Two Year FBA Experience Summary

After two years of doing Amazon FBA here are a few things I’ve learned.
  • MOQ is negotiable. When ordering a product, try to order as few as possible. It makes little sense for you to order 1,000 when you can order 200. The supplier has much incentive to try to get you to order as much as possible. Order small quantities, test the market, then re-order.
  • I’ve shipped around 15 times so far and have gone by sea DDP each time. I’ve slowly worked the $/kg down to 1.5 from 2.5-3. Not sure if this is where the rate ought to be, but this is how much we’ve been paying for 100kg-400kg shipments.
  • We ship to my partners house where he stores all the boxes. He sends around 300 units in at a time as needed. This year we are looking into transitioning to shipping directly to Amazon from China.
  • I’ve always paid 30% down and 70% upon photo and video inspection. The terms have been EXW in rmb and I arrange to either have the FF pick up the goods or arrange the supplier to help me send goods to FF warehouse. I’ve always wired them and have never used trade assurance.
  • Our products range from private label to products we’ve created from scratch. We did about 100k in revenue the first year and we hope for 150k this year, though covid has done a number to us.