Amazon FBA Sellers Beware! The Model is Collapsing…Here’s Why
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- Опубликовано: 16 июл 2024
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If you are thinking about selling on Amazon or if you’re already selling on Amazon and debating whether to continue selling on Amazon, you need to watch this video.
0:00 Intro
0:28 Amazon’s Income Reports For 2023
3:57 The Issue Of Chinese Sellers Dominating The Platform
4:58 How Can These Chinese Sellers Possibly Make Money?
5:46 Big Expense That All Amazon Sellers Incur
8:31 How Can Temu Possibly Sell Products At Prices This Low?
9:49 Whether Ecommerce In General Is Doomed? Is It Game Over For Small Businesses?
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Thank you for mentioning the new Amazon fees. Lots of the Amazon RUclipsrs are ignoring these new fees but continue to promote their courses and agencies. It appears that some brand owners are spending 250k and upwards in advertising for about 1 million in sales.
Those promoters are charging insane 4 - 9K for their service 😮
I was so motivated to be an amazon seller, but after more studies and basic math, it doesn’t pencil out. You have to sell huge volumes for little margin. Just put the energy into your own brand and sell on your own site. Run your own ads and you will still keep more margin than on Amazon selling 1/2 the items.
Exactly!
How much volume ?
@@Gutowski1944 And your tax dollars subsidize that shipping. We pay the US post office to carry that thing to your door because of China abusing the 3rd world status to put your neighbors out of business. Your countrymen suffer, China floods our market with garbage and fentanyl, but you got cheap stuff.... so win win?
Same story here!
I'm finding this out the hard way!😫
This guy is the best I’ve seen. Informative & keeps it 💯. Im a huge fan . 😎
Amazon FBA is just a warehouse and customer base. Don't be an amazon seller be a product seller. Sell a product where no one can copy you, and sell a product that lets you hold 80-85% gross margin no matter who enters your market. That is the key. Amazon customers are not your customers. Never feel bad to overcharge as high as possible as long as you can still make sales.
What do you think about Amazon OA. Product is good, leaves 80 gross margin, but there are multiple sellers with low reviews.
I wish I saw this in Feb before I sunk $30k into launching smh. Guys, he's telling the truth! DO NOT DO IT!!! The fees and advertising WILL kill you.
Wow, very detailed. I was not aware of the keeping a certain level of stock in FBA inventory. Lots of helpful nuggets, but that FBA Min point was something I will have investigate more to understand the impact on costs.
I believe this is why some people are pushing towards things like private label, custom branding and higher quality packagine/products pushes for higher margines.
Eye opener.. Thank you so much for this information. It bombs me out...
wow.. Just wow. You absolutely nailed it.
you are right bro .. thanks
Many thanks for sharing the info. Hope all amz sellers watch this.
Factor in a return rate that is ridiculous and you can get big losses fast. I gave up Amazon just after 2020 and never went back. I never stored my stuff at their warehouse, even if you got the stuff for free you struggle to make a profit with them. Amazon 3rd party selling is a joke. I did it for over 20 years and I'm done. I hate shopping on there unless I'm buying from a specific brand, Too much garbage on the site I'm tired of getting garbage shipped to me.
Interesting,
Thanks for sharing your experience.
What is your game plane now
Thanks for the information. Could you please make more videos about creating brand outside of amazon and what are the options. Thanks!
I've got a bunch already. Search the archives
Thank you. Your videos are always the most clear, well thought out, well presented and concise.
Thank you for this helpful video ❤️😇🙏🏻🇺🇸🇵🇭
It sounds like Amazon is down to wholesale profit margins without the wholesale volumes.... But the problem is that the manufacturers in China are smelling the same pot that you are smelling and preparing their plates to overcome the hurdles. I will bet any money that 2-3 years from now you will be saying that the quality of "cheap goods" becomes better and their is no way to compete. They will adapt to the marketing strategies and consumer trends.
What fees have increased if you are selling and shipping from you house on AMZ?
I live and work in China. Businesses hear contend that Amazon fees are cheaper for an American who can open an American store vs. a Chinese person opening one from China. I don't think this is true but tis the talk over hear. Not to mention trading companies that set up 50 seller accounts to sell things like massage chairs. Would be good to hear any other real-life experiences from FBA sellers.
