#1 Figure Out Your Margins
This is the number one rule and should not be ignored. Your margins are absolutely everything. When you purchase items that you are planning to sell, you will need to pay for them. Many sellers want to make plenty of sales, so they mark their prices low. What they don’t consider are the fees that need to be paid. The last thing that you want to do is work so hard to make no money at all.
There are some sellers who look at FBA as an option that is just too expensive. What they forget to consider is that FBA envelops the fees for all of the fulfillment costs, including warehousing and shipping. You can also use Amazon’s Revenue Calculator to determine whether or not you will make a profit selling your products using Fulfillment by Amazon.
FBA Cost Considerations
Before Amazon can handle fulfillment using FBA, the products are sold by third party merchants. They then need to be labeled and shipped to the Amazon warehouse. Amazon offers two different labeling options for FBA. Both of them come with variables, which can affect your time and profitability. The two labeling options include:
