It will almost be the end of the year for 2019 and I am seeing that my Amazon FBA hustle is a decent revenue stream. I was kind of skeptic because I didn’t want to move away from affiliate marketing but eCommerce is rising so I need to be part of it somehow.
So I just did my full analysis on my Amazon FBA business and while I didn’t go as hard as I wanted I did decently. At the beginning of the year, I went hard because it was something new, I was excited, and I wanted to learn to see if this was a fad.
Turn out making my first $4,000 dollars in 4 months was doable. Currently, with Amazon, I am doing online arbitrage. Online arbitrage is where I buy products for cheap and then sell it on Amazon at a higher price tag. I think it is the easiest way to get into the reselling space. I currently average an ROI of 33%.
The biggest costs are the products but also amazon fees are hella high. As of right now, I have paid Amazon $7,326.03 in fees. This does not include the cost of the products just yet, but I want to point out that that is a lot of fees. When I was experimenting on eBay it was just $800 in fees from January to June. So there is a huge difference, but there is also a difference on how fast the inventory moves on Amazon vs eBay.
Amazon for me is the winner when it comes to reselling because the volume on there is huge. If I can compare it to my media to buy traffic, I probably might have spent more on ads for the year to make just 10% on a Shopify store. You are paying for those users that are already in a buy mode rather than buying a click and turning them into a buyer.
Why I think Amazon FBA will continue to grow…
It is one of the easiest ways to make cash with just a very small initial investment. Third-party sellers are growing at a steady rate. There are a lot of small business owners that surpass $1,000,000 in sales.
Now, as any new experiment, there are people that will test it and then leave. This means that there are users that are signing up and testing out the Amazon FBA business model and then quit. The percent of users that stay on as a full-time third party seller is less than 3% I believe, I can’t find the source currently on it.
Yes, there are changes that are happening to Amazon for third party sellers, but it is a love-hate relationship. There are also some people that are having issues with Amazon when they reach a certain volume too, but adapting to the business that you cant control is what you can only do.
Especially with all these gurus showing how you can make money from Amazon and pushing their course. It definitely is possible, but consistency is the most important part of any business.
So far my journey has been positive, I only did a low 5 figures on Amazon and the reason is that I slowed down when it came to my affiliate campaigns. I tend to continue on my campaigns but will have to extend a system to help with my Amazon side project.
Will I continue into 2020, most likely. I want to have several projects that help me grow and not be dependant on just one source – Google Ads, Facebook Ads, Amazon FBA, Info, etc. I will have to be better at creating a flow and a team to help create systematics in my current business but Amazon FBA will definitely be still one of the.