đ The Truth About Amazon FBA: What Gurus Won’t Tell You
Are you considering starting an Amazon FBA business? You may have heard that it’s a great way to make money online, but there are some things that most gurus won’t tell you. In this article, we’ll expose the five most common lies that Amazon FBA gurus tell you and give you the real facts about starting an Amazon FBA business.
đ° How Much Money Can You Make?
One of the biggest lies that Amazon FBA gurus tell you is that you can become a millionaire overnight. While it’s true that there are products on Amazon making millions of dollars, the reality is that only 19% of Amazon sellers have done over a million dollars in sales. In fact, 91% of Amazon sellers make less than a hundred thousand dollars in profit. So, while it’s possible to make a lot of money on Amazon, it’s not a get-rich-quick scheme.
So, how much money should you expect to make in your first year selling on Amazon? The real numbers may surprise you. According to a poll by Jungle Scout, only 22% of Amazon sellers are profitable within the first three months, and 64% say they’re profitable by the end of their first year. While these numbers may seem discouraging, it’s important to remember that selling on Amazon is just the start. More than 50% of all e-commerce takes place off of Amazon, so you can launch your product on Amazon to test it out, then create your own website and sell in other marketplaces to get even more sales.
đž The Real Costs of Starting an Amazon FBA Business
Another lie that Amazon FBA gurus tell you is that you can start an Amazon FBA business with little to no money. While it’s possible to start an Amazon business with zero dollars, you need to be careful. Otherwise, starting your Amazon business could cost you tens of thousands of dollars.
At a minimum, you’re going to have to spend a hundred dollars for your designs, including the logo and packaging for your product. You’ll also need to find a supplier that will sell you the products that you will turn around and sell on Amazon. Once you find a supplier that you like, you’re going to want to order a sample of the product, which will cost you around fifty dollars for shipping from overseas to the United States.
Let’s say you found a product that’s selling five units a day and you found it on Alibaba.com for just a dollar. In this scenario, you’d want to buy at least 500 units of your product, which will cost you around another 500 dollars. You’ll also have to pay around 150 dollars to get those products shipped from overseas into the US Amazon warehouse.
Before you start selling, you’re going to need to spend another thirty dollars on a UPC barcode, which stands for Universal Product Code and is the barcode that all products have so they can be scanned in stores. On top of that, you’ll probably spend another hundred dollars to pay for either photos or a 3D render of your product that you will use for your Amazon listing. You’ll also need to pay for your professional Amazon seller account, which costs 39.99 dollars per month.
So, at a minimum, it will cost you a thousand dollars to start your Amazon business. But for most people, you are going to have to spend some money to get your business up and running. A realistic amount of money to start Amazon with is probably closer to five thousand dollars.
đ How Long Does It Take to Start Making Money on Amazon?
Another lie that Amazon FBA gurus tell you is that you can make money on Amazon quickly. The truth is that Amazon FBA is not a get-rich-quick scheme. You’re not going to become a millionaire overnight. So, how long will it actually take you to start being profitable on Amazon?
According to the same poll by Jungle Scout, 64% of Amazon sellers say they’re profitable by the end of their first year. But keep in mind that this number is revenue and not profit. It’s only around 1% of Amazon sellers that have made over a million dollars in actual profit. That being said, don’t let this discourage you. You can be the 1% that goes on to make a million dollars selling on Amazon.
đ€ Is Amazon FBA Passive Income?
One of the things that I got called out for in this video is that I say that Amazon is passive income. Is it true? The answer might surprise you. The reason that I say Amazon FBA is passive income is that Amazon is doing most of the hard work of running your business. When you get an order on their website, they’ll pick, pack, and ship out your product to the customers. In addition to that, Amazon has over 300 million Prime customers going to their website every single day and searching for products like the one you sell.
So, while it’s not completely passive, it’s a lot better than trading your time for money. And yes, you can have a business where you’re making money even if you take a month off, two months off, three months off. This is what I mean by passive income.
đ Real Results Selling on Amazon
Now that we’ve exposed the five most common lies that Amazon FBA gurus tell you, let’s talk about some real results selling on Amazon. Brent did $800,000 in revenue selling his product CRPRO with a profit of over $300,000 in his first year. AJ with Cocktail Cards did over $500,000 in sales in his first year with a profit of $170,000. Michael at 17 years old launched his Amazon business and did over $300,000 in sales with a profit of $120,000. Kalina, who has a product called Big Talk, did over $100,000 in revenue in her first year with a profit of around $50,000. Mina, selling his supplements on Amazon, did $250,000 in sales with a profit of around $50,000. And Troy, in his first year, did $40,000 in revenue and $9,000 in profit.
đ The Goal: Freedom
The goal here is not to be an Amazon seller but to have your own passion product and sell that in as many locations as possible. And yes, you can start your own Amazon business with zero dollars. But for most people, you’re going to have to spend some money to get your business up and running. The more money you’re willing to spend on your Amazon business, the faster and easier you’re going to be able to have success on Amazon. But the truth is, if you plan on selling on Amazon, most products that you’re going to sell aren’t going to only cost a dollar from Alibaba.com. They’re probably going to cost at a minimum on average around seven dollars.
Starting an Amazon FBA business allowed me to start making passive income, which allowed me to get my freedom back. And that’s what I want for you. So, if you’re interested in starting your own Amazon FBA business, I have a free five-hour Amazon FBA course that will teach you everything you need to know. Just click on the link in the description to get started.
đ Highlights
– Only 19% of Amazon sellers have done over a million dollars in sales.
– 91% of Amazon sellers make less than a hundred thousand dollars in profit.
– A realistic amount of money to start Amazon with is probably closer to five thousand dollars.
– 64% of Amazon sellers say they’re profitable by the end of their first year.
– Amazon FBA is not completely passive income, but it’s a lot better than trading your time for money.
– The goal is not to be an Amazon seller but to have your own passion product and sell that in as many locations as possible.
â FAQ
Q: Can you start an Amazon FBA business with zero dollars?
A: Yes, it’s possible to start an Amazon business with zero dollars, but you need to be careful.
Q: How long does it take to start being profitable on Amazon?
A: According to a poll by Jungle Scout, 64% of Amazon sellers say they’re profitable by the end of their first year.
Q: Is Amazon FBA passive income?
A: While it’s not completely passive, it’s a lot better than trading your time for money.
Q: How much money can you make selling on Amazon?
A: While it’s possible to make a lot of money on Amazon, it’s not a get-rich-quick scheme. According to the same poll by Jungle Scout, only 1% of Amazon sellers have made over a million dollars in actual profit.