amazon fba is dead because it's
oversaturated and there's too much
competition
according to some people and it's true
there's over 9.7
a million sellers already selling on
Amazon and there's 4 000 new sellers
joining every day but wait a minute of
those 9.7 million amazon sellers
only 1.9 million of those are actually
active amazon sellers and of those 1.9
million amazon sellers
only about half of them are actually
selling in the united states a lot of
those sellers
are international sellers and of those 1
million amazon sellers that are left
most of them are doing it part-time and
aren't taking it that seriously but yet
there's still
over 200 000 sellers that last year made
over a hundred thousand dollars
selling on amazon so to say that amazon
is oversaturated
doesn't make a lot of sense I'm gonna go
over every single reason why
people say amazon fba is dead and tell
you the truth talk about
the pros to this argument and the cons
to this argument because the truth is
amazon fba
has changed it is getting harder and
every single year you wait it's going to
get harder and harder and harder so the
the opportunity that is amazon fba
is not dead but there is some truth
about the reasons that people are saying
that amazon fba is dead and you need to
understand these if you want to have
success
selling on amazon because as I mentioned
amazon fba has changed and made sure to
hit the like button because I'm going to
tell you the truth about some things
that no one else will tell you and the
the second reason people say amazon fba
is dead is because they say it's hard
and it's getting harder and there is
some truth to this
amazon fba is not a get-rich-quick
scheme no matter
what anybody online tells you you're not
gonna make your first million dollars
overnight you're not gonna wake up one
morning with a Lamborghini in the
driveway but I will be honest with you
it's the easiest way
I've ever found to make money online
specifically the easiest way I've ever
found to create a legitimate
passive income business and it does take
hard work upfront but once you get your
product
on Amazon and you get it up and running
really the only work you have to do
is make sure that you can send your
inventory into the Amazon warehouse and
then when Amazon gets a sale it's going
to pick pack
and ship your order out to the customer
and I did a video with aj where we go in
depth
about every single reason why amazon fba
is harder than he thought it would be
but at the same time aj who is a student
of mine
ended up selling out of all his
inventory within two hours of launching
on Amazon, he's done over a hundred
thousand dollars on Indiegogo pre-sales
alone so even though in that video we
talk about how it was hard at times
he did the work early on and it's paid
off he's made a lot of money
from his amazon business the third
reason people say that amazon fba
is dead is because of china in fact
there's actually a lot of different
reasons
why people say amazon fba is dead
because of china
and I'm going to go over all of them and
there is some truth to these claims
first off people say that if you find a
winning product to sell on amazon
a Chinese manufacturer is just going to
straight up copy your product
and undercut you on price and I'm going
to be honest with you this is true
if you're selling a generic private
label product and this is one of the
reasons why
amazon fba has changed it used to be
that you could just go to Alibaba
and pick any kind of random product slap
your label on it and sell it on amazon
and make a lot of money that's not the
case anymore that way of selling on
amazon is dead
now can you get lucky and find a private
label product and have some success
yeah for a little while at least until
these Chinese manufacturers
find the product that you're selling
they make the same product and they
undercut you
so if you're looking for a short-term
way to make a little bit of extra cash
private labeling may still work but it's
not a long-term way
to build a successful business and at
At the end of this video, I'm going to talk
about
what I actually think the future of
amazon fba is so make sure you stick
around till the end of the video but the
key here is
if you create a unique product that's
better than the competition
and ideally, you create a brand around
your product
it's going to be a lot harder for a
Chinese manufacturer just to straight up
copy your product and have success on
amazon people are also scared of Chinese
sellers using dirty tricks
to get their seller account banned or
suspended and this does
happen but pretty much only if you're
doing really generic
private label products because if you
were selling a generic product that's
basically identical to the Chinese
sellers product they're going to use
whatever kind of dirty tricks they can
to get your product to have one star
reviews or to get your account suspended
but if you're selling a completely
different product or a product that's
branded way differently
it's not really worth their time or
energy to try to hurt your product
because
there's enough room in the market for
both brands and I see this issue with
people
that are trying to sell generic private
label products I've never had this issue
none of my students have ever had this
issue and in all honesty, it's really not
that common of an issue
usually, it's one Chinese manufacturer
doing dirty tricks against another
Chinese manufacturer because they
basically are selling
identical products now another reason
people say amazon fba is dead
is because the Chinese manufacturers
when you go to send them money
they're just going to scan you they're
just going to rip you off and take your
money and this is crazy because I've
sent a lot of money to Chinese
manufacturers I've had a lot of students
and friends send a lot of money to
Chinese manufacturers
and none of us have ever been scammed
and the way to avoid
ever getting scammed by a Chinese
the manufacturer is to buy a product using
Alibaba and make sure you have trade
assurance and verified suppliers
checked when you're searching for
manufacturers on Alibaba and this will
make sure that Alibaba will protect you
if there's ever an issue with your order
they will refund your money another
the thing that you can do is wait to send
the money
to your manufacturer until you actually
hire a third-party inspection company
to go to your manufacturer and verify
that your product is in good condition
and it's exactly what you wanted now
there is one other reason why
China is kind of killing amazon fba and
I'll talk about that
in just a minute but something else to
keep in mind is even if you find a
winning product it's not just that
a Chinese manufacturer might copy your
product and start selling it on amazon
Amazon itself might copy your product
and start selling it on amazon
as an amazon basics item and I had a
friend that this happened to he was
selling a backpack on amazon and amazon
came along and basically copied his
backpack
put their amazon basics label on it and
started selling it on amazon and
obviously