I just lost money becoming an FBA seller. I made money being a regular seller on Amazon without FBA.
Accounting101: Revenue should not be adjusted for returns, but the report at the end of the period should.
What would help the sellers: if buyers would consider buying items that aren't shipped by Amazon. The fees are much lower and it only takes one extra day. I understand that people with Prime want everything the next day. However, lately, Prime isn't always 1-2 days. Now, I'm more open to buying items FBM.
I have to do better with who I buy from, esp. if I'm going to still shop on Amazon. Is there a way to know if a seller is American or not?
Does this involve Wholesale model? Bc so far it's been working very well for me.
Shopify it is not good for brand e-commerce ?
i heard about the low stock fee, but have you heard about the loss of the buy box for many sellers atm? some kind of glitch due to amazon losing a court case about pricing
Yeah, but who pays the price is the customer, as a seller you just slap those fees on your product price formation.
Hi what if I don't want to use their warehouse ? What if the order is fulfilled as the order comes in because it is custom artwork ? What would be my fees ? Thank you for your time
Amazon should be lowering fees - instead they are adding inbound placement fees and low inventory fees and PPC costs are up 25%!
Perfect time for an innovator to come in and brake in. Do what they used to.
It's already kind of happening
@@mywifequitherjobyou mean another platform like amazon?
Finally someone speaking sense.
This BS is how Amazon’s going to die; A new door for new competitions.
They aren't going to die. They are doing business with Chinese sellers that have much lower overhead.
Chinese sellers manipulating the system shipping directly from China should not exempt from import taxes / tariffs.
Trump did just that. Biden took it away. Hmm..
Thanks for sharing all this info... Amazon FBA is not as great as they say and you can get banned super easily too form this platform as a seller.
Great video, but I do feel there is still huge opportunity with Amazon as it is the largest online sales platform by far. Most people can fairly easily make 50-100k if they have the desire and willingness to learn.
Exactly.....there is still money to be made of you are willing to learn and stick it out.
Exactly. I know ppl who are making thousand evry month. Just learn the sourcing skills .
Yes, it is easy to achieve $50K to $100K revenue BUT that is NOT the bottom line. Topline is for Vanity, Bottomline is for Sanity!
@@madiha7880 Nice, what are they selling
I agree with what you say, I will be starting in about 3 weeks.
Blue ocean strategy.
What about FBM?
The new fee structure by Amazon certainly underscores the importance of robust cost management for sellers. To stay competitive and profitable, consider diversifying sales channels and optimizing operational efficiencies. 🚀
Bot talking
@@phillipperkins5476 haha cheers man!
What about those who invest in the bulk buyers selling everyday household products?
Sorry. I don't understand the question
I can't afford campaign fees anymore
We have been on Amazon since 2014. We manufacture all of our own products in our factory in the USA. We are actively moving off of Amazon onto our own ecommerce platforms.
Between the fees, ad spend, massive knock off competition etc etc we are pretty much over it.
Still buy on Amazon. But have no interest in selling on the platform anymore.
I've been on Amazon since 2014 as well!
@@mywifequitherjob where are you focusing your efforts? Your own e-commerce site and/or other channels?
@@markwrichards I've been dtc from the beginning. Amazon is just cash flow for me and a small percentage of my business
what kind of products do you sell?
Hi everyone am from the Gambia am interested in buying use Tries if it's available
I quit amazon a few years ago. I sell on my own Web site.
I'm currently wanting to do the same thing but it very difficult.
@@rledellscottie187 For me I started using RUclips as my primary customer service platform. Making tutorial video teaching people how to best use the fishing tackle I make. Once I had an audience here on RUclips, most of my sales can from RUclips subscribers, therefore I could send the to my own Web site and cut Amazon out of the picture.
😊😊😊 this person still sells on Amazon so take the message like a grain of salt
Yeah, but read the news.. Thrasio, bankrupt, Perch, firesale to another company. These FBA aggregators are all going under as well. The pain is real
🔝
They eat all bestsellers with amazon brands
Amazon is the first platform I won't recommend now
20 bucks an hour at mcdonalds is looking good
Ha!
Why would you want to peddle garbage?
Hi am interested in used car tyres
Sorry this is the wrong place for that