Is Amazon FBA Worth It? A Simple Answer To Whether FBA Still Works

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Is Amazon FBA worth it? Fulfillment by Amazon (FBA) enables everybody to sell products on Amazon.

Using FBA, you can outsource storage, shipping, returns and customer service to Amazon. In recent years, many individuals and businesses started selling their products on Amazon.

Almost all of them were able to take part in Amazon's growth. In 2013, Amazon had total net revenue of $74.46 million, while in 2019 it was $280.52 million.

In fact, they 3,76x their revenue.

Yet, this massive growth led to 2,734,713 active sellers and a total of 8,156,753 sellers (March 2020).

And that's exactly what's the problem for many individuals and businesses out there. Massive Competition.

People might ask themselves if Amazon FBA is still worth it because of the massive amount of sellers out there.

If you're wondering the same thing, you've come to the right place.

In this post, we're going to answer if Amazon FBA still works and if it's worth selling on Amazon.

Here's what you will learn:

  • Amazing Stats about Amazon
  • Is Amazon FBA worth it?
  • If it's worth it, why?

Let's dive right in.

Here's Everything You Need To Know About Amazon From 2019

To start quite easy, here's an infographic about the most important Amazon stats 2019. 

Amazon Seller Stats

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Is Amazon FBA still worth it?

Many E-commerce businesses, or individuals considering starting an online business on Amazon, are wondering whether Amazon FBA is still worth it or not.

When Amazon provided the FBA service, many of them started selling products on Amazon.

For individuals, the ability was ingenious to outsource logistics and shipping and sell products on Amazon.

Selling on Amazon offers many pros. On the one hand, Amazon has a lot of TRAFFIC.

On the other hand, customers rely on Amazon.

Regarding this, many individuals were able to set up their business, and E-Commerce companies were able to increase their sales significantly when they offered their products on Amazon.

But what about the situation these days? Has it become more challenging to sell products on Amazon?

Did the cost of advertisement on Amazon increased in the last years?

Considering Amazon Prime, customers no longer have to pay for shipping and this means less money through every sale for merchants.

So does Amazon FBA still work? 

Perhaps the profit margins are already so low that it no longer makes sense to sell your products on the world's largest online marketplace?

So let's take a look at the situation in the past:

Product research and sourcing used to be more relaxed past times. Here are some reasons for this:

  • Less Amazon FBA sellers
  • Less products listed on Amazon
  • Worse products with bad listings
  • Less work for manufacturers in China
  • Lower quality articles
  • No free shipping

From here, we can conclude that the competition on Amazon used to be much lower than today.

These days, the situation on Amazon is more challenging. Here're some examples:

  • An increasing number of Amazon FBA sellers, leading to increasing competition
  • An increasing number of Amazon products on the Amazon marketplace, which also indicates increasing competition
  • Excellent products with good listings
  • Manufacturers from China for Amazon FBA products have more work to do and are not dependent on individual sellers
  • Amazon sellers offer high-quality products
  • Shipping in most cases is free, because of Amazon Prime

Looking at these facts, the current situation seems to be A LOT more challenging than in past times.

So the final question is:

Is Amazon FBA still worth it, or should you invest your time in an own online shop or even in other online marketplaces?

Find A Product That Sells Well

These days, searching for products to sell 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 GREAT.

Amazon is like any other market in the world, the competition is increasing, and there are more products added every day.

However, you should never think that something has an END.

In most cases, people who think like this are lucky to fail.

Selling on Amazon has merely become more complicated, but this does not mean that it's impossible to start a successful business on Amazon.

There are also great tools out there that can help you to double your chance of success.

Using Helium 10, Amazon sellers can still find profitable niches and products.

If you want, you can go here to sign up for free. Or you can use one of these Helium 10 Coupon Codes to get a 50% discount.

Anyone who can bring a better product to the market will be successful in the long run.

If you use Helium 10, you will be able to perform the right marketing activities and speed up your business growth. 

If you want to learn more about that, here's an article about Listing Optimization and Keyword Research.

Sourcing And Finding A Manufacturer

Regarding sourcing your Amazon FBA products, it's just the same as with product research.

As an Amazon seller, you have to do more research and improve your negotiation skills.

If you do it the right way, you will definitely find a manufacturer for your products.

In the meantime, there is even a tool from Jungle Scout with which you can discover all available suppliers on plane earth.

You can check it out here.

You can check out information such as other customers of a supplier, average costs and much more.

You can also read more about the Jungle Scout Web App & the Jungle Scout Chrome Extension.

Conclusion

In any case, you can still build a profitable Amazon FBA business. As always, concentration and perseverance are the keys to success.

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.

If you want to play it save, start selling books on Amazon.

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. 

Make sure to check out our article about Helium 10.

In the end, here's are some useful facts about selling on Amazon, if you want to start a business:

2019 Amazon FBA Business Guide: How to Sell, Fees & More



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