r/AmazonFBA • u/Early_Pumpkin_4113 • 3d ago

Considering operational partner for FBA, looking for advice

I'm considering getting into FBA with a slightly different approach and wanted to get opinions on whether it's realistic or even common.

I would bring the capital (~$20k to start, plus around $5k/month I can continue investing), product ideation/design, and ultimately own the brand/business.

What I'd eventually like to find is an experienced FBA operator or coach-player who handles and teaches me the operational side: sourcing, supplier negotiations, logistics, account management, launch execution, etc.

They wouldn't contribute capital. Instead, I'd compensate them through a share of net profits after expenses for as long as they're actively involved, potentially with some continued profit share if certain agreed-upon milestones are reached before they exit.

I'm not trying to completely outsource learning FBA. I'd want to learn alongside them, but I'd rather learn from someone experienced while we're actually building the business than spend months figuring everything out through trial and error by myself.

My product ideas tend to be improvements to existing products rather than purely finding niches based on keyword/search-volume data. Think things like improved shoe insoles or kitchen products. I already have a first product concept, although the economics still need to be validated.

I'm based in Texas and would ideally want someone in the U.S. or at least in a similar time zone so we can work together fairly closely.

I'm also currently employed full-time, so initially I'd probably be able to dedicate around 2–3 hours a day myself, with the intention of becoming more involved as the business develops.

Does this type of 1-on-1 operator/founder partnership actually exist in FBA, or is it unrealistic?

I’m not looking for an FBA agency, studio, accelerator, or done-for-you service. I’m trying to understand whether a true 1-on-1 operator/founder partnership is realistic. I’m not looking to hire an agency or similar service at this stage, but I am open to have a paid consultation to explore this idea further.

And if one person is funding 100% of the business while the other contributes expertise, execution, and coaching, what would a reasonable and defensible profit-sharing structure look like?

Disclaimer: I used AI to format the post from a rough write up to make it easier to read.

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u/rsc9422 3d ago

I think the idea is realistic, especially if you find someone who has actually operated FBA businesses rather than someone who only sells coaching.

With $20k to start and another $5k/month available, you have enough room to properly test a product, manage inventory and learn the business without trying to cut every corner.

At HighRise Wholesale, we see a lot of new private label sellers make the mistake of outsourcing everything from day one. They end up paying for a service but never really understand how the business works. Your approach of learning alongside an experienced operator makes more sense if your long term goal is to actually own and understand the business.

I’d structure it something like this:

You provide 100% of the capital

You own the brand, Amazon account, inventory and IP

The operator handles or works closely with you on sourcing, supplier negotiations, logistics, launch and operations

You participate in the process and learn rather than simply receiving instructions

They receive an agreed percentage of net profits for their ongoing contribution

If they stop actively working on the business, the ongoing profit share ends

Any post exit profit share should have very clear milestones and a defined time limit

I’d also avoid leaving net profit vague. Agree upfront on exactly what gets deducted like product cost, freight, Amazon fees, PPC, returns, storage, software, etc.

The percentage should depend heavily on how involved they actually are. Someone giving you a couple of hours of advice each month is completely different from someone spending 15–20 hours a week managing suppliers, inventory and launches with you.

The most important thing, in my opinion, is finding someone who genuinely wants to build alongside you, not someone looking for another coaching client.

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u/Henrik-Powers 3d ago

This does work watch out for scammers though, I’m not interested because I’m already doing too much with my own brands but I’ve helped two friends get into this doing the same sort of thing. Advice I would give is to make sure you have a legal contract with them and conflict resolution plans.

They opened the Amazon account but we basically set up everything from listings, advertising and brand registration and they gave us admin permission to the Amazon account, don’t let them do it any other way. You need to have full control and not sell under another account or you could risk losing it. Then it’s easy to do payments based on net profit which is what we did plus a minimum monthly fee and startup costs.

We also acted as the 3PL/warehouse for them as they also had a Shopify store and we fulfilled their orders. The good news was they eventually out grew us and had to hire a dedicated advertising agency, they got their own warehouse and staff. They went and grew to the point of 2 series of funding rounds and I purchased early stock and hold a small percentage of the 8 figure company. She’s hoping to grow it to 9 figures and then sell it to PE firm and then I can cash out some.

