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Amazon: Expectation vs. Reality

Amazon: Expectation vs. Reality

Thinking about starting an eCommerce business with Amazon? Amazon is a great platform to sell on. However, there are many misconceptions when it comes to selling on Amazon, and for that many entrepreneurs quit their business. We're going over expectations versus reality when it comes to having a business on Amazon.

Expectation 1: Signing up is easy peasy!

Reality 1: It may be simple to sign up, but there's a lot of necessary steps and documentation needed. What most people don't realize is that all your documents need to match when you are signing up. You'll also need to get verified by an Amazon rep.

Expectation 2: You need thousands of running capital.

Reality 2: When it comes to FBA (Fulfilment By Amazon) you will need approximately $5,000 or more. When it comes to dropshipping, you can start with $500+. The more the better as these are minimums!

Expectation 3: You can start making money ASAP!

Reality 3: It really comes down to your work ethic. Some of our clients and students start getting sales within a week or 2, and slowly start turning profit- but that's because they're are working hard on their business(es), and being dedicated and consistent. Massive sales don't happen in the first few days, building a business is a long-term investment and should be viewed as such.

Expectation 4: Once your account is deactivated you can't get it back.

Reality 4: You can get your deactivated account back. You just need the right tools (appeal teams), resources (invoices, etc), and most importantly patience. This normally happens when you dropship on Amazon from retail, but it can happen to any type of seller from time to time. A much safer route is doing FBA.

Expectation 5: Amazon is completely saturated.

Reality 5: What most don't realize is that there a many different categories with many different sub-categories. You just have to be willing to do the work and do your research. Millions of products to sell with thousands of sellers means there are still TONS of products for you to resell and compete on.

Expectation 6: Amazon takes 50% of your profits.

Reality 6: Depending on the categories you're listing in when you're dropshipping, Amazon referral fees are between 8-15% for the majority of Amazon categories.

Now, theses are just several realities of selling on Amazon. Depending on what method you choose here's a little FYI- FBA is a bit slower to grow your Amazon business AND it's highly capital intensive, but a safer method when it comes to deactivations. Dropshipping you can grow your Amazon business a lot faster, and only use your capital after you make a sale, but can run into occasional set-backs like temporary deactivations.

WRITTEN BY: Leslie Lazaro

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