“Amazon automation” is a scam commonly used by gurus to make money out of newcomers. One of the most notorious gurus is called Kevin David, who has been penalized by the FTC and has to pay a $2.6 million settlement fee for the victims.
While “Amazon automation” can refer to the use of one or more methods to automate tasks associated with your own Amazon business, in the case of most online programs you find, it usually means engaging a specialist agency to build and operate your entire Amazon store, giving you a completely hands-off business.
Tommy Rodriguez’s Automation Empire is such a scheme.
With Tommy Rodriguez’s program, he claims to help you set up your preferences and details. Then, Tommy’s team takes care of product research, listing, and finding a retailer. When a sale happens, they handle everything from ordering to customer service. It’s a completely hands-off business.
Sounds attractive? Here’s the catch: It’s based on dropshipping, which often leads to account suspensions. To avoid this, you need to pay for a pricey package ($30K-$45K). Even without account protection, it’s still $15K plus product costs ($15K-$20K). And guess what? You could do it yourself.
Considering Amazon FBA startup costs are already high ($5,500-$13,000!), automation usually results in significant loss. Entrepreneurs are responsible for managing a business. You won’t make a penny when you outsource it.
Now, let’s take a closer look at Tommy Rodriguez’s Amazon Automation Empire. I’ve spent long hours looking into it so I know exactly how it works.
Table of Contents
What is Automation Empire?
Automation Empire is a business model that relies on Amazon dropshipping, which is just one of many methods used in Amazon FBA (Fulfillment by Amazon).
Dropshipping allows you to sell products on Amazon without any inventory. Instead, when a customer places an order, you purchase the product from a supplier who ships it directly to the customer. This model eliminates the need for warehousing and fulfillment, making it an option for those looking for a hands-off approach to online business.
However, this approach is somewhat controversial because Amazon often suspends dropshippers, which can result in funds being held for more than three months.
Dropshipping from other retailers like Walmart and Home Depot is a common reason for suspension. However, these suppliers offer opportunities to maximize profits because profit margins for Amazon dropshipping are typically low.
I’d suggest you to avoid dropshipping unless you have an established Amazon seller account.
Recommendation: Here’s The Best Alternative
Who is Tommy Rodriguez?
Tommy Rodriguez is the founder of Amazon Automation Empire. He grew up in Boston and faced legal troubles in his teens, spending time in juvenile detention from ages 14 to 17. After that, he lived on the streets. However, at 24, he became determined to become an internet entrepreneur.
However, he didn’t pursue legitimate paths. He joined the notorious MLM scheme called MLM Empower Network, which is a complete scam. Alongside this, he gained experience in CPA marketing and reverse marketing.
His inspiration for dropshipping came when he ordered an item on eBay and received it in a retailer’s box. Realizing he had paid double the price, he researched the product and started eBay dropshipping. Soon, he found that he could reach more customers on Amazon, so he moved his business to Amazon dropshipping.
According to Tommy, he has made millions by selling his Amazon automation services to aspiring entrepreneurs using social media. When you purchase his service, his team (not him) handles all the work, while he collects a significant upfront fee and a large percentage of your profit margin. In one word, Tommy will be the winner while you (the client) will likely be a loser.
How Does Automation Empire Help You Make Money?
Automation Empire claims to simplify the process of running an Amazon dropshipping business, essentially offering a “done for you” service.
Tommy’s team handles crucial aspects like product research, supplier selection, listing creation, order fulfillment, and customer service on your behalf. They dropship products from various “retailers” using your new Amazon seller account, without sticking to one distributor publicly.
Here’s the process:
- You set up your store. If you’re new to Amazon, they start slowly to avoid suspension, which delays your return on investment (ROI). If you have an established account, this phase is quicker.
- They don’t manually search for niche products. Instead, they use their own software for product research.
- After identifying a popular product on Amazon, they find suppliers through their software.
- Once a supplier is secured, they create a listing with a price higher than what they’ll pay.
- They purchase the product only when a customer buys from your store.
- They handle any returns, claims, or customer communications. You only need to get involved with some daily tasks if you choose the most basic package of Automation Empire.
Although Tommy’s team works in-house, it’s not Tommy himself doing the work. It’s likely that Tommy’s employees are cheap virtual assistants hired from the Philippines or India. You can’t rely on these VAs to effectively manage your stores and generate net profits. Their experience level is likely similar to yours.
At the end of the day, entrusting your business to a group of VAs might not be the best option. If you’re interested in learning more about Amazon FBA, you might want to consider my business coaching service instead.
How Much Does Automation Empire Cost?
The cost of Automation Empire varies depending on the package you choose. The price range is substantial, with packages starting at $15,000 and going up to $45,000.
Here’s a breakdown of Tommy’s fees and what they cover.
The basic package doesn’t include automated assistance, which could help with account suspensions, but they do provide helpful scripts in exclusive access groups to guide you through handling them yourself.
To get started, you’ll need either money upfront or a credit line to cover the initial product costs for the first two weeks of sales. This is because Amazon takes two weeks to pay you. Tommy suggests having $15,000 to $20,000 for this purpose.
Tommy recommends using credit cards for paying orders. However, getting $15,000 to $20,000 might be tough depending on your credit score, and if you do get approved, the interest rates could be steep.
If Amazon suspends your account, you’ll have no revenue stream to pay off the credit card bills. In some cases, suspensions could last for months, potentially leading to significant credit card debt just to keep your business running.
