Making FBA a full time job
I am after some insight from those who have made the leap to make Amazon FBA their main source of income.
It is something I am striving to do, however I am constantly plagued by the thought that Amazon can deactivate my account or come up with any other policy measure that could destroy my business and livelihood in an instant.
Even with Account Health Assurance and a strong account health, it is something I cannot get away from thinking as a huge risk and a main barrier to doing this full tme.
For those who have made FBA their primary source of income, how has it been and how have you managed the ongoing risk that Amazon could pull the plug on your business at any time?
Making FBA a full time job
I am after some insight from those who have made the leap to make Amazon FBA their main source of income.
It is something I am striving to do, however I am constantly plagued by the thought that Amazon can deactivate my account or come up with any other policy measure that could destroy my business and livelihood in an instant.
Even with Account Health Assurance and a strong account health, it is something I cannot get away from thinking as a huge risk and a main barrier to doing this full tme.
For those who have made FBA their primary source of income, how has it been and how have you managed the ongoing risk that Amazon could pull the plug on your business at any time?
0 replies
Seller_tHDZMh56pq7gX
Personally, I think these days are gone. With any business you need to be aware of the risks and have measures in place to manage them. The obvious risk of sole selling on Amazon you have identified, so to manage / mitigate this, you need to be selling on multiple channels. If you are serious about making online retail a regular income you can rely on, you should be putting your time and effort into your own selling channel / website, building this up and picking up additional sales to boost your business on here and eBay.
For me this is a side hustle, along side my salaried job, so if I get deactivated I am not going to lose my house over it, but I have seen so many horror stories in this forum it makes me glad I did not "take the leap".
When I started I did have rose tinted spectacles, thinking if this takes off I will be able to give up my day job, but now 2.5 years in, I am happy that I am making a regular second income without too much effort, but I am well aware that I could be spuriously deactivated at any time.
Seller_mS10UjVYuuGor
Amazon is (currently) the biggest marketplace but a very fickle business partner. Minor issues can see stock and funds blocked for extended periods of time while the issue is resolved with no compensation if the issue turns out to be an Amazon error. It would take a brave person to put all their eggs in that basket.
It's worth noting the wider Amazon group derives greater profit from its AWS division than its marketplace and all investment seems to be going in that direction with little focus on modernising its marketplace. If that situation continues, and competition increases, it has to be questioned how long Amazon will remain the dominant marketplace.
Multi channel is definitely the way to go, eBay, Etsy, Tik Tok etc etc, as many as you can keep on top of, but of course none of these offer a storage or distribution solution wrapped up as conveniently for the seller as FBA so you'll need solutions in place for those. Maybe you would be able to start from home but would probably soon need a unit or storage/distribution partner.
Own site often seems the ideal solution but driving traffic there can easily cost more than the commissions payable to other marketplaces, the website itself is the easy bit!
Seller_KlbXZHzQGSDZv
As stated Amazon is the biggest marketplace and if you want to use your own website asa backup you need to find a nieche market something that people will be happy to come back to.
These days with the spread of items you need to have 100's if not 1000's of items on here to get a sucessfull return then with modern receipt requirements that can be a very heavy investment to make. I think gone are the days of finding na item and trying to sell 1000's of it and only that.
As stated in the other comments look into other market places ebay you can use amazon fba on iirc or something similar maybe look into that for the other shopping channels such as shopify tiktok ETSY(if you meet there requirements) and see if you can get amazon to do the shipping for you.
Seller_kh77A9MtOsq7P
Please dont do it, do not have all your eggs in one basket. MItigate the risk and sell everywhere else. Good luck
Seller_xU4h6ZbAduf0O
There are other storage and distribution solutions available with a little research that fulfil multi-channel orders.
Personally, i would never use Amazon FBA, as Amazon has a track record of great distrust with sellers stock and funds.
Reading the daily horror stories on these forums, you see stock going missing with little or no recompense, stock confiscated and destroyed/held to ransom if Amazon cannot/refuses to verify your supplier, or a customer complains in order to get a freebie.
The independent multi channel storage and delivery solutions out there that are just that, and do not micro manage your business and hit you with ever changing goalposts or threats.
I would never feel safe with my stock in others hands though, so would rather do it all myself with the peace of mind that my stock remains in my control.
If storage is the issue, it might be just as cost effective to rent storage space than pay Amazon for theirs (without the headaches or the constant hoop jumping)
Seller_6bABtHBnJ50Yb
Based on how the seller platform has gone in the last few years I would not base a full time job purely on selling on Amazon Marketplace. They are impossible to deal with now, there is always a constant change in the things they require and at anytime they can pull the plug on what you are selling and make you jump through hoops to get a straight answer.
Seller_65WurY9xBcM8w
Amazon FBA has been my full time wage for 6 years now and provides an income for 4 of my family members.
We always make sure we have plenty in the bank to cover at least a year of bills incase amazon decide to close us down, this then gives us time to sort out the issue, start again or worst case find another job.
Don't always read the horror stories, try and read some positive ones as well. But don't quit your job until you feel 100% comfortable.
Seller_kjXDHcJtTU3MN
Amazon FBA has provided me with a good income for 12 years (raised my family with 3 kids on the income)
Once you get to a certain level of Account health you get auto-enrolled into the insurance...
"Account Health Assurance
You're enrolled! With Account Health Assurance, we won’t deactivate your selling account as long as you work with us to resolve any issues."
Seller_2BSBgE3FJzlK4
If you are happy with amazon refunding customers for no valid reason and helping themselves to your money, then go for it!
And it will be a full time job because dealing with amazon seller support is a nightmare.
Consider your mental health before deciding.
I am talking from experience!
Seller_Fg2fqaWOnEtha
Definitely no and I am someone who has managed to make a living by working online since 2004. You can do it but you need to diversify and have a solid long term strategy. Having your own shop is also part of the strategy, unless you spend a fortune on ads it will take time to get regular income from that but it will eventually pay off. Amazon FBA would probably be right at the bottom of my strategy list to be honest. And there are so many alternatives.... I would also advise to have a mix of products, if selling is what you want to do. I tried FBA but it hasn't worked for me, too much stock lost or returned, I have a well known storage company a few minutes from home and I prefer to keep my stock there.
