10 Quick Tips About Amazon FBA

Updated On: November 28, 2023

Welcome to my 10 Quick Tips About Amazon FBA review. My goal is to answer common questions like: how much it costs, if it's a scam, and if you can actually make money with it. The end goal is to help you understand if it's a good fit for you personally, and if there are any better alternatives out there.
10 Quick Tips About Amazon FBA Review

This 10 Quick Tips About Amazon FBA review has been throughly researched with information and testimonials that are available online to anyone in the public. Any conclusions drawn by myself are opinions.

Table of Contents

Program At A Glance

What I liked
You can benefit from Amazon's prestige
You can now provide lightning-fast operations
You can improve your Amazon rating and popularity
What I Didn’t Like
Amazon needs a high up-front cost
You will encounter different Amazon FBA fees
Product preparation requirements are quite difficult to handle

One of the biggest and most well-known businesses in today’s generation is Amazon.

If you’ve used the app at least once or are interested in becoming an Amazon seller, I wouldn’t be surprised.

In this review, you’ll not only discover how to start an Amazon FBA business, but you will also receive 10 Quick Tips About Amazon FBA!

But before that, here’s something that might interest you…

10 Quick Tips About Amazon FBA is pretty similar to most other FBA programs. They pitch you on the “dream” of running a profitable e-commerce business that can generate cash while you sleep.

All without having to invest much money upfront into things like inventory & advertising…

Too good to be true?

Not necessarily – Amazon FBA programs have certainly minted a few online millionaires.

It was actually one of the first online business models I made money with.

So as far as making money online goes, there are A LOT worse things you could be doing than Amazon FBA.

That being said, you shouldn’t start a business because “it’s not as bad” as some other type of business – it needs to stand on its own merits.

Choosing between the lesser of two evils always results in, ya know – evil.

So in this 10 Quick Tips About Amazon FBA review, I’m going to break down exactly who FBA is good for and who should avoid it.

There are a few important things you need to keep in mind when considering FBA as a business:

  • Operations
  • Finding winning products
  • Time (the most valuable thing of all)

Again, it’s 100% possible to make legitimate money with FBA, but it’s NOT a simple business.

Let’s talk about why:

Operations: The big pitch with FBA is that you don’t really need to do much because Amazon handles all the heavy lifting (shipping, packing, returns, etc.).

That’s cool and all, except for the fact that Amazon actually has incredibly strict guidelines that you need to follow even to be able to ship out of their warehouses – something most programs don’t tell you about in their awesome marketing materials.

This process typically takes a solid 4-5 hours alone. So unless you have a very large team, this step is going to take up a lot of your time.

That doesn’t mean FBA is bad – it just means you need to know what you’re getting into. A “passive income business” is not what you’re going to get with 10 Quick Tips About Amazon FBA.

Some courses will teach you how to outsource all of this prep to another company, but that eats into your margins significantly. Amazon is already taking 30-40% just for being part of the FBA program, so you don’t exactly have a lot of wiggle room.

Finding winning products: “Hot” products are typically only popular for a few glorious months, and then they fall off. Again, that doesn’t make FBA a bad business – it just means you need to be constantly on the lookout for the next hot thing.

If you have a supplier that you’re on really good terms with, sometimes they’ll drop you hints and tell you what’s about to trend. But this won’t happen until you have a history of making 6-figures with one another.

What this really means is that you need to be innovative and detail-oriented when it comes to staying on top of trends. You want to be the first one to the product, not the last one struggling to turn a profit off of the big dog’s leftovers.

There’s always the option of serving the “evergreen” markets that have always been around, but to that, I say good luck selling meal prep containers against the Tupperwares of the world.

So – we can safely add on another 3-4 hours worth of time each day trying to hunt for hot products.

Time: Despite what any Amazon FBA course seller tries to tell you when it comes to FBA (or any e-commerce business model), you’re looking at about 3 months of serious trial, error, & testing before even making $1 back.

It could easily take 6 months or more before you’re even at break even.

And this all assumes you’re actually getting it right out of the gate, which isn’t impossible with a good program – but it’s not necessarily the norm.

To be honest, it’s not uncommon to operate at a LOSS for the first year of any new business, so I’m not bashing FBA here – I’m just talking facts based on my own personal experience selling on Amazon.

But what if you could build a different (non-FBA) income stream and start seeing profits within your first few days?

