Is Amazon FBA too saturated? This is probably the most popular question I see being asked on the internet regarding Amazon FBA.

Only a year ago I too was asking that very same question. I wasn’t yet selling then, but I really wanted to. The only thing that was holding me back was the thought that I won’t make any money. I was afraid of putting in the time, the effort and money, and not getting back anything in return. So whenever I hear the question “Is Amazon FBA too saturated?”, I can understand people’s concern and relate to it. But on the other hand, I don’t understand when that question on its own holds people back from even trying. As Wayne Gretzky once said, “You miss 100% of the shots you don’t take.”

In order to cover this question once and for all, I want to share with you my experience. I share my experience as someone that started selling in 2017, and has now been doing it for some time. I think this will be useful for those of you that want to change their life by starting an online business, but are still somewhere on the edge, still skeptical about the whole Amazon FBA business model.

Fear of failure

The first reason why you may be asking whether Amazon FBA is too saturated is because you don’t want to fail. It’s as simple as that. If you would know for a fact that you couldn’t fail, you would most likely be already selling on Amazon.

But here is the thing. You can never know whether you will fail at something or not. It’s life. If no one would ever fail, then everyone would be rich. It doesn’t work this way.

On the other hand, have you ever thought why SO MANY people are doing Amazon FBA? The reason for that is because it’s a convenient business.

It’s relatively easy to do.

Trust me, Amazon FBA is SUPER easy compared to some business models out there. All I had to do to learn how to sell on Amazon was to go through an online course that took me a few months to complete. If it was a real estate business, a café or I an IT company that I would want to start, it could take me years to learn how to do it. And even then there is no guarantee that it wouldn’t fail. Besides, according to fortune.com, nine out of ten startups fail.

It doesn’t require much money.

You can start Amazon FBA with as low as $500. I would personally recommend waiting until you have at least a $1000-$1500, but I know people that have managed with as little money as that.

Try starting an IT company or a café with 500 bucks. 🙂

The risks are low.

Because the investment is low, the risks are also low. The higher the investment, the higher the risks.

The most common risk that people associate Amazon FBA with is that their product won’t sell. Well, for this very reason there is research. Before you go into ordering a product from China, make sure you do the research. I was taught how to do research in the course that I purchased.

Recommended read: My First AMAZON FBA Selling Experience Q&A – MARKETPLACE SUPERHEROES Review Follow Up

Nevertheless, the worst that can happen if you picked the wrong product is that you won’t profit. If it doesn’t sell well, you simply lower the price and let it sell slowly. You will eventually break even with it, but you will also have gained by then a TON of experience. Just make sure you don’t order too many units on your trial order.

Of course, there are other risks, such as something happening to your products during shipment. But nobody is protected here. These types of risks are a part of any business. If you want to make sure you minimize risks, do your homework well.

The earnings are great.

Amazon FBA is a business that brings good money and does it fast. You source products, and as soon as you start selling them, you start earning money. It’s very simple here. You don’t have to grow a following, you don’t have to rank for keywords in Google, none of that. Amazon FBA is already a gigantic platform on its own with millions of buyers. You are leveraging the platform and the help of its workers to get your products sold. You don’t have to have your own warehouse and you don’t have to hire workers to ship out your products for you.

With every shipment, you should at the very least be doubling your money. Some people easily triple and quadruple it.

Take it seriously

One other main reason why people are very skeptical and ask the “Is Amazon FBA too saturated?” question is because they don’t take the idea seriously.

I mentioned earlier that Amazon FBA is a relatively easy business model, but that doesn’t mean it’s not a real business. Some people prefer to think that it’s super easy, and if there is competition, then it probably isn’t worth it.

You have to understand that most businesses out there have a lot of competition. If it has no competition, either the business model is very new, which is usually rare, or it is something no one cares about – it is an unprofitable business idea. This means that competition is actually good. So instead of worrying about competitors, you should just focus on doing your own job well.

If you take the idea of starting an Amazon FBA business seriously, you are increasing your chances of being successful, as opposed to someone who doesn’t care that much.

On Amazon, there are thousands of products that don’t sell at all. They are just sitting there due to poor research. So don’t think that you are in competition with absolutely everyone out there.

Not necessary to start a company

If you feel that you do want to try things out before you get too serious, many countries, depending on the laws, will allow you start selling as a sole proprietor. This means that you can start selling just as yourself. And if you do see that Amazon FBA is something you want to continue with, only then you can start your own company.

The market is growing

People also ask the “Is Amazon FBA too saturated?” question because they feel that there are too many sellers. Although that’s true, there are also a lot more buyers.

Every year the amount of people doing their shopping online is increasing. Together with that, Amazon is opening up new stores in different regions of the world. If you are smart and quick to make good decisions, you can hop on the bandwagon and be one of the first to use the opportunity in a new marketplace. 😉

To summarize…

Amazon FBA does have more sellers today than it did 5 years ago, but so does it have more buyers. It is also opening new stores all around the globe, which means more access to new buyers.

I am personally making money with this business and I am not planning to stop. I see that it has a great potential. It’s a real business.

If you want to change your life, you must change the attitude. Have a winner mentality, do the job well, do your homework, and don’t forget to enjoy the process. If you doubt too much, that will only hold you back.

Finally, it’s low risk. You can invest little and see what happens. If you like it, you can keep going, or you can stop. Not a big deal really.

I hope I was able to answer the most popular question – Is Amazon FBA too saturated? If you have anything else to ask, feel free to do so in the comment section below.

One last thing, how would you act if you knew you couldn’t fail?

Thank you for stopping by and good luck!

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