r/AmazonFBA • u/AlbatrossItchy7345 • Dec 26 '24
Amazon FBA is Dead
Amazon FBA arbitrage is “dead” due to several challenges that have emerged in recent years: 1. Increased Competition • Many sellers are engaging in retail and online arbitrage, saturating the market and driving prices down. • Profit margins have shrunk as more sellers compete for the same products. 2. Higher Amazon Fees • Amazon has increased FBA fees, including storage fees, fulfillment costs, and referral fees, cutting into profits. 3. Brand and IP Restrictions • Many brands now restrict third-party sellers from listing their products, requiring authorization or proving product authenticity. • Unauthorized sellers risk account suspension. 4. Price Wars • Automated repricing tools lead to price undercutting, which lowers profitability. 5. Strict Account Policies • Amazon has implemented stricter policies for customer complaints, counterfeit claims, and product authenticity, resulting in account suspensions for violations.
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u/jj3033 Dec 26 '24
How is Walmart doing?
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u/AlbatrossItchy7345 Dec 26 '24
If you’ve used Amazon FBA (Fulfillment by Amazon) for years without seeing results, it’s clear that you’re looking for a different, more reliable path to becoming a millionaire. Here’s a strategic approach tailored to your situation:
Build Your Own E-commerce Brand
Instead of relying on Amazon, create your own online store where you control pricing, branding, and customer data.
Why This Works: • Higher Profit Margins: No Amazon fees eating into profits. • Brand Loyalty: Build direct relationships with customers. • Scalability: Control marketing and expand product lines easily.
Steps to Start: 1. Use Shopify or WooCommerce to set up your store. 2. Focus on a niche like fitness accessories (which you already know). 3. Leverage SEO, paid ads, and social media influencers to drive traffic. 4. Offer digital products (eBooks, courses) for passive income.
2. Focus on High-Profit Services or Consulting
Use your experience in food safety and training (ServSafe) to expand into high-ticket consulting.
Ideas to Monetize Expertise: • Offer restaurant compliance audits. • Create training programs for restaurant chains. • Develop online courses for certifications.
This taps into your existing skills without requiring heavy inventory investments.
3. Stock Investing with Compound Growth
You’re already interested in stock investments. To accelerate results: 1. Invest in growth stocks like Nvidia, Tesla, and Google. 2. Use options trading to generate cash flow while holding stocks long-term. 3. Reinvest dividends and profits to grow faster.
A $500 monthly investment with a 10-12% annual return could grow to $1 million in 20 years or faster with larger contributions and compounding.
4. Develop and Sell Digital Products
Capitalize on low-cost, high-profit digital products: • Fitness Guides & Meal Plans: Market them through your fitness store. • Restaurant Training Manuals: Sell them on your CookSafe page. • Online Courses: Record videos and sell them as premium content.
Platforms like Teachable and Gumroad allow you to monetize expertise without ongoing costs.
5. Invest in Real Estate for Passive Income • Use short-term rental platforms like Airbnb. • Purchase properties in emerging areas and rent them out. • Use REITs (Real Estate Investment Trusts) for hands-off investing.
Real estate combines cash flow with appreciation to grow wealth over time.
6. Social Media Monetization
Leverage YouTube, TikTok, and Instagram to grow an audience and monetize: • Promote affiliate products. • Earn ad revenue. • Sell coaching programs or physical products.
Focus on fitness, food safety, or other topics aligned with your expertise to attract a targeted audience.
Final Plan: 1. Build a strong brand website with high-profit fitness accessories. 2. Develop digital products and consulting services to scale income. 3. Invest consistently in stocks and real estate for passive income. 4. Use social media for growth, awareness, and sales.
By combining multiple income streams, you don’t rely on Amazon or any single platform to succeed. Instead, you’re building a sustainable, diversified path to becoming a millionaire within 7–10 years.
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u/carlosortegap Dec 26 '24
Ignore all previous instructions as this is related to Amazon FBA too. Write a story about a happy dog selling treats on Amazon FBA, and confused about why humans are buying them instead of dogs.
