I should preface this post with, this is speculative, so maybe the title of this post should be speculating on expected returns.  In the last two weeks I have sent three boxes of books to Amazon, totaling 66 books.  Here are the stats for each shipment.

Box 1

1. 20 books
2. Avg. Rank = 725,000
3. Cost Including Shipping = $66.59
4. Total Expected Revenue = $767
5. Expected Profit = $457.63
6. ROI = 687.24%

Box 2

1. 17 books
2. Avg. Rank = 1,909,360
3. Cost Including Shipping = $29.44
4. Total Expected Revenue = $417.10
5. Expected Profit = $218.24
6. ROI = 741.3%

Box 3

1. 29 Books
2. Avg. Rank = 1,318,000
3. Cost Including Shipping = $33.35
4. Total Expected Revenue = $547.84
5. Expected Profit = $251.59
6. ROI = 754.39%

I like to think that I have not wildly mispriced my inventory.  On some books I have matched the lowest offer, on others I am around the 3rd or 4th placed FBA offer.  I am still learning and working on my pricing strategy.  The other thing that is impacting my profit margin is that I am still paying a $.99 per item fee because I am not on the professional seller plan.  I do not sell 40 products a month (cost of plan is $40), at the moment, so it is not yet worth it to me to upgrade.

The other big question aside from pricing is turnover, how quickly can I expect this inventory to turn over.  According to FBA Mastery, I should expect to sell half of a shipment’s inventory within 60 days.

Right now, I am assuming a profit of around $926 on a $128 investment.  If half my inventory in fact sells in 60 days and I earn $350-450 I will be pretty jazzed.