Amazon FBA has quickly become one of the most popular ways to start an ecommerce business. After all, it’s easy to set up, and with Amazon’s marketing muscle behind you, it’s no wonder that so many entrepreneurs are eager to dive in.
But with all the hype comes a fair share of false promises from vendors looking to take advantage of inexperienced Amazon sellers. Learning the ropes of FBA can be costly and time-consuming, so the last thing you want to do is fall for one of these common lies.
That’s why I’m here to help! Let me introduce you to the five most common lies about Amazon FBA that I’ve seen in my travels around the seller community. From understanding seller fees to managing customer service expectations, I’m going to make sure you have an accurate understanding of what it takes to succeed as an Amazon FBA seller.
Myth #1: Amazon FBA Is a Fast Way to Make Huge Profits
When it comes to Amazon FBA, it can be easy to get caught up in the promise of fast, easy profits—after all, Amazon has one of the largest marketplaces in the world. But don’t fall for this false promise. Amazon FBA is a business that takes time and effort to succeed in.
For starters, though Amazon will gladly take care of warehousing and shipping your products, there are still plenty of steps that you have to take as a business owner, such as creating your listing, sourcing products, developing packaging and more.
Each stage requires planning and a great deal of research in order to make sure that you have followed the necessary steps correctly—especially if you don’t have any knowledge or experience with eCommerce selling. Furthermore, selling online is incredibly competitive and there’s no guarantee that your product will be successful.
Bottom line? Don’t bank on Amazon FBA being a fast way to make huge profits; it’s actually quite the opposite!
Myth #2: You Can Run Your Whole Business on Amazon FBA
No matter how many influencers you see on social media claiming otherwise, it’s not possible to run your entire business on Amazon FBA. Sure, you can use it to store and ship products, but you’d need to build a website and engage in some level of marketing in order to drive sales and stand out in the competitive world of e-commerce.
Amazon FBA works best as a complement to other sales channels. It’s important to look at your business holistically and develop an e-commerce strategy that involves multiple selling platforms, compelling content, targeted advertising, and a customer service strategy that will help keep customers coming back for more.
It takes more than just listing your product on Amazon FBA for your business to be successful. You’ll need the right combination of products, pricing strategy, promotions and customer service in order to reach your desired result. So don’t believe the (false) promise that you can do it all on Amazon FBA.
Myth #3: Amazon FBA Means Low Risk
You may have heard that Amazon FBA is low-risk and a surefire way to make money. But we can tell you now—that is a myth.
Amazon FBA certainly has its advantages, but it comes with plenty of risks too. For example, Amazon can change their fees and policies at any time, which could affect your business strategies. And there’s always the risk of customer returns or negative feedback, which can lead to suspension or termination of your seller account.
If you’re thinking about using Amazon FBA as a way to make money, weigh up all the risks and rewards first. It might sound like a good idea in principle, but it’s not without its challenges and downsides.
If you’re serious about being an online business owner, analyze the risks versus reward carefully before putting your money where your mouth is—with any business venture. The key here is to plan ahead and know what you’re getting into before making any major decisions or investments.
Myth #4: Selling on Amazon Is Relatively Easy
Myth #4 is a big one: selling on Amazon FBA is relatively easy.
This couldn’t be farther from the truth. Any online business requires significant effort, even more so when selling through Amazon FBA because of the complexity of the platform. Just like any other business, it requires research and testing to understand what shoppers are looking for. You need to be up-to-speed with Amazon’s ever-changing policies, and be prepared to adjust your strategies to Amazon’s threat of competition as well as external market shifts.
What’s more, you need to constantly manage customer reviews and feedback, inventory levels, pricing strategy and other marketing tactics such as SEO traffic checks. It takes a lot of knowledge and preparation plus a lot of dedication and hard work to succeed on Amazon FBA. And these are all things that you won’t find advertised in those glossy promises touting how easy it is.
Myth #5: You Don't Need Any Knowledge to Succeed With Amazon FBA
The fifth and final myth that you should be aware of when evaluating Amazon FBA is that you don’t need any knowledge to succeed. It’s easy to think that, since Amazon does so much work for you, you can just set up your shop and then let it run on autopilot.
Unfortunately, this couldn’t be further from the truth. To make money with Amazon FBA, you need to have a good understanding of the marketplace, pricing strategies, marketing tactics, inventory management and customer service. Without this knowledge, your business could easily fail.
Getting the necessary knowledge doesn’t have to be hard or expensive though. There are plenty of great resources available online to help you understand how FBA works and learn crucial skills such as keyword research or setting up an Amazon product listing. Additionally, many successful FBA sellers offer their insights and advice through webinars or masterminds — often free of charge — which can give you a competitive edge in the marketplace.
In short: don’t believe anyone who tells you that no knowledge is needed to become a successful Amazon FBA seller. Make sure that you arm yourself with the right skills and information before diving into this venture!
What You Should Do Before Committing to Amazon FBA
If you are still considering if Amazon FBA is right for you, here are a few tips to keep in mind before jumping into the fray.
Analyze the current market
Do your research and analyze the current market before committing to Amazon FBA. Take into account not only what the competition is doing but aspects such as customer service, shipping and return policies. If there is an opportunity for your product to make an impact, Amazon FBA may be the way to go.
Set goals and objectives
Having clear-cut goals and objectives of what you want to achieve with Amazon FBA will keep you on track and help measure success. Setting sales targets, creating a budget, and implementing strategies are all key steps that should be taken prior to getting started.
In conclusion, Amazon FBA may have some benefits, but at the same time, it’s important to be aware of the lies and false promises it often pedals. Understanding the risks of Amazon FBA includes researching the market, familiarizing yourself with industry regulations, and getting an in-depth understanding of Amazon’s rules and policies. Previous Amazon FBA sellers’ experiences are an invaluable source of information to help you make an informed decision, so it’s worth talking to experienced sellers and reading reviews before taking the plunge. Ultimately, Amazon FBA can be a great, low-cost way to start selling; however, it’s essential to understand the potential pitfalls and plan carefully to make the most of the opportunity.