Why I quit Amazon FBA After 30 Days – Retail Arbitrage
When I first heard about Amazon FBA (Fulfillment by Amazon) and retail arbitrage, I was instantly captivated by the idea of making money online by buying products from retail stores and selling them on Amazon for a profit. The success stories I came across were enticing, with claims of individuals making thousands of dollars every month with relatively little effort. Determined to try my hand at this potentially lucrative business venture, I dived headfirst into Amazon FBA. However, after just 30 days, I made the decision to quit. Here’s why.
First and foremost, the primary reason I decided to abandon Amazon FBA was the sheer amount of competition in the marketplace. While it was initially exciting to find profitable products, it didn’t take long for me to realize that countless others were doing the exact same thing. This meant that the profitability of the products dropped significantly as more sellers flooded the market. As a newcomer, it was incredibly challenging to stand out among seasoned FBA sellers with established customer bases and extensive product portfolios.
Moreover, maintaining a sustainable cash flow proved to be a considerable obstacle. In retail arbitrage, having enough capital to purchase a significant amount of inventory from retail stores is crucial. However, I quickly discovered the limitations of my budget, hindering my ability to scale up and make substantial profits. In addition, the high fees charged by Amazon, including storage fees, lead to reduced profit margins. The competition for buyable products made it difficult to find items with enough margin to generate significant profits, especially when factoring in all the associated costs.
Another discouraging aspect of the Amazon FBA experience was the complex and ever-changing rules and regulations set by the platform. Amazon’s policies can be stringent, and any unintentional or even perceived violation can result in penalties, suspension, or even permanent account closure. Understanding and adhering to these guidelines can be a time-consuming and daunting task for beginners, potentially leading to costly mistakes that impact profitability.
Furthermore, the time commitment required to efficiently run an Amazon FBA business was more significant than I initially anticipated. Finding profitable products, sourcing them from retail stores, preparing them for shipment to Amazon’s warehouses, and dealing with customer inquiries and feedback can easily become a full-time job. Unfortunately, I found it difficult to balance this with my existing commitments, making it an unsustainable venture for me.
Lastly, the lack of control over the customer experience was a significant concern. As an FBA seller, Amazon handles the entire fulfillment process, from inventory storage to shipping and customer service. While this streamlines the process, it also means that the seller has little control over the packaging, shipping speed, or overall customer experience. This can lead to negative reviews and dissatisfied customers, which in turn impacts the seller’s reputation and ability to attract repeat business.
While my attempt at Amazon FBA and retail arbitrage ended after just 30 days, I gained invaluable insights into the challenges and realities of this business model. It is undoubtedly possible to achieve success in the Amazon FBA world, but it requires substantial dedication, capital, and the ability to adapt to a highly competitive marketplace. For those willing to put in the effort, it can be a profitable venture, but for me, it simply wasn’t the right fit.
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Thanks for having me be a part of this GREAT dive into what selling on Amazon actually is like! I know R.A. isn't for everyone, and I'm glad you figured out what works best for you!!! Can't wait to see your success on this channel, too!!!
So essentially if you purchase from a distributor ONCE ,Amazon will approve you/ungate you from a specific gated category from now on?
I´m selling on amazon for 4 years and sold my first brand after 18 month. I started out with 30k and was able to sell my company for 150k after 18 month which was quiet a success. I think the minimum amount you need is 5k. at least the way I appoached it. I also made a video about it, so people can learn from my experience 🙂 thanks for sharing your journey.
Great job kid
You so young.
deng.. you have a bright future.
As an Amazon seller myself, everything you said is accurate. I do wholesale/ private label models. I think RA is best for beginners since the risk is lower and the initial investment is not too big. Then once you get used to the process, jump to the wholesale model for bigger profit but less time required (once you figure out your distributors and winning product). Finally, once you have a steady income from wholesaling, it is best to try private labels. It is costly, but once you find winning private-label products, all you need to do is to reorder from your manufacturer.
Really glad Amazon overrated shit is not available in my country. Its overrated as fuck and everything costs you more in Amazon than buying directly from a retailer or specialist trader. Just if people can dig into more webiste s or keep info about stores they can avoid Amazon and save money but sadly they just go after hype and what is accepted by mainstream.
Too bad Amazon is a rip-off. Stop shopping off there a long time ago
GREAT INFORMATION. WELL DELIVERED
did you apply as an individual or llc/c-corp?
so young and smart!!!!!! i love it. great energy. your tips are so useful!
Young man, you are developing great skills. Before you know it you'll be a millionaire. Keep it up!
I usually don't comment but the way this kid explained all the details with honesty without any fancy or vague concepts and without any gimmicks I am glad that I watched this video. This video was more informative and strait-to-the point that any other that I have watched till now even from big creator. Thank you very much for that!
And ehy you don't buy from Alibaba or 168? Or alliexpress? And there you go..
Admire the hustle. Good video
Good
Hey bro, are you selling your product through your own e-commerce website you made or through Amazon FBA? Do you buy your first replenishble product from us manufacturer or overseas manufacturer?
Thx for this! How old r u?
Man, how old is he? I'm jealous of his smarts.
Daym this kid gonna be rich. Keep it up!
I'm with the full-service marketing agency Responsory. Our average clients bill $50k to $250k yearly. Our agents make 8%-10% for the lifetime of their clients they bring to us. If you're interested, reply here.
Brilliant
I love this stuff. Growing up I’d flip stuff on Craigslist, and still do it on Marketplace from time to time… cars, chainsaws, electronics etc. I have no clue how any of this FBA and drop shipping works. So very interesting!
Doing business on Amazon is good only for the course sellers and so-called Amazon gurus. There's a possibility that Amazon pays these influencers and gurus to promote doing business on Amazon. This is the easiest way of getting people's money. Amazon charges fees. Gurus charge for their courses. Customers get free kinds of stuff. Amazon stock prices rise by showing high sales volume. And sellers work for all of these for very little.
I'm a grown man respect to you kid I was doing the same thing a lot of respect man FBA is b*****
You know…you can easily optimize this and make it so you can just work from home.
What you can do instead is get a card that allows you to virtualize. Put it in the customer’s name and have the stuff ship to them directly.
If this technology existed back in my day I would’ve been a whole lot more successful then than I am now.
I don't understand, why would customers buy those snickers for 14.99 online instead of going to a walmart store???
You are way off on ROI, profit,,its 27% net…gross profit does not matter..
Buy things weeks in advance from shein ..
I sell 2k daily
Yo what's the name of the background music please?
Very insightful. Thank you!
Thank you so much! I learned alot with info I can actually use. Congrats on your success with Amazon! I also LOVE your storytelling through video.
Amazing.
Doing business on Amazon, Amazon will take 70% of your profits, and there is no way to expand. This is evil at the top. Give up early.