Smart FBA is an Amazon FBA automation agency. It was founded by Scott Hunt, Cohen Chorabik, and Philip Kramer. They provide complete FBA automation services. Their main selling point is that you can get access to Amazon’s popular restricted brands at wholesale prices. Some of these brands include Adidas, Nike, Calvin Klein, The North Face and much more. The demand for these products is usually higher and requires licensing. This exclusive offer gives you an advantage over millions of Amazon sellers worldwide.
Smart FBA helps you build a profitable passive income by automating store operations. They have a dedicated team that will handle the daily tasks for you. This includes Amazon account setup, product listing and optimization, inventory management, order fulfillment, product research, logistics, monthly sales report and much more.
Smart FBA reviews are mostly positive, with an A+ BBB rating. There are no complaints filed on BBB. Clients praise the responsive customer service team and highlight the restricted brand access. Criticism points out the high costs and low profit margins. Lack of refund policy and long set-up times have also been reported.
Just_News2573 posted on Reddit that their store was doing good with a 15% profit margin. They explained that they've been selling for 5 months. They even made $9,100 in sales on their 5th month. Other Redditors have shared their experience working with Smart FBA.
However, not everyone has a positive experience with Smart FBA. Success is not a guarantee.
In another thread about Smart FBA. A user posted that they invested $35,000 and only made less than $3,000. AndyMcKnight136 replied that he had a similar experience. He explained that he had very low sales and a high return rate. From the investment of $60,000, they only made $6,000 in a year.
In this article, I will discuss the 3 things you need to know before investing in Smart FBA. You will discover just what Smart FBA offers, who is it for, and if clients are successful. I will also talk about the founders and the business model they promote.
Pros and Cons of Smart FBA
Pros
Smart FBA handles everything from product research to inventory management. They also take care of the marketing campaigns.
Clients can access restricted brands at wholesale prices, leading to higher revenues.
Smart has extensive resources. They have over 40 experienced employees and a 30,000 square foot warehouse for product storage.
Cons
Requires a minimum of $20,000 to $25,000 for the first quarter and at least $5,000 for subsequent months.
Approval from restricted brands usually takes 8 to 12 months.
No refund policy listed. There are also a lot of hidden costs.
Price
Smart FBA requires an investment of $20,000 to $80,000. There are also recurring monthly fees.
Origin
2020
Location
Flower Mound, Texas
Reputation
YT - 2.24k subscribers | FB - 830 followers | IG - 15.8k followers
It was slow to get my inventory, but my sales jumped over 62% and my gross margin went up an astonishing 72% after the changes. I wish Scott would have taken over sooner.
Two months after Scott took over our ROI Skyrocketed!!!
The investment is huge and the returns are so small. Not to mention they take a big cut of the profits. They claim they manage over 340 stores. Ask them how many of those are actually making money.
3 Things to Keep in Mind Before Investing in Smart FBA
Amazon FBA or Smart FBA is a long-term investment. That means it takes time to build and grow your Amazon store before hitting your monthly sales goals. On average, you will notice real results after 12 months.
Since Smart FBA does not guarantee any profits or returns. It is best to measure risk tolerance to avoid financial hiccups in the long run. Smart FBA conducts a quick assessment to evaluate potential clients.
Smart FBA is an expensive venture. Apart from the minimum startup cost of $20,000, you also need to prepare for the ongoing expenses. You will keep investing in your inventory, listing optimization, and marketing. Here’s a breakdown of expenses with Smart FBA:
- Amazon Store Setup - $15,000 to $20,000
- Restricted brand access - $1,250 per brand
- Other fees/reserves/ mandatory expenses - $1,000 per restricted brand monthly
Smart FBA Packages and Service Inclusions
White Label Service Packages
Smart FBA’s White Label service is available in several tiers. They grant your store access to restricted popular branded products at wholesale prices. Smart FBA will purchase the products, ship it to Amazon, and manage your store. Each package gives a different number of approved products and profit sharing margins.
Private Label Package
Smart FBA’s Private Label service creates a unique brand exclusively for your store. The service covers brand building to marketing and store management. There is only 1 package available priced at $85,000. A list of what's included is listed below:
Who Is Smart FBA For?
What Do People Say About Smart FBA?
Many people are saying good things about Smart FBA. They have clients who have been with them for over a year and had great results working with them. Their followers on YouTube are also commending their video tutorials. So far, there are no complaints about their services.
Smart FBA Reviews: Success Stories
Success Story #1: Payton (Entrepreneur)
Payton invested in Smart FBA last May 2021. His Amazon store generated $10,894 in total gross revenue in the first quarter of the year. According to Payton, he just followed the formula that Smart FBA has provided him. He kept his inventory flow high to maximize growth opportunities. Payton also commended the Smart FBA’s support team. He mentioned that they are available to address his concerns or queries.
Success Story #2: Imad (Real Estate Investor)
Imad invested in Smart FBA in 2021. As a real estate investor, Imad already had a long-term vision. He also knew that he had to keep investing during his first year with Smart FBA to keep his Amazon store more stable and more profitable in the future. And in just under 12 months, Imad’s store has generated over $200,000 in revenue.
Who Founded Smart FBA?
Scott Hunt, Philip Kramer and Cohen Chorabik founded Smart FBA in 2020. They have years of experience in IT, e-commerce and entrepreneurship. Each of them also has specific roles in this organization
Scott Hunt
Scott Hunt is the CEO and co-founder of Smart FBA. He graduated Summa Cum Laude at Capella University. Scott has always been passionate about discovering opportunities and innovation. Over the years, he has earned over 50 certifications in AI and machine learning. According to the website, Scott has designed an e-commerce tool that is now used by hundreds of businesses in the US. Used by small to medium-sized enterprises to increase their sales by an average of 30% within the first year. He was also part of the dev team that has been featured on MIT. In addition, Scott led the development of a predictive analytics system that has reduced inventory costs for users by up to 20%.
