An Amazon FBA seller made $427,000 in revenue with a 22% profit margin in one month. He argues that chasing higher margins would mean handling more operations himself and sacrificing family time, so he accepts Amazon's 15% fee for the freedom to scale without grinding.
So I made a video saying that I made $427,000 in a single month in revenue, and that equated to $93,000 in profit. And this guy's saying that it's robbery. Well, the thing is that that comes out to a 22% profit margin, which you can look at it this way, right? Yes, I can probably make more of a profit margin, but at the same time, I wouldn't be able to go ahead and kind of like spend time with family, spend time with my kids, be able to go ahead and like travel and live the life on my terms. Because if I had more of a profit margin, that means that I would try and do stuff myself. I'm at the point in my life now that I have kids that I'm not trying to do anything that takes away my time with my kids. So by utilizing Amazon's Fulfillment Network, yeah, it costs money, but they're able to go ahead and scale my business out more than I can myself. The same thing goes with selling on their platform. They charge 15% to sell on their platform. Where people are already shopping, right? Instead of me going and trying to find influencers to make content, me sell my own Shopify store, which sure, maybe I'll make more of a profit margin, but how much time is that going to take away from me, right? So again, whenever I go ahead and think about anything, is it going to take me more time to make more money, or is it going to take away from me being with my family? So I'll gladly only take a 21 or 22% profit margin as long as I get to still live that freedom of money, time, and location.
