Is Amazon FBA Still Profitable In 2021?

During the last two years, the number of sellers has rapidly grown due to pandemic conditions which have led many people to get involved with online arbitrage. Many of them have chosen Amazon FBA. 

In the past, Amazon FBA businesses were a shortcut to becoming a millionaire and moving to the Bahamas. Amazon businesses were so profitable that everyone had one since it was so easy to make money. 

As of 2021, that is simply not true. There are now too many “private brands” or “scam artists” vying for market share. Shipment costs, fulfillment fees, and the other costs associated with selling through Amazon FBA have only grown. 

Trade wars between the US and China(opens in new tab) have not helped. China has historically been the best source of products for FBA because of the world’s most affordable manufacturing process (opens in new tab). 

Due to increased competition in the United States, some sellers have turned into manufacturers.

What Is Amazon FBA?

The Fulfillment by Amazon service allows you to store inventory on Amazon’s massive warehouses, pick, pack, and ship order items. 

is amazon fba still profitable in

FBA eliminates the need to deal with shipping and shipping is handled by FBA’s fulfillment centers who then prepare the items according to Amazon’s specifications. 

After that, the items are shipped to Amazon’s warehouses, where they are stored until an order is placed.

Is Amazon FBA worth the investment?

The popularity of Amazon FBA was not what it is today when it was released. Amazon FBA value is an important consideration before starting because of many competitors. 

A few factors need to be considered in order to determine whether Amazon FBA is still profitable:

1. Amazon FBA Costs

Amazon does not provide its service for free! Keeping your goods in Amazon’s warehouses costs you money. The costs of storing your products are different depending on size and type. The cost of storing oversize items is higher. Furthermore, dangerous goods and clothes have a higher storage fee. Unless the item is sold quickly, it is not worth selling heavy items at low prices. Additionally, these items have higher shipping costs.

There are extra charges by Amazon such as long-term storage fees (for items stored for more than a year), FBA removal order fees, FBA disposal order fees, and for FBA label service.

2. Ease of Doing Business

Your online reselling will be easier with Amazon FBA. You won’t need to spend countless hours packing and storing the products in your rooms or attic. It’s easy to ship the item, you don’t have to deal with different shipping services for a lower shipping rate and higher quality. Amazon’s customer service is also available for checking the problems of your customers. Amazon FBA offers this benefit as one of its biggest advantages.

3. Chance of Winning More Customers

You qualify for free two-day Prime shipping if you use FBA, so your items will arrive in 2 days. Furthermore, it has a higher chance of winning the Buy Box. Having more customers can help you increase sales.

Intense Competition on Amazon

Amazon has many competitors. When sellers compete against one another, undercutting each other and selling more products increases margins. In most markets, big sellers can always undercut you, so you’re almost guaranteed to lose your market share.

To manage competition, you need to understand what is known as the long tail. Finding a niche where there is little or no competition and dominating that market is more important than competing with big-ticket items. You will have the opportunity to learn and grow, since there is little competition.

It is also important to understand how big sellers think. The revenue of a big seller is $200,000 per month. You, on the other hand, might be better off teaching me how to build a business.

I am saying that you should try a small scale endeavor before betting everything on your Amazon FBA idea. You will be able to experiment more if you pick a small niche, since big sellers won’t be interested and you won’t even have to worry about them.

It’s like being an ant and slipping through the cracks undetected if you keep on under the radar of the big sellers. Since you are so small, you are much more nimble than large sellers, and can adapt to market changes instantly.

It is normal for a big seller to undercut you when you get into your niche, but it is you who now hold the upper hand. If the seller is not a genuine juggernaut, now you get to dictate terms.

Is it too late to start selling on Amazon in 2021?

There is still time to take advantage of the opportunity. To succeed in business, you need a strategy and a plan.

In the past, you could sell everything on Amazon quickly and successfully, but now you need to find less competitive products and use marketing strategies like good product photography to push them to page 1.

How Much Can You Make On Amazon FBA?

Amazon is a popular place for people who need additional income. According to this information, most sellers earn at least $1000 per month; extremely successful businesses can earn up to $250,000.