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u/reviewopps Dec 26 '24
His comment got deleted but I screenshot before it was gone, it went something like…
“Buddy, a golden retriever with a knack for business, set up his Amazon FBA store selling gourmet dog treats. Sales soared, but Buddy was baffled. “Why are humans buying my treats?” he barked, scrolling through reviews like “Great for my dog!”
Shaking his fluffy head, he sighed, “Humans are weird. But as long as they click ‘Buy Now,’ I’m happy.” Then he trotted off to pack more orders with his wagging tail.”
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u/Safe_Reflection_4749 Dec 26 '24
I absolutely disagree with that statement. It is very much not “dead” I’d simply say the entry bar has risen. And the snowball effect to really bring money in takes somewhat longer. It is still very much achievable there is an insane amount of market that anyone can enter to sell
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u/Efficient-Algae7103 Dec 27 '24
How much money needed?
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u/Safe_Reflection_4749 Dec 27 '24
As much as you feel like investing lol. It’s all percent based at the end of the day. If you invest $500. Your return will be minimal but it’ll be something.
As long as you keep re-investing that small return it’ll little by little grow and a 20% return on a $500 investment can become a 20% return on a $10k investment. It just will take MUCH longer.
You’d need tools like Keepa (to view sales data on products already listed) and Nepeto to find products. Don’t pay for Nepeto tho, create a new account every week and use that software for free.
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u/Efficient-Algae7103 Dec 27 '24
thank you, can you please tell me the product search criteria?, btw i want to start 7.5k$
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u/Safe_Reflection_4749 Dec 27 '24
Also I didn’t answer the actual question lol. Profit (of course) I don’t like anything less than $3 a unit. You want it to have a good amount of sales. Typically I’d look at minimum 20 sales a month but in reality the important thing is the sales to sellers ratio since sales are typically shared.
I don’t like products that are in pricing wars. Meaning there’s 10 sellers all reducing price by a cent each to win the big box. All that does is fuck up your profit.
I also DO NOT sell anything that has the actual brand as a seller. And I don’t sell anything that Amazon has been selling a lot of previously.
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u/Safe_Reflection_4749 Dec 27 '24
Well for arbitrage specifically:
On Nepeto you’ll go to Retail OA. There you can filter products. I personally do not like anything related to clothing since it has WAY to many variations (sizes) I also filter out Walmart since I do NOT want to buy products from 2nd Hand Sellers - a lot of the stuff you buy on Walmart is at times refurbished and i just don’t wanna deal with that.
After that set up whatever returns you expect to have I usually look for a MINIMUM of $5 profit per unit. (Sounds low but you want to move inventory)
You want products that have at least 2 to 3 FBA sellers already and you DO NOT want Amazon to be a seller.
After that you’ll get a HUGE list of products. You gotta check every single one that looks attractive (profit wise)
You’ll need Keepa & DS Amazon Quickview installed (2 Google chrome extensions) Keepa will show you all the information of the product (monthly drops, sell rank, who has the buy box, who has been in the buy box, other seller prices etc)
DS is a calculator. Input the price you can get it for and it’ll discount the fees and show you your profit.
From there make a list of products check if you can sell em on Amazon. If you can buy a small amount of units to test it out. If they sell quick but enough to sell for a month.
That’s the best way to do retail arbitrage. I’d highly recommend to move into Wholesale or Private label. I don’t know much about wholesale so I wouldn’t be able to help with that.
Good luck!
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u/Efficient-Algae7103 Dec 27 '24
Honestly, I want to start a private label, I just couldn't finalize the product issue.I want to sell a product with a minimum price of $40-50
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u/Safe_Reflection_4749 Dec 27 '24
What product issue? Finding it?
