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There is a lot of hype surrounding the aspect of building an Amazon business. So much so, that many people have a fear of missing out.

The truth is: you don’t have to do it. You can simply skip the bandwagon. Sure, there is plenty of opportunities here. But there are legitimate reasons to simply find another pathway. For many people, staying in a job is actually a good idea.

This is because entrepreneurship is full of those with anxiety and depression, given the pressure and risk(s) involved. My personal journey isn’t as rosy as it might seem.

In this blog post, I’ll be highlighting such reasons why you SHOULDN’T build an Amazon business. If you’re looking for some reasons to pass on this opportunity, then this blog post is for you.

1. Not having enough capital

This is the core reason why you shouldn’t build an Amazon business. If you don’t have enough money to invest into education, products, tools and packaging, then it’s going to be tough, if not impossible.

Above the cost of your education, you’ll need at least $5,000 to get started. $10,000 is better. Otherwise you just won’t get too far.

Many beginners get caught in the hype and simply ignore both the initial capital and working capital that businesses require. I simply don’t advocate, ever, that you should borrow money to start a business. Risk your own capital, not somebody else’s.

If you’re lacking funds, then Amazon probably isn’t the right opportunity for you right now. Either hustle, or please consider something else.

2. Lacking available time

You’ll need time every week to work on your Amazon business. I recommend 5 to 10 hours. I’m down to 5 hours. I also visit China every 6 months which requires time and money.

I understand that there are many parents here. I’m also a parent of a young child. It’s tough at times to find a spare 10 minutes to conduct product research, order packaging or evaluate samples.

Consider also the time (and cost) involved in attenting live events. I recommend purchasing trainign courses that come with student-only seminars attached, otherwise this is an incredibly lonely journey for the average person. Most people just aren’t built to hide behind the computer.

3. Minimal interest in the digital lifestyle

If you’re looking for a job with security and safety, then this isn’t it. The laptop lifestyle and traveling the world with an online business is lucrative, but isn’t everyone’s cup of tea.

You can, of course, work from home or a co-working space to grow your Amazon business. But if you’re looking for a ‘hard-working business’ where you’ll work tirelessly day in and day out, then this isn’t it.

Despite the advantages, there is a sense that Amazon businesses aren’t real. I get it. So, if you’re looking for something more real and tangible, then consider an offline business with you can work with and serve real people face to face.

4. Being skeptical AF

There are plenty of skeptical people around. Despite Amazon being the world’s #1 richest company, that allows us, as 3rd party sellers, to sell on their platform, people still can’t believe the potential here.

I’ve never met a skeptical millionaire. In the past, I used to know plenty of skeptical broke people. You’ll find them everywhere. Internet forums. YouTube comments. Watching current affairs shows. Millions out there.

Please pass on Amazon if you’re skeptical. This isn’t for you. There is some real work here, with your own capital on the line, but some real potential too. For those prepared to have an open mind and put in the work, that is.

5. Lack of clearly defined WHY

Many people jump into Amazon training courses without actually realizing why they are doing this. Perhaps you have a vague reason, but it needs to be clearly defined.

I would ask of you the following:

• What are you looking to achieve?
• Why are you choosing this new journey?
• When do you expect to see some results here?
• Is this something that you’re really committed to?
• Most importantly, can you write down your reasons?

You’ll need to know why you want to get started with the Amazon journey because it isn’t easy. Writing down your core reasons NOW will get you through the tough times, as it has for me.

Moving on with Amazon

This post does not mean to condemn anyone who wants to skip on starting an Amazon business. After all, there are massive advantages to having a job, and having a job is not to be condemned. Prior to working for myself, I loved my job and my boss, Ivan, was a legend.

If you’ve recently started the Amazon journey, or you’re ready to start now, then power on. This journey is exciting, but takes work, courage and capital.

See – there are plenty who start the journey that shouldn’t. I mean for real. There are plenty that chooses to jump on the bandwagon for a fear of missing out, but just aren’t made out for this journey.

