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3 Reasons To Do Amazon FBA (2022 Update)

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Updated: May 13

By: Scam Risk - Expert Reviewer

Amazon FBA

Amazon is among the largest online retailers worldwide. If you’re a small business owner, you would want to take advantage of the benefits of selling on Amazon. Read on to see Amazon FBA.

Amazon FBA wants you to believe you can build and run a successful e-commerce business that’s automated, profitable, and generates cash around the clock in less than 90 days…

With just a couple hundred dollars in inventory…

Sounds a little too good to be true, huh?

Look, as far as most online businesses go, you could do a lot worse than Amazon FBA.

But does that mean it’s the best solution for you?

DISCLAIMER:
This 3 Reasons To Do Amazon FBA Review has been thoroughly researched with information and testimonials that are available online to anyone in the public. Any conclusions drawn by myself are opinions.

Table of Contents

Pros: What I Liked

  • Provide customers with free shipping
  • Lower operating costs
  • Work flexibility
The Good

Cons: What I Didn't Like

  • Long-term storage fees
  • Increased returns
  • Sales tax
The Bad

That’s what we’ll find out in this 3 Reasons To Do Amazon post.

The biggest things you have to consider here are:

  • Inventory Management
  • Product Selection
  • Time to Profit

While you can make good money with Amazon FBA, it’s not as easy or simple as most course creators make it sound. Amazon sellers have to work hard. Let’s break these 3 down real fast:

1) Inventory Management: If you’re doing an FBA business, the promise is that you don’t need to worry at all about inventory, because Amazon takes care of packing, shipping, customer service, etc.

However, you still need to get products to Amazon. And Amazon has very strict rules all sellers have to follow when preparing products for their warehouses.

This includes packaging, labeling, and registering products in their system. If you’re preparing all products yourself, you’ll spend a TON of time on this step (potentially 4-5 hours a day). So if you’re looking for a passive, automated business that runs itself, this might not be the best fit.

Now, yes, you can hire an Amazon prep center to do all this for you, but that eats into your margins. And remember that Amazon takes around 30-40% in fees for using the FBA program, so your profits are pretty tight to begin with. You may not want third party sellers being involved.

2) Product Selection: E-commerce is a cyclical business. “Hot” products are always going in and out of fashion, which means, as an Amazon seller, you constantly need to be on the lookout for the next big thing.

That means monitoring trends, searching for products that might be popular down the line, and constantly in a rat race to – essentially – predict the future.

Sure, you can play in the evergreen market (things people always need and buy), but how much profit margin are you really going to get on meal prep containers, rubber spatulas, and golf umbrellas? Especially when there are hundreds of thousands of other sellers all swimming in that same ocean.

And because you’re constantly hunting for new hot products to sell, that takes up all the valuable time you could be using to travel, explore, read, surf, hike, or whatever else.

3) Time To Profit: Now, this isn’t the slowest turnaround time, but if you think you can put a dollar into inventory today and come out with two tomorrow, you’re sadly mistaken. From the time you first buy products to sell, you could be looking at anywhere from 4-12 weeks before you see a dollar come back.

And it could take twice as long before you break even. This is a risk when you sell on amazon tho.

Now, that’s not terrible, but what if you could start building a different (non-Amazon) income stream today, and see your first profits tomorrow?

What if you could build a passive income stream that’s actually passive?

An income stream that doesn’t require:

  • Inventory
  • Low margins
  • Constantly looking for the next hot product

An income stream that brings in consistent revenues every single month (from a couple thousand dollars to well over $10,000)?

An income stream you could actually build in your spare time, and grow as large or as small as you want to, without having to spend hours a day packing, prepping, and researching?

TESTIMONIAL - STILL GETTING PAID

If that sounds like something you’d be interested in, check out Digital Real Estate.

This is nothing like Amazon FBA, and that’s probably a good thing.

However, if you’d still like to know more about 3 reasons to do Amazon , keep reading.

3 Reasons To Do Amazon

3 Reasons to do amazon

The following are only some of the significant reasons it is advantageous to become one of the many Amazon FBA sellers.

Low Start-Up Costs

Starting a business involves an initial outlay of capital, one of the most challenging aspects. Starting a new company might cost tens of thousands of dollars. Trying to sell on amazon is no different.

Thankfully, you won’t have to spend as much on establishing an Amazon business or being a fba sellers employee.

