Yes, Amazon FBA will still be profitable in 2020.
It’s been profitable for many years now and Amazon FBA, as a whole, is likely to remain profitable for many more years.
However, to remain successful on the platform as a seller, you have to be prepared to tweak your approach from time to time. Many sellers don’t realize this. They fail to evolve in terms of their marketing strategies and hence go obsolete.
For your Amazon FBA business to be successful in 2020, you would have to understand the current trends and practices that are popular on the platform.
It has come a long way from its earlier years, the years when Amazon FBA was a quick cash-making machine for many sellers.
During its early days, there weren’t many sellers on the platform. Plus, not a lot of people had the tools to determine which products are the most profitable or in-demand. Because of this, it was easier back then to become a market pioneer -- you know, those sellers who introduce a new product which ends up becoming a massive hit.
Today, Amazon has over 12 million products and 300 million active users (as per a survey). Outdated approaches will not be enough to sustain a business on this platform.
So what can you do to remain profitable on Amazon FBA in 2020?
1. Target Unique Products
I know there are over 12 million products already on the market, and targeting unique products can be challenging.
However, you need to invest time in your research and development so that you can come up with products that are new, valuable, and interesting.
Finding the best products to sell on Amazon FBA is necessary for 2020. You cannot simply get into any segment and expect high returns.
There are platforms and tools that can help you find the right products for selling through Amazon FBA. Some of them are Jungle Scout, Keepa, and Unicorn Smasher.
2. Decide on a Shipping Method
Here are two ways you can go about this - direct or via a middleman.
Direct -
Direct shipping has its pros and cons. First off, you would have to explain Amazon’s FBA guidelines to your chosen direct shipping company. To ensure that the product you’re selling will satisfy Amazon’s requirements.
This method is cheaper and quicker, but you would not be able to inspect your products before they are sent out to Amazon’s warehouses.
Shipping Via Middleman -
You can also hire a middleman or an Amazon wholesale Services specialist.
They would ensure that all shipments will go through you before they reach the Amazon FBA warehouses. This will allow you to inspect the quality of your products before they are sent to Amazon and your customers.
Since you are using wholesale Amazon services, you can benefit from Amazon FBA’s partnered carriers. Evidently, this process can be a little time-consuming.
3. Prioritize consistency over high margins
Many sellers on Amazon FBA tend to focus on products that yield high margins, thinking it’s easier to sell smaller volumes of high-margin products within a short period.
While this might make sense to some of us, it isn’t the best approach. Many sellers forget to consider the selling rate or consistency factor.
To be profitable in 2020, you need to decide on a product that has a consistent selling rate, and not prioritize high margin products over it.
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Kevin David's net worth is estimated to be $4 million to $20 million. This valuation considers his multiple streams of income including affiliate marketing, Amazon FBA, Shopify, YouTube and training courses.