the amazon basics outranked his product
meaning that his sales went way down and
amazon basically killed his product and
I think the moral of the story here
is don't private label basic products if
amazon basics can create a version of
your product
it's probably too basic of a product you
want something that's more branded a
little bit more niche
a little bit more unique and this is
what I've done my students do and most
my friends do
and none of us really except for that
one person has ever had a problem but
it
is something that you should know about
another issue you should know about is
amazon does change the rules for
instance recently they capped the number
of units, you could send
into the amazon fba warehouse for a new
the product they said you could only send in
200 units for a new product into the
amazon warehouse which
kind of cripples some new sellers
because let's say you're doing a big
production run
in china and you want to send in a
thousand units into amazon
but amazon's only allowing you to send
in 200 what do you do with the rest of
the units now I do have some good news
they recently lifted this ban and now
they're allowing a thousand units
for new products to be sent in the
amazon warehouse and the cool thing is
once you start getting some sales with
those products with amazon
you can send in more inventory and this
is one of those things that for a long
time
people were saying amazon fba is dead
they're only going to allow you to send
in 200 units but amazon
realized that this was a problem and
they fixed it they raised it from
200 units to a thousand units that
people could send in for new products so
again
this was people crying wolf and saying
that amazon fba is dead
even though obviously it wasn't amazon
figured out that that new rule
was hurting sellers so they got rid of
it and I will say that Amazon does
change the rules
for sellers and sometimes it's not good
for sellers and sometimes it is good for
sellers but most the time when amazon
changes the rules
it's really them just cracking down on
people that were breaking the rules
before
for instance, you used to be able to do a
lot of different things to manipulate
the reviews
for your product listing, people would
get hundreds of fake
five-star reviews for their product well
eventually, Amazon cracked down on that
and people for a long time were saying
amazon fba is dead it's so hard to make
money now
no, it was hard for people that were
breaking the rules but for the people
that were following the rules it was
actually
easier to make money and that's another
the reason why people say that amazon fba is
dead
they say it's too hard to make money
because the amazon fba fees are just
too high and I think this is complete
nonsense I do not think
the amazon fba fees are too high at all
I actually think that they're very
reasonable
let's break it down there is a 15 fee
just to sell
on amazon's giant platform they have
built this
giant 1.6 trillion dollar company and
they're allowing us to sell on it
I think they deserve 15 of every sale
because keep in mind
they have spent billions upon billions
of dollars
in advertising to get those 147
million prime customers with most
businesses you have to spend a lot of
money
in marketing, amazon's already spent that
money marketing and getting those
customers
and when you launch your product on
Amazon there's already 147 million prime
customers
searching to buy your product and i
think that's worth the 15
fee people also complain about the fba
fees themselves because yes
there is a 15 fee just to sell on the
platform but there is another fee
to be eligible for the fba program which
is where you send your products into
amazon's warehouse
and when you get an order they pick pack
and ship it out but keep in mind that
another fba fee that you pay
includes not only the postage the actual
shipping of your product
it includes paying all the different
employees at the warehouse include
paying the rent at the warehouse and a
bunch of other things
that you're probably not even thinking
about now if you compare that
if you had to ship the products out
yourself not only do you have to spend
your time
actually shipping the products you have
to still pay for postage which is
oftentimes more expensive than the fba
fee
and if Amazon is doing all the shipping
for you, that means that you can spend
your time doing whatever
you want to do you can travel spend time
with your family work on growing your
business
or just sit around relaxing and the
The whole time amazon is not only helping
you get new customers
but when you get a sale they're actually
shipping the product out for you and
I've been able to run my business while
traveling the world that wouldn't have
been an option if I had to ship the
products out myself now another reason
why people are saying it's hard to make
money on amazon
is because of the trade war there's now an
import duty if you want to import
products
from china, there's around 25 import
the duty you need to pay
which makes the cost of your products a
lot higher on top of that recently
shipping from china
to the united states has been a lot more
expensive the shipping prices have
increased
like crazy now I'm hoping this increase
in shipping prices
is just a temporary issue but this is a
the scary part of business
sometimes the cost of your product the
cost of shipping
the cost of the import duties is going
to go up now the good thing is
if you're selling a premium product on
amazon
you can increase your price to absorb
some of these costs and this is why i
tell people again
and again don't just sell junk products
on amazon try to sell something that is
better than the competition
because if you have the best product out
there you can charge a premium for it
now I'm going to tell you what I think
the future of amazon fba is in just one
minute but the last reason why people
think
that amazon fba is dead is because
people think that once you get an amazon
account
there's a high chance that amazon will
kick you off that your seller account
might get suspended and the truth is
I've been suspended before on amazon
I've had friends that have been
suspended before on amazon
but every single time we were able to
recover our amazon account because at
the end of the day
Amazon makes money from its third-party
sellers they don't want to suspend
sellers unless those sellers are doing
something that's against the rules
and this isn't a real issue that you
should be concerned about as long as
you're following the rules but if you're
looking to sell on amazon and you want
to know what I think
the future of amazon fba is I did this
video right here where I talk about how
to sell on amazon fba
in just four steps and I talk about it in
this video how to actually make money
selling on amazon selling real unique
products that people are actually going
to want to buy
and you're not going to have issues of
people copying your product so click on
that video I'll see in the next video
and thanks for watching
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