Today I want to speak about something quite different but significant, and it applies to all entrepreneurs out there.
Do you live by: "It's not about what I can, it's about what I want" ?
I have been on Amazon for the last 5 years...
Amazon is literally the best opportunity out there for everyone who is looking to build a business and make money. You can change your whole life in a matter of a few months only by knowing how this system works.
Amazon has an FBA platform that makes everything simple and easy. You don't need a big team to have a business, create and sell products.
So... what's the catch here?
Let's speak pros and then cover some of the cons.
-You can make money fast
-It's simple and easy once you know what you're doing
-No need to be innovative to succeed
-No need social media skills
-No need to become a real brand to sell
-If you have a good foundation and you work in the system, sales spikes fast
-You can literally run it by yourself
Sound like the perfect dream so far, right?
Well, let me move forward and present to you the cons.
-Amazon's set of skills are very specific to Amazon, which means try to leave Amazon or do something else after, and you will find yourself kinda lost.. you will need to re-invent yourself and be at the beginner level. Many sellers go back to Amazon even after they are 'settled' or sold their company
-Amazon gives you an easy way to identify your identity, worth, and success with the amount of money and sales you make
-Amazon changes their Algorithm consistently, and when a lot of money involves you can lose it at the same speed you made it
-You have almost no place for creativity and innovation since your products must be the cheapest (at least in the first few months)
-Profit margins are low comparing to owning a real brand
-The customer reviews will determine if your business sell well. Sometimes reviews are just because your customers didn't understand something.. and Amazon doesn't help you to find them in order to help and solve this issue. You can search for them in other ways and etc but it doesn't work that well
-Amazon owns your customers
Basically, Amazon has all the power over your business
I would add that if you're a creative person, Amazon can be a soul-sucking job, with tiny to no place for self-expression.
Don't get me wrong,
I LOVE Amazon.
I think it can change people's lives, and if you're backed with a VC or an investor, you can build a simple operation around that while being aware of the cons. It's worth it. You can make it for a while and then sell your business.
I reached my first $1M in less than two years! Yes, that's true with no investment and nothing, just me.
Due to the cons I mentioned and the lack of experience regarding cashflow and inventory management, I lost it all in 6 months AND stayed with 500K in debts on me.
Yes, I'm writing this blog from my personal experience, and I hope to add you guys some value.
The punch line to this blog post is:
" COMBINE WHAT YOU CAN WITH WHAT YOU LOVE. "