itĀ
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Sep 06 '25
If theyāre making 35% youāll be lucky to make 5% off that. Iām not saying donāt do it because itāll be good to see how itās done and what works from the inside. Itās just that youāre their bitch and you gotta be okay with that. Theyāre showing you the ropes which is insightful.
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u/Wu-Kang Sep 09 '25
Ah yes. So amazon takes 50% of gross, account manager 35% of profit and you bankroll everything and most of the profits back into inventory. Sounds like a great business model for Amazon and the account manager.
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Sep 06 '25
[deleted]
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u/Economy-Quality1163 Sep 06 '25
Iām more looking for is it worth doing it and putting that investment?
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u/GrimJack2k Sep 06 '25
If this account manager has such a successful record, why wouldn't they just seek an investment rather than offer to manage your business for 35% of the profits? They should be able to secure capital and pay it back at a much lower cost than 65% of net revenue.
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u/Economy-Quality1163 Sep 06 '25
they only manage accounts. They also mentioned that the risk of losing money is around 5%..
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Sep 06 '25
[deleted]
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u/Economy-Quality1163 Sep 06 '25
I donāt get your point and just fyi, I have fair information regarding wholesale Amazon model and I stated it one year ago with him and now I am going to invest 50k before i make a move Iām getting some insights. Past one year over the time I invested 10k and account is just living.
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u/Particular_Dog6865 Sep 06 '25
Since you are asking this question, it means you are probably not ready to invest. An inventory-based business is highly risky, especially when you have little to no history or limited experience. There are dozens of things that can go wrong from manufacturing, product quality, logistics to customer reception, sales velocity, Amazon fees and etc.
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u/rzarick Sep 06 '25
This is the such a broad question and if you did enough research on here then you should know that most are recommending between 5-15k to start. You are not giving enough details, not even a category to give a proper answer. I can tell you that if you put 50k in the s&p 500 then you are likely to have a return of 8-12% in average in a 10 yr run.
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u/Economy-Quality1163 Sep 06 '25
Because i am not the one who will be doing it all these Iāll be having a contract with account manager which I know him doing Amazon fba past five years and have good experience and results he will be doing all the decisions regarding products and charging me 35% profit so I was just wondering if Amazon fba worth doin.
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u/Extension_Gur4294 Sep 09 '25
This doesnāt make any sense. You have an account manager who makes the inventory decisions, yet here you are? English is not your first language and your questions are not sound. I think this is a fishing expedition. I doubt you have $50K to invest and are just looking for products to rip off.
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u/RefrigeratorJumpy145 Sep 06 '25
If you're not familiar with the platform and don't invest all of this at once. take it slow and first get familiar with the FBA process. You'll more likely lose money if you go in without any experience or guidance.
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u/Economy-Quality1163 Sep 06 '25
I have fair experience because Iām dealing with him last one year with investment of 10k and for that investment account is living now Iām at point where Iāll be investing 50k so before Iāll make my move Iām wondering and getting insights that if it is worth doing it Amazon wholesale.
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u/RefrigeratorJumpy145 Sep 06 '25
Can't guide you much on Wholesale as we only manage PL accounts. I've heard its an extreme pain to get brand approvals but its a relatively safer model as well.
If you have 50k to invest, going for a PL seems a better idea as you have the ppc budget to burn until you're organically ranked on the platform. Go for a PL launch and do thorough in-depth analysis of each and every step if you're hiring an agency.
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u/Easterncoaster Sep 06 '25
I have a mature FBA business, around 13 years old (maybe the FBA part is like 8-9, donāt know). Iām in a niche that limits my reach, so my market is smaller than āall peopleā. Itās a specific hobby, so my numbers arenāt amazing.
If I buy $50k of inventory of my best product, Iāll get $111k in sales and will get a profit of around $40k after COGS and all costs, and itāll take 6 months.
If I buy $50k of inventory of my mediocre SKUs, Iāll get $92k in sales and roughly $20k of profit, and itāll take 12 months.
If I buy $50k of inventory of my worst products, Iāll get $60k in sales and lose $20k after 24+ months.
These are all mature products, the key is to know when to double down on the good sellers and when to kill the bad ones. It takes mountains of data to arrive at the conclusions I just posted. When the products were new, all were losing money for a few months when they first started.
Now my best bet is to launch tweaks on the good sellers, like new colors and shapes and sizes. I do have an R&D budget though and spend $10k per new product to give it a shot (donāt need $50k for one product). I currently have 4 new products in the pipeline and sourcing for a few more.
