Is Amazon FBA Dead- Why Are So Many People Quitting Amazon in 2022?
It's The Zab Twins, and today, we're excited to answer every new seller's question: Is Amazon FBA dead in 2022? But before we discuss that, let's discuss why you should read this article.
The Zab Twins, aka Brian and Arek Zabriek, are Amazon experts dedicated to helping countless clients achieve success. Our expertise in scaling businesses enables us to empower people worldwide to build and grow their Amazon FBA businesses.
According to research, over 2,000 new sellers join Amazon's global marketplace daily, and 700 are in the U.S.! While the number of third-party sellers has increased consistently since 2016, many sellers have also gone inactive or left the marketplace. In fact, insightful research reveals that 72% of beginners in 2021 never listed a product. That brings us to the inevitable question, "Is Amazon FBA dying?"
In today's article, we'll provide our expert opinion on whether Amazon FBA is still alive in 2022. You can also check this YouTube video, where we answer whether we believe Amazon is dying.
Amazon FBA in 2022: Yay Or Nay!
Amazon has over 9.7 million sellers worldwide; however, only 1.9 million accounts are active. In 2021, Marketplace Pulse revealed that Amazon has over 6 million third-party sellers, yet only 1 million had enough activity to receive a single customer review. This disparity makes every new-seller wonder if Amazon FBA is still worth doing or if the gold rush is over.
If this is you, you might have read comments and articles discussing this hot topic, only making you more confused. We are here to help you with our honest, expert advice! In this article, we'll take a look at seller growth and account activity to identify whether Amazon is a good business model in 2022:
P.S. You can use this resource in two ways: keep reading this article or watch its video format here.
Why Are So Many People Saying Amazon FBA is Dead?
If you've heard business gurus saying Amazon FBA is dead or oversaturated, they likely based their opinions on a comparison with Amazon selling results five to seven years ago.
At that time, this e-commerce market was a "get rich quick" thing, but that time is now long gone. If you're using strategies that worked in 2015, then Amazon is definitely dead for you.
On the contrary, if you adopt proven and up-to-date strategies, you can count on success.
The Growth of Amazon during Covid-19
Amazon's profits soared as the pandemic confined people to their homes and shifted sales online. Even in the face of a massive economic crisis and volatile supply chains, this e-commerce market kept growing, becoming more massive.
In fact, Amazon grew by a whopping 44% within a year by becoming every customer's go-to source for almost everything, whether it's essential goods like toilet paper or work-from-home necessities like an office chair. Amazon had to expand its fulfillment and distribution centers network to keep up with growing demand.
As Amazon prospered, new sellers like us also found opportunities to double and triple their business. Now, you might be wondering how Amazon's sales skyrocketed. The answer is simple: the covid-19 drove the temporary or permanent closure of many physical stores, thus forcing buyers stuck at home to turn to Amazon to purchase their must-haves.
Another reason Amazon dominates the e-commerce marketplace is it offers quick and convenient deliveries. Within two days or less, you can get your groceries and household essentials delivered to your doorstep. And if a product doesn't match your standard, you can quickly return it!
The Supercharged Shift to Online Shopping
Over 2.14 billion people worldwide shop online, that's 27.6% of our global population!- and the number will only go upwards. Experts reveal that e-commerce will make up 22% of global retails by 2023, and Amazon enjoys the biggest share!
Part of running a successful store is adapting to changing customer trends. As fewer customers visit physical stores, it's only natural that most of them will shut down or go online. And since Amazon is a widely trusted marketplace with an expansive and loyal consumer base, it's no surprise businesses are creating their product listings there.
So, Is Amazon FBA Dead in 2022 or Not?
In one word: no!
Amazon is nowhere near dead, and the changing trends and stats we discussed are proof of that. That said, the marketplace has evolved significantly. That means if you're still using strategies that worked five years ago, you will not succeed.
Instead, you need to gear up with better strategies, stay up-to-date with the newest policies, and develop the mindset of an entrepreneur.
The Key to Mastering Amazon FBA: Identifying and Meeting Customer Needs
Eight to six years ago, when third-party sellers were still new to the marketplace, all it took to create a profitable Amazon FBA business was launching a product. However, today, competition is tough.
So, if you want to develop a successful business, you need first to determine who your target market is. After that, use revolutionary tools like Helium10 to find high-demand products that can solve your customer's needs. But don't launch the product as it is; instead, ask yourself how you can tailor that product to match your buyers' tastes.
The better you understand your target market and their pain points, the easier it will be to tailor your brand's appearance and product line to captivate them. Furthermore, it'll help combat customer attrition and improve retainment as you diversify your product line with items that continue to solve your buyer's needs.
P.S. you can use code "THEZABTWINS6M20" to enjoy 20% off your first six months on Helium or "THEZABTWINS10" to get 10% off forever!
The Bottom Line
Growing a profitable Amazon FBA business starts with finding opportunities where everyone sees failure. Not every product, whether you use a tool like Helium10 to source it or not, you sell on Amazon will do well. But that doesn't mean you should give up. Instead, use it as an opportunity to learn, reiterate the product, and make better decisions in the future.
If you're still asking yourself, "Is Amazon dead in 2022?" allow us to use our FBA startup program as an example. During the last few sessions, we worked with 30 students who, on average, within their 36 days, made up to $17,000! So, instead, we'd like to ask you, do you really think Amazon FBA is dying?
If you want to learn more about Amazon FBA before you start your journey, you can always reach out to the Zab Twins here. You can also discover how to dominate your competition and find the perfect product on Amazon by checking out our YouTube channel.