Is Amazon FBA Still Profitable in 2021?

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Many people have joined to online arbitrage business and most of them have chosen Amazon FBA. In the past two years, the number of sellers is increasing rapidly due to pandemic conditions. The market seems to be saturated and if you want to join it, you might think of Amazon FBA worth. In this article, we want to help you understand if the Amazon FBA still is profitable.
Man is calculating Amazon FBA profits by calculator

Table of Contents

What Is Amazon FBA?

If Amazon stores your inventory in its enormous warehouses, pick, pack and ship the items when an order is placed, then you are using Fulfillment by Amazon or FBA. By using FBA, you don’t need to deal with shipping and packing and usually, the items are sent directly from, provider to prep centers and they prepare the item according to Amazon’s standards. Then the items are shipped to Amazon’s warehouses and kept there until an order is placed.

Read More: How to Start Amazon FBA Business

Is Amazon FBA Worth it?

When Amazon FBA was released it wasn’t as popular as it is today. Due to many competitors, people ask themselves about Amazon FBA worth before starting. To determine if Amazon FBA still is profitable, you need to consider a few factors:

1. Amazon FBA Costs

Amazon doesn’t offer its service for free! You need to pay for storing your items in Amazon’s warehouses. Storage fees are different and depend on the type and size of your products. Oversize items are more expensive to be stored. Also, dangerous goods or clothes have a bit higher storage fee. Selling heavy, low-cost items that aren’t sold quickly isn’t worth it. In addition, these items have higher shipping rates.

Notice that Amazon has extra charges like long-term storage fees, (for the items that have been stored for more than a year), FBA removal order fees, FBA disposal order fees, and for the FBA Label Service.

2. Hassle-Free Business

Using Amazon FBA make your online reselling easier. You don’t need to occupy your rooms and attic to store the products or spending many hours packing them. The items are shipped without any headache, you don’t need to deal with different delivery services for lower shipping rates and higher quality. And you can use the power of Amazon’s customer service to check your customers’ problems. This one of the biggest benefits of using Amazon FBA.

3. Chance of Winning More Customers

Because you are using FBA, your items are qualified for Prime shipping which can be delivered in 2 days for free. In addition, it’s more likely to win the Buy Box. It can help you to attract more customers to your items.

Is it too Late to Start Selling Amazon 2021?

The window of opportunity is still open. Business success didn’t change a lot, you still need strategy and plan to be a successful seller.

Years ago you could everything on Amazon quickly and successfully but now you need to find less competitive products and using marketing strategies like good product photography push it to page 1 of search results.

Read More: Is Online Arbitrage Dead for New Sellers

How Much Do Amazon FBA Sellers Make?

Many people join Amazon because they need extra income. Based on the information, most of the sellers earn at least $1000/month and very successful businesses can make upwards of $250,000 each month.

Nearly half of the sellers can make from $12,000 to $300,000 annually, and about a fifth of sellers can make up to $3,000,000 every year. Only 26% of the sellers earn less than $1,000/month. But this is the money they can make not the profit. Before starting the business you need to set a profit for your business.

Read More: How Much Money Can You Make From Online Arbitrage

What Sells on Amazon the Most?

woman thinking about the most selling products on Amazon

When we are talking about best-selling items on Amazon, it doesn’t mean that you must sell them. You should consider competing in this category, demand in the market your business and … To decide if you want to sell them. Every time you want to pick up a product you need to search the market to ensure if this product is still attractive. But no strategy can nor guarantee that you’ll pick always a best seller item.

Pandemic has changed lives and so due to new economic conditions, shoppers can not pay money for gifts. On the other hand, personal care and Indore games can be more attractive for the customers.

You can find current Amazon best sellers items from here. The list is updated hourly. Notice that best-sellers items are very competitive and every seller has this information like you. Also sometimes best sellers are not profitable enough and nothing can guarantee that the top sellers’ items keep selling very well for a long time. You might sell these items when they are not trending anymore.

Read More: How to Do Online Arbitrage?

How Do I Find Most Sold Items on Amazon?

Alongside Amazon Best Sellers, you can use tools and Chrome extensions to find the best items. Many tools can show you the best seller rank. Using this metric, you can determine if this product is attractive enough to be worth it. Generally, these categories are profitable for the sellers:

  1. Toys and Games
  2. Baby products
  3. Books
  4.  Electronics

Final Thought

No one can say it’s late to start an FBA business and Amazon FBA worth is insignificant. Amazon FBA still is profitable but you need a strategy to be successful. You need to improve your knowledge and follow up on your mistakes.

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