I’m talking about a system that doesn’t have:

  • Inventory
  • Crappy margins
  • A 12-month wait time before you turn a profit
  • A continuous guessing wheel trying to find “hot products”

Something that you could make anywhere from $2,000 – $10,000 with consistently, month after month?

A stream of income that you can build as high (or low) as you feel like building it?

If that sounds interesting, you might want to think about using the Digital Rental Method.
If you wanna see what 10 Quick Tips About Amazon FBA looks like on the inside, keep reading.

What Is Amazon?

What Is Amazon

When it comes to the world of e-commerce, Amazon is the undeniable king that neither vendors nor buyers can ignore.

The company has grown from its humble beginnings as an online book retailer to have over 2.45 billion monthly visits on its app and own website combined.

The largest e-commerce company in the world was established in 1994 by Jeff Bezos in his tiny garage.

When Amazon was founded, it had already made significant book sales in every state in the U.S. and 45 other nations. In just thirty days, it generated an income of $20,000 per week.

Amazon has revolutionized the basic structures of online shoppers due to its great success in this business. It’s now apparent that “online shopping” is synonymous with Amazon in the same way that “search” is synonymous with Google.

Amazon leads the commerce sector regarding broad product options and selling products. If also offers various affordable costs, with over 564 million goods sold in the U.S. marketplace alone.

What Is Amazon FBA?

What Is Amazon FBA

The Amazon (FBA) program gives you the opportunity to focus on your company’s entrepreneurial side in the e-commerce industry. In addition, it handles tedious daily tasks for you.

FBA means Amazon has completely fulfilled your order. When a customer purchases a product, Amazon picks it out of its inventory, packs it, and ships it to the client.

So, using these Amazon FBA selling techniques would be very helpful if you ever wanted to sell your Amazon business.

Before I lay down the tips, I want to make sure you know the basics about Amazon FBA:

FBA Can Be Expensive

Amazon charges FBA sellers for storage as well as fulfillment. Sellers are paid storage costs every month, computed depending on how much space their product takes up at fulfillment centers.

There Is No Sales Quota

If you want to be a member of the FBA program, Amazon does not need you to move a set quantity of products each month.

You Will Still Have To Pay For Shipping To Amazon Fulfillment Centers

You’re still dealing with a restricted number of delivery options. Amazon has partnered with carrier options that enable sellers to ship products to Amazon fulfillment fees at a lower cost.

Amazon Determines Storage Fees Using The FIFO Method
  • When clients order your items, the first batch that arrives at the warehouse will be the first to leave.
Amazon Charges A Long-Term Storage Fee
  • If your inventory moves slowly, you may be charged a long-term storage cost on top of the other FBA fulfillment expenses.
You Can Not Avoid The “Pick and Pack” Fee.
  • Amazon’s shipping policies make the “pick and pack” cost inescapable. It offers products at competitive prices, but you have to consider the shipping costs and delivery service.
It’s Best To Start Slow
  • After a few months, assess your expenses and revenue. Determine if you can earn much more money by using the service for a larger amount of your goods.
Fees For Amazon FBA Are Extra Commissions.
  • Remember to account for commission and any other costs related to selling things on Amazon and utilizing Amazon fulfillment services.
You Can Save Money By Creating Your Own FBA Shipping Plan
  • The company will choose the warehouse that is most suited to your merchandise.
  • After a time, Amazon may decide it’s a good idea to relocate your merchandise to a different warehouse.
  • Unfortunately, in such cases, the vendor is liable for the delivery charges. Amazon does not pay for shipping to the new facility.
Your FBA Account Can be Suspended
  • When you trade on Amazon, you must follow the company’s policies. If you don’t, you risk losing your account.Amazon FBA Seller

    Ten Must-Read Tips On Starting An Amazon FBA Business

Amazon Tips To Read

FBA is a shipping and handling outsourcing service that Amazon sellers offer.

Over two million users of this program are present worldwide. The hefty workload was given to Amazon.

  1. Multi-Channel Fulfillment (MCF) May Help You Establish Your Brand While Also Diversifying Your e-Commerce Marketing And Sales Channels

Branding

You’ll need an Amazon Seller Central account to expedite the shipping and transportation procedure with MCF.

Customers might place purchases straight on your website, Amazon, social media, or elsewhere. You may then process and export items through Amazon fulfillment centers.

  1. Amazon Charges For Things Based On Their Size And Weight, Not Their Price.

Package Size And Weight

When using the Amazon FBA service, you will be responsible for paying storage and fulfillment expenses. Adding more items would increase costs.

