FBA Startup is an Amazon FBA online course created by Brian and Arek Zabierek- also known as the Zab Twins. It is an FBA course that uses private labelling and outlines everything you need to know, from creating your LLC and setting up an OFX account to using ranking logic, ManyChat, and other useful tools to help you launch your product effectively.
The twins also offer to guide you every step of the way by providing one-on-one and group coaching.
Fulfillment by Amazon has many useful features to free up your time, but in the end, you'll spend many hours researching your product, looking for a supplier, developing your brand, managing your orders, and many more.
For a much more passive business model, consider local lead generation. Local lead generation is the process of ranking a website on google that promotes a service. Once that site is ranked, it requires little to no maintenance. Not only does this give you more significant passive income, it also provides more security and stability.
Who Are the Zab Twins?
Just like most successful entrepreneurs, the Zab Twins started out as 9 to 5 employees who were escaping corporate hell to finally achieve financial freedom.
They looked into other business models such as dropshipping, affiliate marketing, and social media marketing. Ultimately, Amazon FBA came out on top as the most profitable business model. They even claim that FBA can largely outperform and dominate the real estate industry if executed properly.
They were able to crack the code by finding a unique product that isn't oversaturated, privately labelling it as their own, and successfully launching and advertising it on Amazon. Consequently, they decided to share what they learned to the public by launching their own FBA Startup course for the average Amazon seller. Their focus was rooted in helping others launch their own FBA business and achieve the same success they did.
One of their main objectives was making it easier for other people to understand FBA and how it works because they themselves experienced “information overload” when they first started their venture.
They also claim to be the “Best Amazon FBA course” on the internet because they have a blueprint that is "proven and tested".
As of May 2021, the twins have amassed over $1 million in sales and have coached hundreds of aspiring FBA sellers online.
This Amazon boot camp has hidden actual costs, but the twins recommend having a starting capital of $4000 before taking the program and starting an FBA business and becoming an Amazon FBA seller.
4 Challenges and Dangers of Amazon FBA That Coaches Are Not Telling You
Entering Amazon’s market puts you up against a plethora of issues, such as product over-saturation, costly fees, competition against established sellers and brands, and many more.
While working with Amazon gives you access to premium features such as Amazon Prime, Amazon Seller Central, Amazon Brand Registry, and access to an Amazon warehouse, working with a trillion-dollar company does not always guarantee positive results and profitable margins.
Here are 4 dangers and challenges FBA coaches are not telling you.
The Amazon Market is Saturated
As of February 2022, Amazon has approximately 12 million products across all its inventories and services. However, if we include third-party sellers and businesses, that number inflates to around 353 million across all Amazon platforms.
One of the biggest roadblocks in launching an Amazon FBA business in 2022 is finding a product that is low in supply, but high in demand. Given the amount of products Amazon currently stores in its warehouses, coming up with a product that is unique, original, and profitable would be extremely difficult. This is just one of the reasons Amazon FBA is a bad idea.
Increased Competition
Back in 2021, Amazon had a total of 6.3 million third party sellers, 1.5 million of which were active. Third party sellers were also responsible for approximately 57% of total sales in 2022.
Starting an Amazon FBA business entails having to go to head-to-head against an increased amount of competition, which includes established brands, Chinese stores that sell cheap products, and even Amazon itself.
Amazon currently has over 130 private brands, one of which is Amazon Basics. However, not all their brands use the name "Amazon", which can be tricky when researching about what you're up against.
On top of that, some suppliers and manufacturers are even entering the market themselves, which is bad news for first-time sellers who are searching for a cheap, low-cost product supplier.
Costly Fees
One of the biggest pitfalls when it comes to FBA are the expensive rates that Amazon charges. Sellers often have a hard time making a profit and preserving margins because they're forced to pay off Amazon's fees using their hard-earned money.
Sellers are required to pay a variety of necessary fees that often pile up very quickly. These include:
- Referral fees: Fees paid to Amazon for each item sold on the Amazon platform.
- Individual per-item fees / Subscription fees: These fees are taxed for every completed transaction you make. Individual accounts are charged an individual per-item fee, while professional accounts are charged a monthly subscription fee.
- Refund administration fees: Whenever a client asks for a refund, Amazon charges a fee to process the refund before it pushes through.
- FBA fees: Fees that depend on the size and weight of your product/s.
- Storage fees: These are charged on a monthly basis. However, products that have been stored for 365 days are charged $6.90 per cubic foot of storage used.
- Miscellaneous service fees: Fees that are paid only by sellers that meet certain requirements. These often include closing fees, high-volume listing fees, and rental book service fees.
Read our full breakdown of Amazon FBA startup costs to know more.
