πŸ€₯ 7 Amazon Lies That Need to Die


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πŸš€ This Week's Amazon Hack: Avoid Falling for These Amazon Lies

Lies. Who likes those? Amazon gurus are notorious for spreading them but us consultants and Amazon-centric agencies are guilty as well.

I've compiled what I feel are the 7 most notorious "Pinocchios" of 2024. I wrote this with a newer seller in mind but if you are years deep into Amazon, you'll find this interesting as well!

Lie #1: Amazon is too saturated

Amazon now controls over nearly 50% of all digital revenue in America. Read that one again. Now, is it harder than 10 years ago? Of course. BUT, opportunities abound in micro niches. Amazon is an infant and just getting started. Not a day passes that I meet someone launching a bizarre category that I didn't even know existed. There are thousands of these opportunities.

Lie #2: You need to invent something to be successful on Amazon

This is a common misconception. 99% of what you see on Amazon is not a new invention but rather a better version of a mousetrap. Focus on improving products or coming out with innovative designs.

Lie #3: You need $50,000 in startup capital

This one is absolute nonsense. Anyone with access to $10,000 can successfully launch a new product on Amazon and scale past 7 figures in just a few years. Now, will you invest much more than that over time? Of course! The $10,000 is to "get started." I'll use myself as an example. I started out with $5,000 in 2014 but that only covered listing pictures, inventory, samples, and shipping. I ended up investing millions over the years thanks to outside lending. You don't need much to get started but you will need a lot of capital over time as you grow.

Lie #4: You don't need PPC to compete

This is like saying you don't need water to survive. Absolute hogwash. PPC is directly tied to your organic reach on Amazon. The more you spend and convert, the more Amazon rewards you. If you neglect PPC, say goodbye to your brand on Amazon. I don't make the rules.

Lie #5: Once established, you don't need to launch new products anymore.

There are always sharks lurking, waiting for you to succumb to this lie. The revenue pie dilutes over time because of ever-increasing sellers on Amazon so getting complacent is fatal. Never stop launching new variations, accessories/bundles, and expanding your catalog.

Lie #6: Selling on Amazon is passive

This one always makes me laugh. Between inventory forecasting, PPC management, ranking, product launches, R&D, customer service, and about 100 more tasks, you get the point. With a team of virtual assistants, it can be extremely passive but never 100%.

Lie #7: "I'll invest in pictures later."

The game has truly changed. You need incredibly beautiful pictures, infographics, and videos from day 1. Don't listen to people who tell you that using your iPhone is good enough in the beginning. It's not.

Now that DTC brands are swarming Amazon, it's going to be more important than ever. No, Fiverr is not going to cut it.

One last thing. 2025 is going to be a year of bankruptcies. We are going to witness millions of brand owners left behind. Only a select few will thrive and they will achieve this because they are willing to put in the work that everyone else refuses to do.

This is why I write Amazon Insiders. I want YOU to be part of the 1%.


πŸ”₯ Hot Amazon Seller News: AWD is FUBAR

Amazon is experiencing an unprecedented level of congestion within its Western Cross-Dock (IXD) and Amazon Warehousing and Distribution (AWD) facilities. This has HUGE implications for your Q4 plans. FBA Capacity: All IXDs and AWD facilities on the West Coast are at full capacity, with no further room for backup inventory.

πŸ‘‰ Amazon's Response: Certain Amazon facilities have temporarily suspended the acceptance of inbound shipments.

πŸ’΅ Incentivized Eastern Shipment: Amazon has reduced the inbound placement service fee by $0.05 per unit for shipments directed to the East region, aiming to redistribute inventory load. This carrot should be MUCH, MUCH bigger IMO.

βŒ› Extended Shipment Management: For shipments initiated between August 7 and October 31, the closure window has been extended to 90 days, and the abandonment window to 45 days. It is advisable to cancel any unnecessary shipments to preserve capacity.

😠 The Big WHY: The congestion primarily originates from the inefficiencies in Amazon's cross-dock network, where the distribution from national and regional cross-docks to fulfillment centers has been severely delayed, potentially adding weeks to standard inbound times.

πŸ’‘ Strategic Considerations: I've said this before and I'll say it again. You need to have what I call "emergency inventory" at 3PL locations on both the West and East costs. This is a perfect example of why they're so important to maintaining healthy stock levels at Amazon.

AWD just screwed sellers. Amazon pitched AWD as the "promised land" and now it's turning into a nightmare for millions of sellers.

Who could have seen this coming?


Jon Elder

​Say hi on X or LinkedIn​

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πŸ™‹β€β™‚οΈ Whenever You Are Ready

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