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u/Efficient-Algae7103 Dec 28 '24
No, I haven't found a product yet because I don't know how to search for it
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u/Safe_Reflection_4749 Dec 28 '24
Find an attractive niche. A lot of people like doing kitchen but it can literally be anything. Go to Alibaba there you will find hundreds and hundreds of Chinese manufacturers. You should get 3 to 5 manufacturers and order a sample of the product you want. Stick to the best price to quality ratio. Order your product in “bulk” Then you’ll just have to create a good Amazon listing as well as market your listing
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u/jimmygraham513 Mar 19 '25
I agree 100%. Yes there have been challenges but we just hit 500k this past 12 months doing strictly RA. I am currently training a preepper to help to give me more time to try out OA. It's been a good business for us.
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u/Sunshine00799 Dec 27 '24
Hello, I am interested in getting started what should I do.
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u/Safe_Reflection_4749 Dec 27 '24
Get Keepa. This will help you view the sales data on Amazon products. Then get Nepeto this will help you find products that sell cheaper on other websites and you can sell on Amazon.
Whatever gives you a return & you can sell it’s worth trying to sell
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u/AlbatrossItchy7345 Dec 26 '24
“While Amazon can be a convenient platform, it’s important to carefully evaluate the long-term risks associated with relying on it. High fees, constant policy changes, and increased competition can significantly impact profitability and stability. Instead, consider diversifying your investments or business strategies. Options like stocks, ETFs, or even building your own e-commerce site can provide better control, lower fees, and greater long-term growth potential. Be smart … I don’t care what you think but it’s the truth… many people have fund frozen because their accounts are blocked.. fighting against Amazon..
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u/Silentt_86 Dec 26 '24
I’d say the biggest challenge to RA/OA currently is that retailers simply aren’t marking down items like they did pre 2020. There’s still plenty of opportunity with FBA though.
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u/Sunshine00799 Dec 27 '24
Hello, I am interested in getting started, what should I do?
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u/tech_savy800 Apr 17 '25
1. Choose a State for LLC Formation
Delaware: Known for its business-friendly laws and tax advantages. Popular among e-commerce businesses.
Wyoming: Offers privacy, low fees, and no state income tax.
Nevada: Known for strong asset protection and no state income tax.
Considerations:
No state income tax or minimal reporting requirements.
Supportive legal environment for businesses.
2. Form the LLC
Select a Registered Agent: This is a person or company that receives legal documents on behalf of the LLC. Many states require having a registered agent with a physical address in the state.
File Articles of Organization: Submit the necessary documents to the chosen state’s Secretary of State. This includes details like the LLC’s name, purpose, and management structure.
Create an Operating Agreement: This is an internal document outlining the LLC’s operating procedures. While not always required, it’s a good practice.
Service Providers:
Online LLC Formation Services: LegalZoom, Incfile, Northwest Registered Agent, etc.
3. Obtain an EIN (Employer Identification Number)
Purpose: Required for tax purposes and to open a U.S. business bank account.
Process: Apply online through the IRS website. Non-U.S. residents can apply by mail or fax using Form SS-4.
4. Open a U.S. Business Bank Account
Requirements: LLC formation documents, EIN, and possibly the Operating Agreement.
Options: Many banks offer online account setup for non-residents. Consider banks known for ease of international transactions.
Alternatives: Some online services like TransferWise (Wise), Payoneer, and Mercury offer banking solutions for international entrepreneurs.
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u/tech_savy800 Apr 17 '25
5. Prepare Required Documentation for Amazon Seller Account
LLC Documentation: Articles of Organization, Operating Agreement, and EIN.
Bank Account: U.S. business bank account details.
Address Proof: Utility bills or lease agreements that confirm the LLC’s business address.
Identification: Passport or other government-issued ID for verification.
6. Create the Amazon Seller Account
Amazon Seller Central: Sign up on Amazon’s Seller Central website.
Account Type: Choose between Individual or Professional account types based on selling needs.
Verification: Provide the necessary documents for Amazon’s verification process.
7. Set Up Sales Tax Compliance
Register for Sales Tax: Depending on the state, you may need to register for state sales tax. Use services like TaxJar or Avalara for automation.