No Control
Keep in mind that Amazon, just like you and me, is a business that seeks to make as much profit as they can, while doing it on their own terms. Once you launch your business on Amazon, you play by their rules and not yours.
Amazon has full control over your account and can practically do anything they want, even without warning you. Amazon has garnered a notoriety for suspending accounts without a proper warning or notice, which can be detrimental to most sellers, both FBA and non-FBA.
Although Amazon does reinstate suspended accounts, it typically takes months before the suspension is lifted, causing sellers to lose out on a lot of potential revenue.
Simply put, being a stable and established FBA seller is out of your hands once you join Amazon.
FBA Startup Pros and Cons
Working with the Zab Twins entails a variety of risks and benefits, just like any other Amazon FBA Course. No matter how tempting their claims and promises are, it is always better to do further research before putting out any money.
Here are a few pros and cons we’ve gathered to help you understand the course and make an informed choice.
Pros
Cons
Price
To know the price, you must book a call with them. However, they recommend a starting capital of over $4000.
Refund Policy
Not stated or mentioned.
Origin
2020
Reputation
Little to no reviews. The only objective analysis that can be found are youtube comments saying that they might be a scam, just like other FBA coaches.
If this course doesn't sound right for you, consider FBA Roadmap.
FBA Startup Clusters
The program includes a variety of clusters that serve as a blueprint for “successfully launching and scaling your FBA business”. These clusters will serve as the general outline of the processes including in launching your own FBA business.
Selling a product is easy, looking for a product that sells is not.
According to the Zab Twins, there is an easy way to search for products that sell. They use apps such as Helium10 and JungleScout to search for products that have little competition, existing revenue, and has trending growth to guarantee sales.
Another sales tactic they practice is bundling products and identifying niches that appeal to the masses.
For example, packaging a gaming mouse with an RGB mouse pad is a surefire way to generate more sales since consumers typically purchase a mouse and a mouse pad together.
One of the most crucial aspects of developing a product is negotiating with a supplier to get the lowest possible price while forging a long-lasting business relationship.
The twins have planned a variety of methods and scripts that, according to them, are guaranteed to give you the lowest supplier costs while ensuring a healthy working relationship with a supplier of your choice.
Branding is one of the most essential parts of selling a product. If nobody knows what your product is, then how can they buy your product?
According to the twins, one good way to do this is to implement best SEO practices such as using the right keywords and investing a little in Amazon Advertising or Amazon PPC (pay-per-click) to boost your listings and products.
The twins promise to find a product for you in just under 24 hours, provide you with the right supplier and help you get the lowest prices possible.
They vow to do all of this in just 3 days and guarantee to get you on track for $10,000 in your first 10 weeks or up to $100,000 a month, with a step-by-step plan and constant support.
FBA Startup Modules
The program contains 6 modules which serve as a step-by-step blueprint for launching your first FBA business.
Each module contains an overview, a set of goals that are to be accomplished, downloadable content, and specialized topics to further assist you in setting everything up.
The Mindset Training module is focused on helping you develop the right mindset before starting your FBA business.
This module includes the following topics:
- The Business Mindset
- Drive and Motivation
- Eliminating Past Negative Situations
- The Power of Time
- Time Management
- Creativity and Resourcefulness
- How FBA works
Before you sell, it is crucial to set up your account properly. This module teaches you how to set up your account using these topics:
- Setting up a Limited Liability Company (LLC)
- Setting up an Amazon account based on your location (Amazon USA, Amazon UK, or Amazon International)
- Applying for an Employee Identification Number (EIN) for Amazon accounts in Canada
- Opening a bank account for your business
- Creating an Open Financial Exchange (OFX) account to receive international payments
- Using Google Drive to organize files and documents
- Bookkeeping and Accounting with Matt Remuzzi from CapForge
Searching for the right product is an important aspect of successfully launching an FBA business that consistently sells and returns margins. This module contains the following resources that will help you find and identify which product to sell:
- Product and Categories Restriction
- Product Research Tools
- Product Organization and Search Criteria
- Viral Launch Product Discovery
- Amazon Category Search and Best Sellers
- Amazon Suggested
- Storefront Searching
- Competitor Tracking
Sourcing refers to the process of identifying and establishing a supply channel for your product, usually third-party manufacturers, at the lowest possible price.
