The Harsh Truth About Amazon FBA

you deserve to know the truth about Amazon FBA in 2024 and I need to be honest if you're looking to make money online you need to know every day 4,000 new sellers join Amazon but the fact is 90% of all e-commerce sellers will fail and I'm going to share with you the pros and cons of selling on Amazon because even though 90% of Ecommerce sellers fail over 43% of all Amazon sellers make over $100,000 per year meaning your chance of success on Amazon is higher than it is with other forms of making money online like Shopify or Drop Shipping but there are some big truths about Amazon some cons about Amazon that I don't usually talk about that you need to understand before you start to sell on Amazon and you need to understand how Amazon FBA Works in 2024 and the truth is Amazon is not easy it has gotten a lot harder than when I first started Amazon over 8 years ago and if you're new to the channel Channel my name is Travis I'm a seven figure online seller with multiple passive income Amazon businesses and I know how hard it can be to start your own passive income business but I've done it multiple times and I'm going to share some of the tips and techniques that I've used to start my own Amazon FBA passive income businesses as well as be brutally honest about the pros and the cons of starting Amazon as a beginner in 2024 because even though yes there are millions of Amazon Prime customers in fact there's over over 300 million Prime customers worldwide and Amazon is growing every day there is still a lot of competition a lot of other Amazon sellers that are selling products and yes Amazon does make it easy for you to add a product to their website and start getting sales from day one but they can also ban you at the drop of a hat and I will share with you some Secrets later in this video to make sure that your Amazon account gets approved and that it doesn't get banned but a huge Pro of selling on Amazon that I'm going to talk about in detail is the freedom you can have while running an Amazon FBA business you can travel the world and enjoy your life because you can take advantage of the FBA program which I'll talk about later but the flip side of this that a lot of people don't talk about is that it takes a lot of work in order to build your passive income business but I do have some shortcuts that I'm going to share that's going to make it easy for you to start your own Amazon business so pay attention and before we start make sure to smash the like button because this is the only video where you'll actually get someone that's a real seven fig Amazon Seller sharing the harsh truth about Amazon the pros and the cons and everything and one of the first Pros about Amazon FBA is it works you can start your own Amazon FBA business I've done over $6 million in sales on Amazon alone I've taught thousands of people how to start their own Amazon FBA business and I'll be honest with you not every single one of them has been wildly successful but of the people that actually follow my Amazon FBA formula a hug huge percentage of them are successful people like Brent who did over a million dollars selling this product online AJ Jeremy Juliana Andrew and there there's a ton of other people that have had success with this AJ took his love of cocktails and made over $500,000 in his first year Brent focused on his love of cooking and now makes over a million dollars a year all while raising a family and Juliana had a real need for more supportive clothing and she made over $50,000 in just her first 6 months so it can be done Amazon FBA is a real opportunity and there are a lot of Pros with selling on Amazon and one of the first big Pros is Amazon is a growing Marketplace every year there's more money being spent on amazon.com and there's more customers buying products from Amazon's website in 2021 Amazon did about $400 billion in sales on their website that jumped up to 500 billion in 2022 600 billion in 2023 and this year in 2024 they're looking at over $700 billion in revenue on their website as I mentioned there's over 310 million active Amazon customers worldwide and over 170 million in the us alone which is huge growth over the past 10 years in 2015 there was only 54 million Amazon customers in the United States and now with over 170 million you can see that this trend is going to continue to grow and Amazon actually spent over $34 billion last year alone in order to Market their website to get more customers to come to their website and this leads me to the first big con with selling on Amazon and that is that Amazon is starting to get a little bit oversaturated in fact as I mentioned there's 4,000 new sellers joining every single day and there's already 9 million sellers on Amazon now keep in mind of those 9 million sellers only 2 million are active and of those 2 million active sellers only one million or so are in the United States and back in 2015 43% of all the sales that happen on Amazon were by thirdparty sellers that's people like you and me selling our products on Amazon that number has jumped up to 60% of all the sales happening on Amazon are from thirdparty sellers which sounds like a bad thing but I actually