✔ How AMAZON FBA Works in 2023 & How I Make $10,000/Month Profit From It!

by Tomer

February 10, 2020

Each year, one of the questions of many Amazon FBA sellers and those who are considering selling on Amazon is if it’s still profitable and worth it to sell on Amazon. 

So, in this post, I’ll discuss if Amazon FBA is still worth it in 2023. For those who are new to Amazon selling, I’ll also explain Amazon FBA vs FBM, and the different Amazon business models you can choose from.

In addition to that, I’ll share with you how I started selling on Amazon and how much I spent on my first product, and basically my own experience with Amazon. 

Is Amazon FBA Worth it in 2023?

While competition is stiff in Amazon, 2023 will still be a good year for both existing Amazon FBA sellers and those planning to sell on Amazon in 2023. In 2022, Alibaba group is the biggest eCommerce retailer worldwide, followed by Amazon.

However, according to Statista, “forecasts project that Amazon will overtake Alibaba by 2027, with estimated annual online sales exceeding 1.2 trillion U.S. dollars.” This is due to Amazon’s market presence worldwide. 

This forecast only proves that it is still worth it to try Amazon FBA in 2023. 

Leading e-commerce retailers worldwide in 2022 and 2027, based on estimated sales:

Source: Statista

Amazon FBA vs FBM

In my opinion, selling on Amazon is a very lucrative opportunity because you can make a lot of money with minimal effort. If you choose Amazon FBA (Fulfillment by Amazon), most of the work will be handled by Amazon.

All you really need to do is ship your inventory to Amazon Fulfillment Centers, and they will be the ones to pick, pack, and ship the orders to your customers. They will also take care of all customer concerns. 

With FBM (Fulfillment by Merchant), you will handle everything. You will prepare, pack, and ship your customers’ orders. You will also have to answer all customer concerns regarding their orders, which can be a lot of work. 

If you ask me, I prefer Amazon FBA since that takes a lot of work from you. This way, you can focus on marketing, bringing the right products for your business, and just focusing more on growing your business.

Amazon Business Models

There are different Amazon Business Models available. I’m currently doing Private Label, so let’s start with that.

Private Label

A private label means that you will bring goods from overseas or the USA, and then you will approach factories and ask them to put on their product just with your packaging. Now it’s not limited to just one product. You can bundle it. You can put everything in one box and sell it as your own. 

You would put your brand, and that’s what I do. That basically creates differentiation between you to the other products in the market, and that’s what made me succeed in selling on Amazon.


Then you have the wholesale business model, meaning you will find items that sell already on Amazon. Say, for example, Domino. Basically, you’ll contact the manufacturer and the distributor of Domino, and then you will tell them that you want to sell their product. 

You’ll jump on to the listing, and you are going to sell their products. Obviously, from its original price of $11.95 per piece, you will buy it for like five or four dollars and sell it for a higher price, of course.

Retail and Online Arbitrage

Retail Arbitrage means that you will go to the stores basically. For example, you will go to Walmart, and you will find this Domino for $2, then you’ll go and sell it on Amazon, of course, at a higher price.

I did it a couple of times, and I got really overwhelmed. For me, it wasn’t the right thing. I couldn’t see myself spending an hour or 30 minutes on the road to Walmart just browsing.

It’s really time-consuming and not scalable, and I wanted something that I could scale.

Online Arbitrage is somehow similar, but instead of going to physical stores, you will find the items online. It requires less work because you don’t have to approach and create relationships with factories.


Dropshipping is when you purchase your products directly from the manufacturer or a company that sells goods at a lower price, and they will be the ones to ship the orders directly to the customers. 

For dropshipping, Amazon sellers will list their products on Amazon. When a customer places an order on Amazon, the seller will place the same order with another online store or manufacturer and will put the customer’s name and delivery address.

A word of caution, this is against Amazon’s ToS (Terms of Service). However, there are still a lot of sellers who are doing this. It’s up to you if you think it’s the right choice for you but be sure you’re ready to face the consequences in case you get caught by Amazon. 


Handmade is when you make your own products and sell them on Amazon. If you like making handicrafts such as home decor, jewelry, accessories, and more, then this might be a good option for you. 

So these are the Amazon FBA business models that you can choose from.

The next thing I want to share with you is how I started selling on Amazon. 

Decide on a Product

So, first of all, I decided on a product that I wanted to source. I ordered two products from Amazon competitors so I could check the quality and compare.

Then we had samples from factories in China.

I ordered from two different factories so I can see the quality as well as compare it against the quality of items of competitors from Amazon.

I checked among 30-40 suppliers and finally decided which factory I’ll go with.

I then ordered 600 kits, and it was a $900 down payment. I put everything in a nice little bag, and I had the bags branded.

Launching the Product

Back then, I hired a photographer to take pictures of my products to use on my product listing. Now, you don’t really need to hire a photographer. You can take your own photos using your phone and edit your photos on tools like Canva. This can help you save some money.

Aside from the cost of hiring a photographer, some of the expenses I had on my first product launch were PPC expenses which were around $1,000, and launch giveaways which were about $800.

So, I would say that I spent around $5,000 when I started on Amazon. Some may think that it’s a big amount, and not everyone may have $5,000 or more to spare for their Amazon business.

But there are several ways you can get $5,000. You can start saving some money right now or find other ways to finance your Amazon business. You can try the following options:

  • Amazon Lending
  • Credit Cards
  • SBA Loan
  • Traditional Line of Credit
  • Ask for help from family and friends

Is Selling on Amazon Still Profitable in 2023?

I think that it is still profitable to sell on Amazon in 2023, even with all the competition and compared to other methods of making money online, like affiliate marketing. However, Amazon FBA may not be for everyone, especially if you’re not dedicated and is not willing to do the work.

But if you’re serious and you want to scale your business fast, Amazon FBA is a great opportunity. It took me one year to make a $10,000 net profit a month on Amazon. I still had my day job back then, but I made sure to spend at least 3 hours a day, 6 to 7 days a week. 

If you continue educating yourself and you stay focused on your goals, you can also achieve what I was able to achieve within a year of selling on Amazon. 

I’ll share more in the next videos. A little more detailed videos on how to sell, how to find products and the step by step videos on how to do that.

About the author

My name is Tomer, and I founded Sourcing Monster to share proven tips and methods that I use every day for my Amazon business to provide value and growth for you as well as you journey through your own business!

Feel free to comment or share any feedback down below!

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