Is Amazon FBA A Pyramid Scheme? [No, But Still Be CAREFUL!]

Are you ready to make money with Amazon? No doubt that Amazon is a global e-commerce marketplace, and is trusted by millions of people around the world.

According to as of 2022, Amazon made an average of $1.29 billion each day in revenue!

There are many ways that you can make money with Amazon. You can do it through affiliate marketing. You can sell eBooks on the Amazon marketplace or kindle e-Books to Amazon’s Kindle owners.

Then there is Amazon FBA. FBA stands for fulfillment by Amazon. You might be asking, Is Amazon FBA a pyramid scheme? Is Amazon FBA a legit program?

Today I will help you with the answers to the questions. It is my hope that this blog post will put your mind at ease regarding the Amazon FBA course.

And a heads up before we get started…

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Is Amazon FBA A Pyramid Scheme?

No, it is not a pyramid scheme.

There is no recruiting involved in doing the Amazon FBA business model. The success of Amazon FBA sellers is 100% dependent on how well they sell products on the Amazon platform.

Amazon does not compensate the sellers for introducing other sellers to the FBA program. Therefore, Amazon FBA is not a pyramid scheme.

Let’s take a closer look at how a pyramid scheme operates.

Recommended Reading: What is the Disadvantage of Amazon FBA?

What Is A Pyramid Scheme?

A pyramid scheme is a business model that “recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products.”

So, with a pyramid scheme, it’s more important to focus on enrolling people and making money from the membership fees rather than selling the products and services.

Let me show you how the Amazon FBA differs from a pyramid scheme business model.

Recommended Reading: Do You Need To Be a Good Writer For Affiliate Marketing?

Why Amazon FBA is Not A Pyramid Scheme?

Amazon FBA does have a professional plan. With the individual plan, Amazon charges $0.99 per unit that is sold. Then they have a professional plan that costs around $39.99 per month.

The important point to take note of is there is no compensation for bringing your family member or friend into the program.

If they want to start their own Amazon FBA business, then they can choose from either of the two plans. They can register and you will not get any commissions for introducing them to the program.

How do you make money with the Amazon FBA program?

Amazon FBA is a model whereby you allow Amazon to store the products you want to market at their warehouse.

In addition, they will ship the products to the customer. Amazon will also handle the after-sales support and customer queries, refunds, etc.

The main source of your profits is from the selling of products on the Amazon marketplace. This is another reason why Amazon FBA is not a pyramid scheme.

Conclusion – Amazon FBA Can Be A Pyramid Scheme If….

The only time that Amazon FBA can be a pyramid scheme, is if there are 3rd party course creators that market their courses as such.

By this I mean, a course creator will sell you a course on “how to make money with Amazon FBA?” And whilst you might learn a few basic pieces of stuff from buying his course, he offers you bigger commissions or payouts, if you get other people to buy his course.

Eventually, the focus would be more on members trying to get more members into the scheme. This Amazon FBA course would then be called a pyramid scheme.

At the end of the day, the actual Amazon FBA program, by Amazon, is not a pyramid scheme.

If you would like to learn more about Amazon FBA, sign up for their program. There are also tons of YouTube videos that can help you out.

I hope that this article has helped you out.

If you have any questions or comments, please leave them below.

Looking forward to hearing from you.

Regards and Take Care


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