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There are plenty of people who aren’t realizing that you could end up becoming another Amazon business failure. So today, I’ll unpack the 7 core reasons.
Since it’s all too easy to get dazzled by the shiny lights of the next whizzbang course that comes along. I should know – I’ve taken several. I’ve also lost money more than once on Amazon as a seller.
Amazon business failure – A real hazard
It isn’t easy. I’ve said this here on the blog many, many times. But if you’re willing to put in the work, then there are some incredible rewards available for those who get through the hard times.
So before you enter the Amazon marketplace, consider these 7 things that could easily happen to you.
1. You run out of cash and quit
This is the most common reason why people quit. You can’t get started properly on Amazon with just a few thousand dollars. You simply cannot get started with a few hundred dollars.
You’ve found a business model with excellent upsides. But a key downside is the capital required. $5,000 MINIMUM and $10,000 ideally. Plus ongoing investment into more inventory. Don’t quit your job. You might even lose every single dollar you invest into launching a product, for one reason or another.
2. You just don’t have the time
Easily the 2nd most known reason why people don’t progress with their Amazon journey – time. It’s also the #1 reason why people want to get started on this journey – time.
You’ll be doing a range of tasks. Product research, selection, contacting manufacturers, freight forwarders, attending trade fairs and more. That’s before you even get a product on Amazon. Plenty of tasks to do, before making that first $1 online.
3. The fear makes you quit FBA
After you’ve gotten over the fear of buying that Amazon course you’ve been eyeing off for months, then there’s the fear of becoming an Amazon seller. You know – your products being in the hands of thousands of people worldwide.
It’s a scary thought – you’ll send money to China. They’ll create a product that you’ll never see in person. They’ll then send that to the United States, to sell to customers you’ll never meet. If all works out well (*fingers crossed*) you’ll net 30% for your risk, if you’re lucky.
4. You aren’t serious about your business
This isn’t a hobby to do, but some people pitch it like this. It’s a real business with real products. Just because it’s online makes no difference.
You need to have a firmly cemeted reason why you’re doing this. Then you need to be around the right community. Feed your mindset, work on your journey every week and continue to power through the low times.
5. You lose interest in selling on Amazon
Whilst not so popular, I’m surprised that people do lose interest in becoming an Amazon seller. Do these people not want freedom? Or perhaps they have won the lottery. 😃 I don’t consider this an Amazon business failure, but often a reason why the individual doesn’t continue.
This goes back to being fully invested in the journey. That starts with getting trained properly, instead of winging it with free YouTube videos which teach so little.
6. You’re just in for short term results
Argh! Too often people reach out asking how much they’ll be making in 6 months time. They haven’t even taken a course yet, or even thought about a product. As I often say, don’t expect to make anything for the first 12 months at all.
Amazon is a long game. Some of the best courses talk about this. It’s a game for those who will stick around for years. To grow their business using its profits.
7. You pick the wrong product
There is a talent that comes from effective product research. I should know – I’ve done thousands of hours. Some of the most obscure and profitable products have been discovered through my strategy.
Many people who try this journey on their own often pick the wrong product. Another key reason to get trained properly, as this is one very expensive mistake.
I really do feel that Amazon is a marketplace for the outstanding and the committed. It isn’t for the average person with an average product, since competition is becoming rife.
I have a lot of respect for people who quit the journey for valid reasons too. This is known as strategic quitting.
Not everyone will find success here. This is especially true if you’re short-sighted on the journey.
There is a dip on the entrepreneurial journey. Staying dedicated will help you power through the hard times, to make progress when others would otherwise become another Amazon business failure.
I look forward to continuing to support those who support this blog and my journey.