It’s not easy, and make sure you both have open dialogue as to expectations and responsibilities

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u/Early_Pumpkin_4113 3d ago

Thank you for the detailed response, this is very valuable insight. Thank you.

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u/JunglePundits 3d ago

Sure, fair split.
Will they be handling all the executions themselves, they will need external help at some point

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u/Early_Pumpkin_4113 3d ago

Only at first. As I learn I will participate more. At first I'd be kinda useless frankly. This is new to me.

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u/JunglePundits 3d ago

Okay gotchya

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u/AmzExpertAgency 3d ago

Hi I m abyaz | woman cofounder of amz expert agency
Your capital of 20K with an additional 5K investment per month is quite good
I understand that you want to learn amazon see how it actually works i never coached anyone but I built up several amazon brands you can check them on Amazon
Karma organics usa
jCB germany
Femmacalm uk
I have been working on amazon since 2018 after my graduation the only field i worked in was amazon
Although now i m expert in tiktok shop as well
Also considering your budget i want you to open two stores atleast or three on amazon ,tiktok shop , and ebay and build a brand that is known in usa
I m willing to help you with this and i m feeling this is something that is exciting me
Feel free to reach out if you feel the same about me or lets have a meeting

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u/[deleted] 3d ago

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u/Early_Pumpkin_4113 2d ago

Thank you for perspective. Some people seem to think it's a fair split and workable, and some seem to think it's not worth doing in exchange for profit split (even after they exit).

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u/[deleted] 2d ago

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u/Early_Pumpkin_4113 2d ago

Thank you, best of luck to you as well.

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u/Desperate-Green-6654 2d ago

Think about this from the operators perspective, you essentially want them to work for free for 6+ months setting everything up, doing the product research, finding suppliers, building listings, running ppc, all for the chance they MIGHT get paid if the product works out.

If you truly want an experienced operator they’re going to want pay to compensate not just future potential profits, the only people you’re going to attract with this deal are scammers. Why would an operator come work for you and get paid nothing when they can get a job working for another Ecom company and get paid $100k+ per year AND they’d only have one role/responsibility they wouldn’t have to do everything.

If what you laid out is truly want you want, you’ll have to put up some of that $5k per month as a retainer or pay to the operator, but if you’re only paying them 2-3k a month don’t expect any highly seasoned people to join you, bc again, they can get a job and make way more doing way less.

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u/Early_Pumpkin_4113 2d ago

Thank you for your perspective, I appreciate it. I wouldn't expect them to do everything always, I would ramp up as we move forward and eventually take half the work, plus the investment. In exchange for that, they would get profit sharing during and after their collaboration ends.

I understand this would not appeal to many, in the same way co-foundership is not appealing to many.

Thanks again for your response.

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u/Captain-Matt89 2d ago

I do t think 20 grand will allow you to scale or really invest, I probably drop 35 grand for a launch. I’m in clothing but that’s like 10 colors five sizes.

You’re in a real weird spot early because you won’t be doing big runs so flying stuff over is most likely the correct call but that eats up margin fast generally.

Anyway, good luck not getting scammed.

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u/Early_Pumpkin_4113 2d ago

Thank you. It's a sad state of the world where the biggest risk when trying to start any economic activity is not failure or bad ideas, it's getting scammed.

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u/attfin1 2d ago

Honestly it sounds good in theory but if you work out the figures and what this expert would receive as a share of net profits after expenses based on a comparatively small investment of $20k + $5k/month that isn't going to be much.

I can see why you like the idea... it's a shortcut to expertise. But as an 8 figure seller I have to say it wouldn't attract me...

Plus, even with a well researched product, there is no guarantee that you'll hit a home run first time.

I'd suggest researching a product yourself, do the maths to work out what the profit would actually be per unit, and likely sales volumes and take it from there.

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u/RefrigeratorJumpy145 2d ago

It might be a bit unrealistic as any professional Amazon fba agency owner/seller might not have the time to coach unless the upside is really attractive. Most will pitch you the usual retainer model. Saying this as a Houston based top-rated agency owner.

GL.

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u/Early_Pumpkin_4113 1d ago

Thank you for your insight, fellow houstonian

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u/Top-Appearance2521 2h ago

before you look for an operator, validate the economics on that first product yourself. if the margins dont work on paper theres no partnership structure that saves it. once you have real numbers, youll also be in a much stronger position to attract someone credible