There are so many opportunities to make money online and becoming an Amazon FBA seller is one of them.
Who is Philip Covington and is his Ultimate Amazon Seller course the right one to learn Amazon FBA? After doing our research, the following is what we learned…
Who is Philip Covington?
This took a toll on him, as there were days he would debate if he could work another day in that lifestyle with that income.
Eventually, he had enough of that life and started his own business. He’s been in the business world for over 20 years now and has earned 7-figures with his eCommerce and Amazon FBA businesses.
What is Amazon FBA?
FBA stands for 'Fulfillment By Amazon'.
Businesses send their products to Amazon's fulfillment center. Once a product is purchased, Amazon will pack, ship it and deal with any customer service.
All you need to do is...
- Set up your Amazon selling account
- Create your product listing & optimize them
- Prepare your products to send to an Amazon warehouse
- Ship them to Amazon
Business owners can spend more time launching, marketing and selling products, with Amazon doing most of the work (order fulfillment).
This course shows you all the steps Philip took to create his 7-figure Amazon FBA business and how you can do the same regardless if you want to earn a side income or if you want to make this your primary one.
$97; lifetime membership (Previously priced at $497)
14 day money-back guarantee; you only get your refund if you haven’t passed week 1 of the training; there is a 15% fee for requesting a refund
20 training modules; Philip covers everything from setting up your business legally, bookkeeping, selling on Amazon, hiring VAs, funding and more.
Private forum which Philip is active in, providing guidance to students. You’re also given Philip’s private email address for more direct support. Previously, there was a private Facebook group.
Some things we liked:
The content, Amazon trends, and rules found in the course are continuously being updated.
There are 2 modules (10 total videos) that are focused on helping you be aware of and deal with problems that are common when running with Amazon FBA.
Something we didn't like:
His YouTube channel has completely changed and his new channel, ‘Phil Does Tech’, is all about electronics engineering. In a video he uploaded on March 1, 2022, he said that the new channel will also have eCommerce content but he hasn’t done so yet.
What are the pros and cons of Amazon FBA?
There are always pros and cons whenever you’re talking about a business model.
Here’s what those are regarding Amazon FBA.
Amazon fulfillment is where they do most of the work for you. You don’t need to be so hands on (Ex. Packaging, shipping, customer support etc.) This makes it easier to automate your business.
Opportunity: Amazon made the platform to bring you directly to the customers. In 2022, more people have Amazon accounts and are using the platform than ever before.
Amazon is a trusted platform (years ago, people weren’t so quick to shop online period)
Anonymity: you can remain anonymous as an FBA seller, not being the face of your brand and still be successful
Flexibility: Work from home or anywhere in the world.
It’s more expensive to sell on Amazon than if you sold on your own site. This is because they do a lot of the work for you and the Amazon
It's very tedious to deal with Amazon Seller support. Amazon customer support is more important to Amazon, of course. You have to make a fuss to really get the seller support to handle any smaller issues.
Amazon can suspend your account at anytime; you are at their mercy
You don't own your customers
Amazon's no-questions-asked return policy
Wholesale vs. Private Label vs. Retail Arbitrage
Many beginners won’t realize that there are different business models under the Amazon FBA umbrella.
The 3 most common are:
- Private Label
- Retail Arbitrage
Below is a brief breakdown of each one.
The idea with Wholesaling is that you buy name brand products in bulk and sell them on the Amazon platform for more than they're going for.
Wholesaling is best for...
- Sellers with enough capital for initial inventory who are ok with not making any profit in the first few months
- A people's person who has no problems making connections with suppliers and distributors often
- Those who don't want to build a brand
When private labeling, you'll be finding existing products from third-party suppliers, branding them and selling them in packaging customized to your brand without having to compete for the buy box.
This business model allows you to be in more control and differentiate yourself from your competitors. Also, if you wanted to sell your brand at some point, you can do so for 3-5X the annual revenue you're generating.
Private labeling is best for...
- Anyone who understands they will go against already established brands
- Business owners who already have a following.
Retail arbitrage is where you go to stores like Walmart, Target, T.J. Maxx and buy low-cost products in bulk with the purpose of selling them on Amazon.
This is one of the easier Amazon FBA models because you need little money to get going. It's also possible to sell your products quicker too because of things like panic buying.
Retail arbitrage is best for...
- New sellers
- Sellers on a budget
These aren't the only Amazon FBA business models that you can decide to start. In our article, 10 Different Amazon FBA Business Models Explained, we go through 7 other models.
7 Mistakes Amazon FBA Sellers Make
Usually, when people get into a new business, they make mistakes. They'll either overlook certain things, get lazy or not know what to do.
With Amazon FBA, there are various mistakes that you can make if you don't take the time to prepare properly.
These mistakes can cost you dearly if you don't do your due diligence.
Look at 16 Common Amazon FBA Mistakes You're Making + Proven Tactics To Survive Them where we go more in-depth with the mistakes you can make if you don't pay attention. In that article, we also explain what you can do to avoid them.
Amazon FBA vs Lead Generation
Not too long ago, I started an Amazon FBA business and fortunately, grew it to multiple 6-figures.
I was still running and growing my local lead generation business. What I noticed was that the path to earning a passive income was much easier with lead generation for many reasons.
Below, I show the comparison between both business models.
You need around $15K to start
A small investment is needed to buy domains, sites and rank them.
Barrier to Entry:
Anyone can begin selling the same product you’re selling.
Choose from thousands of niches in many zip codes across the globe.
Amazon is in control and since it’s their platform, they can suspend you at anytime impeding you from making profit.
You're in control because you own your digital properties.
Not passive because there are so many variables that often require your attention.
Once your sites are built and ranked, there is very little maintenance that you need to perform on your sites. Simply sit back and collect your commission; Income is more passive than Amazon FBA.
More or less 30%
Anywhere from 40 to 90%
Barrier to Entry:
It's much harder to scale with all the variables in play
It all comes down to how many properties you build
My Online Business Portfolio in 2022
Amazon FBA: $15K NET per month (After 50% split with a partner)
Local Lead Generation: $52K NET each month
The Truth: As you can see, although you can make good money with Amazon FBA, the degree of difficulty is much harder if your goal is to earn a passive income. Many people burn out with Amazon FBA because of all the things you need to deal with from the learning curve to Amazon, shutting your account down.
With local lead gen, the path to earning a passive income is within reach because you control what happens, who you work with and how much you earn each month.
For me, it’s the way to go to make money online.
Check this page out: Local Lead Generation vs. Amazon FBA