To get started, you can use items you already own or buy them at a thrift shop or yard sale. Neither of these solutions will cost you thousands of dollars. All you need are a smartphone, computer, printer, tape, paper, boxes, address labels, and the products you want to sell on Amazon. Doing some product research can help you figure out what people want as well.

No Need To Build Your Own Website

No Need To Build Your Own Website

Concerns regarding website design are one of the first things people raise when faced with starting an online business. To get your website started, you’ll need to spend a lot of time and money getting it ready to go. This is vital if you want your business model to be professional.

You don’t need a website if you have an Amazon seller account! None of the additional responsibilities of having a website: no web host, SEO, security, or an email list. The hard part has already been done since Amazon ranks near the top for most profitable products.

You don’t need to create your own Amazon product pages at all. There is no need to take photographs or study relevant keywords when all Amazon sellers use the same product page.

Ship Less And Sell More

Ship Less And Sell More

Using Amazon’s FBA program allows you to reap the benefits of the Amazon marketplace without having to perform any of the work yourself. You can also do business internationally.

Orders are dispatched by Amazon from their Amazon fulfillment center as soon as they have been paid for and are ready to be delivered to their customer. An Amazon employee will choose the correct box for your product from their storage space and ship it. Another perk of selling on Amazon is that they will cover the shipping costs of a 2-day or same-day shipping.

As a result, you get to spend most of your time focused on the money-making side of the business.

How To Get Started With Amazon FBA

How To Get Started With Amazon FBA

You can start selling on Amazon with only four easy steps.

Step 1: Set Up FBA

Create your seller account on Amazon, and sign in to Seller Central. After registering as an Amazon seller, you’ll gain access to your seller central account.

Step 2: Create Your Product Listings

Create Your Product Listings

After adding your products to Amazon’s catalog and specifying the selling price, specify the FBA inventory. You should also start paying attention to if there are any storage fees.

Step 3: Prepare Your Products

After that, you must now prepare your products for shipment to Amazon’s fulfillment center. How you prepare your products must be in line with Amazon’s packing guidelines and shipping and routing requirements. Selling on amazon will go smoother if you follow their guidelines.

Step 4: Ship Your Products To Amazon

Make a shipping plan, print Amazon shipment ID labels, and ship your items to Amazon fulfillment centers. Seller central should have the information needed.

Amazon FBA Plans

Amazon offers two plans, but you will still be charged additional selling fees regardless of your choice.

  • Individual seller account ($0.99 per sale) – sell less than 40 items monthly and no advanced selling tools.
  • Professional seller account ($39.99 per month) – sell more than 40 items monthly and access to APIs.

FBA Fees

FBA Fees

  • Fulfillment fees – charges per item sold include choosing and packaging your goods, shipping and handling, customer care, and product returns.
  • Inventory storage fees – are charged monthly and are based on the volume of inventory in an Amazon center.

Is Amazon FBA A Scam?

Is amazon fba a scam

So, is Amazon FBA a scam? Not technically. You can make money with this program, but it’s definitely not as easy as Amazon FBA makes it sound.

There’s a ton of work to be done upfront, no real guarantee of success, and – most importantly – you need to do a ton of volume to make any real money.

Now, there’s nothing wrong with front-loading the work and making the money later.

But if you’re grinding it out for 3 months and then your reward is 15% profit on a $12 product (which comes out to $1.80), it’s not really worth it.

What if, instead, you could do that same 3 months of work (in your spare time), and your reward was a $500 to $2,000 payment that came in every single month (recurring revenue)?

And what if you actually didn’t need to wait 3 months? What if you could get started today and have your first payment in a week?

And what if you could double it next week?

Well, that’s the power of Digital Real Estate

And, unlike with Amazon FBA, you can legitimately do this from anywhere. It’s a true lifestyle business.

Your laptop and an internet connection is all you need.

Some of the most successful students in this program run their entire 6-figure businesses from:

  • A camper in the middle of the woods
  • A beach chair on the water in Mexico
  • A small villa in Greece

TESTIMONIAL - SAYING GOODBYE TO OUR JOBS

They’re able to travel around, living their lives first, and focusing on their income second.

Because even if they stop working for an extended period of time, the money keeps coming in.

So adventure, memories, and experience are the top priority.

And they never have to worry about how to pay for the next trip, or consider asking for time off.

If this sounds more like the type of life you want to lead, just click here to find out more about Digital Real Estate.

Are There Alternatives To Amazon FBA?

Are There Alternatives To Amazon FBA

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

My Top Recommendation For Making Money In 2022

My Top Recommendation For Making Money In 2022

Our review team has spent months researching, reviewing, and vetting dozens of business models and thousands of programs. You could say that we did some good product research.

