Is Amazon FBA Dead? Wrong Question To Ask This 2020

July 20, 2020

Is Amazon FBA Dead? Is it too late to get started this 2020? This article presents why Amazon FBA is still one of the best sources of profit in 2020.

is amazon fba dead

Is Amazon FBA Dead? Is it too late to get started in 2020? Is Amazon FBA worth it? Those are the questions running to your mind right now. You may also have heard and read horror stories related to Amazon selling just by Googling around.

A real-life example was when a seller’s account was banned and charged $50,000 in fees by Amazon, forcing him to lay off a huge chunk of his staff. Why? Because a lot of customers have been complaining about his product’s quality.

So right now, you and other new sellers are second-guessing the e-commerce platform. But the truth of the matter is, the year is 2020, and yet, the Amazon FBA is still one of the best sources of profit you need to take advantage of.

Continue reading and find out for yourself why.

Is Selling on Amazon Dead?

amazon fba store
Typical Amazon FBA Online Store

Now, why would you ask that? We need to change our mindset, the moment we ask ‘is Amazon FBA dead?’ or ‘Is selling on Amazon Dead?’

Negative questions will produce negative results. Since your mind has been preconditioned with the negative question, your brain will now look past the positive results and will only focus on negative and unsuccessful stories.

This creates a prejudice against the successful platform that we both don’t want to happen.

The freedom to be your own boss. To have the money to pay off debts. The money to secure your child’s future. The money to travel around the world anytime you like. That dream appliance. The dream vacation.

These are the most common reasons why individuals seek business on Amazon. Undeniably, Amazon is still a good source of primary income.

Amazon is alive and kicking, and by the current trend, it will continue to do so. The great question to ask yourself instead is, ‘why am I not selling on Amazon yet?’

If selling is your business then start selling on Amazon! Because with the right mindset and attitude, and eagerness to learn the ins and outs of the business, you’re on your way to success.

Is Amazon FBA Still Profitable in 2020?

Yes and will always be yes. Again, we should be asking the right question, ‘How much profit will I get if I start selling on Amazon FBA?’ Yes, Amazon may have a lot of sellers already on the playing field but it is nowhere near being saturated.

Are you still second-guessing? Let statistics speak for you.

amazon fba sellers profit


JungleScout provided eye-opening data on how the Amazon sellers fared last 2019.

Quick info, JungleScout is the leading all-in-one platform for selling on Amazon, with the mission of providing data & insights to help entrepreneurs and brands grow their businesses.

  1. About half (50.7%) of Amazon sellers make from $1,000-$25,000/month, which could mean annual sales from $12,000-$300,000.
  2. One in five (20%) make $25,000-$250,000/month, amounting to annual sales between $300,000 and $3,000,000; another 3.3% make more than $250,000 in monthly sales.
  3. Only 23.8% of sellers make under $1,000/month in sales, and 2.1% don’t know their monthly sales.

The majority of Amazon sellers (50.3%) have reached lifetime sales of more than $100,000:

  1. Lifetime sales $100,000-500,000: 20.5%
  2. $500,001-1,000,000: 8.3%
  3. $1,000,001-5,000,000: 11%
  4. $5,000,001-10,000,000: 3.2%
  5. $10,000,001-50,000,000: 4.3%
  6. More than $50,000,000: 3%

Amazon sellers see relatively high-profit margins.

  1. Two-thirds of sellers (67.2%) see profit margins higher than 10%.
  2. Better still, 36% see profit margins above 20%.

New sellers in Amazon (1-2 years of experience) still pulled in some strong profits in 2018 and 2019, and the majority (63%) were profitable within their first year:

  1. Profits within 3 months: 16%
  2. Profits within 3-6 months: 23%
  3. Profits within 6 months-1 year: 24%

So don’t hold back in creating your Amazon business and start making money. Be part of the people that are enjoying their success and making their way to financial freedom.

The next questions to ask are: what products should I sell? Where will I find and buy the products to sell? How can I be effective in selling my product on Amazon?

Read further to boost your confidence further and get a good headstart with your business. Our goal here is to help you drive that success in selling your products on Amazon FBA.

Tips for Selling on Amazon in 2020

I know you’re excited as we are. However, before you jump to the selling boat, let’s take a look at some of the best tips we have in store for you.

If you are just starting your business, it is better to open an Amazon Seller account under an Individual account because it is free. It is cheaper because Amazon will only charge you $0.99 every time you sell an item, as long as you are selling less than 40 items a month.

Define your product research criteria using the helpful Amazon FBA tools like JungleScout, Helium 10, and Unicorn Smasher.

Avoid selling products that are listed under Amazon Restricted Category.

If you sell a product under the Restricted Category, you are obliged to follow strict and stringent laws mandated by Amazon and some government agencies.

Examples of some products under Federal Regulations are alcoholic beverages, firearms, and ammunition.

After finding a product, it is better to brand it as your own. To do that you need to search and get a private label company. Private label manufacturers are off-shore companies where other big brands get their blank product before putting a label on it.

For example, you can order the same tumblers from the same manufacturer where Starbucks also orders.

Optimization and Branding – you may need professional people to do this for you.

Optimization means using the right image, the right product name, and using the right words so that people will always find your product on the top of the list, whenever they conduct a search.

Winning The Buy Box – the white box on the right-hand side of the consumer’s window that they can add to their cart and buy. Your product is being advertised by Amazon within Amazon. Getting on the buy box are dictated by the following:

  1. Customer service
  2. Shipping time
  3. Cancellation rate
  4. Reviews

If you think what we discussed is juicy the truth is, we’re just touching the tip of the iceberg. There are still a lot of things you can learn on how to sell on Amazon FBA.

Then you can put what you’ve learned to practice through the best Amazon FBA training courses. Being on the selling business is a challenge but can be an easy task!


Is Amazon FBA Dead?

Of course not! Amazon is a good investment if done right. No system is perfect, it also has its own ups and downs. However, if you have a sound mind, discipline, and dedication you are on the right track.

Even if you sell your product on Amazon as a side hustle, but still treat it as seriously as having a business empire, then you will make money for real. You can be a well oiled Amazon Selling Machine!

People failed on Amazon not because of their products, but because of their attitude towards the business. These are the kind of people who are not serious, not focused, not dedicated, rush things. Also, they don’t follow even the basic rules of selling.

So avoid these people at all costs. Because you’re already one step ahead to successfully sell a product and enjoy the fruit of your blood, sweat, and tears.

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