Is Amazon FBA Still Worth It in 2026? (The Honest Answer) — Transcript
Full transcript
- 0:00They say you just need $1,000 in your
- 0:01starting capital. I would say 95% of all
- 0:04private label people are actually
- 0:06failing. Your brand is sterile. You lose
- 0:08your money. They have 10K as capital.
- 0:11They directly want to make 5K in their
- 0:13first month. Sorry, but that's
- 0:14impossible. Some items even cost me
- 0:165,000 euro in loss. In this video, we're
- 0:19going deep dive if Amazon FBA still
- 0:22works in this year. We basically cover
- 0:26five different points. What changed in
- 0:292026? How much capital do you need? The
- 0:32real challenge, restrictions and brand
- 0:35access, why beginners fail, and how you
- 0:38should start. But what did actually
- 0:40change in 2026? If we're looking towards
- 0:43the entire performance, we can see there
- 0:45is so much more competition. Ungating we
- 0:49will talk about later. You have problems
- 0:51with capital. You need way more capital.
- 0:53The competition is obviously higher.
- 0:56Sometimes, when it comes to more
- 0:58competition is available, less deals can
- 1:00get found. Or, if you talk about private
- 1:02label, maybe the product you actually
- 1:04want to build already exists. And yeah,
- 1:06there are tons of multiple factors
- 1:09because the business model itself is not
- 1:12really secret anymore. A lot of people
- 1:14know about the business. Smart people
- 1:16actually do the business. There are a
- 1:18lot of changes, and that also comes with
- 1:20having really good software. For
- 1:22example, we know them all. Profit Power,
- 1:24Profit Goal, Sellerboard, Seller
- 1:26Toolkit. You have tons of repricer. You
- 1:28have AI. So, the competitive advantage
- 1:32is not really in using the smartest
- 1:34software anymore. There is a lot to
- 1:36actually pay attention to. And also,
- 1:38like when it comes to compliance-wise,
- 1:40there's so much compliance behind
- 1:42Amazon. But that's also good. For
- 1:44example, there are tons of compliance,
- 1:46for example, for private label, for
- 1:48online arbitrage. It's a different
- 1:50setting. Everything is getting so much
- 1:53more serious. And that's good because if
- 1:55you really want to do the business model
- 1:57completely serious, you want to do it
- 1:59half or full-time, you can do it. But
- 2:02Amazon right now is kind of swapping out
- 2:05all the little sellers who just want to
- 2:07undercut listings or don't want to take
- 2:09the business serious at all. So, I
- 2:12personally think right now what's
- 2:13changing this year is super super
- 2:15important. And we're going deep dive in
- 2:17this video why it is like this. The real
- 2:19challenge is working capital. Everyone
- 2:22wants to kind of take it as a secret. A
- 2:25lot of private label coaches, online
- 2:27arbitrage coaches, retail arbitrage
- 2:30coaches, they always say the same. They
- 2:32say you just need 1,000 euro starting
- 2:35capital and then you can build the
- 2:36amazing brand and source products from
- 2:39China. Or you can just start with 1,000
- 2:41euro online arbitrage completely
- 2:43changed. With having more professional
- 2:46tools, with actual need to test specific
- 2:49items, you need to have a lot more
- 2:52capital available. Tools cost its money.
- 2:55The products cost its money. Shipment
- 2:57cost its money. Tax cost its money.
- 2:59Having compliance and all that stuff,
- 3:01even running entire business costs
- 3:03money. It's not a 1,000 euro business.
- 3:06So, for private labeling, we're not
- 3:08focused on that. But if anyone tells you
- 3:10you can really build a private label
- 3:12brand big and have like the big dream of
- 3:15building your own product, your own
- 3:17brand, and then have like a crazy exit,
- 3:19you should really pay attention. Because
- 3:22probably behind this there's some guru
- 3:24who wants to sell you a course. For
- 3:25online arbitrage, which is our favorite
- 3:27business model, we can basically say you
- 3:30can start with online arbitrage
- 3:31seriously with 10K, 10,000 euro. For
- 3:34retail arbitrage, you can maybe start
- 3:36with 5,000 euro capital. But it will
- 3:39take you significant time actually build
- 3:42capital to grow your business. If you
- 3:44have more capital, I really recommend go
- 3:47with online and retail arbitrage. A lot
- 3:49of people wasting their time in private
- 3:51label, and then they just fail. They
- 3:54exit out of the Amazon FBA business, and
- 3:56yeah, that's really sad. A lot of people
- 3:58they just talk about the dream, but
- 4:00nobody actually talks about the red
- 4:02number. I would say 95% of all private
- 4:05label people are actually failing. If
- 4:07you want to build a serious private
- 4:09label business or online arbitrage
- 4:11business, you actually need more
- 4:13capital. So, don't waste your time with
- 4:15any guru which is telling you you need
- 4:171,000 euro. But, why does actually
- 4:20capital matter? I feel like there's a
- 4:21lot of points. For example, the
- 4:23inventory can get locked by Amazon.
