Is Amazon FBA Still Worth Starting In 2022?
It’s Mike Swigunskii here and today I’m going to be talking about if amazon is still worth starting in 2022. Now I’m talking particularly about amazon FBA which stands for fulfilled by amazon.
Now I’m going to go ahead and dive into what amazon FBA is how you can make money with amazon fba and then if it’s still actually worth starting in 2022 and you’re going to
want to stick around to the end because I have a very surefire and faster way to become successful with selling on amazon fba and we’re getting started right now.
I just want to give a quick intro about myself my name is Mike Swigunski. I’m a best-selling author and I’ve helped broker millions of dollars of online businesses and a big portion of these businesses were amazon fba and e-commerce so I’m privy to a lot of information because I work with profitable amazon fba sellers and a lot of these businesses are worth millions of dollars and I essentially help these business owners sell their businesses more on that later so if you’re tuning in what the heck is amazon fba why is it becoming such a popular way to make money online and I’m going to dig into what exactly is fba right now.
It stands for fulfilled by Amazon and I made a whole video about this but essentially sellers are going to be importing products from China or anywhere in the world sending that to amazon’s warehouses which are mostly based in the United States but they do have some over in Europe and Canada. Once the products are sent over to amazon essentially all the seller has to do is now worry about getting those products maintaining their page, getting good photos of the products and after that amazon kind of takes care of a lot of the heavy lifting you know they’re fulfilling all the products they’re handling a lot of the returns and they’re also going to be doing things like getting traffic to your amazon page.
Amazon is one of the most visited websites on the internet and that’s one of the reasons it’s so appealing to sellers to get their products and start selling them on amazon because there’s a
lot faster tick to success than if they were going to start their own website and start from scratch so there’s a lot more organic traffic happening and a lot higher conversions than selling on their
own platform or any other platforms like Walmart or eBay or something like that so now I want to also switch over to is amazon fba dead.
I see all these things drop shipping is dead amazon fba is dead eCommerce is dead no none of these business models are dead but they are becoming a little bit more difficult to make money and they’re becoming more competitive the reason is there’s it’s been around for a while.
There’s a lot of people making good amounts of money on these platforms and so it’s becoming a little bit more difficult to just launch a profitable brand on amazon fba and not all the ways that you’re doing drop shipping or e-commerce or fba they’re not all equivalent so I want to talk about the four main ways people make money with amazon fba and starting off at number one is wholesaling this is essentially ordering a bunch of random products for a large quantity and then getting a discount and selling those on amazon essentially this way is not a great way to make money on amazon, not mean you can’t but the reason.
This isn’t that great, is because there’s not a huge moat and you’ll find out the people making a lot of good money on amazon usually has some sort of moat around their business meaning, it’s harder for somebody to just with a lot of money trying to replicate the same business model and that leads us to our next thing which I private labeling is essentially finding a water bottle slapping your logo on it and then sending it and selling it on amazon.
Now you can see that this isn’t really a huge moat as well so these two business models are still possible but a little bit harder to really separate yourself from all the other millions of people and products on amazon. The third way is going to be retail arbitrage and this is essentially going to Walmart finding something on sale let’s say they’re selling it for 10 at Walmart but you see people buying it for stock load from Walmart and then you essentially sell it on amazon.
The reason this isn’t a great business model is it definitely works and I’ve seen a lot of people make good money doing this the problem with this is you have to physically go to the stores you always have to be going out and getting more of your inventory so it can be a little bit harder than the last method of amazon fba which is the preferred method for anybody looking to get started but it’s going to be a little bit more difficult. It’s going to require a little bit more capital but eventually, you’re going to have a lot more sustainable and evergreen products that you’re selling on Amazon and that’s creating your own product, your own brand and it doesn’t have to be reinventing the wheel.
You can find some of the most popular products on amazon and this is the method that I suggest is find some products that are very profitable they’re not over but maybe there’s something wrong with this product maybe you can take this product and improve or fix whatever the common problem is so a lot of times I suggest people look at the one-star the two-star the three-star reviews for these products after doing some research through jungle scout or helium 10 to find out if these products are going to be a well worthwhile investment into making the figure out what that common problem is and then just try to come up with a solution and create a better wheel.
So essentially you can fix whatever these common problems are you can add your own brand around it and then you can build an actual company that is selling similar products that are going to create some sort of synergy.
Now I see a lot of people on Amazon, they’re selling toasters but then they’re selling like soccer balls and there’s no real synergy between the brand so I would say like trying to pick a certain niche that you don’t think is supersaturated and try to find some sort of things that are going to create this sort of complementary products that are going to sell a lot better on amazon and actually make some sort of brand so this method’s definitely not dead and honestly, all four of these methods can work.
I’m just gonna say that they’re just a little bit more difficult to get started but the longevity of creating your own brand is gonna build a much larger moat now all four of these methods do work and I’ve seen them work in a variety of different ways but when you’re going to be building a fba business don’t you want to create a business that’s going to have a larger moat it’s going to last for a longer period of time and instead of just working for you know six or 12 months until somebody starts undercutting your prices to the bottom to really run out.
Your business wouldn’t you rather have a unique product uh trademark that product has exclusive rights to sell on amazon and have a little bit more of an evergreen run.
At building your business you’re going to be investing a lot of time and a lot of money into this, so that’s why creating a unique product on amazon fba is still worth doing. I wanted to talk about is let’s say you have a good amount of capital and you’re looking at maybe building your own brand from scratch. I want to talk to you about potentially acquiring an already established profitable amazon fba business so this can save you two to three years of time and the reason this is becoming so popular is if you do all the correct research. You find a great product you have to go through a lot of iterations to get these products perfected and there are just a lot of things you know you can do everything right but not every product is going to be a hit.
I would say one out of four or one out of five products that people launch is going to have a lot of steam and a lot of success and that’s where business acquisitions come in and why you can cut out two to three years of trial and error to just acquiring a business that has already been profitable and is cash flowing for you know two-three even four years and you can buy this business at a premium and then just worry about growing those products.
So there’s a lot of methods for that and I’ll make a whole separate video about how you can just acquire a business and grow it with amazon fba so if you like this video if you are more interested in amazon fba make sure to give this a thumbs up leave a comment below, which type of business model are you most interested in learning more about and I’ll try to make a video about that so I have a lot of knowledge between every type of way to make money online and I want to share everything I know with you guys so make sure you subscribe.
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