Is Amazon FBA Worth it in 2022? It Depends..
14 March 22 / by Farah
So is Amazon FBA worth it now? I think you have to consider a few things and answer these questions for yourself.. Because only you can decide.. Is it worth it or not? I think the conversation needs to move outside .. How much money can you make with Amazon FBA?
Because this is one of the most expensive online business models available .. as it is a product business and you are using Amazon FBA which is a premium service. So start-up costs are huge compared to other business models like a coaching service or print on demand or digital products..
If you are good at chatting up people, you will like marketing, but what will you market? A product or a service?
If you choose Amazon FBA, it will take you a little while to find the right product as you gain confidence. I would advise you not to invest too much in 1 or 2 products as a beginner, because if they don't work out you will make heavy losses. Test first with a small batch.. Pay a higher unit price.. Nothing worse than unsold inventory.
You need a lot of patience just like any other business and you should outsource at the right time..
The problem is people lose interest too.. In a year or 2 you just learn to get the hang of things.. The Amazon business behind the scenes is pretty complicated. That is why there is this huge demand for Amazon mentors..
Then there is the fact of Amazon aggregators.. Which are pushing out small sellers by either outspending on PPC or simply buying their way to success and big bucks on Amazon by buying out the brands run by smaller sellers..
So now we are not only competing with Amazon basics, the Chinese manufacturers, but also the aggregators..
The third party seller feels more squeezed than ever..So IT IS NOT EASY For sure.. It is hard to make money…
Nothing is easy.. I thought creating a course business with digital product would be easy.. IT IS NOT!!
YT is not easy either .. Social media is not easy either.. How many places do you need to post too? It makes your mental health worse..
Any business you choose, start with intention.Create a product, an offer that will cut through the crap.. .. You will make money in the long run when you start scaling.. Lower your costs.. Rinse and repeat on your next product..
So, depending on what stage you are at.. Look at your circumstances.. If you are low on funds… Amazon FBA is not for you..
Amazon FBA is perfect for people that can check these boxes,
You want to leave 9 to 5 and work flexible hours.
You want to work from home..
You have savings or investment of 5 to 10k
You are good at tech, like working on spreadsheets etc.
You love products.. I think this is the missing link for 90% of people.. They come in being attracted by big numbers, or less work etc.. whatever the hype people are telling you to pull you in.. If you have no interest in products, you won’t be able to build or improve your product the same way somebody with an interest will. This is something you can not buy.
I am not saying you need to be an inventor.. But you do need an eye for spotting a trending product that might be a good idea to sell on Amazon - the everything store..
Anyway, rant over.. It's a life choice.. Don’t do it for quick money.. You will be disappointed.. Find something else..If you are in for yourself and family.. Start today and build up on your budget.. But do choose Amazon FBA if you want to start a product brand and flip it to aggregators.. That is the online version of selling your start-up to a venture capital in Silicon Valley..
That is a short cut if you think about it.. How many have failed on that sandy hill road? Think about.. Nothing is easy..
That is my 2 cents..
..Farah
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