In Tom Wang's FBA Masterclass, you learn how to take boring, everyday products that you source unbranded from China, put your own brand on it, buy & ship inventory to a FBA warehouse, list & optimize your new product listing on Amazon and use Tom's Rank & Bank system to rank the listing so that you can start getting organic sales / residual income from Amazon's 200 million prime user base. In this review, we'll cover if this program lives up to the hype? How does it compare with other Amazon FBA courses? Realistically, how much does it cost to start an Amazon FBA business? What does an average seller make?
Tom also teaches you an effective strategy to find the cheapest products possible so that you earn better profit margins than most other Amazon sellers.
Before we get into all that, let's just address 5 controversial topics right now.
Controversy 1: Misleading Income?
Tom Wang posts testimonials of students making $100K per month for example, but it's misleading because this is revenue not profit. These Amazon stores are profiting around 15% which means when students make $100K revenue, they're only taking home around $15K net.
Controversy 2: Is Tom Wang still running Amazon FBA business?
It's not clear if Tom Wang is still running and gunning a high level Amazon business or is he just focused on selling the coaching? Because the Amazon landscape changes constantly, if Tom is not continually launching new products himself, can he really teach this business at a high-level? For example, Tim Sanders constantly shows his Amazon seller account on his YouTube channel to prove that he's running a 8 figure Amazon business. Tom never does. The only story he tells is his Sdara Skincare brand that he sold & exited already..
Controversy 3: Lack of Transparency of the Startup Cost
"How much does it cost to start an Amazon FBA business?"
Tom Wang never answers this question directly. He says it can cost few thousands dollars to $10K, $20K or it can even cost $100K, it all depends on how much money you have and what product category you get into. This is not very clear to a beginner. Amazon FBA will be extremely difficult if you have any less than $5K to start because its a physical product business, you need to buy inventory in bulk. Tom doesn't want to scare people off by saying this flat out because he's selling a course that costs $6997 so you're looking at having at least little over $10K to invest in the Amazon business and Tom Wang's program. If you make any mistakes in the business, you will have to spend more.
Controversy 4: FBA Masterclass might be the most expensive Amazon coaching program
FBA Masterclass clocks in at $6997 which makes it the most expensive Amazon FBA program we have reviewed. The other expensive courses that we have reviewed include Private Label Masters at $5000 and Amazing Selling Machine at also $5000. Tom Wang seems to know what he's talking about, but there's other coaches today providing great Amazon training for cheaper. We have checked online for any major complaints or people claiming Tom Wang is a scam and we have not found any, so his training seems legit if you have the money for it.
Controversy 5: Tom Wang lacks business experience
Tom Wang only has 2-3 years of success on Amazon when their skincare product line Sdara did really well and he sold the brand in December 2020. There's some luck involved there in his success and he hasn't truly proven that he can repeat his success on Amazon or other business ventures, besides some Airbnb. A lot of Tom's business tips seem to come from different stories he has learned from his students or various business people he has interviewed on his podcast. Which makes his coaching content feel bit shallow at times. It doesn't seem like he's in the trenches everyday taking big risks, and grinding at an actual business other than being an online guru.
Controversy 6: Amazon FBA is difficult for many people
Out of all the online business opportunities out there. Amazon FBA has the toughest competition (Foreign manufacturers & suppliers) and it has the most variables that can go wrong that you have no control over. (ex: your supplier ships a bad batch of inventory and you get hit with negative reviews from customers) Despite these challenges, you can still succeed with enough tenacity but the question is, just because it worked for some students doesn't mean it's the most ideal business for you. Local lead generation is a completely different business model that's more predictable and it also gives people a great opportunity to start a side income that can eventually allow you to quit your 9 to 5.
FBA Master Class Pros & Cons
Tom Wang is a 7 figure Amazon seller.
Tom Wang doesn't coach a bunch of other online business models. His focus is Amazon FBA.
His strategies are up to date.
Support provided is solid in the group.
The course is on the pricey side.
His model of selling low-ticket products takes a while to generate good profits.
Amazon FBA is more competitive than ever before, lack of transparency on potential failed product launches even if you follow the training to a T.
