Advice on achieving a passive income from a PL product

Sell On Amazon Help for New Sellers
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Hello everyone.

I currently have a product on Amazon (PL) and I’m just trying to understand when or how I will get to the point where I am able to pay myself from the profits as well as keep the business going.

What I mean is, for example, I have just ordered my second batch of stock for 600 units. Let’s say the total cost for manufacturing and shipping to Amazon UK is £5k. 600 units will make a gross profit of £18k (selling at £30 per unit). Amazon fees will take £7k. PPC will take another £1k (£500 per month, over 2 months). That leaves me with £5k profit. I then reinvest this £5k back into the business for the next load of stock. If I keep doing this, the business will keep running, but I would not be able to take any of the profits and pay myself. How do I expand so that I can pay myself as well as grow the business? Do I have to order a larger amount of stock each time which may reduce the manufacturing cost and increase my profit margin?

My goal was to achieve some form of passive income through Amazon and at the moment it seems more like a non passive way of circulating money.

Any advice or reassurance on this would be appreciated.

Thanks!

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Stop wasting your money with the both online marketplaces.
They appear to be using AI to throttle your sales, 100 sellers with the same item all will sell 1 item. So, trying to get ahead is futile.

With so many negatives it out weighs the positives and it would take a long time to share everything with you.

Best thing you can do is find alternative ways to sell your product. Run your business like an old farmer would do, look out into the corn crib and see how much corn you have. You might sell 100 units on amazon and ebay and make $10 or you can find a different method of selling and sell 10 units and make $10. See where this is going.

Factor in capital efficiency and your opportunity cost and let that make your decision.

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Thank you for the insight. Unfortunately, Amazon appears to be the easiest route online to achieving financial freedom, and from all the YouTube videos and blogs, you can tell it really works. You just need to find a way to kickstart your business on the right track.

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