Are you looking for a review of Real Ecom Automation? Is Raphael Vargas a scam?
You may have watched the ads of Raphael Vargas promoting his Real Ecom Automation, which is a done-for-you-service for starting an Amazon business.
I have a passion for exploring and reviewing great money-making opportunities. So I have done thorough research about Real Ecom Automation in the past week. If you want to know more about it, I can tell you more in this review.
As a disclaimer, I’m not affiliated with Raphael Vargas, which means I’m not paid to write this review. So you can trust my opinions are unbiased.
At the end of this review, I’ll also tell you a much better alternative which allows me to make a 4-5 figure passive income every month.
Here’s what’ll cover in this review of Raphael Vargas and his Real Ecom Automation.
Who is Raphael Vargas?
Raphael Vargas doesn’t have a college degree. He was a salesperson at the beginning. Later on, he dabbled into the real estate investment field when he was just 21. After that he started teaching people how to do real estate wholesaling.
In late 2018, he started promoting his Automation Amazon service although he didn’t have any experience in eCommerce.
So you may ask why you should trust him to build an Amazon business for you? This is a red flag before you consider to engage Raphael Vargas.
What is Real Ecom Automation?
Real Ecom Automation is an Amazon automation service established by Raphael Vargas. It’s a done-for-you service which looks attractive.
Selling on Amazon is quite complicated, so it sounds great if you can pay the experts and let them do everything for you.
So what does Real Ecom Automation can do for you? If you are not familiar with selling on Amazon, let me walk you through the process, which Real Ecom Automation claims to do all for you.
Step 1: Product Research
It is very important to select profitable products to sell on Amazon. There are many product selection tools to help with the selection process. But it takes time to learn.
Steven Mayer claims to help you do this if you engage his Done-For-You service.
Step 2: Listing Construction
After you have selected your product to sell, you have to list it on Amazon. But how?
You will need to post product images and write the product description. To boost your ranking on Amazon, you should use keywords in your listing.
Step 3: Supplier Selection and Inventory Management
Now, you have to select a supplier for the products. You would have to decide the location of your supplier. Should it ship from China or other countries? You have to make this decision.
Step 4: Order Processing and Returns
When you receive an order from customers, you have to record it and provide a tracking number for customers. If a customer asks for a return, you would have to give their money back and provide a return label for them.
Step 5: Order Tracking
In eCommerce, you will receive a lot of enquiries from customers asking where their parcels are. Sometimes, they cannot see the tracking information and claim that they never received the products.
You have to make this operation process very simple, otherwise it will be very time-consuming.
Step 6: Customer Service and Collect Customer Reviews
At this stage, you have shipped your products. You have to get customer reviews. Customer reviews on Amazon are very important.
If you have good customer ratings, you can save a lot of advertising costs.
So how do you get those customer reviews? Amazon has the terms that monitor how you can ask for the reviews. So make sure you comply with the rules to avoid account suspension.
Step 7: Scaling Your Amazon Store
When you start to make money from your Amazon store, you have to devise strategies to scale it to the next level for more profit.
So now you should know what kind of stuff Real Ecom Automation will do for you if you engage their service.
Real Ecom Automation Pricing
There is no pricing shown on their Facebook page or website. But you should expect the price to be very high. All the done-for-you service is expensive and most are not worth it.
I always don’t recommend people going for done-for-you service because in business, you shouldn’t delegate it to a third party who has no interest in your business. They are only interested in collecting a fixed amount of fee from you every month.
I think you would need at least $25-30k to get started if you want to engage Raphael Vargas.
Pros and Cons of Real Ecom Automation
- It’s a great idea that you don’t have to deal with complicated stuff and let them do it for you.
- Huge upfront cost. You should expect to pay 25k – 30k before you make a penny
- You have to rely on Real Ecom Automation for everything and has no control
Is the FBA Business Model Suitable For You?
From my observation, the profit margin of most Amazon vendors is, at best, slightly higher than 10%, due to the intense competition.
In fact, starting an Amazon FBA business requires persistence and relentless focus.
Below are the reasons why I don’t recommend FBA business model:
FBA business needs a large upfront cost
To launch a business on Amazon, you will need $15-20k, at least.
You have to spend money on product samples and inventory, labelling and shipping costs, product launch services/pay-per-click advertising and Amazon Marketing Services. The first 10k will be quickly exhausted once you start selling on Bezo’s platform.
In one word, it is time-consuming and costs a lot of money. So, you must think carefully if you really want to risk your hard-earned money.
FBA Business model is complex
Though Amazon does a lot of the work for you, it still requires a lot of work to get a product listing up and optimized.
Apart from that, you have to deal with numerous dry tasks on a daily basis. For instance, you have to negotiate with suppliers, make comparisons on shipping companies, freight forwarders and comply with the regulations of Amazon and local governments, etc.
This process is too sophisticated for beginners who might be just looking for a side hustle or a source of passive income that requires little time and investment.
There is no quick cash flow
Cash flow is the lifeblood of a business. However, in the Amazon FBA business model, mostly sellers have to invest a considerable amount of money to purchase inventories from suppliers in China.
If you want to create a unique private label product, the costs will be even higher. For example, most manufacturers in China charge you a few hundred dollars just for creating a prototype. If you don’t trust me, you can ask for a price on Alibaba.com.
In most cases, production may take 1-2 months depending on the nature of the products and quantity. Afterwards, it takes 2 weeks in shipment and customs clearance before arriving at Amazon warehouse.
This process indicates that it can take up to months before you’re paid for the inventory you bought.
Price war reduces profitability
Price war is ubiquitous on Amazon. Whenever a seller tries to attract more customers by lowering the prices, other sellers will be forced to cut their prices as well.
To avoid a net loss, you might have to cut the product costs. This results in lower product quality, negative feedback from customers and hence a drop in sales.
Apart from the intense competition, you have to deal with changing sales tax laws, category restrictions and Amazon policies.
In the worst case, Amazon might even ban your account permanently if you mistakenly violate some rules.
Is Raphael Vargas a Scam?
I cannot say Raphael Vargas is a scam for legal reasons. I don’t have sufficient evidence to prove so. However, if you want to do Amazon business, I don’t recommend engaging Raphael Vargas or any done-for-you service.
First of all, Raphael Vargas is not an eCommerce Expert. When I searched for the Facebook pages of Raphael Vargas and Real Ecom Automation, I found something weird.
The Real Ecom Automation’s Facebook page only has 26 likes, while Raphael Vargas’s personal Facebook page has 4.6K likes. It seems that Raphael Vargas’s Real Ecom Automation is very new, which Raphael Vargas doesn’t have any relevant track record.
On YouTube, Raphael Vargas has around 10.2K subscribers, but it all positions himself as a real estate investor instead of an eCommerce expert. A lot of his YouTube videos are about real estate as well.
Moreover, there are many scammers who claim to provide done-for-you service but then take your money away and disappear.
There is no evidence that Raphael Vargas is a scammer like this, but having a third party to manage the whole business for you is very risky. Unless you really know and trust that person, you should never do this in the world of business.
Actually, as I mentioned, it’s hard to make money on Amazon nowadays. If it is that profitable, there is no reason that Raphael Vargas would build an Amazon business for you instead of building his own.
Therefore, I don’t recommend doing Amazon at all, instead I have a better recommendation for you if you want to make money online.
This better alternative has enabled me to make a 4-5 figure monthly passive income. It’s legit and sustainable.
If you want to know more about it, let me tell you in detail in the next section.
Is There Any Better Alternative to Raphael Vargas 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.
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