Amazon FBA Sellers Beware! The Model is Collapsing…Here’s Why

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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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Опубликовано:

19 июн 2024

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Комментарии : 96

@mywifequitherjob Месяц назад

@ssamuel408 Месяц назад

Thank you for mentioning the new Amazon fees. Lots of the Amazon RU-vidrs 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.

@ingaspring7082 Месяц назад

Those promoters are charging insane 4 - 9K for their service 😮

@NJPalla Месяц назад

This guy is the best I’ve seen. Informative & keeps it 💯. Im a huge fan . 😎

@baler1992 Месяц назад

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.

@LoneBagels Месяц назад

Exactly!

@robinotten2965 Месяц назад

How much volume ?

@evilqueen13 Месяц назад

@@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?

@rachwanharb3125 Месяц назад

Same story here!

@mbick510 Месяц назад

I'm finding this out the hard way!😫

@BirdsPawsandMore Месяц назад

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.

@MrYokahu Месяц назад

Eye opener.. Thank you so much for this information. It bombs me out...

@victoriancu7358 Месяц назад

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.

@hamburgengineer Месяц назад

What do you think about Amazon OA. Product is good, leaves 80 gross margin, but there are multiple sellers with low reviews.

@1K_Sunny-dn9jq 16 дней назад

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.

@tf2godbot266 Месяц назад

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.

@sydneybencriscutto5086 Месяц назад

wow.. Just wow. You absolutely nailed it.

@MarcoDan-uj4mr Месяц назад

Many thanks for sharing the info. Hope all amz sellers watch this.

@lesreid2704 Месяц назад

Thank you. Your videos are always the most clear, well thought out, well presented and concise.

@rana_ny 15 дней назад

you are right bro .. thanks

@MinimalistMuse Месяц назад

Thanks for the information. Could you please make more videos about creating brand outside of amazon and what are the options. Thanks!

@mywifequitherjob Месяц назад

I've got a bunch already. Search the archives

@evilqueen13 Месяц назад

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.

@judeogbonna9884 28 дней назад

Interesting, Thanks for sharing your experience. What is your game plane now

@lucasbittencourt2355 19 дней назад

Yeah, but who pays the price is the customer, as a seller you just slap those fees on your product price formation.

@CarnivoreSteve-pb2qv Месяц назад

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.

@phillipperkins5476 Месяц назад

Exactly.....there is still money to be made of you are willing to learn and stick it out.

@madiha7880 Месяц назад

Exactly. I know ppl who are making thousand evry month. Just learn the sourcing skills .

@Creative.Parrot Месяц назад

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!

@judeogbonna9884 28 дней назад

@@madiha7880 Nice, what are they selling

@Beyloveseverybody 20 дней назад

I agree with what you say, I will be starting in about 3 weeks.

@jeffsmith8004 Месяц назад

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.

@SuperMillie1969 Месяц назад

Thank you for this helpful video ❤️😇🙏🏻🇺🇸🇵🇭

@Tawny593 Месяц назад

I just lost money becoming an FBA seller. I made money being a regular seller on Amazon without FBA.

@RayDavidCEO Месяц назад

Does this involve Wholesale model? Bc so far it's been working very well for me.

@sugieskincarechannel Месяц назад

What fees have increased if you are selling and shipping from you house on AMZ?

@Sett4Paws Месяц назад

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.

@bourgeoisoriginal Месяц назад

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.

@deborahhobbins7131 Месяц назад

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

@PedroPerez-fd1oe Месяц назад

Perfect time for an innovator to come in and brake in. Do what they used to.

@mywifequitherjob Месяц назад

It's already kind of happening

@cledwynfernandes9493 26 дней назад

@@mywifequitherjobyou mean another platform like amazon?

@akmalmaksumov9738 Месяц назад

Accounting101: Revenue should not be adjusted for returns, but the report at the end of the period should.

@zyongslife Месяц назад

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?

@celest8boom Месяц назад

Shopify it is not good for brand e-commerce ?

@jorgesalazar7740 11 дней назад

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.

@briangoolab8433 14 дней назад

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

@markwrichards Месяц назад

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.

@mywifequitherjob Месяц назад

I've been on Amazon since 2014 as well!

@markwrichards Месяц назад

@@mywifequitherjob where are you focusing your efforts? Your own e-commerce site and/or other channels?

@mywifequitherjob Месяц назад

@@markwrichards I've been dtc from the beginning. Amazon is just cash flow for me and a small percentage of my business

@usmaniqbal9280 Месяц назад

what kind of products do you sell?

@modousonko1081 Месяц назад

Hi everyone am from the Gambia am interested in buying use Tries if it's available

@MyAmazonGuy Месяц назад

Amazon should be lowering fees - instead they are adding inbound placement fees and low inventory fees and PPC costs are up 25%!

@Kayakingoff Месяц назад

Blue ocean strategy.

@james8899able Месяц назад

This BS is how Amazon’s going to die; A new door for new competitions.

@Ace1000ks19751982 Месяц назад

They aren't going to die. They are doing business with Chinese sellers that have much lower overhead.

@lowrider5717 Месяц назад

What about those who invest in the bulk buyers selling everyday household products?

@mywifequitherjob Месяц назад

Sorry. I don't understand the question

@eb1191 Месяц назад

Chinese sellers manipulating the system shipping directly from China should not exempt from import taxes / tariffs.

@aaronr5168 Месяц назад

Trump did just that. Biden took it away. Hmm..

@EcomCarl Месяц назад

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. 🚀

@phillipperkins5476 Месяц назад

Bot talking

@EcomCarl Месяц назад

@@phillipperkins5476 haha cheers man!

@user-ls8vb1hd3l Месяц назад

I can't afford campaign fees anymore

@BlackWarriorLures Месяц назад

I quit amazon a few years ago. I sell on my own Web site.

@rledellscottie187 Месяц назад

I'm currently wanting to do the same thing but it very difficult.

@BlackWarriorLures Месяц назад

@@rledellscottie187 For me I started using RU-vid 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 RU-vid, most of my sales can from RU-vid subscribers, therefore I could send the to my own Web site and cut Amazon out of the picture.