Each item is purchased for $5 and generates net revenue (after shipping, platform fees, etc.) of $7.  You have $5,000 in cash and a credit card with a $20,000 limit.  plan is to make a big initial purchase on August 1, 2023 and to receive the product on August 18, at which point will start bringing in revenue.

Q1 .  Fill in the Credit Card Float spreadsheet with these assumptions.  How much Annual Income from Sales appears to be possible from this strategy?

Q2 .  The first month certainly looks very attractive...what's different about the second month?

Q3 : How much of the second shipment of inventory needs to be sold before second credit-card statement falls due?

Q4 : How do the economics (and attractiveness) of this business change if can get $7.50 for each plushie instead of $7, or pay $4.50 instead of $5?

Q5 : Why is this $0.50 revenue improvement such a large difference? Does this give  some insight into why some vendors are tempted to "cut corners"?

Q6. supplier offers to expedite shipping for an additional $0.50 per item so that the product arrives in 7 days rather than 18.  Is paying for expedited shipping a good idea?

Answer rating: 100% (QA)

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