Hypothetical question 1: When you said 300 to 400 a month, I wasn't sure if you were referring to transaction or profit. But if you are referring to transaction, then you should know Amazon will suspend your account if you exceed 50-60 transaction because of tax reasons. Although in my case, even when suspended, they still continued to disburse my money even though I couldn't sell.
Regarding FBA, I have yet to use it but I hear it's a real profit booster for most.
Hypothetical 2: In my opinion, if you know how to get approve and you have a good conditioned account that amazon trusts you to maintain then the chances of you getting burned are slim. I don't think they'll burn you if they decide to give you permission, it wouldn't make sense.
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