Myth #1: Amazon FBA is Too Complex to Understand
When you first begin considering Amazon FBA as an entrepreneurial pathway, one of the enticements is how it simplifies the overall process of running a business. But when you begin looking into it further, then you see elements like Fulfillment by Amazon (FBA), fees, approval before selling, getting paid, researching products, preparing items…
The list goes on and on.
Suddenly, you feel overwhelmed by the apparent complexity of operating through Amazon FBA. Firstly, it’s okay to feel scared and apprehensive. No matter what business you begin, you have to start from the bottom – and everyone feels overwhelmed to some extent. Secondly, it’s not as complicated as it seems.
Don’t get us wrong, running an Amazon FBA business is no walk in the park. It requires ample research, hard work, and the willingness to continually learn as you go on. However, these roadblocks can be navigated as you drive towards the promised land of being a successful Amazon seller.
Aside from Amazon FBA coaching, there are also informative guides found online. They’re not going to be as personalized as a direct Amazon FBA coaching session, admittedly, but these guides can serve as reassurance for your business project – and help with molding it into an effective one.
Myth #2: It’s Possible to Become a Millionaire Overnight
Okay, you are over the complexity issue. Now, you’re feeling positive and dreaming of the potential profits on the table. However, it’s important to keep your expectations in check. Even if you have seen people claiming you can go from 0 to millionaire virtually overnight, this is a myth that needs to be ignored.
It’s true that Amazon FBA sellers can build up to the point they generate seven figures annually. Yet, this doesn’t simply happen magically. It demands constant research, marketing strategy refinement, and a strong commitment of resources to continually grow your operation.
With all of that in place, you also shouldn’t be expecting to earn thousands after a few days or a couple of weeks. Even with Amazon FBA coaching and a large advertising budget from day one, bringing home a substantial income – and simply getting your return on investment (ROI) back – will often take months to achieve.
Myth #3: There are Too Many Sellers Already on Amazon
Amazon is a crowded marketplace. That cannot be ignored. However, just because it’s the biggest platform out there with millions of sellers plying their trade, it doesn’t mean there is no space left for your business to fill.
In fact, the number of sellers on Amazon is the wrong aspect to focus on. What you should be focusing on is the number of buyers – and this figure is always on a steady incline. With more and more people making their online purchases through Amazon – there are over 200 million subscribers to Amazon Prime right now – there are growing opportunities for businesses to make big profits through the platform.
With that said, current Amazon businesses do mean you have to think strategically about what you plan to sell. For instance, if a number of major companies – including Amazon – are fighting it out to have the most competitively-priced PlayStation 5 games, trying to find any profit down this avenue could be too difficult. It’s vital you survey the scene and find available gaps in the market that are worthwhile.
Myth #4: You Can Only Sell by Going With the Lowest Prices
Is price a big factor when selling on Amazon? Yes. Is it necessary your products are the cheapest available on the platform? No.
Yes, some customers are only bothered about getting a product at the lowest possible price. There are other customers that focus primarily on luxury, and they’ll pay top dollar for quality. Then, there are those in-between that seek a balance between quality and price.
Due to this, there are multiple business models that work on Amazon – not just those that sell at the lowest prices. The result: you can set the right prices that fit your brand strategy. Your FBA inventory might not disappear as quickly, but it will be better long-term for your business!
Myth #5: Inventing New Products is Necessary to Succeed on Amazon
Another product-related myth is that to get any sort of traction on Amazon you have to invent your own products. After all, the platform is already home to millions upon millions of items. With that type of competition, you may feel the only way to generate sales is to enter an untapped market with products not currently available on Amazon.
The good news: that isn’t the case. Of course, if you have the drive and creativeness to invent your own product, by all means, go down that route. Yet, don’t feel the pressure to do so – especially with how tricky it is to come up with new creations in this day and age! There are still plenty of potential customers out there for your business, even if other businesses are selling similar – or the same – products to yours.
As an example, you don’t have to go all-out and manufacture an entirely new product. Instead, you can take an existing product and make improvements that cause it to stand out from the crowd. With private labeling, you buy the goods, but it’s up to you to enhance the packaging and overall end product. By reading previous feedback from customers, you can find pain points for similar products and build on these with your wares.