Is it profitable to sell on Amazon
Is Amazon FBA worth it? The answer to whether FBA is still working
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Is Amazon FBA worth it? Fufillment by Amazon (FBA) is a service that allows traders and individuals to access Sell Amazon products.
You can outsource the entire logistics such as storage, packaging, shipping, returns and customer service to Amazon.
In the past few years, many individuals and companies have started selling products through Amazon. Almost everyone was able to benefit from Amazon's growth. In 2013, Amazon had total net sales of $ 74.46 million. In 2019, sales were a whopping $ 280.52 million.
In fact, Amazon has managed to increase its sales by that 3.76 times to increase.
This massive growth led to 2,734,713 active sellers and a total of 8,156,753 sellers (March 2020).
And that is exactly the problem for many individuals and companies in this country. Massive competition.
One might wonder if Amazon FBA is still worth it because of the number of sellers.
We will try to explain the answer to this question in this article.
These are the contents:
- Amazing stats about Amazon in 2019
- Is Amazon FBA worth it?
- If it's worth it, why?
Amazing stats about Amazon from 2019
To get started easily, here is an infographic on the top Amazon stats from 2019.
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Is Amazon FBA still worth it?
Many e-commerce professionals or individuals considering starting an online business are wondering whether Amazon FBA is still worth it.
When Amazon made the FBA service available, many e-commerce entrepreneurs, ordinary retailers, or individuals started selling products through the platform.
For individuals, the opportunity to outsource the logistics and shipping to Amazon and thus sell products via the marketplace was awesome.
Selling on Amazon had many advantages. On the one hand, the necessary visitors were already available on the platform. On the other hand, customers trust Amazon.
FBA enabled many individuals to become self-employed and e-commerce entrepreneurs were also able to significantly increase their sales.
Fulfillment by Amazon became popular in Germany and other countries. But how is it currently?
Has it become more difficult to get customers?
Has the cost of online advertising on Amazon increased?
With Amazon Prime, customers no longer have to pay for shipping. However, this also means a lower profit margin for the trader.
So is Amazon FBA still worth it?
Or are the profit margins already so low that it no longer makes sense to sell your products on Amazon?
To answer this question, let's take a look at the situation in the past:
Researching products and shopping was definitely easier in the past than it is today. This has the following reasons, among others:
- Lower number of Amazon FBA sellers
- Less number of products
- Worse products with bad listings
- Less work for manufacturers from China
- Inferior quality articles
- Shipping not free
The situation on Amazon is omnipresent:
- Increasing number of Amazon FBA sellers, which leads to increasing competition
- Increasing number of products, which also leads to more competition
- Good products with good listings
- Manufacturers from China have more work and are not dependent on individual dealers
- Higher quality products are offered on Amazon
- Shipping is free in most cases, as Amazon Prime
Given these circumstances, the current situation seems a lot more challenging than it was in the past.
So is Amazon FBA still worth it, or should you invest your time in your own online shop or even in other online marketplaces?
Is it harder to research products?
The research for products, for sale on Amazon, has now become more complicated. Many niches are already filled with good salespeople, but that doesn't mean it's impossible to find good products.
Amazon is like any other market. The competition is increasing, and more providers are joining them every day.
However, you should never think that something has an end. In most cases, people who think this way will fail.
Selling on Amazon has just gotten more complicated, which doesn't mean it's impossible to build a successful business.
There are great tools out there these days that can double your chances of success.
For example if you Helium 10 you can find great niche products amazingly easy.
It's by far the best Amazon tool out there. You should yourself this article Read through by explaining 2 strategies for product research with Helium 10.
You can also here sign up for a free Helium 10 account. Or you use this one Helium 10 Coupon Codeto receive a 50% discount and unlimited use of all functions.
There is no getting around using Helium 10 for product research.
Anyone who can bring a better product to market than the competition will be successful in the longer term.
These statistics prove that:
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Amazon sellers take around six to 12 months to build a profitable Amazon business. It's not a long time from a business perspective.
If you are using Helium 10, you can also do the right marketing activities to help your business grow faster.
If you want to learn more about it, check out our article on theAmazon listing optimization at.
Sourcing and finding a manufacturer
When it comes to sourcing your products, it's just like researching products.
As a seller, you have to do a lot more and better research and improve your negotiating skills.
If you do things right, you will definitely be able to find a manufacturer for your products.
In the meantime there is even a tool from Jungle Scout with which you can research all available manufacturers in the world.
You can do it yourselfhere look at.
You can research information such as other customers of a supplier, average costs and much more.
You can also read more aboutJungle Scout Experienced.
You can definitely still build a profitable Amazon FBA business. As always, the decisive factor is focus and perseverance.
You can't build a profitable online business in a day or a week. If you stick with it, however, success will come over time.
If you want to be on the safe side, then start selling books on Amazon.
Product research and the search for the right supplier have become more difficult, but definitely Amazon FBA is still worth it.
In addition, there are always better ones for retailers Amazon Seller Toolswith which the work itself becomes much easier.
Such a tool is a must-have for every Amazon retailer. Make sure to check out our article aboutHelium 10at.
Finally, a few useful tips for selling on Amazon:
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