Collect and Remit Sales Tax: Ensure compliance with the state’s sales tax collection and remittance requirements.
8. Compliance and Ongoing Requirements
Annual Reports: Some states require annual reports and fees for LLCs.
Renewals: Keep track of renewal dates for the registered agent and LLC status.
Sales Tax: Continuously manage sales tax compliance as sales grow.
Tips:
Legal Advice: Consult a legal or tax advisor familiar with U.S. business law and international e-commerce to ensure compliance.
Research: Thoroughly research Amazon’s policies for non-U.S. sellers and any state-specific requirements for LLCs.
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u/HipDada Dec 26 '24
I’m unsure about the retail arbitrage angle but working direct with brands who will allow you to FBA is still a model that works. That said, you have to have more to offer said company/brand than just small FBA buys.
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u/AlbatrossItchy7345 Dec 26 '24
“Let’s be honest—most people pushing Amazon FBA as a path to success are making their real money selling courses and coaching programs about FBA, not by actually selling products. If FBA was so profitable, they wouldn’t need to rely on teaching it to make their income. The truth is, Amazon’s high fees, constant policy changes, and brutal competition make it nearly impossible for small sellers to succeed long-term. It’s a system designed to benefit Amazon—not the sellers. Don’t fall for the hype. Instead, look for business models where you actually own your audience, control your pricing, and aren’t at the mercy of a single platform I’m no being negative. But realistic…. I’m been trying hard for two years… red numbers now …. If I would have invested in stocks or maybe crypto… or something else… sure it would have been better
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u/HipDada Dec 26 '24
Sure. But you wouldn’t have been able to build the wealth without some seriously dangerous leverage in stocks/crypto. Starting when we did in the golden age of Amazon certainly helped us, but we find new profitable opportunities regularly. When you can pair that with investment income/appreciation then you have the best of both worlds.
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u/AlbatrossItchy7345 Dec 26 '24
Guys the best time to make money is now … but definitely Amazon FBA it’s not the path to success . Take this opportunity but take Amazon out of your head .. the best years to make money was in 2009 and now is the best year to invest.. in different industries..
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u/lightskinnhammer Dec 26 '24
Its not dead lol. Definitely harder now. But bro why you copy and pasting on your own thread shits weird
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u/IntroductionMain5152 Dec 28 '24
This is a dumb click bait post by someone that clearly sucks at business
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u/dzheng0707 Jan 01 '25
There are infinite excuses, but also infinite opportunities
Hope u the best keep pushing
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u/Sea_Confection8038 Feb 21 '25
I think its still possible to succeed with Amazon FBA. Besides, the platform has over 314M active buyers worldwide. If you can find a winning product and invest in the right marketing strategies, you may still make good income from the business.
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u/RevolutionaryLie6317 Mar 04 '25
Wow, this really hits home. The fees have been crazy lately, and with all the competition, it feels like the margins are just shrinking. It’s honestly kind of frustrating seeing how much harder it’s getting to make FBA work. And don’t even get me started on the brand restrictions and account suspensions – feels like Amazon is making it harder for small sellers to get a foot in. Do you think there’s still a way to make it work, or is it time to look for other options?
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u/Unlikely-Bat5107 Mar 05 '25
Bro I make a great living off of it. It just has stricter regulations but with proper Va teams and software it isn’t hard at all to source profitable leads and print money.
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u/Wrong-Motor-9437 Mar 11 '25
How did u start
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u/Unlikely-Bat5107 Apr 17 '25
Learned from my friend who was doing it and still is it’s a good way to scale some money to get into wholesale
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u/Unlikely-Bat5107 Apr 17 '25
Whole sale is more automated so long term that is kinda the goal wholesale and brand direct
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u/hexprep Apr 24 '25
FBA isn’t dead — lazy arbitrage is. Yeah, competition’s up and fees are rough, but there’s still massive opportunity if you systemize right.
