Is Amazon FBA still profitable in 2024? 💡💡 (2024)

The answer is yes. Amazon FBA is still profitable in 2024, but it’s getting more competitive as 4000 new sellers join every day. But Amazon grew from 100 million prime users in 2018 to 200 million prime users in 2023. Their revenue was $280 billion in 2019, now it grew to $386 billion and half of their revenue comes from 3rd party FBA sellers, so with the right strategy, you can still profit from Amazon FBA.

In this article, I’ll dive into why and how the landscape of FBA has changed and what you can do to stay profitable in 2024.

Ready for it? Let’s go! 🏃🏃

Fulfillment by Amazon, popularly known as FBA, allows sellers to delegate specific fulfillment-related tasks, including inventory storage, packing, customer service, and shipping, to Amazon.

FBA sellers leverage Amazon’s global logistic support to streamline operations and scale their e-commerce businesses.

Ultimately, this allows sellers to free up time and money to focus on other growth-inducing aspects of their online business.

Before we look into strategies, it’s important to see all the factors that’ve caused this business to be more challenging in recent years.

🔺Amazon Increasing Seller Fees

Amazon’s fulfillment fees can be prohibitively high for some sellers, especially those selling low-cost items or items with low profit margins.

🔺More Sellers

4000 new sellers joining every day means if you don’t have a competitive advantage, someone can source the same product as you and undercut your prices.

🔺Suppliers & Brands Joining the Game

In the last few years, there has been a huge uptick in suppliers doing FBA themselves and cutting out the middleman. They’ve killed many niches because they can operate on the slimmest margins. Even big brands are getting on Amazon, which is cutting out the wholesalers.

🔺Long Storage Fees

Amazon charges long-term storage fees for inventory that has been in their fulfillment centers for an extended period. These fees can quickly add up and significantly impact profitability, especially for slow-moving inventory.

🔺Inaccurate Product Information

In Amazon, there are many products with inaccurate or incomplete information on their listings that can lead to customer dissatisfaction and negative reviews. So this can not only damage a seller’s reputation but also lead to increased costs associated with return processing.

🔺Access to Amazon’s loyal customer base

Amazon.com receives nearly 3 billion visits per month and has over 300 million Prime customers worldwide. As a small, single-person business, you can list products on a website that receives millions of visits per day.

🔺If you use FBA, Amazon takes care of logistics

If you use Amazon’s FBA program, you will send your inventory to Amazon’s fulfillment centers, and they will handle the storage, order fulfillment, and even customer service for you.

🔺Prime shipping

When sellers use FBA to fulfill their orders, your products will receive the Prime badge and have access to Amazon’s sizable Prime customer base that orders exclusively from Prime sellers.

Amazon provides a suite of services that activate when customers place orders, as explained below.

✅ Storage

FBA allows sellers to store their products at Amazon fulfillment centers, which are large warehouses strategically located in Amazon-present markets. With this, Amazon FBA sellers can delegate inventory management responsibilities to Amazon and fulfill orders in record time.

✅ Order Fulfillment

Since your products are already at fulfillment centers, Amazon is responsible for sorting, packing, and shipping your products to customers.

✅ Customer Service

As part of the effort to optimize the order fulfillment process, the Amazon FBA program also offers customer services like processing return and refund requests.

✅ Prime-Enabled Incentives

With FBA, you become eligible to enjoy incentives like free two-day shipping, free ad services, discounted storage charges, and much more. Moreover, the FBA model unlocks Amazon Prime’s deals and the added market visibility that comes with them.

To better understand how FBA works, let’s take a closer look at the FBA cycle.

• Sellers will send their inventory to the Amazon fulfillment centers.
• Amazon will receive, sort it and then store it in the fulfillment centers.
• From the Amazon marketplace, the customers will order the seller’s products.
• Once the order is placed, Amazon FBA will pick, pack and ship the product.
• Amazon FBA itself will take care of the customer service.
• If the customer wants to return the product, Amazon FBA will take care of it.

By following these steps, you can set yourself up for success as an Amazon FBA seller and start reaching millions of customers around the world.

Becoming an Amazon FBA (Fulfillment by Amazon) seller involves several steps. First, set up an Amazon Seller account and choose the FBA option. Next, list the products you wish to sell and prepare them for shipment to Amazon’s fulfillment centers. Amazon will store your products, and when a customer places an order, Amazon will pack and ship the product on your behalf. They also provide customer service for these orders. Lastly, get paid by Amazon for your sales, minus any fees.

Here are the mistakes to avoid as an Amazon FBA seller:

✍️Not Understanding Amazon’s Policies

Amazon rules and regulations are overwhelming to read. No wonder sellers skip this part. But failing to do so would put your selling privileges at risk. So read everything from front to back. Stick to the rules to avoid getting banned.

✍️Selling on FBA Gets You Rich Quickly

Nope. Yes, you can earn money as an FBA seller, but it will not be an overnight success. Hard work and dedication are the keys to being a successful Amazon seller. There is no such thing as shortcuts and quick hacks. You need to roll up your sleeves and get to work.

✍️Running Out of Stock

You won’t be penalized if you run out of stock. But your seller performance metrics and ranking will be affected. Amazon also automatically removes a listing that has zero inventory. Regularly check your stock levels on a weekly or bi-weekly basis. Replenish right away to keep selling and earning.

The Antidetect browser is an essential tool designed to enhance internet user privacy. It achieves this by manipulating the browser fingerprint, making the user’s online presence untraceable. This innovative tool can be significantly beneficial for Amazon FBA sellers who operate multiple accounts or those who wish to investigate their competitors discreetly without compromising their identity.

Here are the steps to use the Antidetect browser(AdsPower):

1. Download and install the Antidetect browser.

2. Launch the browser and navigate to the settings tab.

3. From here, you can adjust the browser settings to change your browser fingerprint. This includes changing the User Agent, Platform, Plugins, and more.

4. Once you have adjusted the settings to your liking, you can begin browsing the internet anonymously.

Remember, while the Antidetect browser can provide anonymity, it should be used responsibly and in accordance with Amazon’s terms of service.

The simple answer to this question is yes, considering that the chances of earning profits via selling on Amazon FBA are still relatively high, even in 2024.

But as with all promising business ventures, there’s a catch. Without much-needed effort and investment, there’s no guarantee of success. As much as FBA delegates much of the heavy lifting to Amazon, the business still needs your daily inputs to run smoothly.

And when you input to run, don’t forget to use antidetect browser to keep your account safe!