This module is designed specifically to help you find the right supplier and to help you maximize profits with the following subtopics:
Pre-Order Sourcing
- Alibaba Organization and Initial Outreach
- Supplier Interaction and Vetting Suppliers
- Running Initial Profit Margins
- Working with Multiple Suppliers / Bundling
- Introduction to Shipping
- Harmonized Tariff Schedule (HTS) Codes and Duties
- Finalizing your Supplier and Negotiating
- Budget Worksheet
Shipping and Logistics
- Brand Approval
- Global Trade Item Number Exemption and GS1 (GS stands for Global Standards)
- Getting your Fulfillment Network Stock Keeping Unit (FNSKU)
- Troubleshooting for Correct FNSKU
- Amazon Prep Requirements
- Creating a Shipping Plan
- Shipping Labels
- Inspections
- Working with third-party logistics (3PL) & Amazon Standard Identification Number (ASIN) Inventory Limits
Branding plays an important role in ensuring that your product gets advertised and marketed as much as possible, in the most cost-effective way. There are 3 common types of branding that Amazon FBA sellers use:
- Private Label: Private labelling is the process of ordering unbranded products in bulk, usually from Chinese manufacturers, and using your own brand to label them. A product that undergoes this process is called a private label product.
- Retail Arbitrage - Similar to garage sale flipping, retail arbitrage is the process of searching for cheap or discounted products and then selling them at a higher price.
- Wholesale - Just like private labelling, wholesaling is the process of buying products in bulk at the lowest possible price. However, wholesaled products cannot be privately labelled since they are typically branded by famous brands and companies.
Listing Optimization is the process of optimizing an Amazon Listing, or any generic product listing, to boost rankings and generate more traffic and exposure, which then potentially increases chances of sales and conversion.
This module serves as a guide in coming up with an interesting brand and effectively optimizing your listings:
- Brand Name Trademarks
- Getting your Logo Designed
- Working with Designers
- Keyword Research
- Building your Listing
- Building your Listing with Viral Launch
- Copy Writing
- Images
Once you’ve accomplished all the preliminary actions and necessary steps needed in building your product from the ground up, the only thing left to do is to launch. This module lists down everything you need to know before launching your product:
- Ranking Logic
- Product Pricing Strategy
- Building a Ranking Strategy
- Super URL
- Rebate Key
- ManyChat Launch with Elite Seller
- Keyword Tracking
- Using Sales Tracker
Other FBA Courses and Programs
FBA Startup Testimonial: How Curtis Made $24,000 in 60 Days
Curtis' Background and Story
Curtis is an electrician who used to spend his evenings just watching Netflix before he discovered a side hustle that made him a lucrative income. He was inspired by his brother who also owned an Amazon store. He signed-up to the Zab Twin's FBA Startup program to enhance his knowledge on this business.
How Curtis Achieved $24,000 in 60 Days
How Is The Business Doing Today
Curtis' Amazon business is doing well today. He made $24,000 in sales in just 60 days. Most of his sale came from the last 30 days. He continues to use PPC to drive traffic to his stores. According to him, a big part of his success was his cost-effective PPC (Pay Per Click) advertising strategy which cost about 16-18% of his sales. This also shows he's making good profits by spending smart.
What's not mentioned in the interview: Although PPC campaigns are one of the most used marketing strategies of Amazon sellers, it's not always effective. Internet users have developed 'ad blindness,' where they subconsciously ignore ad sections on websites.
Is FBA Startup Legit? Do the Zab Twins Actually Care About You?
FBA Startup claims to guide you in building an FBA business from scratch and promises to help you reach $10,000 in just 10 weeks - but so do other FBA courses and programs.
Despite the doubt and skepticism surrounding online courses, the Zab Twins seem genuine and compassionate about being able to help other online entrepreneurs launch their own FBA business. In addition, they have a clean record and have never been involved in anything questionable.
However, the biggest issue with FBA Startup is the business model itself. Amazon is such a saturated marketplace with over 4 billion products listed on the platform. Managing inventory is also another challenge for Amazon sellers. Stockouts can lead to lost sales and decreased visibility in search rankings, while excess inventory ties up capital and incurs storage fees.
On top of that, there's also an overwhelmingly tough competition against established brands. For these reasons (and a few more), 80% to 90% Amazon sellers call it quits.
Instead of building an Amazon store without guaranteed profits, better build digital assets that generate long-term wealth. My recommendation is a business model called local lead generation. This biz builds simple websites for the local service sector like plumbers, tree care, and towing companies. Ranked sites generate leads you can sell at 85% margins, which is so much better than Amazon FBA's 15% to 20%.
What I like about local lead gen is that you have full control of the business, whereas Amazon can suspend your account or take down your listing anytime. Running an Amazon store requires hands-on work and close monitoring, while owning digital assets earns an income even in your sleep.
Local Lead Generation, on the other hand, is an online business that eliminates these uncontrollable issues and provides a stable source of passive income. With local lead gen, all you have to do is create a website that ranks highly, allow local businesses to generate leads through your website, and keep it active for local businesses to use.
