Have you heard about this so-called Amazon automation scam that’s luring in people with the promise of easy money and fat stacks, all while you sit back and do nothing?
Basically, these agencies online claim they can handle everything for you in exchange for a cut of your profits (and a big wad of cash upfront). But is it all just a load of bull, or is there some truth to their claims?
Let’s dive into the nitty-gritty and figure out if this Amazon automation thing is worth your time and money, or if it’s just a big ol’ scam.
What is Amazon Store Automation?
Amazon automation involves streamlining all the operations of your ecommerce store to minimize labor costs while maximizing the efficiency of the business. This approach frees up your time, allowing you to concentrate on other aspects of your business while Amazon automation professionals take care of the rest.
That said, Amazon store automation can mean a few different things. One aspect of Amazon automation is using technology or services to automate your Amazon business. For example, you could use automation tools to streamline some of your manual tasks, like managing your inventory or responding to customer messages.
Or, if you really want to go all out, you could hire a company to fully build and manage your Amazon store for you, allowing you to sit back and watch your profits roll in without lifting a finger.
1. Hire an Amazon Store Automation agency
In simple terms, Amazon automation experts provide full-service solutions to businesses that include all the necessary services from start to finish, ensuring that you achieve optimal profits.
Imagine opening a restaurant without having any knowledge of the restaurant business, legal obligations, staff management, and other crucial details.
Here’s a quick rundown of the essentials.
- Hire an agency that will create an Amazon store for you.
- Pay all the associated costs yourself.
- Once the store is up and running, the agency will take a percentage of your profit or turnover.
An Amazon automation guru will guide you through the entire process, from registering your business and acquiring the necessary permits, and licenses to finding the perfect location and designing your restaurant. They will help you set your pricing policy, find staff members, and sign contracts with security companies, among other services.
You fund all start-up expenses, including labor costs, and once your restaurant is up and running, your Amazon automation guru becomes your company manager, earning 20% of your profits.
You may wonder why your Amazon automation guru wouldn’t take out a loan and start their own business. The truth is, they want to eliminate the risks associated with starting a new business and are happy to receive a percentage of the profits from the businesses they help set up.
Now, this is where things get a little tricky. Since the agency deals with all the issues related to your Amazon store, it means that it’s not entirely yours. They have a say in everything that happens in the store, and you’ll have to abide by their rules.
If everything goes well, you won’t even notice the percentage you need to give away to the agency. But, what if the store doesn’t perform as expected? Well, you’ll simply lose a lot of money on your Amazon automation investment.
2. Set up Amazon Automation on your own
Amazon automation is best implemented by using software that reduces manual work and repetitive tasks. This helps you focus on growing your business.
The good news is that there are many solutions available from different developers. You can choose the tariffs that work best for you, and the best part is that no one has access to your profit or company management.
Whether you’re just starting out or you already have a successful Amazon store that needs scaling or optimization, automation can help. It’s the key to working smarter, not harder.
So, don’t be afraid to explore the different automation options available to you. From inventory management to shipping and order fulfillment, there are many areas of your business that can benefit from automation. With the right tools and approach, you can streamline your operations and achieve greater success on Amazon.
Who is Amazon Automation for?
Amazon automation might be a good option for:
- People who want to earn some extra money without putting in a lot of effort.
- Aspiring entrepreneurs who have been planning to start an Amazon business but have not yet done so.
- Those who’ve failed on Amazon, and want to get back in the game.
However, Amazon automation is not suitable for:
- Passionate entrepreneurs who want to be actively involved and control all processes.
- People who live on a tight budget and don’t have at least $100k.
Is Amazon Automation a scam?
Amazon automation is not a scam. However, there have been cases where people have invested in a “done-for-you” service and ended up losing money. This is often because the agency operating the Amazon store requires a monthly payment, regardless of the store’s profitability. If your Amazon account gets shut down, that’s not the agency’s problem either.
This doesn’t mean that all Amazon Automation services are scams. It just means that success is not guaranteed and you’re relying on the performance of a third party to run a profitable store.