Over a fifth of sellers can make over $3 million each year. Close to half of sellers are able to earn from $12,000 to $300,000 annually. The majority of sellers earn more than $1,000 a month, with only 26% earning less than $1,000. They can make money from this, not profits. Your business needs a profit before it can start.

What is the most popular product on Amazon?

Best-selling items on Amazon do not mean you have to sell them. Consider the market demand for your business, how competitive this category is, and… to decide if you want to sell them. You need to check the market before buying a product every time you want to purchase it to make sure it’s still attractive. You cannot ensure you will always pick a best seller item with a strategy.

As a result of the pandemic, the economy has changed and shoppers are no longer able to buy gifts with cash. Additionally, Indore games and personal care are more likely to attract customers.

Here you can find the current Amazon best sellers. Updates are made hourly. This information is available to all sellers, including you, so you’ll be aware of items that are the best sellers.

The top sellers’ items are not guaranteed to maintain their sales for a long time, so they are sometimes not profitable enough. You might be able to sell these items when they are no longer trending.

How Do I Find The Trending Products to Sell on Amazon?

To find the best items, you can use tools and Chrome extensions in addition to Amazon Best Sellers. The best seller rank can be determined by many tools. Based on this metric, you can determine if this product is worth the investment. This category is normally profitable for the sellers:

  • Toys and Games
  • Baby products
  • Books
  • Electronics

Amazon FBA Courses Review

If you are new to Amazon FBA, you might be interested in some Amazon FBA courses.

There are many Amazon FBA courses, but some are scams. To help you avoid the scams, I have done thorough research about the most popular Amazon FBA courses.

Here are the Amazon FBA course reviews for you to make reference and see which course you should choose:

  1. Proven Amazon Course Review
  2. The Last Amazon Course Review
  3. Blue Sky Amazon Course Review
  4. Amazing Selling Machine Review
  5. The Wholesale Formula Review

Final Thought

Anyone can start an Amazon FBA business at any time, and Amazon FBA is worth a lot. To succeed, you need a strategy with Amazon FBA. Your knowledge needs to be improved, and you should follow up on your mistakes.

Is There Any Better Alternative to Amazon FBA to Make Money?

If you’re new to online business, you might wonder if there’s a better business model that doesn’t need initial capital and can do it as a side-hustle.

Of all the business models I’ve tried, affiliate marketing is the easiest and most rewarding so far.  

In affiliate marketing, you can run your business almost with zero cost. Most importantly, you don’t need to invest in creating and developing any products.

Also, it is less time consuming since you don’t have to manage inventory or handle customer service.

You can enjoy a steady stream of passive income while going on vacation or working a full-time job.

Since the world is full of uncertainty, I’d always choose a business model that has the lowest risk.

But How Much Can You Earn in Affiliate Marketing?

A 21-year old student from my #1 recommended training platform of affiliate marketing was able to earn $7,395 in just 1 week, which means he made more than $1k a day…all while using free traffic methods and affiliate marketing.

Amazing Selling Machine Review

Wealthy Affiliate has existed for more than 10 years and there are many success stories over the years.
To give you more examples, here are some of the other inspiring success stories of Wealthy Affiliate members.

If you don’t trust my words, you can go to Trustpilot to see what the members have to say:

Amazing Selling Machine review

At the time of writing, Wealthy Affiliate is rated 4.8 out of 5, which is excellent. It’s incredible to get such a high rating with more than 400 reviews.

If there are only two or three good reviews, you may say they are fake reviews. But you cannot fake it when there are more than 400 reviews there. Remember, Trustpilot has a very intelligent system to detect fake reviews.

Where to Join Wealthy Affiliate?

Wealthy Affiliate has a very simple pricing scheme. It has a free and premium membership.

If you want to feel about Wealthy Affiliate, you can sign up for the starter membership here (no credit card required). You can select to be a free member with no time limit.

And as a starter member, you can get instant access to the community, live chat, over 500 training modules, 2 classrooms, networking, commenting, 1 free website, access to the keyword tool.

You can enjoy all these values without paying a penny. 

So I strongly recommend you to register a free account and see it yourself.

If you’d like to be the next success story and get the most out of Wealthy Affiliate, you can upgrade to the Premium Membership later. 

After that, you can get access to everything without the bother from any upsells.

Recommendation: Here’s The Best Alternative

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