I have been researching about Amazon and all the different types of FBA for Amazon. In most cases, people go with letting Amazon do all the work while selling wholesale. If I did get into it, I would go with that instead of selling a specific product, which is a good idea also, don’t get me wrong.
The only thing holding me back is the percentages. I have seen so many different articles about this specific topic. If you truly want to make profit, you have to sell in the millions of dollars because of the Amazon fees and percentages which affect your profit margins.
People don’t make millions like everyone thinks. Obviously, there are some that do, but I am not talking about that small circle. I am talking about people that are just getting into it or have been grinding it for less than 2 years.
So the main question is: is it still worth selling on Amazon even though Amazon hits you with crazy fees? And if so, how long would it take to make actual good profit margins? I know there isn’t a specific answer to this. Just want to see other people’s opinions on this.
Main issue is, once you’ve finally mastered profit, the China supplier usually steps into the buy box with cheaper pricing that you can’t compete with since they’re your supplier.
Thorne said:
Main issue is, once you’ve finally mastered profit, the China supplier usually steps into the buy box with cheaper pricing that you can’t compete with since they’re your supplier.
This can happen with non-Chinese suppliers as well.
@Zen
The point is, your supplier, wherever they are located, uses you like a canary in a coal mine to find the profit. As soon as you master profit, they then work on their own listing and have the best margins and ad spend.
@Thorne
Yes, they can do that. But many suppliers don’t sell to end customers. I had a successful online store and no suppliers competed with me. If you need to find proper suppliers, not ones that all sell retail.
Thorne said: @Zen
Just sharing my experience back in my FBA days.
Fair enough. I don’t mean to dismiss your advice. It’s good for most people. Just wanted to point out that there are ways around it. But it does get harder with every passing year.
Thorne said:
Main issue is, once you’ve finally mastered profit, the China supplier usually steps into the buy box with cheaper pricing that you can’t compete with since they’re your supplier.
I did hear that also. So now you also have to watch out for your supplier. Do people make a contract agreeing that the supplier cannot do this or something close to it?
Zen said:
Yes, it’s worth it for those that make money. Start small and try it. Do you have any products to sell, though?
I found a supplier with popular brand names and start there. I found one with Charmin toilet paper and also one supplier that carries Monster Energy drinks. Both of these suppliers are bulk buys only. Not sure if this route is the safe route, but regardless, gotta take chances I guess.
@Noe
Low margin, too much competition, not worth it. Also, it sounds like you found a reseller, not the main supplier. You need the main suppliers to get the best deals. For that, you need to sell more niche products. Not easy.
@Zen
They are selling the bulk at a good price, and the pack combo they are selling is in high demand on Amazon. This is why I was going this route. But before I spend money and time, I just want to make sure it’s all worth it.
@Noe
Are there other sellers selling the same products? Can you make a profit after shipping costs to the Amazon warehouse, warehouse fees, Amazon fees, and shipping to customers? All you can do is try. Are you allowed to sell it in your country? Another company may have exclusive rights to sell there. Is it a restricted product on Amazon? If it is, you won’t be allowed to sell it.
I used to sell my used Apple gear, but since Amazon and Apple signed an agreement, we can no longer sell used Apple gear. I was out of the game. Unless you have a product that you can sell with good margins, I doubt the average user can come out ahead. Competition is insane!
You’re going to spend a lot of time developing a business on a single platform. Very risky, because Amazon can suspend or terminate your account and then you’ve got nothing (customers belong to Amazon, not you).