I communicate with dozens of people here on the blog and in emails each week. From years of personal development, I get a real sense of where people are in their entrepreneurial journey and their mindset. Most people are just not cut out for this, and it’s totally OK. I cannot stand those ‘high and mighty entrepreneurs’ who condemn employees.

If you feel that you need to move on with Amazon, then you don’t have to do it. There are plenty who watch on from the sidelines, for months or years. It is totally acceptable to take this pathway.

I work with those who are ready to get started today, who have time, money, want the laptop lifestyle, have an open mind and clearly define their core reason for taking on this journey.

Selling on Amazon is the #1 opportunity right now. It’s hot, but so is education. Many are attracted to the riches of the gold mine and big promises, but only some will find success. There is no reason to feel bad about missing out.

Many sellers consider alternatives to FBA, due to competition and other factors. In this guide, I’ll showcase other channels to scale your Amazon business.

Now, I still remain an advocate of starting on Amazon, before moving into other marketplaces. After all, Amazon owns more than 50% of the US eCommerce market share. But if you’ve hit the ceiling on other marketplaces, it’s time to consider other options.

Alternatives to FBA

If you’re looking to scale your business, then consider international Amazon marketplaces first before any alternative to FBA. The UK, for example, is Amazon’s 2nd largest marketplace.

I’m certainly not an advocate of starting with Amazon Australia, no matter where you live. Many Australians read my blog monthly, and I would highly advise starting in the US marketplace.

eBay

eBay in some ways shares similarities with Amazon. Commonly those who have read my blog have sold at least once on eBay before. That said, eBay has fought over the last few years to transition itself into a retail-focused marketplace, instead of a 2nd hard marketplace. Amazon, has quite literally, left eBay in the dust. That said, many buyers enjoy paying with PayPal, which is a payment option that Amazon lacks.

Walmart

Whilst Walmart is a big-box store, they do allow 3rd party sellers on their platform. Many who sell on Amazon actually choose not to sell on other marketplaces, since many of these sellers are beginners and without the bigger budgets to expand.

Jet

Jet is another large marketplace which is actually owned now by Walmart, with a record $3.3 billion exit in 2016. Impressive! Especially considering that Marc Lore still owns 25% and remains as the CEO. Much like Walmart, many Amazon sellers are skipping on this potential gold mine of a sales channel.

Shopify

I’ve listed Shopify last, as this list is based on marketplace volume. The key advantage of selling on Amazon is the volume of buyers. If you merely create your own Shopify store, then without paid traffic on Google or social media, then it’s difficult to gain traction. SEO, whilst free, takes months to see decent results.

Note: I am currently building this blog post to include other marketplace channels worthy of consideration. Whilst there are literally hundreds, I would only recommend those with decent buyer volume. One option not mentioned here in Google Shopping, to be expanded on. Likewise, many consider expanding through the wholesale (offline retail) distribution channels.

Monitor stock-levels

Whilst it’s a good idea to consider alternatives to FBA, it simply is better to pay attention to your current inventory volume. Do you have the capital to weather the sales volume of other marketplaces, whilst remaining in-stock on Amazon? Running out of stock on Amazon is one challenge that all sellers experience at one time.

You’ll really have to consider Q4 sales spikes. Many sellers have a sell-through rate in Q4 at equal or beyond the sales volume of the other 9 months. If I had to choose, I’d only sell on Amazon, unless I had excess capital and was looking to build brand assets for the 7 figure exit.

Closing thoughts

Amazon sellers should eventually turn into eCommerce sellers. Progress and adoption of new marketplaces should be gradual and methodical, based on working capital and other factors.

The initial focus should be maximizing the opportunity that Amazon provides, before adopting new marketplaces. I have plenty of excellent resources that both new and existing sellers can use through their journey.

As usual, play the long game. Consider trademarks and design patents to protect yourself on other platforms.

Looking to trademark your Amazon business? This guide outlines what I’ve done, as a real live Amazon FBA seller to protect my brand and its assets.

