Automated Investments is an Amazon automation business by Shawn Megira. With a minimum investment of $10,000, Shawn will help you receive a 15 to 20% ROI each month after setting up an Amazon FBA AND FBM business. The goal is to keep reinvesting your profit to receive a cumulative sum at the end of each year. Then, after two to three years, you are encouraged to sell your business at a profit.
This makes Shawn’s business model different from others. Most Amazon Automation businesses offer a lifelong contract, and you are free to do whatever you want with the business for as long as you want. In Automated Investments, they recommend you to sell your successful Amazon automation business after two to three years.
Using personal capital for better investing potential
Automated Investments is a 100% DFY (done-for-you) model that handles everything you need to build an Amazon store, from choosing a product, sourcing them, managing inventory, writing product descriptions, managing accounts, and handling customer complaints and returns. Shawn explains all you need is the capital to get started. His business, on the other hand, earns through a management fee.
However, this business model is risky as you place your entire faith in a digital advisor to earn money through portfolio management. If your business fails or if your Amazon account is suspended, you have no control over what happens next. Further, because Shawn and his team manage your portfolio, you do not understand how the business works - which implies that you would not know if you were being cheated, the nuances of the business, or how to fix potential challenges.
This varies from local lead generation. This business model is easy enough to learn, yet complex enough to limit competition. You do not need a third-party automated investing contractor to manage everything for you and it is entirely plausible to set up your first local lead generation business within a month and start earning passive income. Unlike Amazon automation, which offers improbable returns, local lead generation gives realistic returns for minimal upfront capital.
In this Automated Investments review, I'll discuss the program, the benefits and disadvantages of automated investing, whether you need a financial advisor, and guided investing strategies to create your Amazon business.
Hands-off business model
Great income potential
New business, with no information about Shawn or his advisors and whether they are as successful as they say
Not everyone will be accepted into the program - only people who “pass” the consultation call will join the program
Not intended for long-term gains
You need to have at least $10,000 to schedule a call with Shawn and his team. This does not guarantee that you will be accepted into his program.
Automated Investments does not currently offer returns.
Automated Investments does not have any reviews, either on its website or in external sources.
What makes Shawn Megira’s Amazon Automation business different?
Shawn encourages you to build a successful Amazon business with core portfolios that you will sell after two to three years. Unlike other Amazon automation models, Shawn’s automated investing business is more short-term and allows you to receive a significant ROI after a few years.
In Automated Investments, Shawn works on a 60/40 model. You receive 60% of all profits and Shawn’s team receives 40% for their investment advice. There are no hidden fees and you can choose to keep adding to your initial investment to improve your inventory. In fact, Shawn recommends you hold off until after you sell your business to receive the entire profit of your capital. Whatever profit you receive each month through guided investing should be reinvested into your business.
What is in Automated Investments?
Automated Investments is a complete DFY program that earns through a 40% management fee. After providing the initial capital, Shawn and his team will handle everything from start to finish, including selecting the items to sell and how to sell them so that you build core portfolios and reach your financial goal. Shawn has partnerships with various global suppliers who will source your products, ship them to Shawn’s processing warehouse in New Jersey, before it is sent to an Amazon fulfillment center.
How do I get started in Automated Investments?
You need to have at least $10,000 and a good credit score to get started in Automated Investments. Even with these qualifications, you need to pass an interview with Shawn and his advisors to become part of their program. Shawn only works with a few clients each month to ensure complete attention to their stores.
Most clients prefer having Shawn start their businesses from scratch. However, if you have more personal capital, you can choose to buy an already established business (preferably from one of Shawn’s former clients) so that you can start strongly and earn more money each month.
Regardless, once you enroll, you will have immediate access to interactive advisors who will build your portfolio through guided investing.
What if I need more capital for my Amazon automation business?
Shawn says that ideally, your store should have at least $50,000 to $100,000 worth of products. This prevents you from running out of stock and potentially having customer complaints. A higher personal capital also means that you can purchase more high-quality items.
Shawn even mentions that investing more offers a higher chance to sell the business for higher profit, adding to your retirement account.
If you do not have this much money, Shawn says that he will help you find this funding, though he doesn’t clarify how.
Who is Shawn Megira?
Shawn Megira started as an entrepreneur when he was 13 using Tumblr and other popular social media platforms to market various products. He doesn’t explicitly state when he began his Amazon business, but he says that he’s been a business owner for several years now.
He started Automated Investments with other successful Amazon business owners with the goal of expanding their reach in Amazon and receiving better discounts from their suppliers.
What is an Amazon DFY system?
Amazon DFY businesses start and manage an e-commerce store for you so that you reach your investment goal. All you need is the personal capital to get started - the rest is done by the team of advisors. For example, Just One Dime, which is one of the most popular Amazon automation businesses in the market today, chooses a product for you, sources it from third-party suppliers, posts the item on Amazon, and manages the inventory.