- 4:25Sometimes you actually don't know does
- 4:27the items even sell? How much time do
- 4:30they need to ship it to Amazon? Etc. You
- 4:32actually need to have some capital
- 4:34available when it also comes to buying
- 4:37new stock. For example, our field is
- 4:39online and retail arbitrage. At online
- 4:41arbitrage it's not possible to just buy
- 4:43one item and really think it will sell
- 4:45the way. Obviously, you have KPIs such
- 4:48as confirmed sales and sales. Sometimes
- 4:50it can turn out that you lose the buy
- 4:52box and you don't get any sales at all.
- 4:54So, that's why it's really important to
- 4:57diversify your entire inventory. You
- 5:00need five or 10 or 20 winners at the
- 5:02same time to sell them. Because even if
- 5:05one item is not selling at all, you have
- 5:08the option to get sales from 10, 15
- 5:11other products which bring you money in.
- 5:13And that's why we actually sell on
- 5:15online arbitrage. With private label you
- 5:17have the problem you probably have your
- 5:19first product. doesn't sell at all, if
- 5:21it's not getting ranked in Amazon, if
- 5:23your competitors outspend you in the PPC
- 5:25budget, your brand is zero. You lose
- 5:28your money. With online arbitrage we
- 5:29actually sell on branded products which
- 5:32have sales. They have trust by the
- 5:34brand. They don't need any advertising
- 5:37budgets, and that's why we love them.
- 5:39So, if you decide for one and you want
- 5:41to build your business, I recommend go
- 5:43with online arbitrage first. If you
- 5:44build a significant amount of capital,
- 5:47you can see how the business model works
- 5:48for you. And if you want later on, you
- 5:50can still make your private label brand.
- 5:52The real challenge nowadays is there's
- 5:54no simple way to just source products.
- 5:57There is no secret for success. For
- 6:00success, if you want to build a
- 6:01sustainable Amazon business, you
- 6:03actually need to stay consistent. You
- 6:06actually need to understand the entire
- 6:08business what you're actually doing, how
- 6:10to read keeper crafts, how to actually
- 6:12get the best prices at online arbitrage.
- 6:15We're talking about this business model.
- 6:17There is no secret for success. I would
- 6:19say obviously one or two years ago or
- 6:22even three to four years ago, it was
- 6:24easier sometimes. The deals were
- 6:25probably more obvious. You had your
- 6:27specific sites you can check out every
- 6:30single day and buy a ton of items. These
- 6:32days, it's obviously more competitive.
- 6:35You have multiple websites, a lot of
- 6:37websites get scanned by other users and
- 6:40they will probably find your loop. So,
- 6:41for example, highly profitable item you
- 6:44basically purchase every week. Sometime
- 6:47is impossible because maybe someone is
- 6:50actually finding your loop and then
- 6:51actually uses that product for his own
- 6:53shop. So, what we really tell our users,
- 6:56you need to learn the entire process.
- 6:59You need to learn how to find
- 7:00sustainable items. So, for example, what
- 7:03kind of modules do you want to use every
- 7:05single day? That could be manual
- 7:07sourcing, it could be retail arbitrage
- 7:09going shops, that could be the manual
- 7:11sourcing when it comes to supplier
- 7:12search and profit path or the automated
- 7:14sourcing such as Deal Watch, Price
- 7:16Alerts, A2I, Boss Buy Search. And this
- 7:19is something you need to understand. You
- 7:21actually need to go deep dive into
- 7:23products. You need to understand keeper
- 7:25crafts and you need to understand are
- 7:26those profitable products really good
- 7:29online arbitrage products? I would say
- 7:31it's even more important than ever to
- 7:34actually really calculate your true
- 7:36profit. Really know does the product
- 7:38sell, how much money will it bring, how
- 7:40much money will it bring in my worst
- 7:41case? You really need to go deep dive in
- 7:44the data and be willing to learn. And
- 7:46you can do that if you analyze your
- 7:49product step-by-step. Analyze every
- 7:51single product, make mistakes, check for
- 7:54the best items, check for the winners,
- 7:56and then get a feeling what kind of
- 7:58store is good for my region. For
- 7:59example, in Germany, it's Media Markt.
