There are a lot of people that start FBA and either quit or never really get any traction. They would tell you that FBA is all hype, no real money to be made in it but it is not true. They failed and I want to take a look at why.
The first reason that your WHY isn’t big enough.
I would love to say I thought of this on my own but honestly I learned it for this presentation that I saw live ( check out the video below, it is well worth your time to watch it)
So what does it mean when we say our WHY isn’t big enough?
Basically the reason why you are doing the business. Your motivation is not big enough.
For example say you are doing Amazon to get money for buying your kid some high priced pair of fashionable jeans even though they have plenty of good pairs.
How motivated are you to do the extra work to make the money?
Probably not super motivated.
Now say you are doing Amazon to buy medicine for your kid that keeps them from having seizures?
How motivated are you to make the money?
Really freaken motivated!
The example given in the video is that you are asked why you are doing FBA and you say to make a million dollars.
Not specific, not going to happen. Not a good enough WHY.
I personally am guilty of this.
I do FBA full time but honestly haven’t tried very hard and pushed it to the next level.
Well lots of reasons.
Mostly because I didn’t really have to.
Here is a some signs and signals that your WHY isn’t big enough
Signs and signals that your ‘why’ isn’t big enough:
* fear of making a mistake
* fear of failure
* all talk but no action
* inconsistent action
How many of these apply to you ?
Most apply to me.
The honest truth is that we are our own worst enemies. The struggle in not doing the business, the struggle is overcoming our minds.
So what the video above and see if any of the above signs point to you. If they do, then you need to figure out your WHY and if you find that you don’t have a WHY, then maybe you shouldn’t be doing FBA right now.
We don’t want to get out of our comfort zones, but everything we say we want is outside of our comfort zones.
I suffer from this too. Private label is out of my comfort zone and everything that I want from my business is setting on the outside of my comfort zone, right next to Private label.
How to get out of your comfort zone is not my area of expertise but I have several conversations at the conference with other sellers about private label and how they got the guts to do it.
Most basically said that they just did it. They took the chance.
One guy said that he mentally considered the money he was investing as a loss already. (he was sending $500 for a product)
He said that made it so much easier. He said that after considering it a loss, he was happy when he got a return. Made him feel really good, which cause him to get out of his comfort zone easier and more often.
You need to figure out how to get out of your comfort zone. The hint is when you feel scared, you are at the edge of your comfort zone. At that point, it is time to just take a leap of faith.
Connecting With Other Sellers
Are you scared to make friends with other FBA sellers? Scared that they are going to steal all your products ideas and put you out of business?
Almost every successful FBA seller with tell you that making connections is one of the things that really causes their business to grow.
On the other hand, most unsuccessful sellers are lone wolfs. They think every seller is out to get them and they keep to themselves.
Which are you?
If you haven’t made connections, now is the time to start.
Like I have said earlier, I am recently back from an Amazon resellers conference.
Meet a ton of other resellers and have so many great conversations and learned so much about reselling and what other people are doing.
And not once did I worry about someone stealing my ideas and people told me what they were selling and I didn’t try to steal their ideas.
Seeing what they were doing gave me new ideas of my own.
So if you are hiding away from other resellers, open yourself up to connecting and you will be surprised how much that will help your business.
People fail to take the time to learn how to do this business right. They do one of 3 things usually.
They try to wing it
They get the wrong training ( or worse pay for some way over priced training and get totally ripped off)
They get the right training product and don’t take the time to got through the training.
When it comes to training, I have been recommending the same training for a long time and the priced is stupid cheap ( I think that people may think it isn’t good since it doesn’t cost $1000.
You should read Chris Green’s Aribrage from front to back before doing anything with FBA ( cost about $9 new, $5 used)
After doing a little retail arbitrage that you learned how to do via Green’s Arbitrage book, the next step is to go through Green’s Online Arbitrage book.
Now this book is more expensive. ($70 for the used black and white version and up to $170 for the new color version)
I wouldn’t buy the book.
I would either sign up for Kindle unlimited and read it for free or go to Udemy and take the course for $30 (it is the same as the book)
Actually, I would go to Gumroad and get a special deal he has that has 3 his courses, the 2 arbitrage books and his course on Merch By Amazon, all for $49
So you can get all the training materials for $50 but you have to actually sit down and go through the material.
Most people won’t do this. This is why people fail. This is why accounts get suspended.
Did you take the time to learn how to do FBA? Did you try to piece together the training by finding different sources online?
If so, that could be a reason you are failing.
One other training I just started recommending ( because it just came out out) is Stephen Smotherman’s How To Keepa Camel.
This training helps you understand how to read charts better and make better buying decisions. I would say that you need to have gone through Green’s training fully first before taking this training ( it is a lot more costly)
I did a review of the training in a blog post
While it is no fun taking the time out to learn how to do something, it is very important to learn what you need to know before investing a bunch of money in inventory. So many people do this backward and lose a ton of money learning the hard way.
Wrong Business Model
This is where I step on toes but the truth is that the barrier to entry is almost non existent for FBA and some people aren’t business people.
There are a few business models that while they work for some people, they honestly don’t work for the majority.
This biggest example is the Fast Turn model.
This appeals to people because it is presented in compounding math.
10% return every 2 weeks for a year is a shitload of a return ( on paper)
It does work for some but the issue is scaling.
This is a business model that is great if you are broker than shit and don’t have much money to invest.
You can quickly build up your nest egg by turning it over every 2 weeks.
That works great until your nest egg grows so big that you you have problems spending all of it every 2 weeks and/or the processing of that much inventory.
Basically you get overwhelmed and the business model breaks down or you start hiring employees and getting a warehouse, etc.
Now you have overhead.
Still there are people that make this work, but it gets harder. The 10% return doesn’t work so good when you have overhead and payroll to meet.
Margin is very important to a business.
Almost all the successful FBA sellers I know protect their margins as best that they can ( ie they want to make as much as possible off every single product that they sell)
So while you may have started out as a Fast Turner, maybe it is time to adjust your business model. You have to remember that you aren’t Walmart trying to sell on paper thin margins. They have large systems in place to make it work and just like the retail world, there are very few other retail businesses that can survive doing what Walmart does.
So take a look at your business model. If you are working your ass off and it seems like you are barely making any money, you might have the wrong business model.
FBA works and if it isn’t working for you, you need to figure out why. Hopefully one of the points in the article sticks out to you and you can adjust and make this business work for you. The hard part is that you have to accept responsibility for your failure and then fix it. Harder said than done for most people.