While there may be no “perfect business”, the research IS conclusive:

Digital Real Estate is the #1 online business model for those just starting out.

Whether you’ve never made a dollar online, or you’ve been in this space for a while but never really “made it,” Digital Real Estate is for you.

Why?

1) It’s Flexible: got an hour a day? You can do this. Ready to drop everything else and dive in full time? You can do this. Yes, the more time you put in, the faster you see results. But even with a little time each day, you can move the needle in a Digital Real Estate business.

And because this system is so flexible, you don’t have to constantly be working to make more money. It’s called PASSIVE INCOME because if you stop working, the money doesn’t.

Imagine taking 3 months off to just tour around Europe, rent a cabin in the woods to write a book, hike the Appalachian Trail, or live on the beach and surf all day.

This is only possible if you have an income stream that’s not tied to your time.

TESTIMONIAL - JUMP ALL IN

2) You Own & Control EVERYTHING: With Amazon FBA, you don’t really own anything. Yes, you technically own the products before you send them into an Amazon warehouse, but that’s it. If you fail to do the proper product research then you’re still going uphill.

You don’t own the sales platform, you don’t own a brand, and you don’t own the customers.
Not to mention, Amazon can literally shut you down at any time if they believe you’ve violated their constantly changing terms of service.

So you’re building a business that could be completely taken away from you in the blink of an eye.

With Digital Real Estate, you own the assets, which means you have all the power and all the control.

TESTIMONIAL-FEELING-BLESSED

3) Little To No Startup Costs: It’s possible to get into Digital Real Estate with zero dollars upfront. Because, using the strategies outlined in this program, you can get a client to pay you BEFORE spending a penny out of your own pocket…even before you do any work.

Even without getting paid in advance, you can have your first Digital Rental Property up, running, and generating profits for less than $100.

TESTIMONIAL - LANCE LEAD GEN

4) No Inventory: As mentioned above, spending 4-5 hours a day prepping and packing products to send to Amazon is a huge time commitment.

Plus, you constantly need to be buying new products if you want to maintain your business. You need to spend even more money if you want to scale up.

With physical products, you’ll always have limits on your time and freedom.

With Digital Real Estate, a 100% online business, you never have to worry about that.

TESTIMONIAL-SCOTT-LEAD-GEN

5) Easy To Duplicate: Ok, here’s the best part: once you have your first Digital Rental Property up and running, you can literally DOUBLE your income with a few clicks, a couple keystrokes, and a single phone call (and you don’t actually need the phone call).

Remember: each Digital Rental Property is worth $500 to $2,000 a month in semi-passive income (over 95% profit). Every time you decide to create another one and increase your income, it gets easier.

Because you have more knowledge, more experience, more results, and more momentum.

If you wanted to double your income with Amazon FBA, you’d have to double your inventory OR your profit margins. And, guaranteed that’s a lot harder than a few clicks and a few minutes of your life.

TESTIMONIAL - ANNA DONE DEAL

6) Make Money Helping Real People: This part is what makes it all worth it. Amazon FBA is a decent way to make yourself money, but it doesn’t improve anyone else’s lives.

After all, there’s always someone else selling rubber spatulas and umbrellas. That might be fine in the short term, but in the long run you may feel like you’re missing a purpose.

With Digital Real Estate though, you’re actually helping people by solving your clients’ biggest problem…

Small, local businesses need more customers, and with Digital Real Estate, you are unleashing a flood of happy, paying customers for these businesses.

You make money by helping them make money.

Not a big, faceless corporation either…a small business owner who’s using that money to put food on the table for their family, start a college fund for their kids, or take care of a sick parent.

Once you see how Digital Real Estate makes a real impact in the lives of real people, you’ll sleep like a baby with a big smile on your face.

TESTIMONIAL-BOSS-OF-MY-FUTURE

Now, the choice is yours. You could continue browsing, looking at opportunities like amazon business which could one day make you money.

You could continue researching, never making a decision.

OR, you could take a look inside, consider what you really want, and join a program that makes your dreams a reality. At the same time, joining a community of over 2,000 successful students that are living life on their own terms thanks to Digital Real Estate.

A consistent, reliable, semi-passive stream of income that doesn’t depend on you or your time to keep producing profits.

All while genuinely helping real people who are grateful and happy to pay for it.

If this sounds more like what you want out of life (or if you just want some nice side income), click here to learn more about Digital Real Estate.

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