Are you looking to start your very own Amazon FBA business? Did you know that Amazon ships approximately 1.6 million packages a day? (according to landingcube.com)
That’s crazy, right?
Imagine earning a percentage of that every single day! Well, there are various business models that will allow you to partner up with Amazon and earn from their customer base.
Of course, Amazon FBA is one such business model. Is Amazon FBA hard?
It can be a lucrative opportunity for sellers. If you are already an online retailer and are considering Amazon FBA, it can help to boost your sales by 30% to 50%.
However, at the same time, there are various challenges that one can face. And that’s what today’s article is all about.
I am going to share 6 reasons why Amazon FBA can be a challenge. If you are okay with these challenges, then perhaps Amazon FBA is the right business for you.
If on the other hand, you feel that you are not ready just yet for Amazon FBA, no worries. The other popular way that you can earn with Amazon is through affiliate marketing. It’s the method that I use to earn online.
And if you would like to learn about a proven newbie-friendly business training platform to help you to get started, simply click on the link that follows to get started.
FREE 5-DAY TRAINING (+FREE WEBSITE)
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5 Reasons Why Amazon FBA(fulfillment by Amazon) is hard
(1) Competition is Tough
(2) Many Fees That You Have To Pay Before Realizing A Profit
(3) You Have To Always Be On The Lookout For Trending Products And Make Sure Your Stock Can Meet The Demand
(4) You Have To Obey The Strict Amazon Guidelines To Avoid Suspension of Your Account
(5) Make Sure The Customer Is Always Happy
Let’s take a look at these 5 reasons in a bit more detail in the next section.
Recommended Reading: Is Amazon FBA a Pyramid Scheme?
5 Reasons Why Amazon FBA Can Be A Challenge?
Number One: With Amazon FBA Competition Is Tough
Competition is good for any business.
Even with my affiliate marketing business, I found it initially tough to break through.
I have learned something over the years. If you are going to do a business model that works, there is definitely going to be competition irrespective of the business model you do.
But the magic ingredient is that there is only one of YOU!
So, if you can show folks that you want to truly help them and deliver quality service, then you stand a good chance of winning over your competition.
But when it comes to Amazon FBA, there are lots of things that can be out of your control that can cripple your business.
You are one of the thousands of sellers on Amazon. If you get the ‘buy box’, you are surely going to make some good sales on the Amazon platform.
But this also invites your competitors to check out your listings. You do not have control over the feedback you get, be it positive or negative.
Unfortunately, the reality is that some sellers do not play nice, and go to the extent of hiring people to write negative reviews on your product listings.
This can cause you to lose your buy box privileges, or have your account suspended.
Even if you ship an insane amount of products, you only need a few people to complain to Amazon. If they state that your product is “defective” or “not according to the ad.” your account can get banned.
If you sell private labeled products, you are also not free from peaceful selling. Folks can copy your listing, and produce a counterfeit version of your product. And they will sell it at a cheaper price to take you out.
Number Two: There are Numerous Amazon FBA Fees That You Have To Deal With
The fees ultimately depend on the size and weight of the product.
You have the Amazon fulfillment fees and storage fees.
Standard-size parcels have cheaper fulfillment fees than oversized products.
The storage fees are also calculated on both the size and weight of the parcel.
In addition, during peak times, like the holidays, fees would be higher.
To see if it’s feasible for you, Amazon has its own revenue calculator that you can use.
Selling Plan VS Professional Plan
If you have fewer than 40 units to sell or you are still not sure what to sell or you do not want to use marketing tools, then the free or selling plan is for you.
If you want to sell products in restricted categories, and want to use advanced selling tools, like APIs and reports, then the professional plan is for you. It cost $39.99 per month.
Number Three: Research Trending Products When You Do Amazon FBA
You could use keyword research tools for this part of your business. You need to be on the lookout for key opportunities that will be profitable for your business.
For instance, there is this practice called Amazon FBA Arbitrage. This is where one takes advantage when there is a price difference between two or more markets.
In other words, you would look out for discounted products that you can sell for higher profits on Amazon. These opportunities come and go quickly, so you need to keep a watchful eye on them.
Number Four: Amazon Can Enforce Rules That You Might Not Like In Your FBA Business
When you dealing with the Amazon giant, you have to pretty much follow their strict guidelines.
You need to be familiar with their policies, and sometimes you might not always agree with their practices.
For instance, they can ban or suspend your account based on negative reviews that might have been fabricated.
You have to wait until their investigation is complete before your business can be up and running again.
In that interim, your business suffers.
Number Five: You Have To Make The Customer Happy
This last challenge is common with all businesses be it offline businesses or online businesses.
The difference is that with Amazon FBA, Amazon will handle customer queries and process refunds, and so forth.
It makes it challenging for you to engage with your customers and build a relationship with them. Doing so would help in gaining the customer’s trust and make for sound business practice.
Is Amazon Really Worried About Your Business?
Whilst you can make good money on Amazon and other online marketplaces, you are still playing by their rules.
They can shut down your account for any reason they deem fit. Even if the violation is not your fault, your business still suffers.
It’s always a good idea to have your own online presence.
Something that you have full control over. I would recommend having your own website, where you can promote your items.
In that way, you are not at a mercy of the big players all the time.
So, does Amazon FBA sound like a business model that you would like to do? If it does, then I wish you everything of the best.
If you are not 100% sure, and what would like to consider alternatives, then read further on.
How I Earn A Passive Income Online
If we are talking about Amazon, there are alternative ways to make money by having Amazon as your partner, instead of your competitor.
You can publish e-books on their marketplace. You can also become an Amazon Affiliate partner, and promote products that are sold on the Amazon marketplace.
This is called affiliate marketing, and it’s the model that I use to build an online income.
I transitioned from the health field to the online world. I face a major health challenge that affected my ability to do my day job as a pharmacist, and I had no choice but to find another way to bring in the money. You can read my story here.
It’s thanks to affiliate marketing that I can earn a passive income online.
With affiliate marketing, you do not have to focus on recruiting people at all. There is no cold-calling or having “tea-parties” or having to do any door-to-door selling.
It’s a great business model for newbies. Even if you have no marketing or any technical experience with website building and so forth.
You have the freedom to build your business around a topic or niche that you enjoy talking about. And you are not restricted to marketing only ONE product or service.
It would be my pleasure to show you more about how I made money with this business model since 2016. Let me show you how it can benefit YOU as well by clicking here.
I hope that today’s article has helped you out. Now you know that Amazon FBA is available in South Africa.
Will you start Amazon FBA, or are you interested in another business model? Is there anything that is you need clarification or help, with before you can get started?
Looking forward to hearing from you.