don't think it is I think this represents how much of an opportunity Amazon is and selling on Amazon isn't oversaturated unless you're still using the same old school techniques that people were using 3 4 5 years ago because 85% of all sellers are either doing private label or wholesale and these are techniques that I do not recommend and you need to understand that there are multiple different ways that you can sell products on Amazon the first is where you find products that are being sold at a discount like this whiteboard it's being sold on walmart.com for $182.33 but this exact same product is being sold on Amazon.com for over $469 so what you could do is you could buy this product from walmart.com sell this exact same product on Amazon.com for the increased price and you can keep all the profit this is called Retail Arbitrage and this is one of the ways of selling on Amazon that does still work but it's not one of my personal favorites because it's really hard to create a passive income business around Retail Arbitrage because what you have to do if you're doing Retail Arbitrage is constantly go hunt for deals for discounts buy those products ship them into Amazon there's nothing passive about this type of a business so what a lot of people do instead is called wholesale and you can go to sites like globalsources.com or you can buy a product with a wholesale discount meaning you buy a product in bulk at a discounted wholesale price you can then flip it for the full retail price on Amazon for instance there's this toner cartridge pack that's being sold on globalsources.com for $15 and that same toner cartridge pack is being sold for way more on Amazon it's being sold for $159.99 on Amazon am.com so you can buy it for 15 bucks flip it on Amazon for $159 and keep all the profit and if this sounds like it's too good to be true that's because it probably is and the way that selling wholesale on Amazon works is there's nothing stopping other people from buying that exact same product and selling it on the exact same listing as you meaning that this way of selling on Amazon is probably too competitive now you can get lucky and occasionally you can find a product that no one else knows about and you can make a bunch bu of money but usually it's just a matter of time until someone else comes in and buys that same product sells it on your same listing and undercuts you so what some people do instead is sell products like this ergonomic mouse pad and this product is making over $300,000 in sales every single month and you can find out how much any product on Amazon is making by using this free jungle Scout sales estimator all you have to do is scroll down to the bestselling rank number on the product listing page copy that paste it into the jungle Scout sales estimator tool select the category in the marketplace and we can see that this one product is selling 33,000 units per month if we then multiply it by the cost of the product which is $8.6 we can see that this one product is doing over $300,000 in Revenue every single month but here's what's really crazy about this example is you can go to alibaba.com and you can find this exact same product for 94 and what makes this different than wholesale is you can buy this product in bulk you can then slap your own brand on it slap your own private label on it sell it on Amazon in your own listing that no one else can sell it on and you can make a ton of money and this used to be the best way to sell on Amazon it was the gold standard but as you can imagine if it's easy for you to do it's easy for other people to go to Alibaba buy that exact same product slap their own label on that product and sell it on Amazon which means you're going to have a ton of competition so it sounds like all these methods for selling on Amazon suck or oversaturated but there is a fourth way to sell on Amazon this is what I personally do and what I teach all my students to do and I call it creating a passion product and I do have a complete Amazon FBA program going in depth teaching how to do this including weekly Q&A calls and all that kind of stuff but don't worry I'm actually going to give you a free gift a free Amazon FBA course that's 8 hours and this free Amazon FBA course has more value than most people's paid Amazon FBA courses I've seen Amazon courses that cost $1,000 that have less value than this and I'm going to give that to you at the end of this video but first we need to go over some more of the pros and the cons so you can understand if Amazon FBA is even the right opportunity for you and I'm telling you right now that you can succeed on Amazon FBA because it's never been easier to find a product to sell on Amazon that used to be one of the hardest parts of selling on Amazon but nowadays there are a ton of tools that make it extremely easy for you to find a profitable product and my personal favorite tool is called helium 10 it's a product research tool that lets you find out exactly what people are searching for in Amazon and this is the key to success when selling a product on Amazon because people go to Amazon they type in what they want to buy from Amazon and they get a list of a bunch of different