If you’ve ever sold anything on Amazon, you’ve most likely heard of FBA or Fulfillment by Amazon. With the introduction of FBA, online sellers were able to sit back and relax while Amazon handled the hard work. Sellers now have access to Amazon’s huge warehouses all around the world.
Is it worth it to sell on Amazon? Here is my Amazon seller experience to help you determine whether selling on Amazon FBA is a good way to boost your income. If you like to know more about being an Amazon FBA seller, Amazon FBA fees, FBA service, the Amazon FBA program, and more, continue reading my Amazon FBA review.
This Amazon Expectations Vs Reality 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
Logistics support and scalability
Fast and free shipping with Amazon Prime
Discounted shipping rates
Cons: What I Didn't Like
Amazon: Expectations vs. Reality – like most Amazon FBA programs – 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?
That’s what we’ll find out in this Amazon: Expectations vs. Reality review.
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. 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.
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.
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:
- 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?
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 Amazon: Expectations vs. Reality, keep reading.
What Is Amazon FBA?
When it comes to ordering fulfillment when selling a product on Amazon, sellers have three choices. They may either pack and ship the goods themselves (Fulfillment-by-Merchant and Seller Fulfilled Prime) or outsource storage, packaging, and shipping to Amazon through FBA.
How Does It Work?
When making a product listing or offering a product for sale on Amazon, sellers must decide on their fulfillment strategy. Sellers may change between fulfillment methods at any time.
The FBA process is simple.
1. Sellers get the items and send them to an Amazon warehouse. Amazon will provide you with the relevant contact information and address.
2. The items are then held in Amazon fulfillment centers until a client places an order. There is a storage fee, which is generally determined by the product’s size/volume.
3. Amazon handles the transaction and updates your inventory when you make an order.
4. Amazon will pack and ship the order.
5. The online retail giant handles customer service and purchase follow-up. Amazon also handles returns and refunds.
6. Amazon sends you the profits from your sales every two weeks.
Note. Sellers must guarantee that shipments to Amazon fulfillment centers adhere to the online retailer’s strict packing rules.
As I already said, the service is not free. However, the charges are quite competitive and are often less expensive than storing and shipping the things yourself. Furthermore, although Amazon handles most of the shipping, FBA sellers are still responsible for product selection, inventory management, and marketing.
FBA sellers can store their goods in Amazon’s fulfillment centers. Amazon can ship things swiftly while also managing inventory that is sold via many channels other than Amazon’s marketplace.
Amazon FBA Inventory Fees
Inventory management and storage are two of the most significant benefits of FBA. If Amazon sellers use the service, they will not need to invest enormous money in storage space upfront. As I already said, this comes at a low cost.
All inventory at Amazon’s fulfillment facilities is subject to a monthly fee. The cost is dependent on volume and is determined by the size of the product and the time of year it is stored. Storage prices are raised (October to December).
Amazon charges monthly storage fees for items in the United States between the 7th and 15th of the month following the month that the fee applies. This implies that your storage price for March will be charged between the 7th and 15th of April.
Long-term storage fees apply to items kept in an Amazon fulfillment center for more than 365 days, and they are in addition to any monthly inventory storage fees.
Remember that Amazon FBA costs money for storage and warehousing, so until you know what’s going to sell, consider attempting a few things and gradually expanding into various goods.
In addition to the FBA calculator, Amazon includes a chart for its FBA fulfillment fees that may help you assess if an item is lucrative enough to sell on FBA or if you should use another method.
Should Your Business Use Amazon FBA?
It’s a difficult question to answer. In general, sellers should consider utilizing FBA if they are selling small, high-turnover items. This reduces storage prices and assures that they will never have to pay for long-term storage.
The main thing to note is that fulfillment methods might vary depending on the goods. The same seller may use FBA to sell little children’s toys and FBM to sell a huge table. As a result, many sellers use both FBA and self-fulfillment tactics to maximize their profits on the Amazon Marketplace.
FBA will not work for everyone on the market. However, it is not intended to do so. Generally, the things that perform best for Amazon FBA sellers are small (in terms of both weight and dimensions).
Is Amazon: Expectations Vs. Reality A Scam?
So, is Amazon: Expectations vs. Reality a scam? Not technically. You can make money with this program, but it’s definitely not as easy as they 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
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: Expectations vs. Reality?
Yes, there are plenty of other business models to choose from if you want to pursue making money online. Here are just a few:
What Is My Top Recommendation In Making Money Online In 2022?
Our review team has spent months researching, reviewing, and vetting dozens of business models and thousands of programs.
While there may be no “perfect business”, the research IS conclusive:
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.
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.
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.
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.
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.
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.
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.
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.
Now, the choice is yours. You could continue browsing, looking at opportunities like amazon 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.