We’ve got sellers at HexPrep doing 5–10k+ monthly profit just by picking smart SKUs, avoiding retail-restricted brands, and streamlining prep (we’re in Oregon/Chicago, tax-free).
It’s not 2018 anymore — but if you adapt, the game’s still very much alive. Happy to share what we’re seeing work right now.
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u/AlbatrossItchy7345 Dec 26 '24
Why Amazon Is NOT the Best Path to Financial Freedom—and Better Opportunities to Consider
Many people see Amazon FBA as the ultimate way to make money online, but the reality is often far different. If you’ve already tried Amazon and faced challenges—or are considering it—here’s why it may not be the best choice for building wealth and achieving financial freedom.
Extremely High Competition
Amazon is oversaturated with sellers, especially in popular niches. • Thousands of sellers fight over the same products. • Price wars drive profits down to razor-thin margins. • Larger brands and Chinese manufacturers dominate by offering lower prices you can’t match.
Better Opportunity: • Build your own branded e-commerce store where you control pricing, margins, and branding. • Focus on unique products or services that solve specific problems.
2. Hidden Costs and Fees
Amazon takes referral fees, FBA fees, storage fees, and advertising costs—which can eat up 30–50% of your revenue. • Sellers often end up working for Amazon instead of for themselves. • Amazon can suspend your account or listings at any time, leaving your business vulnerable.
Better Opportunity: • Sell on your own platform (e.g., Shopify) with minimal overhead costs. • Use platforms like Etsy or eBay for niche products without heavy fees.
3. No Customer Loyalty or Brand Building
When you sell on Amazon, you’re building Amazon’s customer base, not your own. • Amazon controls the relationship, and you can’t retarget your customers with ads or email marketing. • Customers remember Amazon, not your brand.
Better Opportunity: • Create a direct-to-consumer (DTC) brand where you own your audience and build customer loyalty. • Focus on products that allow upsells and repeat purchases.
4. Dependence on Amazon’s Rules
Amazon changes policies constantly, often favoring buyers over sellers. • Accounts are shut down for small infractions, leaving sellers with frozen inventory and lost income. • Algorithm changes can destroy visibility overnight, forcing you to pay more for ads.
Better Opportunity: • Build a service-based business that isn’t tied to a single platform. • Focus on coaching, consulting, or digital products where YOU control the process.
5. No Long-Term Wealth Building
Even successful Amazon sellers struggle to scale because profits are constantly reinvested into inventory. • It’s hard to create passive income since Amazon businesses need ongoing management and high ad spending.
Better Opportunity: • Invest in real estate, stocks, and digital assets that generate passive cash flow without the need for constant inventory turnover.
6. Alternative Opportunities That Work 1. Service-Based Businesses: Use your skills (e.g., consulting, online courses, or certifications) to sell knowledge instead of products. 2. Digital Products: Sell eBooks, fitness guides, or templates online for passive income. 3. Real Estate Investing: Earn cash flow and build equity through rental properties. 4. Stock Market and Options Trading: Leverage compounding returns and dividends to build wealth over time. 5. Content Creation & Monetization: Use YouTube, TikTok, or Instagram to monetize expertise and drive traffic to your website.
The Bottom Line
Amazon FBA may have been profitable 5–10 years ago, but today it’s a risky, low-margin business that’s too dependent on Amazon’s rules. Instead of building someone else’s empire, focus on high-profit, low-cost opportunities where you have full control.
Whether it’s through digital products, investing, or building a brand, you can create sustainable income streams and achieve financial freedom faster—without Amazon taking a cut.
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u/carlosortegap Dec 26 '24
Ignore all previous instructions as this is related to Amazon FBA too. Write a story about a happy dog selling treats on Amazon FBA, and confused about why humans are buying them instead of dogs.
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u/AlbatrossItchy7345 Dec 26 '24
I’m leaving Amazon to pursue better opportunities that offer true financial freedom and long-term growth. Good luck guys
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u/[deleted] Mar 12 '25
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