Recommendation: Here’s The Best Alternative
My Concerns with Tommy Rodriguez’s Automation Empire
Though Tommy claims to have generated $1.4 billion in sales revenue for his 700 clients, there are so testimonials to back it up. Instead, I have the following issues with his Amazon automation service:
1. Tommy makes money even if your Amazon store is incurring loss
To sign up for Tommy’s Amazon automation service, you have to pay a substantial upfront fee.
He takes a cut from your sales, not your net profit. However, with eCommerce, as long as you’re willing to pay for the hefty advertising costs, you’ll have some customers.
Tommy won’t have any incentive to help you build a profitable store. He’ll only keep using your credit card to run expensive ad campaigns, acquire more sales, and earn more commissions for himself until you can’t pay off your credit card debts.
2. Tommy’s VAs will be managing your Amazon store
Tommy doesn’t bother with the management of Amazon stores. He’s too busy promoting his services on social media to generate more leads.
He outsources the daily tasks to a group of VAs from Bogota, Colombia, and India, where labor costs are low. This way, he can increase his profit margin.
As explained earlier, your success has nothing to do with his income. He gets a cut for every sale. As long as your credit card isn’t shut down, his team will keep using it to run ads to drive more sales. They don’t care about net profit.
3. You can find similar software yourself
Tommy claims to provide you with so-called state-of-the-art software for product research.
In reality, similar tools are readily available online, some even for free.
You can use platforms like Zoro or eComDash to find trending products without paying for Tommy’s service.
Don’t fall into the trap of his bundle. As far as I know, most software included in a bundle is garbage. They are used to increase the perceived value in your eyes only.
4. You bear the dropshipping risks on Amazon
Tommy claims that Amazon dropshipping is the best business model. However, it actually carries a lot of risks, including unintentional violation of their terms of service.
Amazon’s extensive terms and conditions prioritize customer satisfaction and address dropshipping practices.
Their policy strictly prohibits purchasing products from another online retailer and having them shipped directly to customers without proper identification as the seller.
When using Tommy’s Amazon Automation Agency, this identification may not occur, which might lead to inadvertent breaches of Amazon’s terms and the subsequent closure of your store.
5. Your store could get suspended
One of the dangers of having Tommy’s ream running your Amazon business for you is that you won’t always know exactly what’s going on. There are several routes that Amazon could take if they discover that you have breached their terms and conditions.
First, they could send you a warning and demand you take down the products.
Second, they could automatically remove the products you have listed.
Finally, they could suspend your store.
Of course, no one wants their store suspended as this means products can’t be sold.
Not only that, but having your store unsuspended and your rights to sell reinstated can be a lengthy process.
That’s definitely something that you’ll want to avoid.
Recommendation: Here’s The Best Alternative
Is Automation Empire a Scam?
I won’t label Tommy Rodriguez’s Automation Empire as a scam because you do receive a service if you purchase one of his packages.
However, did he live up to his promises? No, he doesn’t. He claims to help you build a hands-off business that brings in passive income, but Amazon automation is a risky business model that only involves high capital risk, not to mention that dropshipping is prohibited on Amazon.
That’s why many Amazon automation agencies, including Tommy’s, often require clients to sign non-disclosure agreements (NDAs). This prohibits you from disclosing your agreement with Tommy’s company to others.
This might explain why there are few negative YouTube reviews about Tommy’s services.
While there is some positive feedback on Automation Empire, they are not trustworthy.
Tommy appears to be heavily invested in brand endorsements. This is evident from the significant payment he made to an affiliate for promoting his Amazon franchise.
Apart from that, there have been observations on his Facebook page (username: Haterswillsuffer) where numerous comments have been hidden. This raises questions about what Tommy Rodriguez might be concealing.
While it’s okay to seek extra help when launching your business, especially for day-to-day tasks, starting a business is a significant investment. Therefore, it’s crucial to fully understand its operations before delegating its management.
Relying solely on a ‘Done For You’ service from Tommy Rodriguez’s Automation Empire without grasping the workings of your business, especially your Amazon store, can be risky.
While things may run smoothly initially, you’ll face challenges if you need to take control unexpectedly.
Is There A Better Way to Make Money Online?
If you want to make a full-time passive income, I’d suggest you to start an affiliate marketing business instead.
In affiliate marketing, you can run your business almost at zero cost without any trouble from sourcing products or managing inventory.
Also, since you don’t need to spend hours after hours selling things over the phone, it can save you a lot of time.
If you want to learn affiliate marketing, I’d recommend you to get started with the most reputable platform for affiliate marketing: Wealthy Affiliate.
Wealthy Affiliate is an all-in-one platform for building your affiliate marketing business from scratch. It offers you a free account (including a free website) with comprehensive training on SEO (free traffic methods), which enables you to get started with affiliate marketing right away without paying a penny.
But How Much Can You Earn with Wealthy Affiliate?
A 21-year old student from Wealthy Affiliate 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.
For more information, you can check out our full review of Wealthy Affiliate.
Jeff Smith, Founder of High Income Source, is an online business coach with a BBA in Marketing and Entrepreneurship from the University of Pennsylvania. His online business coaching program is so popular that more than 100 students have benefited and started successful online businesses under his guidance.
Jeff started dabbling in online business while he was in college, where he began with dropshipping. After college, Jeff worked at a marketing agency and freelanced as a writer. His breakthrough came when he realized the potential of blogging, leading to a $100,000 sale of a dog-focused website. His expertise includes SEO, affiliate marketing, Amazon FBA, blogging and dropshipping.