Tom Wang's FBA Masterclass costs $6997. There are some payment plans available.
13 modules containing 300 lessons of updated content; DFY templates and systems
FBA Masterclass Private Facebook Community
Tom Wang started FBA Masterclass in 2019, after he became a 7 figure seller. He started Amazon FBA in 2017. YouTube channel started in 2018.
After scanning Reddit, Quora and comments in his YouTube videos. Tom Wang has a solid online reputation.
Who is Tom Wang?
He initially discovered Amazon FBA from a friend that he partnered with. They had some success, but they also failed a lot. In 2017, Tom hired some Amazon coaches. He finally saw success and could quit his 9 to 5.
In 2019, he did $3 million in sales on Amazon and has done $5 million in sales total. He also started speaking in local entrepreneurship conferences in Vancouver, CA.
Today he runs his FBA Masterclass coaching program, runs a YouTube channel with 30K subsribers, and has a podcast called the Tom Wang Show, where he shares free Amazon FBA tips like below, business insights & personal development topics.
What would Tom Wang do differently if he started Amazon FBA in 2024?
Tip 1: Figure out ways to differentiate your product. Create new mechanisms that you might even patent. Talk to actual customers of the product about specific issues they're having or desires they might have. Read the negative reviews. Talk to your manufacturer on ways to fix those negative feedback issues or implement improvements.
Tip 2: Learn to build an audience. Use Tik Tok, Youtube Channel, Create Facebook Groups. So you can nurture a relationship with your audience.
Tom Wang's Net Worth?
Tom Wang's net worth is estimated to be $2 million.
He has done $5 million in sales on Amazon and he has a coaching program.
If you take the average 25% profit margin of Amazon, you're at $1,250,000 net profit.
A coaching program he sells for $6997. Has around few hundred students, which equals a revenue of around $3,000,000 since 2019.
Deduct around $250K per year in living expenses & business expenses over six years that's $1.5 million to deduct. You're at $2.75 million net, take out 30% in taxes and you got $1,925,000
What Does Tom Wang Teach Inside FBA Masterclass?
Tom Wang teaches Amazon Private Label, making your own brand on unbranded products that you source from China. Tom likes to target boring, low-ticket products that people use daily.
Step 1: Product Selection
The reason Tom likes to target "boring" products that people use daily is because those products get impulsive purchases. When a product becomes high-ticket, people spend weeks or months on research. Therefore, he recommends picking products that sell for $50 or less.
He teaches the use of Viral Launch for Product Research. It's a $69 per month software but its one of the best. He shows you what parameters to enter so the software can quickly filter which products you should target, such as a minimum of 3,000 searches per day and fewer than 100 reviews.
Step 2: Rock Bottom Sourcing Process
When you're selling low-ticket products, even $1 savings can be worth a lot (5%-10% more in profit margins). Therefore, Tom Wang teaches his students to contact 40-60 different Chinese vendors and manufacturers while most FBA sellers only contact 5-10.
You're working with razor-thin margins when you're buying at unit prices of $1-$2 like he recommends.
He then recommends ordering the sample or hiring an inspection company to validate the product quality of the vendor you find. Tom also shows you the art of negotiation by only paying a deposit of 30% or so and only paying the rest once they pass the inspection.
Once the product passes, then you will need to order at least 1.5 months worth of inventory and get it shipped to a FBA warehouse in the states. This can take over a month.
Step 3: Rank and Bank System
Tom Wang's rank and bank system involves optimizing your Amazon listing with professional photos and copywriting and then using PPC campaigns and social media ads (paid traffic) to drive traffic to your product until you get enough reviews to rank.
Although Facebook ads and Google Adwords can drive traffic. The biggest bang for buck is going to come from Amazon's sponsored ad platform or their PPC ads. Where you can place your product listing at the top rankings in front of thousands of people that are already looking to buy your product. People on social media is cold traffic (not looking to buy, therefore much more difficult to convert into buyers).
Tom Wang likes to put special names to these various steps of the Amazon FBA business. But for ranking your listing, all top sellers agree. You need Amazon PPC or Pay per click.
Success rate of FBA Masterclass? & How much do Amazon sellers make?
The average Amazon seller makes $1000 to $6000 per month in net profit.
