This person is a total noob, and his/her experiment is obviously going to fail.
I think "business" is far too grand a word for what's being described here. This is old school trading - buying something, and selling it for more than you bought it.
I assume, if successful, he will be able to expand to tens of product categories and get volumes into the thousands or tens of thousands, and then his 'hourly rate' could end up looking better.
These margins are way too tight for Amazon. You simply cannot stand out from the other 10,000 generic women's purses with such a budget.
As long as he's comfortable with losing his investment, let him learn from his mistakes.
I found this article really interesting.
The absolute arrogance of walking into a market as a complete amateur with low margins, admitting that he will "learn about marketing" while the product gets set up in the store is honestly laughable.
This guy is a hacker in my mind and I appreciate his approach.
It's better to try and fail then sit on the couch and wistfully dream.
This guy seems determined.
This is an experiment after all, so it would still be interesting to see the results of a random person reselling items that aren't particularly unique and in a market with plenty of alternatives (handbags/accessories) with over sellers probably doing about the same thing.
Selling existing products would be the smarter way to go at the beginning. Less risk that your unique product doesn't catch on, and just focus on procurement and sale pricing (as well as learning the process and policy expectations).
The problem I see most beginners entering the business is that they're reading too many forums and watching too many Youtube videos thinking that there's a get rich quick scheme here. Let me tell you that there isn't.
In many ways this is an interesting business model - the author is largely acting as the financial backer and publisher, whereas everything from product design to manufacturing happens in China.
Is he aware that Trump ended the program that subsidizes shipping cheap products from China?
The experiment will fail, but apart from a bit of lost money there's not a lot of risk.
I think starting out private label with such low margins is a bad way to "learn" FBA.
What strikes me the most here and there in this interesting blog is how he found immediate solutions to some of his problems just looking outside his door, instead of the internet. Why do not go with the full local route then, next time? Less adventurous than moving threads globally but hopefully more rewarding economically?
If you're thinking of getting into #AmazonFBA, you should read this. It's an ultra-detailed, step-by-step account of how they got started (and they're not even trying to sell you anything)!
Good example of someone starting their own business selling things online.