While some people might say “Amazon FBA is dead!”, others are just now creating their very first Amazon listing.
So that brings up the question: Is Amazon FBA still worth it or are the best days over?
In this blogpost we will not only find the answer to this question, but we will also talk about the struggles new Amazon sellers are facing and give you five tips that will help you if you want to start out with Amazon FBA now.
Strong Competition – Which Problems Are New Amazon FBA Sellers Facing?
In the last couple of years, the number of Amazon sellers has increased rapidly. As a result, the competition has gotten a lot stronger.
If you are starting out with Amazon FBA, one of the first steps is finding your own best-selling product. But you will soon realize: Finding a product to sell on Amazon is quite a tricky task. Why? Because most products on Alibaba & Co. are already represented on Amazon.
But Does That Mean Amazon FBA Is No Longer Worth It?
Our clear answer on that: No, absolutely not! Just because most products are already sold on Amazon doesn’t mean you can’t be successful anymore.
It’s not only the number of Amazon sellers that is increasing, but also the number of customers! And the overall buying behavior is shifting more in the direction of online shopping – making it a very attractive business model.
The increasing potential of e-commerce totally balances out the strong competition you will find on Amazon. With a good strategy you can still be successful. In most product categories there is still room to stand out from the competition – and that’s what matters!
Gone are the days where simply selling products you bought via Alibaba was enough. With the large number of competitors, it has become more and more important to provide real added value.
Things You Need To Know Before Creating Your First Amazon Listing
So in order to stand out, you need to have a product with a “USP” (Unique Selling Proposition). To achieve that, it’s not necessary to invest thousands of Dollars in product development and product customization. But you need to be better that your competitors – and bring in a small but decisive added value. This can be achieved for example with
- a product bundle
- an extra or
- other small differences that set you apart.
The sellers who are willing to take up the challenge and can convince customers with real added value will continue to be successful on Amazon in the future.
Commerce has always been a business thats constantly evolving. Those who fail to adapt to the new circumstances are the ones who won’t be able to keep up.
E-commerce is both an opportunity and a challenge at the same time. Don’t be rattled by the emerging hypes and trends. Whoever has a clear strategy and vision will always succeed.
5 Tips on Making Amazon FBA Worth It Now
- Set yourself apart from the rest – Set yourself apart from your competition and swim against the tide. Designing your own products and focusing on building your own brand will get you ahead of the crowd.
- Be creative – Be creative in your product development and sourcing!
- Focus on the basics – At the end of the day, determination is what counts. Try not to get distracted by new trends and focus on the basics (product development, listing optimization, USP).
- Think long term – Think long term, set goals and find a strategy that works for you.
- Never give up – Last but not least, don’t give up when things get tough. Only the ones who hang in there will be the winners in the end!
Conclusion – Provide Real Added Value & Amazon FBA Will Still Be A Great Opportunity
As always, focus and persistence are key to (long-term) success! If you have a plan and know what you are aiming for, Amazon FBA can still be a great opportunity for you.
Nevertheless, keep in mind that you will always need to work on your products in order to keep up with your competition in the long run. It’s a constant work-in-progress and you just have to learn to love every aspect of it.