products if you can figure out what people are typing into Amazon you can make that product for them and make a ton of money and helium 10 gives you this data they have a tool called the magnet tool where you type in different things and it'll tell you how many times per month people are searching for it for instance I'm working on a product called berberine tea and if we put that into the tool we can see that over a thousand people per month are searching for berberine tea but when we go to Amazon and we look for berberine tea there's no one selling a tea made from berberine so if we make this product there's a thousand people a month that would buy this product and I have the hookup with helium 10 there is a link down below with a discount code and on my channel I have a ton of videos showing you in depth how to use this tool in order to find products to sell on Amazon but there is another big con with selling on Amazon and that is that it's going to cost you time and money honestly in 2024 this idea of becoming an overnight success selling on Amazon is a bit of a myth get that out of your head this isn't a get-rich quick scheme you're not going to become a millionaire overnight but can you build an Amazon FBA business and set it and forget it and actually the answer is yes which I feel funny saying because I want to be clear again it's going to take hard work and order to build that machine but just like building a car takes a lot of time and energy to do so once you built the car all you really need to do is keep gas in the gas tank do some maintenance and that car will drive for a long time the same thing is true with your Amazon business yes you'll have to keep buying inventory from your manufacturer and sending it into the Amazon warehouse and occasionally you will have to do some maintenance on your business but you're building a machine that's going to be printing you money and it's relatively set it and forget it in fact I partnered with a student to make a product called Rocket tea it's the highest caffeine tea in the world he launched that business and he hasn't worked on that business at all and it's still making him money every single month now if he were to work harder on that business could he make more money yes but that wasn't William's goal his goal was just to be able to lay on a beach in Thailand and make passive income and that's what he did and this method of building a passive income machine and starting your own passive income business does take time to figure out how to do it took me many years took me 5 years before I launched my first Passion product and had success on Amazon now I will say within 2 months of launching my first Passion product on Amazon I was making over $30,000 Revenue every single month that's over $10,000 profit every month in my first year I did over $300,000 in Revenue over $100,000 in profit but it took me time to figure out this formula that I call the passion product formula and that's why I created my Amazon FBA program is to help people speed up their results I see so many people that launch products on Amazon that are just kind of making it up as they go and it ends up taking them years before they have success don't be one of those people don't make that mistake if you haven't had success selling on Amazon yet find someone that's already done it and follow their step-by-step formula as I mentioned you don't need to join my Amazon FBA program I do have a free Amazon FBA course I'll give to you later in this video but I do want you to understand a couple more pros and cons before you watch that free Amazon FBA course because if you watch that free Amazon FBA course without understanding all the pros and cons you might fall into some traps that a lot of new sellers fall into that end up making them be a failure when it comes to Amazon and we'll get into a really big con about some of the Amazon fees that a lot of people don't think about in just a minute but first let's talk about another Pro and that is that starting your Amazon business is easier than it's ever been as I mentioned finding a product to sell on Amazon is so much easier than it's ever been Thanks to tools like helium 10 but actually finding a manufacturer getting your product manufactured and getting your product listed on Amazon are all pretty simple and in order to find a manufacturer you can use websites like alibaba.com thomasnet.com or even just Google and using these websites to find and get your product manufactured is really easy for instance on alibaba.com all you need to do is type in the type of product you're looking to get manufactured and then select manufacturers hit enter and you'll get a list of hundreds of different factories that can produce your product for you over in China for a discounted rate now if you don't want to get your product manufactured in China with Alibaba there's also other countries that you can get your product manufactured in overseas however if you want to get your product manufactured in the United States there's a website called thomasnet.com and same thing just type in what you want to get manufactured very easy to find a manufacturer and once you have your product manufactured