Is Amazon FBA Profitable In 2020

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Yes, it’s that time of the year again. Another new year and another set of questions. How to start a successful online business? How to earn additional income. What is the best online opportunity?

We hear a lot about starting an Amazon business. Is it too late to start Amazon FBA? Is Amazon FBA profitable in 2020? , is it too saturated, is it still worth it?

Let’s start with some facts. By 2021, Amazon is going to rule 50% of the world’s eCommerce market. With this, more and more Amazon sellers are going to join the journey.

Another question that might pop up in your head – Why Amazon? Well, Amazon is a company that focuses more on customer service. With same-day or two-day product shipping. They have built trust with their customers for more than two decades.

Amazon has become the world’s largest online retailer and is presenting new ways to make a living for anyone who wants to sell on Amazon FBA.

So, yes Amazon FBA is and will be profitable in 2020 and coming years. But, the only difference will be a different strategy we, Amazon sellers, will have to use in order to be profitable in the amazon market and beat the competition. Strategies that worked in the past helping Amazon sellers to share in profits don’t necessarily work today.

The best sellers today sell products in high demand but less competition and combine it with real marketing outside of Amazon.

The stronger you will enter Amazon with your product and strategy, the better you will do there. Amazon has a great customer base which is increasing each year, so all you have to do is present them with a product that they actually want and need.

Related: How to sell on Amazon FBA for Beginners

Selling on Amazon FBA 2020

Some of you might want to know what is Amazon FBA? FBA is short for Fulfillment by Amazon. Amazon enables third-party sellers to sell their products on Amazon by simply using the Amazon platform as a marketplace. Product’s packaging, shipping, returns, customer service all are taken care of by Amazon.

With Amazon FBA you have to pay for Amazon inventory, and orders that are fulfilled by Amazon. For a small fee paid for each unit sold, you can spend time watching Netflix in the comfort of your home or traveling with your friends rather than spending time on packing and shipping people’s orders.

Selling on Amazon FBA is scalable. You can start small and with time you can go big.

Related: Amazon Fulfillment Options

How Does Fulfillment by Amazon work?

  1. You start by sending your products that you intend to sell to Amazon.
  2. The products will be stored in Amazon warehouses.
  3. Every time a purchase is done, the Amazon team will pick, pack and ship the products for you.
  4. Amazon will also handle returns, refunds and provide customer support on behalf of you.

Basics of Selling on Amazon

Did you hesitate to start an Amazon business because you were unsure of its profitability?, The question, “Is Amazon FBA profitable?” is probably one of the most frequently asked questions by entrepreneurs these days. No one wants to invest in a business and run at a loss, so it is good that you have decided to get your question answered before starting.

Is Amazon FBA profitable? The answer is yes, but there is a clause to this. Amazon FBA is indeed a profitable venture, but only for those who are willing to take up all the tasks that come with managing an Amazon business. If you tick yes for this, then you will also need some level of patience as an Amazon business may not bring immediate returns especially if you are a beginner on Amazon.

Once you have decided to start an Amazon business, there are basic processes that you must carry out if you want to build a profitable Amazon business. Here are a few things you should take note of:

  • Product Research

Is Amazon FBA profitable? Yes but only if you have the right products. There is nothing more difficult than trying to scale an Amazon business when you are stuk with products that no one is buying. Your Amazon FBA business is only profitable when you are making steady sales, to achieve this, you will have to find a product that has high demand and low competition on Amazon.

Amazon product research is one of the integral aspects of building a profitable Amazon FBA business, but you do not have to worry if you have no idea how to go about it. The first step is to take advantage of Amazon product research tools.

ZonBase is the best Amazon software that contains a suite of 13 Amazon seller tools, 4 of these tools are product research tools that are designed to carry out this task on your behalf and bring you a list of the most profitable products on Amazon.

If you keep asking “Is Amazon FBA profitable in 2020?” and do not carry out effective product research when you eventually start, you may experience difficulty with scaling your business.

