Are OA Amazon FBA Leads Lists Worth It?

Are OA Amazon FBA Leads Lists Worth It?
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Every business model has its challenges and hardships, and for online arbitrage sellers, the biggest challenge is sourcing the right products. Online arbitrage Amazon leads lists has become one of the best methods for sourcing in recent years. They serve as navigational charts guiding sellers to fast-selling and valuable products. However, there has been an ongoing debate about FBA leads lists among the OA community: are these lists indeed a worthwhile investment or simply a gamble dressed as a sure thing?
If you are wondering whether FBA leads lists are the proper sourcing method for your business, take advantage of this article. Here, we will provide a thorough cost-benefit analysis of FBA leads lists to see whether they are worth purchasing.

Amazon Leads Lists: An Essential Tool or a Costly Distraction?

So, how can sellers decide if Amazon leads lists are an essential tool or a costly distraction? To answer this question, we must get to know Amazon leads lists better and discuss their pros and cons:

What is an Amazon Leads List?

An Amazon leads list is a curated list of products that can be purchased from online retailers at a low price and resold on Amazon for a profit. Creating OA leads lists is a meticulous process that requires careful research and analysis. Providers usually have a team of online arbitrage experts that use various tools and software to handpick the leads or hire virtual assistants to do the job. These experts look at several factors when curating the lists, including sales rank, competition, historical price, number of reviews, and more.

The Pros and Cons of Using Amazon Leads Lists

Amazon OA leads lists can benefit sellers significantly but may also have potential drawbacks. Here are the pros and cons of using these lists:

Pros: 

  • Time-saving: sourcing products to sell on Amazon is time-consuming, but sellers can fast-track this procedure using leads lists to focus on other essential tasks.
  • Reduced learning curve: using leads lists requires no particular knowledge because experts pre-prepared and curated these lists. However, sellers must develop certain criteria when using these lists according to their specific needs and goals.
  • Curated products: Amazon leads lists are handpicked and curated by experts using various tools and software, and they are checked against specific criteria to ensure their viability.
  • Reduced risk of account suspension: since the items on these lists are carefully curated, they do not include hazmat, fragile, IP complaint, or other problematic products. This reduces the risk of encountering counterfeit or restricted products, which can lead to account suspension.
  • Helps identify profitable products: Amazon leads lists to provide comprehensive data about the leads, including reviews, rankings, profitability, etc. This allows sellers to make informed decisions when sourcing products.
  • Niche focus: Amazon leads lists usually focus on specific niches or categories, which allows sellers to target their preferred market segments. Of course, all leads lists don’t necessarily focus on one specific niche. 
  • Personal support, trial periods, and guarantees: OA leads list providers usually offer trial periods and money-back guarantees, which allows sellers to check out their plans and see if they’re worth investing in. They also provide personal support for sellers with questions or issues about their purchased leads. 
  • Regular updates: Amazon leads lists are updated regularly (usually daily), providing a continuous flow of fresh ideas for your following products.
Pros & Cons of FBA sourcing leads

Cons: 

  • Subscription costs: OA leads lists can be costly, especially for sellers without enough starting capital. However, if you purchase a high-quality leads list, there will be enough ROI to cover the expenses and leave a decent profit. 
  • Competition: Amazon leads lists are available to everyone, which can lead to increased competition. However, some providers have fixed this issue by limiting the number of seats for each list.
  • Limited control: with OA leads lists; sellers rely on the provider’s choices, which may not always align with their strategy. To ensure suitability, you must develop individual criteria according to your goals and needs and check each lead against your standards.
  • Availability: since OA leads lists are handpicked and thoroughly researched by experts, the number of products on each list may be limited, which doesn’t give you many options.

The Financial Implications of Using Amazon FBA Leads Lists

Amazon FBA leads lists can be a costly sourcing method. However, they offer many benefits, such as reducing the required time and effort to source products, making them a lucrative opportunity. You must conduct a thorough analysis to ensure that OA leads lists are the best option for you as a seller. Let’s see how it’s done:

Cost-Benefit Analysis of FBA Leads Lists

Analysing the cost-benefit of FBA leads lists involves weighing their potential benefits and drawbacks. The costs associated with leads lists include:

  • Purchase price: this is the most immediate cost of leads lists. Their price differs from one provider to another, ranging from affordable monthly subscriptions to expensive one-time purchases. If you purchase a high-quality leads list, you can easily get a return on your investment by buying and selling the leads on Amazon. This way, you can cover the cost of monthly leads list subscriptions.
  • Operational costs: after purchasing the list, you must analyse the leads and buy the ones that match your criteria. This requires additional investment, including the cost of goods, shipping, and FBA storage costs. Some leads list providers account for all expenses, but usually, most providers don’t account for shipping costs and other fees, so you should calculate them yourself. After deducting all expenses, you can use the Amazon FBA calculator to ensure the leads are still profitable. 
  • Time and effort: although lead lists significantly reduce the required time and effort for sourcing, it doesn’t mean you should buy the leads without looking into them. Lead lists save you time on sourcing, but you must review and validate each lead to ensure it aligns with your business strategy and offers the most profit.
  • Risk of saturation: selling the same list to many sellers can lead to market saturation, reducing potential profits. This is why you need to find a reputable provider that limits the number of seats for each list. Don’t purchase leads lists with more than 30 seats because they are highly competitive. The more limited the seats, the better. Most leads list providers limit their seats to 20-55 sellers. 

