Reddit is an online community being used by millions of people every day. Among those users, there are those who are extremely successful entrepreneurs as well as those who have failed and have stories to share.
In this article, we’ll go over what Reddit has to say about Amazon FBA.
Reddit Success Stories & Tips
With millions of people in the community, there are also those willing to share their success stories as well as advice for those who wish to venture forth. Here are our top findings on Amazon FBA, according to Reddit.
Exclusive Rights Eliminates Competition
User OutPlayAsians shares some significant numbers. In 2018 they doing over $1,000,000 in revenue with ⅓ in profit. Takeaways from the ~$333k yearly profit Amazon FBA success case? Sign a contractual agreement [with the product IP holder & manufacturer] to have exclusive rights to sell in North America, thus eliminating any copycat competitors from popping up.
This is a brilliant move once your business is established and you’re finding yourself in a tough situation where competitors are copying your strategies and copycats are popping up every week. If you secure the distribution rights then you eliminate some headaches.
Your Supplier is Your Friend
User OutPlayAsians shares some more knowledge in another FBA thread on Reddit. He shares that he now uses only one supplier who makes or sources all of their products. Once you find that reliable supplier, it’s time to invest in that relationship. Your success is their success, and their success is yours. This rule rings especially true if you’re looking to sell through Amazon Seller Central.
December is Bigger Than You Think
According to user myeewyee who is doing $323,000 in sales in just one month, December sales can be 2 to 10 times greater than a normal month. Due to this, you should also keep your cash flow in mind. December requires a significant amount of inventory since it’s a very busy month.
Do think about planning for December in other ways. Think about operations and time-constraining resources. How will you handle the influx of new orders and customer expectations during the holidays? If you’re having any trouble now, then you’ll surely find yourself in a pickle if you don’t tread carefully.
Mind Your Product’s Weight & Dimension
It’s possible to make a nice profit on a large, heavy item, but the final price of the product should take Amazon’s storage and FBA fees into account. Let’s remember: your FBA fees are greater for larger items as well as heavier items so if your product is cheap, your margins won’t look so attractive. At the same time, if your product is expensive you’ll have a difficult time converting visitors into paying customers unless your product is unique and interesting.
Manage Risks For The Long Run
User FBAThrow shares some numbers around his FBA journey. In June 2018, he shared that he is earning $17,000 in profit per month after a 3-year journey along with a $7,000 investment. His takeaway? How you minimize [FBA] risks is what will make you succeed in the long run.
Play The Long Game
What we have discovered with our research is that many of these success stories, if not all, have one thing in common. They all play the long game. They invested their hard-earned money and took risks. Even if they lost money in the first few months, they made sure to learn valuable lessons they could carry into the future. These successful Redditors also notice that people quit too early. Are you mentally prepared to take losses and learn from your mistakes? Your success might just be a few months out.
Is FBA Worth It According to Reddit
You may be asking the same question that pops up every year by hundreds of people on Reddit. Is FBA worth it? Well, here are some unique insights into why FBA is worth it in 2020 and beyond.
Double Sales With FBA
This point brought up by SafetyMan35 repeats what we’ve mentioned in our How Does Amazon FBA Work article. This user used to do their own fulfillment and ran an experiment to see how Amazon FBA would affect their sales. It turns out, the costs were nearly the same while having Prime eligibility status yielded sales figures to double.
Last Piece of Advice: Just Do It
A verified Redditor doing over $1 million in annual sales shares his opinion on using FBA and the landscape.
Stop reading and start working. The amount of time spent doing “actual” work will help you succeed than any amount of time reading about FBA. The landscape is also getting more and more competitive by the day so it’s best if you just get on with it.
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