What is Amazon automation?
Amazon automation is leveraging available processes, services, and technologies to partially or fully automate the revenue-generating operations of an Amazon business. Instead of manually performing all the job functions typically required to successfully sell on Amazon, Amazon automation eases the workload by outsourcing tasks. Amazon automation allows an Amazon seller to generate revenue without being responsible for doing all the work themselves.
How does Amazon automation work?
Amazon automation works by paying a service or software to automate the tasks of an Amazon business. These tasks can be as simple as overseeing the inventory management of an Amazon store to as complicated as running an entire store without any oversight from the store owner.
Amazon automation is an umbrella term that encompasses multiple methods for automating an Amazon business, including:
- Amazon FBA
- Amazon automation services
- Amazon automation tools
- Amazon VA automation
What is Amazon FBA automation?
Amazon FBA automation is outsourcing order fulfillment-related operations to the Fulfillment by Amazon (FBA) service. With Amazon FBA automation, an Amazon seller automates inventory storage, picking and packing products, shipping to the customer, customer service, and returns processing by letting Amazon handle it for them. 73% of all Amazon sellers use the FBA program to automate their Amazon business, according to SellerApp.
What is an Amazon FBA automation service?
An Amazon FBA automation service is a company that does account management for third-party Amazon sellers. Amazon automation services work by having third-party sellers pay substantial fees to have their Amazon store managed and operated by a team of Amazon selling experts. Amazon automation agencies are sometimes referred to as investments because you pay a large sum of money up front to have someone else run your business and earn you profits. Therefore, it’s similar to an investment because you put your money on the line in anticipation of a financial gain.
Amazon automation services typically charge between $10,000 and $55,000+ to run your Amazon store for you. On top of that, you’re also responsible for providing the capital for product inventory, which can cost anywhere from $5,000 to $20,000. Many Amazon automation services also use a profit share system as well. Therefore, besides the upfront investment, you’ll also have to share some of your Amazon profits with the automation service.
Who does automation for Amazon?
4 Issues with using an Amazon automation service
1. They have no skin in the game
An Amazon automation service reaps the benefits of your Amazon store without sharing in the costs. Although an automation service is incentivized to do well to earn some of your Amazon profits and get a positive review, it’s not the same level of commitment as someone who invests their own money. You would likely do more to ensure the success of your own business than an Amazon automation agency that receives thousands of dollars from you upfront before producing any results would.
2. Less profitable
These days, Amazon profit margins are notoriously thin. According to the Washington Post, Amazon keeps over 50% of seller revenues on average in fees. Furthermore, factors like increasing seller competition and rising product sourcing costs are contributing to thinning margins on Amazon. Considering that many Amazon automation services will expect you to hand over 15% to 50% of the little profits you do make, you'll probably earn fewer profits than you would expect.
3. You don't gain Ecommerce skills
One of the most valuable things you can get out of having an Amazon business is learning high-value Ecommerce skills. The Ecommerce industry is expected to continue growing considerably over the coming years, which is one of the reasons many are investing resources to learn Ecommerce skills. By letting someone else run your business for you, you miss out on learning how to do Ecommerce yourself. Even worse, if the automation service you’re Amazon FBA business is working with ends its service, you won’t be equipped with the necessary skills and knowledge to take over your own business.
4. Account suspensions are common
Many Amazon automation services, like Roughnecks Ecom, use a method of dropshipping that is illegal on Amazon. As such, it’s not uncommon for businesses using Amazon automation companies to eventually get their seller accounts suspended or even banned. Getting an account out of suspension is very difficult, which is why, for example, Roughneck Ecom charges $6,000 to assist their customers in overcoming Amazon suspension. Furthermore, opening a new Seller Central account usually doesn’t work to get out of this situation because, according to Amazon policies, you may only maintain one Amazon Seller Central account for each region you sell in.
What is Amazon automation software?
Amazon automation software are digital tools that automate routine tasks related to running an Amazon Ecommerce business. Amazon automation softwares enable you to streamline your online business processes and save time.
What is the best Amazon automation software?
What is Amazon VA automation?