How FBA Leads Lists Can Affect Your Bottom Line

To find out how FBA leads lists can affect your bottom line, we need to assess both the increased costs associated with purchasing these lists and the potential increase in revenues from selling the leads:

  • Expenses: the immediate cost associated with leads lists is their subscription price. Next, you need to invest in buying the leads for resale, which can be a substantial upfront cost. If you’re using FBA, consider the Amazon FBA fees, such as storage and fulfilment fees. 
  • Revenue: if the list is accurate and the products match your criteria, you can expect an increase in revenue. The time you save on product sourcing can also be used to focus on other essential aspects of your business, such as refining your strategy. 

Comparing Online Arbitrage Sourcing Methods

There are several methods for online arbitrage sourcing, and leads lists are just one of them. Here, we will discuss different methods for sourcing products in OA and compare them to leads lists:

Amazon Leads Lists Vs. Software

Both methods aim to simplify the product-sourcing process, but they do this differently. Lead lists offer a more hands-off approach where the research is done for you, while sourcing software allows you to customise your searches and have more control.

When comparing sourcing lists vs software, we find out that OA leads lists are more costly than software tools and require more research and analysis time. However, purchasing sourcing lists can significantly save you time. Sourcing software has a steep learning curve compared to leads lists, which makes it a better option for expert sellers. Lastly, the data provided by sourcing software is generated by tools and not checked by humans, which lacks human touch and experience.

FBA Leads Lists Vs. Hiring Virtual Assistants (VAs)

Hiring a VA depends on their expertise and experience, but it’s usually more expensive than purchasing a leads list. In addition, VAs need to work with sourcing tools and software, which you must pay for.

When comparing sourcing lists vs VA, we find out that hiring a VA requires a significant amount of time upfront for training and managing, but leads lists can save time because the research has already been done. On the other hand, hiring a VA can provide a higher level of customisation since they adapt to your specific needs and preferences over the long term.

FBA Leads Lists Vs. Manual Sourcing

Manual sourcing requires sellers to comb through various retail websites to find products. While manual sourcing gives you complete control over the sourcing process, it is not recommended because it’s slow and labour-intensive and may require a steep learning curve for new sellers.

Making the Right Decision: To Use or Not to Use Amazon Leads Lists

Whether to use Amazon leads lists depends on your circumstances, preferences, and business strategy. Start by evaluating your business goals and strategy, and consider the factors below when making your decision:

Whether to use Amazon leads lists depends on your circumstances, preferences, and business strategy.

Factors to Consider When Choosing an Online Arbitrage Sourcing Method

  • Budget: How much money you’re willing to invest in sourcing can influence your choice. Would you rather have a budget-friendly method, or do you have more money to invest? 
  • Time Availability: Different sourcing methods require varying amounts of time, so consider how much time you can spare for sourcing when doing Amazon online arbitrage.  
  • Expertise level: Some methods may suit beginners, while others are more suitable for expert sellers. Lead lists are a great option for beginners, but professional sellers can use them alongside other sourcing methods.  
  • Risk tolerance: Some sourcing methods come with higher risks. However, the risks are related to time, and although you pay different costs for each method, the cost difference doesn’t have anything to do with risks. You should see which method offers fewer risks for you as a beginner and generates income faster. Ultimately, you can use all methods together, but sourcing lists are a great place to start. 
  • Business strategy: Consider your business strategy – do you specialise in certain product categories or sell a wide range of products?  
  • The scale of operation: The size and scale of your business can be a deciding factor when choosing the right method. Do you have a large operation or a small business?

Is Amazon FBA Leads List Right for You? 

Now, let’s find out if leads lists are the right choice for you. After carefully considering the above factors, you can easily answer this question. Lead lists are more expensive than sourcing software but cheaper compared to VAs. However, leads lists offer unique benefits such as the leads being checked by experts, saving time, and being easier to work with. One of the main advantages of these lists is the time they save, so if you’re short on time and can’t afford to spend hours doing manual sourcing or managing a VA, they’re the best choice. As for expertise level, leads lists can provide a great starting point for beginners and a good understanding of what makes a product worth selling. 

You can also consider a hybrid approach, such as using a leads list as a starting point for product research and passing it on to your VA for further analysis or analysing the leads using sourcing tools and software.  

Final Thoughts

Online arbitrage FBA leads lists are a powerful tool that simplifies OA sellers’ product sourcing process. These lists eliminate the time-intensive task of manual research and analysis. However, their effectiveness depends on various factors, such as the quality and exclusivity of the lists.

Sellers considering purchasing leads lists must thoroughly evaluate their circumstances and overall business strategy. Due to the constant evolution of the e-Commerce landscape, it’s best to remain flexible and adjust your sourcing method as your business grows or market conditions change.

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