The initial setup costs must be significant enough to repay the investment, and the store must continue to generate enough profit to pay the agency and keep your account in good standing with Amazon.
Here’s a video that sums it up nicely:
So, before you invest, be cautious of high-pressure sales tactics and do your due diligence by researching different agencies to see which one would be best for you.
Remember, investing in an Amazon automation store is a business decision, and it’s important to understand the potential risks involved. But if done right, it can be a great way to grow your business and increase profits.
How to spot an Amazon Automation scam?
If you’re considering hiring an automation agency to help with your Amazon business, there are a few things you need to be aware of to avoid getting scammed. Here are three signs to watch out for:
1. Get Rich Quick
Be cautious of any agency that promises quick and high results. Remember, there is no magic formula to instantly improve your sales. Some agencies may not have more expertise than you do, so make sure to check their experience and how long they have been operating.
2. Fake Reviews
Don’t rely solely on the reviews posted on an agency’s website. Negative reviews are unlikely to be displayed, so it’s important to check social media platforms like Facebook, Reddit, and Twitter for unbiased opinions. This way, you can determine if a potential agency is legit or scamming.
3. NDA Trap
While an NDA (non-disclosure agreement) can protect an agency’s intellectual property, some agencies use it to avoid accountability. Some sellers may be scared of violating the NDA and not speak up about being scammed. Read the terms of the contract carefully before signing it to ensure you’re not getting into a trap.
By being aware of these signs, you can avoid getting scammed by an Amazon automation agency.
Praise for Amazon Automation
1. More Free Time with Lower Expenses
By automating your Amazon business, you can reduce your workload significantly. You won’t have to worry about managing all business processes since the automation agency will take care of everything.
This frees up more time for you to focus on other projects, like expanding your business or taking a much-needed break. Plus, since you only need to pay for the automation services, the expenses are relatively low.
2. Improved Customer Service
Starting a business can be challenging, especially when it comes to customer service. Fortunately, automation agencies are well-versed in handling customers and building loyalty. They know how to communicate with clients effectively, increasing the chances of repeat sales.
3. Quick Scaling and Higher Profits
If you opt for a private label model, you can quickly scale your business. With the right automation tools, you can easily expand your product line and increase your sales volume. And, if you decide to sell your business down the road, you could earn a significant profit, with some businesses fetching up to 3-5 times their annual sales.
Criticism of Amazon Automation
1. High Upfront Costs
When considering using Amazon Automation services, you need to be aware of the upfront costs involved. Most companies require a large sum of money to be invested in their platform and the purchase of stock that they will sell for you. While all businesses have initial costs, you need to weigh the high upfront costs of these services against the potential profits.
2. Hidden Fees
Each agency offering Amazon Automation services has its own contract terms, which means they will have their profits protected. You will have to pay them a percentage of any sales you make, but there may be other fees you have to pay even if you don’t make a profit. You need to understand the potential fees involved and what effect they could have on your business long term.
3. Risk of Breaking Amazon’s Terms of Service
Amazon has strict terms and conditions for sellers that they enforce to ensure customer satisfaction. One area of their terms and conditions is dropshipping, which is prohibited if the shipment does not identify you as the seller of record.
Selling via an Amazon Automation Agency may result in unintentionally breaking Amazon’s terms of service. If Amazon finds out, your store may be shut down, and you may face other consequences.
4. Competition for Buy Box
The Buy Box on Amazon is a coveted spot for sellers to get their products noticed and generate more sales. However, competition is high, and Amazon doesn’t always reveal how they decide who gets listed. It’s known that orders fulfilled by Amazon are more likely to be listed than those fulfilled by the Merchant (or drop shipper), making it harder to get listed and generate more sales.
5. Risk of Suspension
One of the dangers of relying on Amazon automation is that you may not always know what’s going on. If Amazon discovers that you have breached their terms and conditions, they may send you a warning, remove your products or even suspend your store. This can be detrimental to your business as products won’t be sold, and reinstating your selling rights can be a lengthy process.