Related: Best Amazon Software for Product research

  • Find a Supplier

Once you have found the right product for your Amazon store, the next step is to find a manufacturing company that supply your product. Finding genuine suppliers is a huge part of most Amazon seller’s fear. Sellers who are just starting are unlikely to know the right places to source their products, and ZonBase Hot products tool can help with supplier research.

If you have the perfect product and price it at a ridiculously high price, your chances of making sales are low especially if your competitors are selling the same product at lower prices. Locating a genuine supplier where you can source your product from at a reasonable price, gives you an edge because you will be able to make profit without selling overpriced products.

Is Amazon FBA profitable? Yes, if you source your products the right way.

  • Product Listing

You cannot make sales on Amazon if no one gets to see your products. Product listings are Amazon’s way of helping you ain visibility on Amazon.

Once your products arrive, the next thing is to create your product listings and optimize them.

To optimize your product listings, you will have to use the right keywords, product descriptions, titles, and bullet points. Sounds like a lot of work, right? Not to worry, you don’thave to create and optimize your listings yourself, except you want to.

ZonBase’s listing optimization tools are perfect for creating and optimizing your product listings. Optimizing your listings means that you will have to research relevant keywords and include them in your listings. ZonBase set of keyword tools will help you research the perfect keywords to optimize your listings for conversions.

  • Launch and Promote

The final step is to launch and market your product.

Important steps to consider for getting into Amazon FBA

Is Amazon FBA profitable? You already have your answer by now, but before you delve into the Amazon marketplace, here are some important steps to consider.

Don’t get stuck

We all start with learning. You can do research and learn by watching YouTube videos on how to start selling on Amazon FBA. Or, you can shorten the learning curve, and enroll in mentorship programs by successful Amazon sellers.

When you feel like you have done enough learning, it’s time to gain some experience and actually start doing it.

Finding the right product is a game. You win the game if you have the products that are gonna give you profits. But, you can’t go on forever product hunting.

Consider timing

Allocate time for every step. On learning, doing research, finding the right product, searching for a manufacturer, etc. By sticking to the time frame, you will not waste time and you will not get stuck on just one step.

Sign up as an Amazon seller

Creating a seller account on Amazon is simple. You can complete the whole process in just 20 minutes. If you need help you can just google it, there are plenty of articles to guide you.

Find a Supplier

After finding the right product, the next important step is to find a manufacturer. To be frank, finding a supplier is easier than you think. Choose a supplier that has experience in manufacturing your product. Once you find your supplier and have an agreement with them, order a sample product. You can test yourself the quality of the product before finalizing everything.

Making sure your products are seen 

With the right marketing in hand, your products will reach its potential customers. Do the branding of your product right to make it stand unique. Create a great product listing and optimize it with keywords.

Market your business on social media, on your blog, sending emails to your list, create PPC campaigns, etc.

Related: Selling on Amazon: Individual vs Professional Selling Plans

Why should you start selling now?

You are here and that proves you are ready to start your entrepreneur journey online, build a successful business and change your life.

There are so many reasons why you should jump on board with Amazon FBA right now.

Amazon is the most visited eCommerce store in the U.S. Selling on Amazon FBA you are getting a large number of potential customers. The number of active customers in Amazon is 310 million, so you have 310 million reasons to get started on Amazon.

When you are starting a new business you need to have some budget upfront. Some businesses take hundreds of thousands of dollars to start with. But, with Amazon FBA business you can start with very little cash.

Amazon has built two decades of trust among its users and people love to shop from it. It has gained more reputation compared to other online stores like eBay.

The best advantage that you get is that you have to work less with Amazon FBA. The Fulfilment by Amazon program will do the product’s packing and shipping on your behalf.

If you have new products to sell, then Amazon is a great place to test the market. You do not have to spend a huge budget and your product will reach a wide audience.

As you can see there are so many good reasons for you to start selling on Amazon now. The best way to find out if Amazon is for you or not is by starting selling a few products.


Is Amazon FBA profitable? Yes, but only if you take note of the aforementioned tips and strategies for success on Amazon. Ready to begin? Goodluck for your journey!


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