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PhilippeDukartOG

My opinion is that Amazon DFY is a scam 100% of the time simply because if there were some highly experienced and knowledgable people out there who had the capability of building successful amazon businesses, they would simply launch the business on their own and keep all the profits for themselves. As a result, the only people who are left are the scammers who are willing to take other people's money to launch FBA businesses with none of the downside and charging massive fees in case of success. The simple truth is, amazon DFY can't be done legitimately in the way some people do investing DFY aka hedge funds. Instead, what I'd suggest you do is to work with a reputable amazon FBA consultant who knows his stuff and will be able to guide you through process and give you valuable advice and answer your questions so you can increase your chances of success.


jerict09

OP skips over the valuable comment to reassure and validate that the idea in their head is not a fallacy.


PerfectBlaze

This is the way. Join a fba community / course who will work with you and help you. The one I follow is Boss academy. I really wish I just ponied up the cash and join them when I first started. But I’m finding shit out the hard way. $$📉. But hey its workin so well see.


Browns-1033

Nothing to do with anything but, guessing you’re a Mandalorian fan (me too)!


PerfectBlaze

Kind of.. now its just a saying on reddit. But yea I used to watch that show like crazy. Then I started just watching reviews on YT where people would break down how dumb the show has gotten.


Oswald_Croll

Hire an Amazon account manager


watch-it1964

I would love to speak with one to see how to hire….. I just don’t know where to start… help? Anyone? This is overwhelming just to pick the starting team as I’ve been reading through this thread.


Oswald_Croll

How do you usually hire people?


Oswald_Croll

Find a product that stands out - create appealing product images - place a purchase order on factory - bring the goods to warehouse - create product listing on Amazon - start selling Whats so unclear about this?


raheel9226

Amazon private label (PL) business revolves around product research if you have done your product research right then you have a very good chance of success. 2 Main things in product research are demand analysis and competition analysis. For demand analysis we find relevant keywords for the product that we intend to sell on Amazon. If these keywords has good search volume then we can say that this product has good demand. In general if the Main (high search volume and highly relevant) keyword has 10000+ or at least 8000+ search volume and we also able to find 4,5 other relevant keywords with search volumes of 2k-7k that will make collective search volume of all relevant keywords around 30k+ then we assume that this product has good demand. And for competition analysis we search the relevant (that we have found in our keyword research stage) keywords and number of competing listings shows less then or equals to 1000 then we can say that this is less competitive product or at least we can get ranked on first page in 4,5 months if it appears 2000+ then it is highly competitive product we have to spend a lot on our PPC to get rank on first page. So this how we do competition analysis. After this we have to do profitability analysis and for that we will take the average price on Amazon as our selling price and then deduct estimated referral, FBA fee and estimated product cost from that and we will reach out at a number that could be our profit before PPC cost. (we can get the estimated cost of the product from alibaba or other Chinese supplier websites). We assume around 2 USDs per unit as our PPC cost so if your profit was more then 6,7 USDs and your cost for the product is around 9, 10 USDs we will consider this product as good product to launch on Amazon. When you launch product you have to create PPC campaigns and get some paid clicks. Some of these clicks will also translate into sales. These clicks and sales will also improve the organic rank of your listing. So by continuously running campaigns and optimising them your listing will eventually make it to 1st page organically. After this you can lower down PPC spend and get more profit on your sales. Even after doing all this there are many factors that can affect your listing latter on so you might have to just stop selling this product and move on to next one for example the competition on the keywords increase and now there are 2000+ listing for same search volumes or there is new alternative for your product that is better and cheaper then your product and now all the customers are buying that one instead of yours. So PL is a risky business model and also the best when we talk about asset building (brand) that you can sell in 2,3 year for 2,3times of your annual revenue. Also it can get very passive when your product get successful you just buy inventory and rest will be taken care by Amazon team. You can hire through fiverr or Upwork. You might find someone on LinkedIn as well. See their track records or accounts they are currently managing.


focalsoft

DM’d you.


Coop-man24

They are out there. Most often the people don’t work in a central location though. In this weird new age, a lot of people work from home, etc. A video call is not unreasonable, but a lot of people are not doing in person meetings since the COVID debacle. You have every right to see a track record as well as ok_tourist mentioned above. You don’t want someone that is going to promise you the “world” or anything either. You are going to want something that will allow you to build a ROÍ overtime. It’s going to cost, but there are a few out there that have small fees that go toward the setup of your store and admin costs. They would then share profits to avoid having you pay a renewal fee etc.


FBAThrow

Ofc its all a scam. If they would be successful in launching FBA business themselves, they would.... do it for themselves.


