I Tried Amazon FBA

Summary

In this video, the creator shares their journey with Amazon FBA, attempting to make $5,000 through methods like Retail Arbitrage and wholesaling. Despite previous failures, they explore sourcing discounted items from local stores and wholesale suppliers, aiming for profit by reselling on Amazon. After spending days scanning products and navigating various challenges, including Amazon’s strict listing requirements, the creator ultimately struggles to find success. The video reveals the harsh realities of Retail Arbitrage, with the creator concluding that building a brand or wholesaling might be more viable alternatives for success on Amazon.

Takeaways

• 😀 Many people have made millions through Amazon FBA, but 90% of sellers fail.
• 😀 The speaker has had mixed success with Amazon FBA, making over $100 million in one year but also failing to make any sales initially.
• 😀 Amazon FBA involves buying discounted items from local stores and reselling them on Amazon for a profit.
• 😀 There are three main types of Amazon FBA: Branded, Retail Arbitrage, and Wholesaling.
• 😀 Retail Arbitrage is the simplest method, where you buy cheap products in physical stores and sell them for a higher price on Amazon.
• 😀 Wholesaling involves buying products at a wholesale price and selling them for retail prices on Amazon, which requires building relationships with wholesalers.
• 😀 Retail Arbitrage can be time-consuming and difficult, as stock availability and profit margins can be unpredictable.
• 😀 The speaker visited several wholesalers, but many had limited products that could be sold on Amazon, and profit margins were low.
• 😀 The speaker attempted to do Retail Arbitrage across different cities, but often found that the products did not generate enough profit after Amazon’s fees.
• 😀 Many products the speaker tried to list on Amazon were restricted or required approval to sell, complicating the process further.
• 😀 The speaker believes that Amazon FBA now favors branded products and wholesaling more than Retail Arbitrage, which has become more difficult due to stricter policies.

Q & A

What is Amazon FBA, and how does it work?

Amazon FBA (Fulfillment by Amazon) is a service that allows sellers to store their products in Amazon's warehouses. Amazon handles the packaging, shipping, customer service, and returns, enabling sellers to focus on sourcing products and driving sales. Sellers can sell directly on Amazon's marketplace and leverage Amazon's infrastructure for order fulfillment.

What are the three types of Amazon FBA that the creator mentions?

The three types of Amazon FBA mentioned are: 1) Branded Amazon FBA, where you create a brand from scratch and manufacture products. 2) Retail Arbitrage, where you purchase discounted items from local stores and resell them on Amazon. 3) Wholesaling, where you buy products from wholesalers at a discounted price and sell them for a higher retail price on Amazon.

Why did the creator struggle with retail arbitrage?

The creator struggled with retail arbitrage because they faced issues finding profitable products. Despite spending hours over several days searching various stores, they struggled to find products that could generate substantial profits. Additionally, many items had small profit margins or faced restrictions on Amazon, which hindered success.

What challenges did the creator face with wholesaling?

The creator faced difficulties with wholesaling, such as finding wholesalers who allowed Amazon reselling. Many wholesalers only dealt with food products, which cannot be sold on Amazon. Even when they found acceptable products, the profit margins were often too small, and the process of getting approval to sell on Amazon was cumbersome.

How did the creator's experience with Amazon FBA differ from what they had seen online?

The creator's experience with Amazon FBA differed from what they had seen in online videos because those videos often portrayed success with retail arbitrage, making it seem like an easy way to make money. In contrast, the creator faced numerous challenges such as product restrictions, small profit margins, and a lack of consistent success, which was not reflected in the success stories they had watched.

What did the creator find out about Amazon's stance on retail arbitrage?

The creator discovered that Amazon has become stricter with retail arbitrage, requiring sellers to get approval for certain products before listing them. This change made it difficult for the creator to sell many of the items they had purchased, as they only had a few units, and Amazon’s requirements were harder to meet.

What was the creator's final opinion about retail arbitrage on Amazon?

The creator concluded that retail arbitrage was not worth it, based on their personal experience. Despite spending significant time sourcing products, the potential profits were low, and Amazon’s restrictions made it even harder to succeed. They suggested that branded products or wholesaling were better options for those interested in Amazon FBA.

What factors did the creator believe influenced the success of retail arbitrage?

The creator believed that the success of retail arbitrage depended on factors such as the size of the city and the availability of products in local stores. They speculated that larger cities with busier retail parks might offer more opportunities, but it also meant more competition.

What was the most profitable product the creator found during their retail arbitrage attempts?

The most profitable product the creator found was a Harry Potter wand, which they purchased for a low price and could sell on Amazon for a higher price, resulting in a profit of about £3 per unit. However, they only found a limited number of these products.

What did the creator plan to do after their struggles with retail arbitrage?

After struggling with retail arbitrage, the creator decided to shift their focus to wholesaling. They began researching wholesalers and setting up trade accounts with them to see if they could find better opportunities to profit through Amazon FBA.