As a result, if your product is cheap, you must carefully consider what you sell.

In addition, the item’s price will increase if it stays unsold in inventory for more than 180 days.

  1. Create A Reputation For Yourself To Optimize Your Sales Possibilities.

Build A Good Reputation

Whether you choose FBA, non-FBA, or Seller-Fulfilled Prime, you can’t just post the items and hope they sell.

The most important thing you can do in the competitive Amazon marketplace is to build your name and reputation as a reliable vendor.

It would be better to have more positive reviews to convince your customers of your expertise and ensure that your metrics qualify for the buy-box.

  1. To Enhance Organic Results, Make Sure You Follow The Finest Amazon SEO Strategies.

Amazon SEO Strategies

Amazon listing optimization is critical to the success of your Amazon FBA company.

Take the necessary actions, such as optimizing the title, product description, and backend with relevant keywords.

Use bullet points to add keywords and accurately explain items.

Also, use high-quality photographs to draw shoppers’ attention and implement a review approach to persuade them to give you a better rating.

  1. Optimize Your Review Approach And Strive For The Buy Box On Amazon

Optimize Your Review

When numerous sellers attempt to connect with the same audience to sell the same goods, Amazon ranks these sellers to decide which merchant appears on the product page.

  1. Use Replenishment Notifications To Be Updated About Stock Levels Without Having To Check Them Daily.

Notifications

Replenishment notifications may warn you when the quantity of goods in your inventory falls below. Conveniently, you can get these on your smartphones as well.

As a vendor, you will not have to keep track of every listing. You may create an alert for a single item or a collection of objects.

You might also generate alert signals depending on the number of days of fulfillable inventory on hand. This figure is determined by the preceding 30 days sales cycle.

  1. A Flexible Pricing Strategy Has The Potential To Be A Game-Changer.

Pricing Strategy

Pricing is an important component of succeeding in the Amazon marketplace, both in terms of sales and looks.

Manual repricing might be part of your plan if you only sell a few things. There are also additional techniques, such as rule-based repricing.

You change the price depending on your rivals’ activity and algorithmic repricing, in which you create an optimal price by using computer algorithms based on all known market circumstances.

  1. In A Low-Competition Market, Never Place The Product In The Incorrect Category To Win The Best Seller Badge.

As a private seller on FBA, you may be tempted to place the product in the incorrect category to achieve the best seller badge in a low-competition area.

However, most searchers use filters when they are about to buy a product. As a result, your decision to place the product in the incorrect category distances you from your customers.

  1. To Stand Out From The Throng, Promote Your Goods On Amazon Using Amazon Advertisements

Promotion

Amazon advertisements are cost-per-click, which means you only pay when someone clicks on your ads.

Sponsored Products, Sponsored Brands, and Sponsored Display Advertisements are the three sorts of ads.

To enhance your click-through rate, you may use ‘‘Sponsored Products advertisements” to promote your listings at the top of Amazon search results.

  1. Make Use Of An Affiliate Program To Allow People To Advertise Your Goods

Affiliate Programs

Affiliate marketing might be a stress relief for you since other bloggers and influencers in the industry could advertise your product effectively in return for a small fee.

Bloggers with strong website traffic flow might produce massive product insights to increase brand recognition and revenue.

Both the seller and the promoter benefit from the affiliate program as they can make money fast.

Are There Alternatives To Amazon FBA?

other business models to choose from

Yes, there are plenty of other business models to choose from if you want to pursue making money online. Here are just a few:

So Is Amazon FBA Legit?

Is It A Scam

Time for the million-dollar question: is Amazon FBA a scam?

No, it’s not a “scam,” technically speaking. They aren’t going to take your money and run away, leaving you empty-handed.

You can make money with the program, but not nearly as easily as Jeff Bezos wants you to think it is.

As with most FBA businesses, there is A LOT of work that needs to be done up-front, and there is really no guarantee of you being successful.

You’ll need to get very lucky and find an awesome product no one’s heard of, and then pump a ton of volume into it while it lasts.

Don’t get me wrong, I’m a big proponent of front-loading work now, so that you can make money later and sip out of coconuts on the beach.

But if I’m gonna do that, I want the rewards to be HIGH and virtually guaranteed.

I’d rather put in that same 3 months of work (in my spare time) & build a handful of Digital Rental Properties that each produce $500-$2,000 checks every single month afterward (AKA recurring income).

