The reason why over 74.97% of individuals fail on Amazon FBA and lose more than £1000

May 13, 2024 | Amazon FBA | 8 comments

The reason why over 74.97% of individuals fail on Amazon FBA and lose more than £1000




Amazon FBA (Fulfillment by Amazon) has become one of the most popular ways for people to start their own e-commerce business. With the promise of easy access to millions of customers and the convenience of having Amazon handle the logistics of storing, packing, and shipping products, it may seem like a surefire way to make money.

However, the reality is that a staggering 74.97% of people who try their hand at Amazon FBA end up failing and losing £1000 or more in the process. So, why do so many people fail at Amazon FBA?

One of the main reasons for the high failure rate is that many people underestimate the amount of competition on the platform. With millions of sellers vying for the attention of customers, standing out from the crowd and getting your products noticed can be a real challenge. Without a solid marketing strategy and a unique selling proposition, your products may get lost in a sea of similar offerings.

Another common reason for failure is a lack of research and preparation. Many people jump into Amazon FBA without fully understanding the market, the costs involved, or the logistics of running an e-commerce business. This can lead to overspending on inventory, poor product selection, and ultimately, financial losses.

Furthermore, some people fail to properly manage their inventory and cash flow, leading to stockouts, late shipments, and ultimately, negative reviews and lost customers. It’s important to carefully monitor your inventory levels, plan for peak seasons, and have a contingency plan in place in case things don’t go as expected.

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Additionally, those who fail at Amazon FBA often lack the perseverance and self-discipline required to succeed in the highly competitive world of e-commerce. Building a successful business takes time, effort, and dedication, and it’s important to stay motivated and focused even when faced with setbacks and challenges.

In conclusion, while Amazon FBA can be a lucrative opportunity for those willing to put in the time and effort, it’s not a guaranteed path to success. To avoid becoming part of the 74.97% of people who fail at Amazon FBA, it’s important to do your research, carefully plan and execute your strategy, and stay committed to your goals. By learning from the mistakes of others and taking a proactive approach to your business, you can increase your chances of success and build a profitable e-commerce business on Amazon.


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8 Comments

  1. @adnaansamiii

    Hi Ben Alistor can I get your contact number or email??

    Reply
  2. @fabiant96

    Hi Ben! I have a quick question. You once mentioned Cyber Security on TikTok at the "High Value Skills". I am currently 17 years old. Can I do that anyway? Kind regards!

    Reply
  3. @newworld0342

    Hi, how is your day going
    I want to tell you about how I do my amazon business, firstly i don't like the fact to find a product with low to no competition, if that product has low competition it means the demand is also low for that specific product. Why shouldn't i start on a product that has quite a little bit of competition but there will be still some people with low reviews. it also has high demand so there will a little space to jump in by doing marketing inside and outside of amazon like, advertising on Facebook, Instagram, YouTube and tiktok. With paid ads or by influencers, it does need a budget and hard work. For example, I ordered 1000 product from china with 9 pound profit at each item. It means that after selling 1000 of these products my prophet will be 9000 pound. The game will start here that I just wanted 2000 pound profit and 7000 should be spend on marketing of my product.
    This is the system which I have done and really worked for me. At the very first shipment of my products I spent 75% of the profit on marketing, at second shipment of the same product that I ordered again cause I run out of inventory I spent 50% of my profit. But now that product has a lot of sales I just need to dedicate around 15 to 20% of my profit on it's marketing, just in case I see my product is not selling the way I want it, I will definitely try 30% to 35% of product to advertise.
    First I accepted low profit and spent ton of money to advertise my product, once it found it's place on first page of amazon listing, I don't need to pay that much.
    Without being said, these strategies require lots of budgets and having a marketing potential specifically being able to understand how to do social media marketing.
    Thank you,
    I really appreciate your assistance through amazon journey.

    Reply
  4. @22chachalaca

    Hey Ben, I've had my products on amazon for about a month now, but I just can't seem to grasp PPC. Is it a science? Is it an Art? A little bit of both? Can you suggest a PPC tutorial? Thanks

    Reply
  5. @klash_ur_klovia

    Great vid , for people starting or doing retail and online arbitrage would it be good to join a reputable group and buy their leads with reaserch?

    Reply
  6. @joeswanson733

    there are too many people selling the same stuff on amazon. even software tools like jungle scout and helium 10 aren't working any more because everyone is using the same software tools. youtube is not helping either as it's basically telling people what to do hence causing funnels of people all doing the same stuff. its more issues and nuances but i see it as herds stampeding in and out.

    im going to get flak for this but the internet is a double edged sword. sure it can give you a lot of info but others have access to that info too. knowledge is power.

    Reply

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