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Amazon FBA is a service that allows merchants and individuals to sell products on Amazon and outsource storage, shipping, return, and customer service to Amazon.
In recent years, the online marketplace has grown rapidly, which is why many entrepreneurs and individuals are wondering whether Amazon FBA worth it or not?
In this article, we try to answer this question and clarify all ambiguities.
Many E-commerce professionals, or individuals considering starting an online business, are wondering whether Amazon FBA is still worth it.
When Amazon provided the FBA service, many E-commerce Entrepreneurs, regular retailers, or individuals started selling products on Amazon.
For individuals, the ability was ingenious to outsource logistics and shipping and sell products on Amazon.
Selling on Amazon has many advantages. On the one hand, the necessary visitors were already present, so Amazon has a lot of TRAFFIC.
On the other hand, customers rely on Amazon.
In this way, many individuals were able to set up their businesses, and E-Commerce Entrepreneurs were also able to increase their sales significantly.
Fulfillment by Amazon became popular in the USA and also in other countries.
But what's the current situation? Has it become more challenging to get sell products on Amazon?
Have the costs for advertising on Amazon increased?
With Amazon Prime, customers no longer have to pay for shipping.
So is Amazon FBA still worth it at all? Or are the profit margins already so low that it no longer makes sense to sell your products on the world's largest online marketplace?
Product research and sourcing used to be more relaxed past times. Here are some reasons for this circumstance:
You can say that the competition on Amazon used to be much lower than today.
In these days, the situation on Amazon is different. The following points describe today's situation:
We have now explained the current situation for Amazon sellers and vendors. But what does this look like in practice?
Is Amazon FBA still worth it, or should you invest your time in an own online shop or even in other online marketplaces?
These days, finding products for your FBA Business has become more complicated.
Many niches are already occupied with good sellers, but that doesn't mean it's impossible to find a niche and a product that will sell well.
Amazon is like any other market, the competition is increasing, and there are more products.
But you should never have the attitude that the specifications of a specific product are thought through to the end.
People who think this way will, in most cases, fail because of their behavior.
If you think that everything has been thought through one hundred percent to the end, you will always stay up to date and will not develop further.
It has merely become more complicated, but this does not mean that it is impossible!
People who ask themselves whether Amazon FBA is still worthwhile should instead ask themselves how they can improve an existing product.
Anyone who can bring a better product to market will be successful in the long run with the right marketing activities.
Here you can learn more about the marketing activities on Amazon, in the article Amazon Listing Optimize and Amazon Keyword Research.
Furthermore, it is not right to think that the Amazon marketplace is overcrowded. You can still find perfect niches that have a lot of potential.
So you should think about how you can optimize products and how you can market them with the right SEO strategy.
Finding profitable niches and products is possible. Take a look at these tools of Helium 10.
As far as sourcing is concerned, the same applies here as for product research.
As an Amazon seller, you should negotiate cleverly, do more research, and be more open to compromise.
In any case, you can find the right manufacturer for your Amazon FBA product, and then buy that product at a reasonable price from your manufacturer!
In the meantime, there is even a tool from Jungle Scout with which you can find all available manufacturers.
You can see new information such as other customers of your supplier and much more.
Here you can learn more about the Jungle Scout Web App & the Jungle Scout Chrome Extension.
In any case, you can still build a profitable Amazon FBA business. Deciding is, as always, focus and perseverance.
You can't build a profitable online business in a day or a week. If you stick to it, you'll be successful over time!
Product research and the search for the right supplier have become more complicated, but Amazon FBA is worth it!
Also, there are always better tools available for Amazon sellers that make the work itself much more comfortable. An Amazon Research Tool is a must-have for every Amazon seller.
If you want to set up an Amazon FBA business, we can recommend our article Amazon FBA Products.
Also be sure to check out our article about Helium 10.
In this article, we also look at Helium 10 (which is currently the best Amazon tool) compared to Jungle Scout.
If you have any more questions about Amazon FBA or any other topic related to e-commerce or online marketing, email us or start a discussion below!
Of course we would be happy to receive your feedback!
Your team from smartminded