- 8:01This is like a good shop. It's in Smyths
- 8:03Toys, UK is a good shop. Obviously, you
- 8:06can buy shortcuts. You can buy
- 8:08knowledge, for example, in our Profit
- 8:10software, you get a high-quality profit
- 8:12calculator. But running the entire
- 8:14business, being consistent with
- 8:15sourcing, knowing how to analyze the
- 8:18deal is on you. You need to do the work,
- 8:23and that's what we basically tell our
- 8:24users. There are so many users which try
- 8:27to run online arbitrage, then they maybe
- 8:29might get a VA. VA means virtual
- 8:31assistant. Those are basically
- 8:33Philippines. You hire, you pay them a
- 8:35specific hourly rate, and then they will
- 8:37source for you. But most people fail
- 8:39with that. They just say, "Okay, source
- 8:41me this product and do the job." This is
- 8:43not the right way. You need to
- 8:45understand the business model, you need
- 8:46to understand how to analyze, you need
- 8:48to understand every single KPI. Don't
- 8:51throw any VAs on your shop and expect
- 8:54the best outcome. And one thing, really
- 8:57don't go all in in one single product.
- 9:00We see it on a lot of successful online
- 9:02arbitrage sellers. Maybe this worked a
- 9:04few years ago. Maybe it worked for five
- 9:06to 10 products. But if you really want
- 9:08to do seriously online arbitrage, making
- 9:10sure that your risks stay kind of under
- 9:13the radar, you have not a lot of risk,
- 9:15really go broad when it comes to
- 9:17categories, when it comes to products,
- 9:19all that. Source from different brands
- 9:21because the game's getting harder. You
- 9:23can't just rely on one single brand
- 9:25because maybe the brand is in one month
- 9:27of completely hard gated. You can't sell
- 9:30anything. So, this is why we tell our
- 9:31users, "Go broad. Check for multiple
- 9:34high-quality brands, source them well,
- 9:36build your strategies." Maybe it's even
- 9:38reverse search. Maybe you source LEGO
- 9:40and want to find the best deals. Use
- 9:42reverse search as your weapon. And you
- 9:44need to understand it full. That's
- 9:46really important. One of the biggest
- 9:48changes is actually brand ungating.
- 9:51There are tons of videos out there how
- 9:53to get ungated, how does the entire
- 9:54process works. Can I get my ungating
- 9:57list to actually get all to ungated real
- 9:59quick, but this takes time. There are
- 10:02few ways. There are ungating checker
- 10:04where you can check Okay, are you
- 10:05ungated? But brand restrictions is a
- 10:08real struggle. And also like when it
- 10:10comes to your account, you need to have
- 10:12like serious legit account. You need to
- 10:15be completely compliant with all your
- 10:17numbers when it comes to shipping times,
- 10:19when it comes to your seller health,
- 10:21when it comes to ungating. You really
- 10:23need to have like a good ungating
- 10:25process. So for example, you have 10
- 10:27really good brands you want to source.
- 10:28Yes, you need to take the extra effort
- 10:31and get those brands ungated even if
- 10:33they are completely gated with they
- 10:36require for an invoice. Really try to
- 10:37source them from a legit supplier, then
- 10:40apply the invoice and then hope to get
- 10:41gated. Make sure to always stay
- 10:43compliant with all the items they
- 10:45require from you. If it's 10 units, if
- 10:47it's 20 units, if it's 100 units. Yes,
- 10:49it's a big struggle, but most people
- 10:51don't understand that having some kind
- 10:54of level restriction is really good
- 10:56because every newbie wants to go into
- 10:59the business and maybe want to let's say
- 11:01like prick prices. Prick prices means
- 11:03undercut your price. For example, let's
- 11:05say like 10 euro because they need the
- 11:07money back. It's good because you have a
- 11:09barrier to enter the game. Don't really
- 11:11see it as disadvantage. Take it as your
- 11:14advantage and really take the extra
- 11:16effort. Yes, it was easier a few years
- 11:19ago. A few years ago we didn't have all
- 11:22the big competition we have right now.