Top Amazon FBA coaches all agree that if a student can stick it out with massive action and persistent attempts for at least 2 years, there's no way that student won't succeed.
The problem is that most people quit too soon. Or some never give this business a genuine attempt. Many people like to dabble, never fully commit, get shiny object syndrome.
Expect failed product launches
Look, most product launches will not go the way you had hoped. If it was that easy, everyone would be doing it. Even if you follow Tom Wang's product selection training using the "gold mining tool" aka Viral Launch. You have no control over what the customers will do. How they'll respond to your product? Maybe the manufacturer's quality was not as good as you thought. Or another competitor comes in with a superior product. Maybe the PPC was more expensive than what your budget allows?
Having unrealistic expectations is one of the biggest reasons Amazon sellers fail. Amazon FBA business has a lot of different moving parts. Many variables outside your control. It takes time & mistakes to learn all the lessons & skills. The ultimate teacher is experience. Be willing to invest & risk money, otherwise you'll give up at the first sign of difficulty.
is FBA Masterclass Worth It?
These are what some attendees of Tom Wang's 2-day workshop in Vancouver, CA had to say.
"After day 1, I was like holy crap I think I can actually figure this out. and then after day 2, you go through the checklist, you can literally just follow the steps. You don't have to browse around Google anymore and try to figure out what to do. It's all laid out there for you. So I'm very confident after I'm done and walk out the door that I can become the next big Amazon seller." -Jason
"There's a lot of free stuff you can find on the internet but it's so clustered, you get information overload. But Tom really breaks it down to actionable steps that you can take. This is crucial because you can get stuck in research and you don't take action. Tom makes it simple so that you take action, which is what matters." -Ting
My Thoughts: FBA Masterclass will be worth it if you're ready to commit to this business model at least 2-3 hours every day and take action. You should also have ideally $3000 to $5000 set aside and a source of income that you can use to invest into the business if any mishap takes place.
Coaches like Tom Wang that's been there and done it, can simplify the business for you and help you avoid costly mistakes in money & time.
FBA Masterclass Alternatives?
Amz Champions by Trevin Peterson is a solid course if you need a more affordable option. The course price is $1500. Trevin has launched 40+ products to date, and he does live coaching sessions once per week. There's also a private Facebook group as well. Trevin is younger though, so I feel Tom has a lot more business & life experience. Anyway for more info you can check out my Amz Champions Review.
Kevin David? Some of my readers have asked about Kevin David. He has been running tons of ads on his Amazon course over the years. At this point, I cannot recommend him because it seems he has not updated the training for his Amazon FBA Zon Ninja course in a while. He also promotes too many other programs, and his latest Amz Automation raises a lot of red flags with $30K investment required to get started with tons of risks.
Is Amazon FBA still profitable?
Yes, Amazon FBA can still be profitable, if you're willing to treat it like a business that requires constant care & attention. The days where you can launch a few products, sit back and make passive income forever is gone. The competition is much more fierce than 4 years ago. Which is why sellers need to continue to reinvest profits to launch more products.
No, it is not too late to start Amazon FBA in 2024, but as more brands & manufacturers do FBA themselves, 3rd party sellers need to innovate on products & marketing to stay ahead.
According to Jungle Scout, everyday 4,000 new sellers to join FBA, however there's also more Amazon prime users as time goes on. Amazon accounts for 50% of all online e-commerce sales. There is still opportunities for the small guys to get a piece of the pie, however you have to employ some creative strategies to stay ahead of the curve.
Tom Wang's course is not cheap at $6997, but he has solid credentials and teaching abilities that will make this investment worth it if you put in the work.
Amazon FBA Alternate Business That I'm Involved With
I'm still a fan of the Amazon FBA business model, however it's no longer my #1 choice. The main reason being that I believe it's too easy for big companies / manufacturers to get in the game and they have too many winning advantages. They can drive the price down and destroy profit margins overnight.
The business model I love is local lead generation. Simple but provides profoundly profitable & stable passive income source. I have websites from 2015 that make me $500 to $2000 per month in profits and I hardly ever have to touch these sites.
To find out more info on this business, check this out local lead generation program