I actually have two Amazon business. Both selling in different categories, to very different consumers, with very different product types. As I am aiming for 7 figure exits on both, I recently went down the route of lodging a trademark to protect myself from counterfeits and high jackers. From this, I created my guide.

If you’re new here, also be sure to check out the excellent free guides and resources available for sellers just like you. Whilst I sell on Amazon, I also love writing about the journey and things I’ve learned along the way.

Quick disclaimer: I am NOT a lawyer, solicitor, attorney or otherwise. I’m simply writing this drawn from my own experiences, particularly how you can lodge your trademark without spending a fortune on fees. Please do your own research and engage legal advice for your specific Amazon business.

Now that you can’t sue me 😜 let’s begin….

Starting with your business

You’ll really need to identify the reasons why you want to trademark your Amazon business. Your business is unique, selling a distinctive range of goods. Are you trademarking for Enhanced Brand Content? Are you looking to protect yourself from copy-cats? Is a 6 or 7 figure exit on your horizon?

If you can clearly define your reasons, you’ll be more able to relay exact your needs to your legal advisor. They will be able to then advise the right method to suit your business model, product line and budget.

In addition, consider which countries you’ll want to lodge in. I’ve lodged in both the US (1 trademark) and the UK (2 trademarks, 1 currently being challenged by a competitor 😒) with differences in both applications. The US takes significantly longer at 12 months (occasionally 9) whilst the UK is generally 4 months if you’re not challenged.

If you’re looking to sell on Amazon’s global marketplaces, then your legal advisor is likely to recommend lodging across multiple countries. As yet, since I’m not selling on Amazon Australia, I haven’t lodged a trademark here. That said, I do have an Australian company structure and website which gives me some good legal protection from the get-go.

The 3 ways to lodge

There are 3 core ways to lodge your trademark. I’m gearing this for lodging a trademark in the United States, regardless of your country of residence. This is because it’s Amazon’s largest marketplace, and the best place to start for beginners.

You’ve got the expensive attorney, the cheap attorney, and the DIY method.

1. The expensive attorney is the one I went with. Why? I take my Amazon business very seriously. This isn’t a hobby here. I genuinely am seeking a 7 figure future exit, and a solid trademark done properly is a brand asset that an investor will demand. My attorney works only with Amazon sellers.
2. The cheap attorney is the one I would recommend for those with minimal capital available. You’re very unlikely to get good service and constant feedback. But you can sleep at night knowing that it has been done properly.
3. Lastly, the DIY Method is for those who have brass balls, or simply those who are broke. Then again, those who are broke shouldn’t become Amazon sellers. This journey is an expensive one, and you’ll need some decent starting capital, as I’ve said here time and time again.

If you’re curious, it cost me $2,500 USD for my attorney. That’s super affordable in my books, for a lifetime of REAL protection for my Amazon business, with the assurance that I’m genuinely protected. It’s a one-time insurance cost that brings equity to the business. Essentially, I’ve spent more upfront now, instead of spending a fortune in the future.

For those looking for the cheaper route, then consider Upwork. Type in USA Trademark Attorney (or whichever country you’re looking to protect your word-mark in) and go from there. Fellow Amazon seller friends of mine find attorneys in the $700 to $1,500 range.

I simply can’t recommend the DIY method. It’s akin to build your house yourself, without proper tools or experience. Weak foundations cannot hold up empires. Even with the DIY method, there are costs you’ll have to cough up with.

Next steps

I would find the best option you can afford. It really is that simple. For many reading this, it is the expensive attorney. You know – the one who actually understands Amazon, trademarks and the full USPTO process, having lodged hundreds of trademark applications previously. Yes – that one.

Regarding the types trademarks you can apply for, there is numerous on the menu. I chose the word-mark, and at this time of writing, Amazon does allow simply a word-mark for Enhanced Brand Content and protection against hijacking.

Previously, you could register a UK trademark (4 months and $900) then use it in the US marketplace. Unfortunately, Amazon recently closed this loophole. It was always going to be worthwhile going for a US trademark regardless.