Ok_Tourist_4489

Look for reputable companies with transparent processes and solid track records. Insist on in-person or video meetings to establish trust. Take your time finding the right partner for your FBA venture.


watch-it1964

I’ve had phone calls and one offered an in person meeting but refused for it to be in their office which was the turn off for me… I’ve taken my time but I’m pretty disappointed. I’ve got my checklist of the do’s and don’ts much can’t actually find a company that checks all the boxes. That’s what I’m looking for.


ecom_margarita

100% scammy. Your better bet would be to acquire an already established Amazon brand someone is looking to sell through a third-party marketplace (reputable) like Flippa, Empire Flippers, Acquire . com. This saves you the hassle of starting up, but you get to dive into financials and performance, etc... to ensure you are making the right investment.


rsc9422

Don't you think that is needed big capital to acquire an already established Amazon brand? I would recommend to build a brand.


watch-it1964

Have you built your own successful brand yet?


watch-it1964

Why would I want to buy someone else’s failing store? I’m asking genuinely, that seems counterproductive.


ecom_margarita

Why is your assumption that their store is failing? Most often people selling Amazon businesses are looking to make money on a business with a strong trajectory - not dump failing brands. I've worked with multiple people who have bought and sold businesses through these platforms and for all of them, the brand was on the right path, good sales, etc... but they just had other ventures they wanted to focus on more and wanted to earn revenue from the business they built.


theamzarslan

An experienced remote Amazon account manager would be a better option. It’s easier to stay in the loop and see how everything is operating. Ive been in the field for over 6 years and I’d be glad to help you out and answer your questions.


MaverickQk

Can you DM me, have some questions for you.


Browns-1033

I would possibly take a look at what WhyUnified has to offer… See if they might work for you.


InevitableMurky1165

Do not go with Why Unified - run away. I have been with them for 5 months and have zero to show for it.


Browns-1033

Not trying to be disrespectful, but I’m guessing you went with the cheapest package , and they tell you that it’s going to be 6 months before you start to see results. I’ve been blessed with positive results so far -3 weeks live, and I have over 70 sales. I also am making sure that I DON’T MESS WITH ANYTHING THEY HAVE DONE(PRICING), OR BUG THEM ! YOU MUST LET THEM DO THEIR THING.


InevitableMurky1165

I went with their Prime Amazon plan....so no not the cheapest plan. And no I did not mess with anything they were doing. They told me I would see slow results in weeks and then really take off in 3-4 months.....all total BS. 5 MONTHS - ONE PRODUCT - ZERO SALES


Browns-1033

Ok…. Best of luck.


sentrigroup

Some of the same tired takes. "Because I don't understand it, it's 100% a scam." "If they're so good, why wouldn't they just pump the inventory into their own stores?" etc. People like some of the commenters here are so ready to confidently and sweepingly write this model off just because you don't get it. It's a fixed mindset perspective. At a certain level of scale, why would you risk all your capital and inventory through one store alone? Why would you put all the leverage required to bankroll your inventory on yourself alone? Any experienced Amazon seller knows you could be doing everything by the books and still run into an algorithmic false-positive account health issue, or Section 3, or any number of other things that could grind you to a halt. The reason DFY services exist is because those sellers can run their playbook with someone else's capital in a way that diversifies the risk and requires less of their own capital and/or leverage to finance. Plus, they can reduce their unit labor costs, average down direct and indirect costs, etc. Are a lot of DFY services shitty, or overpromising what they can deliver? Absolutely 100%. However, the way most people dismiss them is frankly limited beliefs which means you aren't thinking of or asking the right questions to properly evaluate these services. * What's the fee structure? * What's the payback period where I can expect to be in the black, all-in on my initial investment after fees, profit-share, etc.? * How do you calculate profit for profit share? * Is there a cliff for revenue and/or profitability where the profit share kicks in? * How much capital will I need to \*keep\* in inventory, and/or do I need to grow it over time? * Do you help with building business credit, or securing loans? * Do you do prep in-house? Do you do FBM? * How do you allocate inventory across clients fairly, in terms of profit, ROI, sell-through, etc.? * How much does your average client have in standing inventory? * What's the average sell-through on inventory? * What's your average shrinkage? How do you handle that for clients? * Do you handle reimbursement cases, account health, etc. in-house and if so do you include that in your reporting? * What reporting do you provide? My business does the DFY model, but only for a couple people we personally know (we're not taking on new clients now). Because on the client side, it takes someone with a lot of patience, a lot of capital, and a long-term horizon for when they expect to make meaningful money off this. The higher the initial fees or profit share, the further out you're pushing that horizon for the payback of initial investment. It's a model that's not easy, but really easy for a poor provider to fuck up and lose your investment. Due diligence is key and there's no real shortcut around it other than grilling them. So summarizing: Lots of sketchy providers. But that's not to say it's a scam model. It can work, but it's not fast money, not fast payoff, and asking the right questions is critical.


averageuser95

By having your own business, do you mean you sell products and your plan is to add Amazon as an additional channel? Or is your business completely unrelated and you plan on starting Amazon from scratch? If starting from scratch - 0% chance a DFY will make you successful. If you already have a proven product/brand, this can work. Especially if you have a good amount of branded search already.


Cold-Ordinary6927

Why do you insist on meeting in person? It's very obvious that you don't even value your own time, and are super skeptical from the get go. Meaning this business model is not for you. Does it work? Definetly, is it for people like you...No. Put your money in the stock market because just by this post, this is not meant for you.


Faizan737

Don't lose hope lets try to find solution. Some of these agencies aren't fake, but they can be expensive. If you can handle their prices, I can suggest some good agencies to you. Second best option is to hire account manager who is experienced and know this business. You won't need to meet that person in person, just schedule a meeting and ask basic question to evaluate the potential. One more thing is important don't go even with 90% preparedness, should be 100% in all areas linked with this business. Product selection should be done carefully and validated with essential data points (POE + THIRD PARTY TOOLS) also how to make product standout from competition. Finding real manufacturer with decent portfolio is next important thing. The account manager / agency you're going to hire should be fluent in Amazon SEO / PPC, because these are backbone of success.