And the cool part is that you can do it in a lot less time than 3-months (I personally did it in my first 2 weeks of using the Digital Rental Method).

Unlike Amazon FBA, you can do it from anywhere in the world, so it’s a genuine “laptop-lifestyle” business.

All you need is an internet connection.

Some of my friends are Digital Rental Method that run their 6-figure businesses from:

  • Camping trips at national parks
  • Beachfront in Hawaii
  • On the road in a camper van (with a pet pig!)

They focus on living an enjoyable life first, and focus on income second. All thanks to this program

Read Our In Depth Breakdown Of The Top 5 OppAmazon FBA Courses For 2024

Did 10 Quick Tips About Amazon FBA Make The List?

They can take weeks or months off, and money keeps rolling in.

Living happily is the top priority.

If the thought of living perpetually at your dream vacation spot interests you, using the Digital Rental Method might be for you!

What Is My Top Recommendation For Making Money From Home In 2023?

My Top Recommendation For Making Money Online

I’ve personally tried all of the major online business models:

  • I’ve sold fidget spinners through Amazon FBA
  • I’ve drop-shipped a toilet bowl putting green on Shopify
  • I’ve sold women’s health supplements via Clickbank affiliate marketing

And I made money with all of them, so trust me when I say: there is no “perfect” business model.

That being said, my #1 recommendation for making real money online is, hands-down: being a Digital Landlord.

Whether you’re a complete newbie, or you’ve been around the block before but have never had that “big win” to propel you forward, using the Digital Rental Method is for you.

Here’s why:

1)Time: If you’ve got a spare hour or two each day, you can do this. If you want to drop everything and go all in, you can do this. More time obviously means faster results, but even putting in a few hours per day is enough to see real success.

And because of that flexibility, you don’t need to trade your time for money. Once the income starts, it’s recurring.

That means you can take a month off, travel the country, pursue a passion project, chill on the beach, or charter a boat across the world.

But you can only do that once you’ve created an income stream that doesn’t require YOU to be there all day, every day.

2) Ownership & Control: With Amazon FBA, you don’t technically own the customer base.

Amazon could literally shut you down overnight. They have a history of kicking suppliers off their platform, or stopping payouts to affiliates for certain products once they’ve built their own.

Why pour your soul into a business that could be taken away from you at the drop of a dime?

With the Digital Rental Method, you literally own all of the assets, which means you have ultimate control.

3) Big Margins: With FBA, you’re often going to have really slim margins. That means you need to hit a serious scale to make serious money. This usually entails spending A LOT of money on ads and other methods for growing traffic to your product.

using the Digital Rental Method, your profit margin is nearly 100%. Watch here to learn how.

Just a reminder: these Digital Rental Properties are worth (at a minimum) $500/mo in semi-passive income. And each time you create another one, your income increases, and the effort put into creating the next property decreases.

Best-case scenario, you have properties bringing in over $3,000+/mo on auto-pilot.

4) It’s Effectively Copy-Paste: Here’s my favorite part: once you have your first Digital Rental Property up, you can literally copy-paste another version of it and find another willing “renter” in a few days. DOUBLING your income doesn’t get much easier than that…

If you wanted to double your income with Amazon FBA, you would need to sell twice as much inventory, or double your profit margins. And I can guarantee you (from my fidget-spinner FBA days) that’s a lot harder than a few clicks & a phone call.

5) You’re Helping REAL People: My biggest gripe with FBA is that you’re basically only helping yourself. The world doesn’t need another B.S. gadget to consume.

It’s cool in the short term to make a quick buck, but in the long term, it gets really old fast.

But With the Digital Rental Method, you’re helping solve REAL problems that people are ASKING for help with:

Small local businesses around the world need one thing: customers. Without them, their business would fall apart. If you can provide those customers, they’re going to be really happy – and they’re going to pay you for it.

We’re not helping Jeff Bezos shoot another rocket into space – you’re helping a struggling mother or father put food on the table for their families, put their kids through college, or simply live life a little bit more comfortably.

Having this type of impact on the world is what will help you sleep soundly at night.

So, the rest is up to you. You could keep looking at other FBA programs like Amazon FBA, which might make you money 12 months from now.

You could keep researching and researching for the next few months (or few years), never making a concrete decision.

OR, you can look deep inside, think about those dreams, hopes, & desires, and make the decision to ACTUALLY make it happen, just like it has for thousands of other students before you.

Making a fortune while actually helping real people that need it.
If this sounds like you, click here to see how it all works.

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