There are so many eCommerce sellers popping up online claiming they have the golden formula to make thousands of $$ after only a few days/weeks on Amazon and eBay – without any start up capital. Do NOT believe in this! They are all scammers in the sense that it is unrealistic to make that kind of money in 30 days with no money up front and they just want you to pay huge amounts of money for their training.
Are These Statements Familiar To You?
#1. Make $5000-$10.000 in the next 30 days.
#2. Create your own seller account the moment you leave the workshop.
#3. Have Amazon store and inventory all of you products.
#4. We will even show you the hottest products that sell the fastest on Amazon.
#5. Start an online business with “No Money out of your pocket”.
#6. We will be giving you wholesalers you can call up and get great deals for huge profits.
Do you recognized any of these statements? They are common sales pitches for you to take the bait. You often see them as Facebook or YouTube advertising. They often follow a webinar or workshop where they show you the basic principles of how to sell on Amazon and/or eBay. They make it sound incredible easy to become successful, and make the big bucks on Amazon/eBay.
Like on all sale seminars, they always have a successful entrepreneur as a speaker, who talks about his success to get you motivated and in awe. Sometimes showing off his fancy cars too. This speaker always ends the seminar with a promise of money successes IF you just go through the training they are pitching.
They then charge you a rather expensive fee to get access to their training. Everything from $999-$20.000. This is where they make their money! Not from being successful Amazon sellers as they claim!
Ask them to see their actual PROFITS, not sales, and you would see that they do not have much to show for, apart for the income they make from their paid courses.
Is It Worth It To Pay For Amazon Training?
Is it worth it to spend a huge chunk of money to take these Amazon courses?
My answer is NO. Why do I claim so?
The first statement (listed earlier) that they will help you make $5000-$10.000 in 30 days is just NOT POSSIBLE. This may even be difficult for established eCommerce sellers, during months when business is slow. There is NO WAY you could make these amounts of money, without no start up capital, like they claim in the fifth statement.
To make profits of $5000-$10.000 per month, you have to be a professional licensed reseller that has invested 4-5+ times the money in inventory, or have invented a really good product to private label, with good profit margin and that sells like hot cakes.
To private label your own product is a process, which takes time. You can hardly complete the whole manufacturing period, the shipping to Amazon’s warehouse/s, the label prepping, and product branding to get people to find your product in 30 days! Not to mention the search for the right manufacturer that will manufacture your product for the right price.
I do not understand how anyone can fall for this?
I guess, a person desperate for money, who has no prior experience from eCommerce, could possible fall for this.
But they should not. Everything these programs are teaching, you can find online. More about this further down.
What Are The Amazon Training
eCommerce Model #1: DROPSHIPPING
What the (claimed to be) Amazon gurus are teaching you, is in most cases; dropshipping. For you that do not know what dropshipping is, it is an eCommerce business model where you do not have to keep any inventory.
The dropshipping process in short; when a customer purchases a product from your eCommerce store or listing on Amazon/eBay, you purchase the product from a third party supplier/wholesaler for a less price, and then have the supplier ship the product directly to the customer. As a result, you as merchant (seller) never see or handle the product.
However, their claim that you do not have to pay any money up front is FALSE, FALSE, FALSE. There are several motivations to this:
First of all, Amazon only pays out sale profits every 14 days, so it will take at least 2 weeks before you get access to the customer’s payment. Amazon also withholds a certain percentage of your money for possible returns.
You can therefor not use the customer’s payment to dropship. You will have to build up a good track record with PayPal to possible get them to release the money earlier, and already have a capital to fulfill your orders with. I would say that you will need at least $2000-$3000 to start a dropshipping business.
You can read more about dropshipping and my own experience as a dropshipper in these blog posts:
eCommerce Model #2: PRIVATE LABELING
Some of the Amazon training programs also teach private labeling. Private labeling means, according to these training program standards, to find a “best seller” on Amazon that is not brand sensitive and basically copy it (before all these online gurus popped up, private labeling was only considered when you actually invented your own unique product – not just copied a product not yet a big brand item).
You then look for a manufacturer that can produce your product for a good price, and who allows you to add your logo, and possible also make some customization to the product.
You can find information about the whole process of private labeling and important steps to consider in prior article:
Do Not Pay For This Information!
You Can Find It Online
I would highly recommend to not pay for these costly Amazon training programs. If you take some time to gather information – you can find everything you need to know about selling on Amazon and eBay – online.
Watch the webinars from the Amazon training gurus and get bits and parts of valuable information from them, but do not fall for the bait to actually pay for the training. Just search for the next webinar, or YouTube clip with the information you are looking for.
It is also very beneficial to read articles from eCommerce bloggers, and to search different forums such as; reddit.com, Amazon seller central forum or the eBay seller forum. You will find answers to most questions on these forums. You can rely on the fact that tons of people have been exactly where you are now, and needed to get their questions answered.
How can I claim that you can learn everything you need to know on how to become a successful eCommerce business owner or Amazon/eBay seller from online?
I make this statement purely from my own experience. I learned everything I know today from searching information online, and especially from watching YouTube tutorials.
It may take a bit longer to collect the necessary knowledge when you are doing it yourself, but you save lots of capital you can invest in inventory instead.
What Is The Best eCommerce Model?
I have worked with both eCommerce models presented in these Amazon training programs. I have been dropshipping for over a year now and have private labeling my own product – sourcing it from China. I have made many beginner mistakes, but learned from them, moved on, and are now focusing on the business model I consider the best; online retail.
Even, that I am in a pretty early stage using the online retail business model, I strongly believe it is the #1 safest and best way to ensure a continuously growing Amazon business. Find more information on how to quickly scale your Amazon business here:
Online Retail – Sell Brand Products That Are Already Selling
The online retail business model is based on only selling well known brand items that are already selling. There are ways to make a good estimate on your market, competition, profits, and how many units you will sell in a month.
Another benefit with online retail is that you do not have to spend money on costly marketing efforts. The brand owners have already taken care of all PR of the product. What you basically need to focus your energy on is to buy low and sell higher.
However, there are some steps to take before you can start using this business model.
First of all, you have to register your business and get a resale certificate. You do not have to incorporate, so it is not as difficult as it may seem.
Second, you need to go through a brand approval process with Amazon. My recent article shows you how to do this:
Although, like everything in the money making process, it does not happen by itself. Online retail is a time consuming business model. You have to spend hours and hours doing product research to find profitable products and supplier/distributors you can purchase them from to a good price.
The suppliers/distributors HAVE TO be authorized and from the U.S. if you are selling in the USA. If not, you will not get brand approval from Amazon to sell the particular brand. A regular invoice from for example AliExpress will not work.
If you want to know more about online retail, the steps of product research, how to find authorized suppliers and so forth, contact me at [email protected]. Otherwise, I recommend you to just browse the Google giant.
There is a young guy with name Beau Crabill, who has extensive knowledge of online retail that I like to follow. He shares really good information on YouTube. Beau has a course too, but you you do not need to take it. You honestly learn so much from just watching his channel.
Best of luck to you all!
About The Author
My name is Stina Pettersson. I am the founder of The Future Is Your Creation and Get Happy e-Deals. I am the author of the articles on this site. Originally from Sweden, but love the warm weather in Florida where I now reside.
I help people create the life they desire, whether it is to earn a full-time income online, and work from home, or increase their spirituality. I am especially fond of helping people interested in eCommerce – Amazon FBA, Dropshipping and Online Retail to get started and make a good living from home.
I hope I will get the honor to help YOU achieving your online success.
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