6. Lower Profit Margins
As a business owner, you want to maximize your profit margins. However, using a Fulfilled by Merchant service through an Amazon automation agency may result in lower profit margins due to fees and costs. Signing up to Amazon’s Fulfilled by Amazon service may be a better option to increase your profits.
7. Lack of Understanding
While delegating tasks can be beneficial, using a ‘Done For You’ service through Amazon automation may result in a lack of understanding of your business. Starting a business is a big investment, and it’s essential to have a solid understanding of how it works. If things go wrong, you may struggle to take control and make necessary changes.
Is Amazon Automation legit?
Yes, it is legitimate. Amazon allows automation, as long as it operates within their Terms of Service.
Many business owners use Amazon Automation tools such as Seller Labs for email marketing, customer satisfaction strategies, and more. But, it’s important to not allow a third-party agency to have full control over your FBA business. If they misuse your account, it’s common for your account to get suspended or canceled.
Suspension can occur if a brand reports you, or if a bot detects a restricted keyword within your listing. Your Amazon store can get suspended in various ways, especially if you’re following a dropshipping business model.
Choosing the right automation agency is crucial for preventing suspension. Make sure they understand Amazon’s policies and have a proven track record with their clients. It’s essential to read their reviews and research their company before trusting them with your business.
So, how can I automate my Amazon business?
You might be thinking of hiring a company to automate things for you. But guess what? You can do it yourself!
Sure, automating an eCommerce business is not rocket science, but selling on Amazon adds a twist to the mix. However, it’s not impossible to handle on your own.
One of the coolest things about eCommerce is that you can work on your own terms. You don’t have to worry about the rigid store timings of a physical store.
Now, it’s important to get your hands dirty in the early stages of your business. But, that doesn’t mean you have to do everything yourself. You can make your life easier as a business owner by getting help from automated services and virtual assistants.
Here are the best ways to automate your Amazon business:
1. Use Amazon FBA
Fulfilled by Amazon (FBA) is a service that allows you to sell through the Amazon store and use Amazon’s fulfillment centers to store, pack, and ship your products. FBA helps with inventory management, restocking, and can improve your product’s visibility on Amazon. Although FBA does come with additional fees, it is a worthwhile investment that can save you time and money.
2. Hire a Virtual Assistant (VA)
Hiring a VA can help you with various tasks, including product research, customer service, inventory management, and optimizing your listings. A VA can also help with graphic design, social media, and managing Amazon PPC campaigns.
This is a cost-effective solution for new Amazon sellers who can benefit from the flexibility of working with a contractor on an hourly basis. With a VA, you can delegate tasks that are time-consuming and focus on growing your business.
3. Use Software to Automate Repetitive Tasks
There are various tools and software that can help automate repetitive tasks, such as JungleScout, A2X, and FeedbackWhiz.
JungleScout is great for product research and review automation, while A2X can integrate your Amazon store with your accounting software. FeedbackWhiz is useful for automating feedback, monitoring listings, and analyzing profit and accounting data.
By automating repetitive tasks, you can save time and focus on the areas of your business that need your attention.
If you’re thinking about using Amazon automation to sell your products, be careful. Some conditions and promises may make it sound like a scam. Remember, if it seems too good to be true, it probably is.
If you do decide to invest in Amazon automation, keep in mind that it could take 6-8 months to see a return on your investment. Plus, even if the agency’s work becomes less and less, you’ll still have to pay them a percentage of your profits.
Instead, you could consider some healthier alternatives, such as using Amazon’s FBA model for fulfillment automation, optimizing your business processes with helpful services, or getting help from an Amazon marketing agency to promote your store and listings.
Selling products on Amazon can be a great way to make money. But be careful about signing away a percentage of your sales to an Amazon automation scam agency before you even start. Instead, focus on finding the right products and selling them in the right way. With some hard work and dedication, you could very well get rich on Amazon.
Although FBA is a great business model, it comes with challenges, especially since more big brands and suppliers have begun selling directly on Amazon in recent years.
Another business model that has provided me with a full-time passive income is affiliate marketing. It’s simple and less competitive. It might be a better fit for beginners.
Click here to learn all about it: Affiliate Marketing vs Amazon FBA.