Philip Kramer
Philip Kramer is the COO and co-founder of Smart FBA. He is the agency’s communications and systems expert. Before Philip entered entrepreneurship, he had a corporate job and was successful. But after years of hard work, he left his VP position to focus on building scalable systems and models. Streamlining operations and building cost-efficient solutions have always been his strongest suit. Philip has implemented operational strategies that have reduced overhead costs by 15%. He has sold over 8 figures using different online channels, including Amazon.
Cohen Chorabik
Cohen Chorabik is the COO and co-founder of Smart FBA. He has a proven track record and has helped numerous clients scale their Amazon business. Cohen has been featured in several prestigious publications. This includes Forbes, Yahoo, The Guardian, Business Day, and others. Like Philip, Cohen also left his corporate job to pursue digital consulting and entrepreneurship. Cohen's expertise in digital marketing has led to a 25% increase in conversion rates for his clients. According to Forbes, Cohen's strategic insights have been instrumental in helping over 50 businesses achieve significant growth milestones with some seeing a 40% increase in their annual revenue.
Is Amazon Wholesale Profitable?
Amazon wholesale is profitable if you do it right. There will always be a demand for popular branded products. Buying bulk at lower prices and selling at higher prices can bring a hefty profit. According to a survey by Jungle Scout, 61% of Amazon wholesalers reported making a profit within their first year of selling. However, you must take into account the risks involved in wholesaling. You must be prepared to take losses. You may end up with unsold stocks or lowered profit margins due to increased competition.
A study by Helium 10 found that 30% of Amazon wholesalers experienced a significant drop in profit margins due to market saturation. Then there are the hidden costs of Amazon FBA. You have to take into consideration seller's fees, storage fees, return fees, and many more. These fees can lower your profit margin or even bring it to a negative.
Branded products have some of the highest profit margins in Amazon FBA. Gaining access to restricted branded products requires your store to have a long good standing with Amazon. Amazon FBA providers like Smart FBA allow you to gain access early as they use their reputation. However, these companies often require a very high initial investment. Most also work using the profit split and charge a retainer fee if there are not enough profits made.
Profits are not consistent in an Amazon FBA wholesaling business.
You must be prepared to shoulder months where profits are low or even at a negative. FeedbackWhiz reported that 20% of Amazon wholesalers experience at least one month of negative profit annually. Compared to wholesaling, profit margins are often higher with Amazon FBA private label.
Is Amazon Private Label Profitable?
Amazon private label is profitable if you can create and market a good product. Private label gives you more control over the pricing and branding. This makes your profit margin higher than wholesaling. According to a study by Sellics, private label sellers on Amazon see an average profit margin of 25-30%, compared to 10-15% for wholesalers. As your brand will be unique, you do not compete directly with big brands. You can design your product more specific to your target customer. This can lead to better reviews and repeat purchases. A case study by AMZScout found that private label products with targeted branding saw a 15% increase in repeat purchase rates.
However, an Amazon private label business comes with a lot of risks. You will need a significant investment for product development, manufacturing, and marketing. If your product fails, then you face losing all your investment. Managing production and quality control can also be challenging. It can take a lot of work and money, especially when working with overseas manufacturers. Freightos reported shipping delays and quality control issues are common challenges faced by 40% of private label sellers. Any issues with your product will lead to returns and damage to your brand. It also takes a lot of time and effort to build a brand from the ground up. You will be spending a lot of money on marketing. A survey by eComEngine found that new private label brands spend an average of $5,000 on marketing in their first year.
Amazon Private Label Costs
Starting an Amazon FBA private label business involves several costs. You'll need a professional seller subscription and a product research tool. Product samples and quality inspection services are essential to ensure good quality. Bulk product orders, international shipping, and duties are significant expenses.
Branding and design, including logos and packaging, add to the costs. Optimizing your product listing requires investment in keywords, photos, and copywriting. According to Jungle Scout, the average initial investment for an Amazon private label business is around $7,300. But it can range from $3,000 to $10,000 depending on the product and market.
Create Predictable Passive Income With Local Lead Generation
Local lead generation is a business model that creates predictable passive income through the rank and rent method. As a type of digital real estate business, you earn by renting out your digital property. By ranking your site on Google, it will generate organic leads. You then rent out your site to local businesses who will benefit from the traffic. This leads to immediate and stable monthly income.
It costs as little as $500 to start and $30 a month to maintain. An Amazon FBA business can cost anywhere from $6,000 to $25,000 to start. It also costs a few hundred to a few thousand a month to run marketing campaigns. With local lead generation, you do not do any marketing or run any paid ads.
You only have to outrank a handful of websites on the local search results. While with Amazon FBA, you have to compete with hundreds or thousands of other sellers. A site can stay ranked on Google for years before even needing an update. As long as your site is ranked and rented, you will receive monthly rent.
Scaling an Amazon FBA business means investing more money into products and marketing. You will also need to spend on automation tools and outsourcing work. Scaling a local lead generation is as simply as repeating the rank and rent process. You can have as many sites as you want. This makes local lead generation the best business model for creating financial freedom.
I have done it for a year and spent 55K. More than half of my inventory is sold and I have 9K in my account. If you do the math that is a huge loss. They are telling me to keep investing and that my store will perform better the more money I invest. After a huge loss that sounds like insanity.