Is Amazon FBA Worth It?

The Big question in people's mind is whether or not Amazon fba is worth it.

Well the answer to that question is simple… It depends on your wallet. As many of might already know starting an Amazon FBA business is not as easy as most people make it seem.

You can't deny the fact that Amazon is one of the biggest eCommerce marketplace in the world. Its the undefeated champion and for some sellers its a goldmine. Not just because of its massive user base but also because of the benefits of Amazon’s fulfillment services.

Since the sudden spike in the purchase of goods online there have also been an increase in the number of sellers as well.

In fact the competition on Amazon is fierce.

Now this is something that's not usually talked about by most people but it actually matters a lot. The truth is Amazon FBA is very competitive in fact as a newbie it'll be difficult for you to get the exposure you need especially if you're in a very competitive niche. Most established sellers spend a lot of money in order to make sure their product listing stays at the top of the Search results, not to mention marketing.

Another major drawback of starting an Amazon FBA business is the start up cost and fees. The Amazon FBA Business Model requires a lot of investment I'm talking of thousands of dollars. So it's not beginner friendly. That's not all, it's a Business model that requires bulk purchase of inventory. 

This is very risky considering the fact that you aren't certain that those products will sell and if those products don't sell and remain in Amazon's custody for a longer period of time you'll be charged.

Since you'll be purchasing products in bulk this means you'll have to track everything from the beginning to the end 

Amazon FBA isn't all bad, sure there are some advantages of doing it like leveraging Amazon's user base as stated earlier, Amazon dominates the eCommerce marketplace. It’s no surprise either with nearly 3 billion visits per month and over 300 million Prime customers worldwide. It's become the go-to site for people looking to purchase items or do product research. 

Amazon FBA also makes both buying and selling very easy. In fact most consumers have become hardwired to shop only on Amazon because of the convenience and centrality it provides. 

They know that doing product research and finding the right price points is a lot easier on amazon. For sellers Amazon handles the storage, order fulfillment, and even customer service for you so don't have to worry. It is also a great way to make passive income.

 

Amazon FBA is definitely not for amateurs or someone who is working with little capital. If you're in this category then you should try another business model, maybe dropshipping.

Alternatively, if you have a storage space maybe a spare room in your house or your garage you can purchase inventory in small to medium quantity then sell them online but instead of using Amazon you could create a web shop with WordPress then run ads on Facebook you can also create an eBay store at the same time to diversify your traffic source.

That way you won't risk buying too many products and you could save more money by storing the products. I know you need to take risks in order to see results but sometimes it is better to just play it safe no one wants to be in debt.

I'm not saying you shouldn't try, I'm just saying that selling on Amazon has become more complicated, but this doesn't mean that it isn't worth it.

There are niches that are already occupied by good sellers, but that doesn’t mean it’s impossible to find a niche and a product that sells great.

In order to succeed you'll need to do research and find those products that aren't too competitive. There are products that are often overlooked by most sellers either because there isn't a lot of profit in selling them or they aren't just popular but most of the time it's those types of products that sell really well.