- 11:24We had no professionalized tools right
- 11:26now. This is something really good. So
- 11:29what I can give you on this point. Take
- 11:31care of your brand ungatings, take your
- 11:33brand ungating serious, make sure to
- 11:35deliver the right documents, check what
- 11:37kind of brands make sense in the online
- 11:39arbitrage game. You can check that even
- 11:41by Spy Search. For example, spying
- 11:43competitors, checking what kind of
- 11:45competitors are selling, etc. You can
- 11:47check what brands they're using and then
- 11:49ungate them, source them and then you
- 11:51will find really good products. Second
- 11:54thing, make sure that your account
- 11:56health is good, that you answer on
- 11:57specific messages, don't ignore your
- 12:00customers, make sure that the shipments
- 12:01are getting sent in time because this
- 12:04all gives you, for example, more power
- 12:06also in ungating. For example, me, I had
- 12:09a huge Amazon account, tons of orders,
- 12:1110,000s of orders every single year. At
- 12:14some point, actually gets easier for you
- 12:17to get ungated for specific brands
- 12:19because your account got age. For
- 12:21example, it's 4 to 5 years old. Directly
- 12:24good point. Your account health is good
- 12:26and there are different metrics that you
- 12:27get ungate even easier. So, don't be
- 12:30sloppy with that. Don't just rely on the
- 12:32invoices you get. Make it correct the
- 12:34full picture. And now we're talking
- 12:36about why most beginners fail. It's a
- 12:38really big topic and it's frustrating. A
- 12:41lot of people, they fail because they
- 12:42have unrealistic expectations. So, they,
- 12:44for example, want, let's say, like they
- 12:46have 10k as capital, they directly want
- 12:49to make 5k in their first month. Sorry,
- 12:51but that's impossible. In online
- 12:52arbitrage, retail arbitrage, you have an
- 12:54average margin, let's say, like 2 10, 20
- 12:57to 30% profit. It's really unrealistic
- 13:00to think you're going there and just
- 13:02make 100%, 50% of margin. You need to be
- 13:05real with the margin. You have extra
- 13:08costs after deliveries out, you have
- 13:10extra costs with your business and you
- 13:12need to actually calculate them all into
- 13:15your profit and loss. It's really,
- 13:17really important. You actually need to
- 13:18check VAT serious. So, you need to
- 13:21check, okay, where can I claim VAT? I'm
- 13:23eligible for VAT. You need to be actual
- 13:26really careful also when it comes to
- 13:28your inventory planning. Don't purchase
- 13:30too many items at the same time. Maybe
- 13:32start with one or two items, then save
- 13:34cash up, understand the business model,
- 13:37make mistakes, learn from the mistakes,
- 13:39keep going, but really make sure that
- 13:42you don't go too crazy in your first
- 13:44month. I mean like it's a new business
- 13:45for you. You actually need to learn it.
- 13:47So you need to feel it. That also means
- 13:49like you need to understand it. You're
- 13:51joining a new business. You really need
- 13:53to feel it, fail, learn from it. That's
- 13:56all how we do. It's even for us. In my
- 13:58Amazon business, I made multiple
- 13:59mistakes. Some items even cost me 5,000
- 14:03euro in loss, but I learned from them. I
- 14:05learned from the mistakes. For example,
- 14:06I sourced the private label brand by
- 14:08accident. I bought the items, got the
- 14:11claim, couldn't really sell the items.
- 14:13And that's something you need to learn,
- 14:14but you can avoid it if you actually
- 14:16listen to for example our YouTube
- 14:18content. So for example for this stuff,
- 14:20so you really need to learn how to
- 14:22analyze the product, how our alerts
- 14:24working, how the entire profit
- 14:26calculation working, how is competitor
- 14:28analysis working, how are variation
- 14:30listing working, when does a product
- 14:32even look like a private label listing,
- 14:34or is the price you actually purchased
- 14:36the item for actual the right one? So
- 14:39yeah, there are tons of different
- 14:41reasons. And one thing I can really tell
- 14:43you, stay consistent. You really started
- 14:46the business to make some extra money.
- 14:48You want to start as half-time,
- 14:50full-time. Online arbitrage is the right
- 14:52one. We have examples like Ricky. He's
- 14:54making 2.5 million in revenue this year.
- 14:58It's completely crazy. He used all our
- 15:00products and he made it. It's not that
- 15:02hard, but you need to stay consistent.
- 15:04You shouldn't really give up directly
- 15:06after the first few weeks if you maybe
- 15:08like frustrated with the business at
- 15:10all. It's a real game. It's a business.
- 15:13If you go to the next business, you will
- 15:15have the same struggle. Probably after
- 15:17online arbitrage, you maybe want to try
- 15:18private label, you want to try a drop
- 15:20shipping course, or whatever. But with
- 15:23every single business model you're
- 15:24actually choosing, you will get
- 15:26frustrated, you will fail, and that's
- 15:28really it. It's with every single
- 15:30business model. And yeah, you know,
- 15:32there's a tons of Instagram, WhatsApp,
- 15:35TikTok gurus which actually flex
- 15:37revenue. But what I can really tell you
- 15:39is stay lean with your business.