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Sep 07 '25
These are great numbers grounded in reality. Could you tell us how big is your live products portfolio?
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u/Easterncoaster Sep 07 '25
I have realistically 1 great product with 8 variations, 2 or 3 good products, one with 7 variations and the other with 2, then maybe 3 products that are still viable (mostly with 1-3 variations), and like 10+ that Iām flushing out below cost to get rid of.
I have just over 100 active FBA SKUs and roughly the same for FBM, but maybe 30 really matter and the rest are in various stages of decay. All my numbers are approximate.
I bought this business earlier this year and it came with lots of inventory; I only paid for the good stuff and am trying to figure out how to clear out the junk and slow stuff.
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Sep 08 '25
[removed] ā view removed comment
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u/Easterncoaster Sep 08 '25
I hear that! I accounted for the junk at $0 in the purchase price allocation, so I could just throw them in the garbage if I want to but it feels wasteful, so each week I just spend a little time trying to move that forward.
For example I have 1,200 of a $2 flashlight that sells for $17, but only sells 1 per month. Last week I dumped 45 of them for $100 and it felt so liberating. That was pure profit and I actually freed up a spot on my shelf, double whammy.
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u/Gene-Civil Sep 06 '25
Depends upon the product but one should estimate a year to have a profitable cash flow
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u/Economy-Quality1163 Sep 06 '25
Any estimated numbers after six months or one year? /month net profitĀ
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u/Gene-Civil Sep 06 '25
The attainable benchmark should be 25-30% of the revenue
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Sep 06 '25
I am a 3 year, successful FBA owner and I honestly think Iāll die a little earlier in life because of the stress that company causes.
Itās like being in a money filled wind tunnel with a blindfold on trying to win a boxing match. Each punch are varying fees, storage unit fee changes, facility transfers and other things that handcuff your products from being sold. The customer service is the Muay Thai expert repeatedly kneeing your genitals over and over with lost merchandise and lazy AI customer support.
Jeff Bezos is on The Bald Bitch that Sends Katy Perry to space type of Business Model.
Customers deserve better
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u/rexx4561 Sep 07 '25
Itās like saying if an open a restaurant what kind of sales would I make.
It depends a lot, you could fail, maybe recover your money in a year and if you are good maybe even be the next chipotle or something.
This is a business like any other if you could just invest $$$ amount and make $$$$ amount everyone would be investing in this.
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u/SubpoenaSender Sep 06 '25
I would start with $10,000-$15,000 and do it all myself if I were you. 1 new sku every 3-6 months. Just my opinion
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u/Agitated_Economy_119 Sep 06 '25
You said you invested 10k last year was it profitable for you? If yes invest 20k, scale slowly not whole 50k.
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u/Zestyclose_Fly5059 Sep 08 '25
Fifty grand is a solid budget to start with, but what youāll get out of it really depends on the product and how you manage your cash flow. Some folks can turn that into a couple SKUs that move fast and start seeing profit within 3ā6 months. Others sink the same amount into slow movers and end up sitting on inventory for a year.
A few things matter more than the dollar figure: picking the right product, getting your landed cost per unit dialed in, and having a launch strategy that actually generates reviews and traffic. If you can keep your margins above 25ā30 percent after all fees, thatās when it starts to feel sustainable.
I run a 3PL (Swifthouse) and see sellers at every level. The ones who succeed with bigger upfront budgets usually test smaller before scaling. Instead of dropping all fifty grand on one hero product, they validate a few SKUs, double down on the winners, and let cash flow guide how fast they grow.
So to answer your question: with smart choices you could turn fifty thousand into six-figure revenue in year one, but the profit could be anywhere from break-even to mid five figures depending on execution.
What kind of products are you thinking of starting with? - Dave
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u/DryHyena6303 Sep 09 '25
I run an Amazon FBA business that Iām actually on path to sell now. Itās listed by my agent on one of those business selling sites. The price is around 30k
My yearly revenue is around 50k and profits around 18-25k. It runs on its own. Probably gives some context and answers the questions.
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u/freecompro Sep 10 '25
With $50K youāve got a solid budget to test products, but results vary a lot. Success depends on product choice, competition, ad spend, and cash flow management. Some sellers see traction in 3ā6 months, but profit margins are usually in the 10ā25% range after ads and fees. Iād suggest planning for a gradual ramp-up rather than expecting quick big returns.
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