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Ultimate Amazon Seller Course Review – Is Philip Covington’s course still worth it?

August 16, 2022

In The Ultimate Amazon Seller Course by Philip Covington, you learn how to sell products on the Amazon marketplace. You learn how to do product research, how to optimize your listings, how to find reliable suppliers, and more. In this Ultimate Amazon Seller Course review, we'll discuss who Philip Covington is, the pros and cons of Amazon FBA, 7 mistakes Amazon FBA sellers make, and how each Amazon FBA business model stands up to each other. I'll also compare Amazon FBA with local lead generation, which allows you to earn a passive income without having to use paid traffic. 

Who is Philip Covington?

Philip was originally a software and electrical engineer. For 15 years, he was essentially working for other people to become rich. He barely earned $1,000 for his end-of-year bonus and his yearly raise was barely 5%.

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).

Course Highlights

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.

Price:

$97; lifetime membership (Previously priced at $497)

Course Started:

2017

Refund Policy:

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

Training:

20 training modules; Philip covers everything from setting up your business legally, bookkeeping, selling on Amazon, hiring VAs, funding and more.

Support:

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.

PROS

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.

CONS

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:

  • Wholesale
  • Private Label
  • Retail Arbitrage

Below is a brief breakdown of each one.


Wholesale

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

Private Label

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

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.

  • Picking a hyper competitive product - products like these have little demand so your profits are low.
  • Picking a product with a low selling price (under $10- $15) - you won’t be making a profit margin that’s worth the effort (Ideal prices: $30-$50+). You must consider the fees in your pricing.
  • Use of poor product images - No one wants to buy products if they don’t use quality images.
  • Not following Amazon’s TOS (Ex. Attempting to contact your customers, creating fake reviews on your products).
  • Poor inventory management (Excess inventory or not enough)
  • Not using a plugin to help with product research and find new products to sell (Jungle Scout, Helium 10).
  • Choosing to sell products that are seasonal (Christmas gifts, snow shovels, etc.)

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.

           Amazon FBA

Lead Generation

Invest:

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.

Control:

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.

Income:

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.

Profit Margin:

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

Conclusion

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

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Ippei Kanehara
Founder/CEO

$52K per month providing lead generation services to small businesses

Ippei.com is for digital hustlers, industry leaders and online business owners.

His #1 online business recommendation in 2022, is to build your own lead generation business.

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  1. I have been in Phil’s course for some time. The course is a good framework, but it does not truly show step by step. It comes close in many ways, but not truly turnkey.
    Also, Phil’s promises to be an always available mentor fall very short. While he did experience a personal hardship for a long time last year, he never seemed to really get back into it. He has been known to eject people from his private Facebook group for talking negatively about the “hot product picks” he sells. This is not only unfair, it’s deceptive. For this reason, I would steer clear of his course.

  2. Phil is a POS and his course is actually a rip off of another persons course. I found this out 7 days after purchasing the course and I immediately cancelled within the cancellation policy that Phil set forth. Two months later and no refund, no responses from Phil and he quickly kicked me off his FB page which was weak anyways with less than 800 people on it. So, I have been posting all over his YT videos and with my rogue account on his FB a free copy of his course! In a weeks time 6 people have taken me up on it and I just email a copy. Smart move Phil!

  3. Phil is a crook, I purchased his course and found out within a few days it was a cheap knockoff of another persons course in which I the cancelled within his cancellation policy. Two months later I still have not gotten my refund and no replies from Phil. He was very fast in kicking me off his FB page. Luckily my CC company refunded me the charge however I am plastering this all over the place to let others know of Phils shady dealings.

    Greg

  4. Hi
    This comment will not be probably published but I will try. Do not buy this course! it´s not worthy. You can find all the information online. The course is very generic. Phil is claiming that he can be your mentor for life but he is not replying for the emails for days. Do not waste your money on it!
    Kasia

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