Shawn’s model is the same. A human advisor will use your initial capital to buy more products from his supplier. Take note that you have no control over what products you will sell. In fact, Shawn mentions that one of the main reasons he started Automated Investments was to get better deals with his suppliers: the more orders he places, the less he has to pay for each product.
This makes Automated Investments a completely hands-off active investing Amazon DFY system. There is nothing you need to do or consider, other than earn money. This may seem attractive to some, but a DFY business doesn’t teach you anything about how it works or how you profit from it. You need to trust a stranger to earn money for you and this requires credibility, which Shawn lacks.
I’ve detailed this further in my article on 5 controversial facts about Amazon automation.
How much does it cost to start Amazon automation?
It depends on the company you choose for your core portfolios. However, most Amazon automation businesses require you to have at least $10,000 to even be considered. This is exclusive of any other fee they may charge for your investment account.
If you choose to build an Amazon FBA business on your own, you should have at least $2,500 to $3,000 to get started. This covers your initial inventory and any delays in receiving your first paycheck from Amazon. The $3,000 price tag also protects you from expenses that inevitably occur during the trial-and-error process.
Amazon FBA vs. FBM: Which should I choose for my company?
Choosing between Amazon FBA or FBM depends on how you want to build your business, what product you are selling, and how much control you want over your inventory.
What’s the difference between Amazon FBA and FBM?
With Fulfilled by Amazon (FBA), you send bulk products to one of Amazon’s many fulfillment centers for them to pick, pack, and ship once your products are sold.
Fulfilled by Merchant (FBM), on the other hand, allows you to list your products on Amazon, but requires you to handle storage (either in your own storage facility or a third-party warehouse) and shipment.
Both models have their advantages. So, which one is right for your business so that you reach your financial goal?
First, let’s consider these questions:
- 1Are you creating your own product (private label), buying it directly from a brand (wholesale), or buying it at a discounted price through retailers (retail arbitrage)?
- 2Are your products lightweight and easy to box and ship?
- 3How much control of your customer experience do you want?
- 4Where is your target market located?
- 5Where are you located?
Here’s a quick comparison chart of which method you should use based on the answers to those questions:
Amazon FBA is for you if:
Your items have a high sales velocity
Amazon FBM is for you if:
Your products are not selling at a fast pace
You do not want to fulfill your orders yourself
You are capable of fulfilling your orders and processing returns, if any
You do not have a well-established logistics network
You have a reliable shipping or delivery partner
You don’t have the space to store your products
You have sufficient space to store your inventory
Your items are small and lightweight
Your products are bulky and heavy
You don’t mind paying extra FBA fees
You want greater margins
You don’t have the bandwidth to provide customer support
You can easily provide customer support
Some other key facts you should consider:
Has Larger Profit Margins
Has More Sales
Realizes Profit Margins In Around Three Months
Requires Less Time Commitment
Takes More Time To Manage
It boils down to this question: Do I want convenience or agency over my products?
Using Amazon removes much of the weight off your shoulders, but it comes with a hefty price that reduces your profit margins. FBA requires patience and trust. Still, the model is a historically reliable solution for beginner sellers.
FBM is time-consuming and requires you to be involved with every aspect of your business. However, it is also more rewarding as you get to interact with your customers, launch faster, and have a higher chance of earning more.
Why should I choose Amazon FBA?
Access to Prime customers
FBA automatically makes you eligible for Prime shipping, which increases the likelihood of customers purchasing from your store.
Fast delivery & effortless Shipping
Amazon uses shipping carriers already in its network. The company, sometimes with a robo advisor, handles all the work for you, from keeping track of your listing to ensuring proper stock.
Returns management & customer service management
You never have to worry about dealing with irate customers or return complaints. Amazon handles returns and refunds as part of its fulfillment process.
Higher chance of winning Buy Box
This is the white box on the right of the product page. Sellers call this the “holy grail” of Amazon e-commerce, and for good reason: Winning the buy box significantly improves the chances of your product being sold.
KEEP IN MIND:
With Amazon FBA, you can focus more on selling, not fulfilling. If you’re just beginning, this may be a better option for you since you can pay more attention to developing great products and let Amazon manage the day-to-day operations.
Why should I choose Amazon FBM?
You have more control over your inventory so that you can reach your investment goal faster. This is especially important if you have to check your stock immediately for any defects or if you’re changing your replenishment schedule.
Amazon charges for fulfillment by size and weight, which results in higher FBA fees for long-term inventory and oversized goods. If you’re handling larger items with lower turnover rates, FBM can save you money.
Opportunity for Prime
The Seller Fulfilled Prime (SFP) allows FBM sellers to participate in Prime shipping without using FBA. The requirements for SFP are strict, but if you’re able to accomplish them, you experience the same benefits as FBA, such as increased sales potential.
Greater control over the customer experience
Want to have custom packaging? How about a personalized note for each sale? You can do so with FBM. You are in direct contact with your buyers, which can foster stronger customer loyalty.
More freedom to expand
You can use other third-party logistics providers for your goods. This gives you the ability to expand into other channels and potentially promote your products in different marketplaces.