the next step is listing it on Amazon which sounds like it's going to be this big complicated thing but it's actually become easy easier and easier every single year all you have to do is sign up for an Amazon seller account by going to sell. amazon.com clicking sign up filling out some information and then you're going to get into your Amazon seller account at which point you're going to click to add a new product and all you have to do is fill out your title what you want the title of your product to be what you want the main image to be as well as upload some side images and some bullet points and a description and you're pretty much done now there is a secret way to create a title bullet point a main image that's going to make it so you have as much sales as possible it's going to make it so you can hack the Amazon algorithm to get your product to the top of the search results and that's something I talk about in depth in my Amazon FBA program and in that free course I'm going to give you in just a couple minutes but the actual nuts and bolts of starting an Amazon company has never been easier that being said a big con is that it can be costly there are a lot of fees when selling on Amazon and this is something that a lot of people don't think about and for those that don't know Amazon FBA stands for fulfilled by Amazon this is where you send the products that you want to sell on amazon.com into Amazon's Warehouse Amazon will then pick pack and ship out the product for you anytime a customer goes to their website and clicks to buy your product this is why it's passive income because Amazon's handling the Fulfillment for you this also means that you can travel and go on vacation and live anywhere in the world and your business is going to keep running and it's going to keep printing in you money you don't actually need to be in the United States in order to run this business but Amazon does charge you some fees for selling on Amazon the first fee that you have to think about is the 15% Amazon referral fee anytime you sell any product on Amazon you're going to have to pay 15% to Amazon so if you have a $100 product you got to pay Amazon $15 every time you sell that product now there is a way to get around this you can use the brand referral program and your fee will go from 15% down to 5% and this program is perfect for people that are selling passion products if you're doing Retail Arbitrage or wholesale you can't do the brand referral program so you're going to have to pay that crazy 15% fee but if you are selling a passion product you can get that down to 5% plus right now Amazon is giving you 10% back on your first $50,000 in branded sales Amazon right now is pushing hard the idea of creating a brand of creating a real product they're basically telling you to create a passion product but another feed to think about is that you are going to have to pay the Amazon FBA Pick and Pack fee and this fee depends on the size and the weight of your product for most product it's going to be around $4 and this fee includes the postage and handling of shipping your product now if you don't want to pay this fee you can always do fbm which stands for fulfilled by Merchant and with this method anytime you get a sale on Amazon you're going to have to pick pack and ship the product out yourself but I'm going to tell you right now it's not worth it because if you're doing that you're going to have to pay for the shipping fees which is often times more expensive than $4 plus you're going to have to ship out the product yourself you're going to have to go to the post office in order to ship out these products which means you're not free you can't travel you can't live overseas so the harsh truth about selling on Amazon in 2024 is that it does take hard work you're going to have to put time and effort into building your business but when you put that energy into starting this business it's going to pay off for years it's going to give you the freedom to Be Your Own Boss to wake up whenever you want to wake up to actually be excited about what you do for work and it's going to make it so that the sky the limit you have a choice you could be like Willam and go lay on a beach and just make that passive income or you could grow this like Brent did into a massive multi-million doll business and that's real Freedom the freedom to be able to choose how hard you want to work and to get rewarded for how hard you work and as I mentioned if you want to work with me and if you want to learn from me how to start your own passive income business I do have an Amazon FBA program but if you're not ready for that yet I have a free 8h hour step-by-step Amazon FBA course this one course is more valuable than most people's thousand Amazon courses and I'm giving it away to you for free but the first step is to click on that video and I'll see you in that video thanks for watching

Channel: Travis Marziani

Views: 20,151

Keywords: Ecommerce, Online Store, Internet Marketing, Online Marketing, Shopify, online shopping, marketing, Effective Ecommerce, Amazon FBA, Private Label, entrepreneur

Id: CsJQSbj-yQU

Length: 19min 11sec (1151 seconds)

Published: Tue Apr 16 2024