I Tried Amazon FBA From Scratch… Here’s What They Won’t Tell You
Amazon FBA (Fulfillment by Amazon) is a popular and lucrative business model that has attracted many aspiring entrepreneurs. With promises of passive income and the potential for financial freedom, it’s no wonder many are eager to jump on the bandwagon. However, after trying it myself, I discovered that there are some things that Amazon won’t tell you upfront. Here’s what I learned from my experience.
1. It’s not as easy as it seems
While Amazon FBA may sound like an effortless way to make money, the reality is far from it. Finding profitable products, understanding market demand, sourcing, shipping, and dealing with customer service are just some of the many tasks that require time, effort, and expertise. It’s not a hands-off business model where you can sit back and watch the money roll in.
2. Competition is fierce
With the popularity of Amazon FBA, the competition has skyrocketed. Thousands of sellers are already established in various niches, making it challenging to stand out. Additionally, Amazon itself is regularly launching its own private label brands, increasing competition for third-party sellers. You’ll need a solid marketing strategy and a unique selling proposition to differentiate yourself and succeed in this crowded marketplace.
3. Hidden costs can add up quickly
Amazon FBA has various costs associated with it, and they can quickly eat into your profit margins. In addition to the fees for storage, picking, packing, and shipping, there are additional charges for optional services like labeling, premium packaging, and removal orders. It’s crucial to calculate all these expenses and account for them when pricing your products to ensure you’re not taking a loss.
4. Inventory management is crucial
Managing your inventory effectively is vital for success in the Amazon FBA business. If you run out of stock, your sales can plummet, and your rankings can suffer, making it difficult to recover. On the other hand, holding too much inventory can tie up your capital and result in unnecessary storage fees. Striking the right balance and forecasting demand accurately is an ongoing challenge that requires careful monitoring and analysis.
5. Negative reviews can significantly impact sales
Amazon places a strong emphasis on customer satisfaction. Negative reviews can harm your product’s visibility, trustworthiness, and ultimately, sales. Ensuring high-quality products and exceptional customer service is vital to maintain a positive reputation. One unhappy customer can have a significant impact on your overall rating and sales performance.
6. Success requires continuous learning and adaptation
The Amazon FBA landscape is constantly evolving, and staying ahead of the game is essential. Techniques that used to work a year ago may not yield the same results today. It’s crucial to stay updated with the latest trends, algorithms, and strategies to remain competitive. Continuously investing time and effort into learning and adapting your approach is necessary for long-term success.
In conclusion, while Amazon FBA offers tremendous potential as a business model, there are various aspects that Amazon won’t explicitly disclose. It’s not a get-rich-quick scheme, and success requires dedication, hard work, and a willingness to adapt. It’s essential to understand the challenges involved and do thorough research before diving into the world of Amazon FBA.
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priča o problemima sopstvene marke koju je kreirao i o nekim rešenjima
hey Jatz, Great video. I am confused as to what to do with labelling and that with FBA for a private label. Do you need both GSK1 on the product and the amazon label for FBA??
Run out of stock and close listing. Don’t put price up
Can you do private label on the same account if you are doing FBA wholesale already on that account???
I ll really appreciate if u can answer my question. Thanks
i just started now i am just following you no one else i am going to asda or tesco argos sansbury trying my best lets hope its work tired of 5 to 9 job brother
man i love your videos so helpfull
Can I use one seller account to do wholesale and private label?
Can you use this same method for products you personally create your self ? Like different items they you make personally
So did u send all 200 units to the amazon? And they ship those things when u get a ordered?
Do you do one on one private?
I thought this video would help me not pay 7k
really good points, and very enjoyable video / presentation. It's a pleasure listening to you! (even after 50+ hours of youtube this week! haha)
Congrats Jatz! You launched your own Private Label product research tool – Super cool!!
I havent started my Amazon FBA yet, but this stuff is pretty obvious. You're telling me what some people already know. It's basically common sense. But I still love your content that you're trying to help people out. I feel like you still leaving something out. Idk maybe it's just me.
really informative video
As someone who's been selling on Amazon for a while, product research alongside with SEO is essential. One good product can lead to thousands of good reviews.
Btw, video and production are top notch, man. Keep it up!
What legal entity to choose during registration of your Amazon seller account?
Hey Jatz, i know you are located in the UK. Not sure if this applies globally on all Amazon sellers or just US sellers but, apparently there a new Amazon sellers policy stating that the sellers need Liability Insurance incase you get sued etc. is this true ?
Did you pay any tax shipping your product from china to the uk?
Can i use fba germany from india ?
Jatz I gone onto your mentoring link but no spaces available, when will it become available again thanks
I’ve been doing FBA for a year and was just starting to make profit (about $20k a month) when I got hit by a $245,000 bill from US Customs for “anti-dumping” duties so feeling completely screwed.
A very informative video. Loved it ♥️
@jatznaran I thank you that your videos are so helpful keep doing it..! I m planning to sell private labelled products since I have some products to sell in UK. I want to know exactly same and things to set like UPC/EAN/GTIN and trade mark ( I understand that you explained already) I m looking for the exact thing to consider to list in Amazon FBA..!! Please make single solid video for that from A to Z (Starting a company in UK, getting bar codes, shipping from other countries, and Amazon listing—Bang)
Please answer me – what if i get ungated in a specific brand and after it i chose any randome product from that brand and source it from ali baba, And i came to sell on amazon (being ungated) , so can that brand give ip complain to me ? And if so then what can i show them to be safe ?? What happens next
Hi Jatz
I am watching your video now in Canada 1:30pm and I would like to ask you for helping me start FBA please
I watched a lot of videos and you are the only truly one I really trust
I would love to learn from you
❤
title is misleading
so where’s the bit where u started from scratch?
How much does shipping cost you for the products you bought ?
Can you suggest some trusted wholesalers and distributors for wholesale fba??
Hi Jatz, Great explained! But would you like to share the method of Product hunting on any market and in your products what will be the margins in %?
Bro there is any difference between MPL and PL ?
Can you make a video on using LinkMyBooks and Xero to manage taxes and track profits with FBA.