KEEP IN MIND:
Amazon FBM gives you more control over your inventory, fulfillment processes, and customer experience. If one of your core competencies is logistics, FBM is more profitable – especially if you are selling large items such as furniture or bulky products such as dumbbells.
Is FBA or FBM better for my business?
Select which option is best suited for your business depending on these factors:
In most cases, Amazon FBA is preferred by beginner sellers with lightweight and popular products with fast turnovers. Conversely, it is better to go with Amazon FBM if you have a product with low sales velocity.
Can I start Amazon FBA with $500?
It is possible for you to start your own Amazon FBA with $500, though expect to have limited ROI. As with any business model, the more money you invest into it, the higher the profit potential would be. If you expect Amazon FBA to be a get-rich-quick scheme, then you will be disappointed. With a smaller capital, it may take you several months to see an actual profit.
Typically, however, it takes around three months to see some sort of profit.
Remember that if you choose to start an Amazon FBA with a small capital, you should reinvest any monthly profit into improving your inventory. So, even if you do well in your first month, it’s likely that you will only be able to experience passive income on Amazon months after you start. Again, we should not consider Amazon FBA as a get-rich-quick strategy; it takes time and money to build a successful business.
This is why some business owners prefer an Amazon DFY system, as it removes the burden of doing everything on their own.
Can you make a living on Amazon FBA?
Yes, it is entirely possible for you to earn through Amazon FBA and make this your full-time job. However, keep in mind that only 25% of all Amazon sellers (whether FBA or FBM) are successful, earning a monthly profit of more than $1,000. Most startup Amazon businesses fail after two years, which explains why many entrepreneurs are turning to other profitable online side hustles.
How much is it to buy an Amazon FBA automation?
This varies from company to company though most businesses ask clients to have at least $10,000. It is also important that clients have a good credit score, which is a FICO score of 700 and over.
What is the average profit with FBA?
Most Amazon FBA sellers earn around $1,000 to $2,500 each month but keep in mind that this refers to overall sales, not profits. You still need to pay Amazon fees and reinvest in your store. This means that your monthly profit margin may be below average.
Researchers say that it can take years for you to be successful, if at all. Starting an Amazon store may be less costly than building a physical store, but the competition is just as, if not more, tough.
You also need to choose the correct product each time: Some experts suggest seasonal items that can earn you more money in a limited time (such as face masks during the height of the pandemic) while others suggest only stocking up on evergreen products (such as toothpaste).
Is it hard to make a profit with Amazon FBA?
Earning with Amazon FBA requires trial and error. You need to sell profitable items, be able to market them correctly, have a reputable supplier, and be able to handle customer complaints and/or returns all at the same time. This may overwhelm new business owners and explains why 83% of most Amazon FBA sellers fail - the abundance of tasks is too much for a single person to perform correctly.
Why do sellers leave Amazon?
Most Amazon FBA sellers leave the platform because of an oversaturated market, constantly changing Amazon Terms of Service, and difficulties in finding the right product and keeping them ranked. This is on top of the fact that there are 6.3 million total sellers on Amazon, with thousands of new sellers entering the market each month.
Is Amazon automation a scam?
Amazon automation businesses are not a scam, but some companies within the industry are. There are accounts of owners not receiving their share of the profits or being completely left in the dark by their third-party contractors. Some Amazon automation businesses have been accused of receiving their client’s initial capital and running away, without setting up any store.
Is Amazon automation a good investment?
Amazon automation can be an excellent investment if you choose the right company. Before selecting any company, it is wise to do your due diligence and research on the company to make an informed decision.
Nevertheless, Amazon is already a saturated business. Even if you do partner with a reputable company, you will be competing with thousands of others.
CONCLUSION: Is Automated Investments worth it?
Automated Investments is not worth it. As a fledgling business, the company does not have any proof that its strategies work. Shawn Megira himself is unknown in the industry, though he claims differently. His business model is unique, in that he encourages you to sell your business after it becomes successful, though you may opt out of this and keep your business running for however long you want.
Automated Investments has a 60/40 payment scheme which may seem expensive for some. Some business models have a flat rate, regardless of success, but a percentage-based model may also be profitable depending on external factors, which you have no control over.
It is likely that Amazon automation businesses will continue to be popular in the future, so there is no rush to invest in Automated Investments. It would be better to wait until the company has had more success stories so that you can make a more informed decision.
Even then, Amazon automation is filled with several challenges, not least of which is oversaturation. Even experts experience challenges with the platform, and thousands of new sellers appear every day. Nothing really differentiates Shawn’s model from others, and you have the added disadvantage of depending on another person to earn you money. You have no control over anything and should worse come to worst, you will be left with nothing.
This is why many entrepreneurs are quitting Amazon and are looking at other online business models, such as local lead generation. In this business model, you build a website that caters to a specific audience in a local area. Local lead generation has a fairly easy entry point and does not require a large capital to get started. Best of all, you learn new skills, which are priceless benefits that last forever.