- 15:41Actually make sure that you make profit.
- 15:44Don't really go for the first 100k
- 15:47revenue in the first 3 months you think
- 15:50you made it, but then your profit is
- 15:52probably wrong. You really should
- 15:53monitor your profit. You should actually
- 15:56see, okay, how does my profit evolve
- 15:58over the time? Is my margin, for
- 15:59example, going down because I shop XYZ
- 16:03product and it's not good for my entire
- 16:05business? You should really monitor your
- 16:07profit. You should actually optimize for
- 16:09profit. Don't optimize for revenue.
- 16:11Obviously, you have some big sellers
- 16:13that have ton of capital. For them, it's
- 16:15probably worth to buy an item for 5 to
- 16:178% profit margin, but it isn't for you.
- 16:20You're starting a business and you want
- 16:22to make a living of it or whatever you
- 16:23want to do. You really need to optimize
- 16:26for profit. Don't go the revenue way,
- 16:29try to flex people, don't do that. So,
- 16:31what I can really recommend is, if
- 16:33you're actually checking out an item,
- 16:34test the item, buy a few quantities,
- 16:38ungated a brand, see how it evolves, and
- 16:40then keep reordering. If the brand
- 16:42works, you can directly check out the
- 16:43brand, okay, are there more possible
- 16:45really good online arbitrage items? We
- 16:47have Samsung as brand, Samsung performs
- 16:49really good. Every single item I'm
- 16:51purchasing, I make 10%. So, this is a
- 16:53strong signal that there are really good
- 16:56products at the brand Samsung. And you
- 16:57have the brand ungated, so you just need
- 17:00to look out for it. So, now we're
- 17:02basically coming to the last point. We
- 17:04are 100% sure Amazon FBA still works
- 17:07today, but it depends on what kind of
- 17:09business model. In today's world, if you
- 17:11have no big experience, you have great
- 17:14contacts, I wouldn't really start
- 17:16private label. I'm not a private label
- 17:18guy. I tried it by myself. So, I'm not
- 17:21someone who just guesses, ask ChatGPT,
- 17:24makes it sense to say, "No, I tried it."
- 17:26And I failed. I failed because the
- 17:29market is full of competition. You have
- 17:31competition in every single field. If
- 17:33you develop your own product, maybe that
- 17:36makes sense, but you need a more
- 17:37capital, it takes way long. But, if you
- 17:40really want to build something
- 17:41sustainable now, then I recommend you
- 17:44online arbitrage and retail arbitrage.
- 17:46These business models are very
- 17:48predictable. They're really predictable
- 17:49when it comes like to products you sell,
- 17:52you see all the data at the glance. You
- 17:54see if you can sell the product, you see
- 17:56how much volume is on the product, you
- 17:58see what kind of competition is on the
- 18:00product. You have all the data at a
- 18:02hand. So, what I recommend is, if you
- 18:04have at least 10K capital, try online
- 18:06arbitrage. Try the business model, but
- 18:08it takes time. You need to actually be
- 18:11willing to learn. You need to test
- 18:13things, you need to try things. You need
- 18:15to stay consistent. We have in Profit
- 18:18Path a lot of video courses. If you want
- 18:20to learn it, if you want to learn how to
- 18:21analyze something, if you want to learn
- 18:24retail arbitrage, we have it in our
- 18:26academy. So, if you want to learn the
- 18:28entire business model, our link down
- 18:31below, there you can basically take a
- 18:33trial, go into Profit Path, check out
- 18:35the software, check out our extension,
- 18:37and then check out the entire video
- 18:39suit. So, in 2026, you can give it a
- 18:43try. If you are hungry, if you don't see
- 18:45enough passive income or just a side
- 18:48hustle, you want to invest 1 hour a
- 18:50week, you can do it. And I trust you. If
- 18:52you're looking for a serious and
- 18:54professional software with a great
- 18:56community, we're at the right place. We
- 18:58know how to connect seller, we know how
- 19:00to help you. For example, we recovered
- 19:02one guy 6,000 euros inventory which got
- 19:06lost by Amazon. We're a strong community
- 19:08and we want you to succeed. So, take the
- 19:11trial, the link is down below. Just make
- 19:14an account. You're not getting charged
- 19:16within the trial period, and then you
- 19:18can check out the entire thing. If you
- 19:21need anything, just write a comment down
- 19:22below. Comment Amazon FBA, we'll send
- 19:24you an entire PDF how the entire
- 19:26business model works, and why I think
- 19:28it's the right choice in this year. So,
- 19:30I hope you enjoyed this video, and I
- 19:32wish you the best. Bye.
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