Lastly, the trademark is one of the most important factors of your new Amazon business. As a business, you should treat it as such. This isn’t a hobby or just a little side hustle that you’re dabbling in.

See – this is going to take time, capital and some seriously hard work at times. Given the hundreds of hours you’ll be pouring into your Amazon business, it makes sense to protect it properly, yes?

I love sourcing from China and particularly trade shows. Today I’ll be discussing how you can start sourcing FBA products at the Canton Fair.

Most people are curious how this process all works, especially for a beginner. There’s certainly questions to ask and ways to act so you come across as professional.

Create your elevator speech

I like to have a little speech rehearsed before I go, generally when having breakfast in the morning. Remembering that I have more than one Amazon business with inherently different products, so I do have to make sure I’m pitching my right business during the day.

It’s always good to introduce yourself, as it gives a professional image of you. You’ll likely get the most accurate answers, better pricing and faster email feedback.

You could say: “Hello, I am Joshua. I’m the Managing Director of Smith Imports based in Australia. We source and sell products globally and my current customers have been requesting that we start stocking product X, Y and Z.”

I’m always on the lookout for factories that can produce more than one product for me. It cuts down a lot of legwork, plus you can get reduced per-unit pricing plus freight charges.

I always swap name cards and a catalog. Sometimes I may be offered a sample too, though I decline due to luggage space because I’m a carry-on only lad now days. Waiting at baggage carousels at Sydney international airport simply isn’t fun!

That said, I will always evaluate their samples closely in their stalls. Often I’ll note down in my notebook answers to any questions I ask. With permission, you can also take photos with their business card in view.

Questions for vendors

There’s a lot of questions you’ll be wanting to ask. But don’t make it seem too much like an interrogation. At the same time, don’t be too brief, especially if you’re interested in long term working relationships with this supplier.

I’d be asking the following:

• When was the factory established? (Go for long term)
• How many employees do they have? (Real factories have 100+)
• What certifications are available? (Run away if they have no idea)
• Who are their main customers? (Particularly, which countries?)
• What is their MOQ? (This is the most common question they get)

Further more, you can request to know who their top selling items are. Some factories will also showcase who they serve, though don’t take this as absolute. It may be have been a situation that they served world famous brand XYZ years ago for a once-off order for a busy period.

I like to also show my existing products. I’ll have these in my own brochure that I keep throughout the Canton Fair. This shows authority and that you’re a real business owner, not someone who hasn’t done a trade-show before.

Miscellaneous tips

Firstly, there’s just about no good food options at the Canton Fair. The good ones are totally crowded so don’t expect a table after 11am or before 3pm. Maccas is downstairs but I’m too precious for that. 😜

WIFI is always available. My Telstra plan provides 2GB of international roaming data monthly which is a true life-saver. It’s also significantly more secure, especially for someone who has pretty much their entire business on their phone.

Researching and contacting Chinese vendors prior to going to the Canton Fair is an excellent idea. I often talk to them for days or weeks prior to the next Fair and they’re always keen to meet me. It’s a very warm hello, as opposed to a cold one.

Transport to and from hotels should only be done via their bus. Taxis are a nightmare and expect to line up for hours. Stay at a good hotel and they’ll provide free shuttle bus services. The Hilton, for example, provides 4 buses in the morning and 4 in the afternoon, all at staggered times.

Another point on transport. You can get back to Hong Kong directly from the Canton Fair, but you’ll have to firstly take a taxi to Guangzhou South Railway Station. From there, it’s a bullet train to Hung Hom station. I generally take their first class which is about $50 USD. You can then switch stations and head for Hong Kong’s international airport for the flight home.

In summary

Commonly, people wonder if there’s a lot of competition sourcing FBA products at the Canton Fair. There’s competition, but not a lot. Just like there’s not a lot of innovation either. My 3rd trip is coming up and I’m yet to meet another Amazon seller.

Anyway, this was a bit of an overview on how you can talk with suppliers at the Canton Fair. I do wish you all the success during your first and subsequent sourcing trips.

As always, feel free to drop some questions below.