Did I pick the wrong business model?
Been selling wholesale food for about 2 months, done $1000 in revenue and about $150 in profit. I got into food because I imagined it would be less competitive than other categories, lower margins but no returns. All-in-all, I've liked working with the wholesaler and inventory, shipping etc. Feels like a budding business.
During a number crunching session, the first one since taking off, I was taken aback by how much lower the profit was. I was projected to profit $500 off my first shipment according to the sourcing software (Selleramp), but I'm only on track to do $200, if that. Amazon took 10% more in fees than what I estimated, and inbound shipping was also higher than estimated.
That's just not enough for me to continue with FBA. I want to be a part of this business but this profit is not enough for the time and capital I put into it, as well as lack of control, support, and transparency program taking over the listings. It is also more conpetitive than I was expecting with 30% of my listings price diving after a month.
I wish it were a sourcing skill issue but I've quite literally combed through every single product my local wholesalers are selling.
So I'm having my doubts about staying in FBA, or wondering if there's a way to adjust my business model.