Amazon VA automation is hiring a virtual assistant with Amazon expertise to help run your business. Virtual assistants for Amazon automation can be found through freelance marketplaces like Fiverr, Amazon-focused virtual assistant agencies, or by networking with other Amazon FBA businesses. Starting for as little as $5 an hour, an Amazon VA can help automate aspects like:
Is Amazon automation legit?
Yes, Amazon automation is legit. There are various software and services available to help you run your Amazon business more effectively or even fully autonomously. However, you should verify that there are an outstanding number of positive customer experiences with whatever software or service you choose so you don't accidentally fall for an Amazon automation scam. For example, many people lost substantial sums of money by opening an Amazon automation store through Kevin David. In 2022, the US Federal Trade Commision took action against Kevin David and his business partners, stipulating that Kevin David turn over $2.6 million after deceiving countless people with Amazon automation moneymaking schemes.
How to start Amazon automation?
- Decide what to automate - Lay out your business goals and circumstances. Some may just want to help automate a single task like product research, while others are keen to generate Amazon sales on autopilot.
- Choose an automation method - Once you understand your business goals, you can choose an automation method or combination of methods that best fit your business needs. For example, Amazon FBA can automate customer orders, while a software tool can handle marketing automation for your business.
- Research automation solutions - Whether you find an easy-to-implement automation tool or go with a comprehensive automation service, there are countless Amazon automation solutions available on the market.
- Implement your chosen automation solution - Apply the automation solution into your business workflow.
- Assess if the automation solution is fulfilling its purpose - After a sufficient period of time, determine if the automation solution is fulfilling its intended purpose.
Other definitions for Amazon automation
What is automation analyst in Amazon?
An automation analyst in Amazon is an information technology professional. The role of an Amazon automation analyst is to develop quality control procedures for systems and softwares at Amazon. The skills required to be an Amazon automation analyst are:
- Problem solving skills
- Understanding of HTML, X-Path, Regular Expressions, and SQL
- Technical support ability
One can prepare for the Amazon automation analyst interview by practicing coding related to sorting algorithms like SQL queries, regular expressions, groups, and sets.
What is AWS automation?
AWS automation is using Amazon Web Services to automate manual tasks like container management, configuration management, or developing and testing new workflows. AWS is a service through Amazon that offers on-demand cloud computing platforms to businesses and individuals. AWS is the world's most comprehensive and utilized cloud platform that offers users extensive capabilities in terms of automatically scaling operations. AWS automation works by running code to automate the management and configuration related to a business’s Amazon Web Services resources.
An example of an automation tool AWS is Lambda. With AWS Lambda, you can run code for any type of application or backend service without managing servers or provisioning to scale efficiently.
What is Amazon robotics automation?
Amazon robotics automation is an Amazon fulfillment center leveraging the capabilities of robotic support to operate more efficiently. Amazon Robotics is a company based in Boston that develops and manufactures robots to enhance the speed and accuracy of the Amazon warehouse.
Amazon automation FAQs
Amazon automation store is when a third party company completely runs an Amazon business on behalf of the Amazon account owner.
An Amazon automation store costs anywhere from $20,000 to $100,000+ depending on the automation service and which Amazon business model they use.
Amazon automation business is a business that outsources the work of running its Amazon store. Amazon automation business could also mean the service provider who performs Amazon automation services for customers.
Amazon automation investment is investing into an Amazon automation store. The automation service usually handles everything from business set up and establishing a supply chain to email marketing and customer engagement for the business owner.
Amazon automation program is a program offered by Amazon automation service providers allowing businesses and individuals to invest into Amazon automation stores.
Amazon automation strategy is the blend of various automation methods used to automate the operations of an Amazon business.
Amazon automation is not illegal. Amazon even helps sellers to automate operations through their in-house FBA program. However, many Amazon automation services use the dropshipping Ecommerce business model and most forms of dropshipping are illegal on Amazon.
How does Amazon automation compare to local lead generation?
Amazon automation entails investing into software and services to automate selling Ecommerce on Amazon while local lead generation is investing resources into setting up websites that generate income by connecting service businesses with customers. Both Amazon automation and local lead generation can provide passive income. However, many find that local lead generation provides higher amounts of passive income at a fraction of the cost. Instead of paying tens of thousands of dollars like an Amazon automation store requires, each local lead generation website costs just a few hundred bucks to set up and run and typically makes between $500 to $3,000/month in profit.