Amazon Automation Dropshipping Companies Don't Tell You!

Don't Fall for the Screenshot Trick & Lambos

Amazon Dropshipping

Amazon's Dropshipping Policy

Amazon (2021) Dropshipping Policy states, "Drop shipping, or allowing a third-party to fulfill orders to customers on your behalf, is not acceptable" (p.1).

Dismal Performance Metrics

The vast majority of FBM accounts that we have reviewed prior to transfer have either been at risk of deactivation or have been deactivated. Some of these metrics include Feedback, Voice of the Customer, Order Defective Rate (ODR), Tracking, and Price Gouging.

gross Sales
is not
net profit

Don't Fall for the Gross Profit Screenshot from Amazon! The vast majority (millions) of Amazon Sellers use the same place to source their products. Same supplier and more competition produces less net profit. Many transfer clients prior to joining with us were producing monthly six figure results and only yielding a 1%-3% profit margin. In fact, many were even losing money. In an article titled, The Truth About Dropshipping: The Good, The Bad, and The Ugly (Pekarek, 2021) writes, “smaller businesses have to cut into their profits just to stay competitive with their prices, and at a certain point, it becomes unsustainable” (p.1).

No LIVE Support

When issues arise such as clients messages regarding products or notifications from Amazon, good luck getting these issues resolved in a timely manner.

Using Walmart as a Supplier on Amazon

Using Walmart as a supplier is a violation of Retail Arbitrage and Amazon's Business Solutions Agreement. If caught Amazon will permanently deactivate your store and may withhold your funds. If Amazon requests invoices to check if the items are authentic, you cannot send them a receipt and letter of authorization from Walmart.

Most FBM Stores Get Deactivated

After conducting research on over 1000 former FBM stores, most had been deactivated at one time or another. Store deactivation may result in the withholding of your funds in addition to a permanent store deactivation.

Permanent Deactivation

Fulfillment by Merchant also known as (FBM) has numerous risks including, but not limited to the permanent store deactivation and the withholding of funds within the Amazon Store. In a recent article titled, Why Do So Many Amazon Sellers Get Suspended for Inauthentic? Author (Stine, 2019) writes, "our clients are selling genuine goods, but they are inauthentic because of WHERE the seller bought their goods. They are either selling gray market goods (unauthorized sources, diverted inventory), retail arbitrage, or liquidation goods"(p.1).

chinese products/copies are getting pulled from amazon

In a recent article by Techcrunch (2021) Liao noted the following:

Amazon didn’t comment on the status of the suspended accounts, but said in a statement for TechCrunch that it has “long-standing policies to protect the integrity of our store, including product authenticity, genuine reviews and products meeting the expectations of our customers.” We take swift action against those that violate them, including suspending or removing selling privileges,” said an Amazon spokesperson

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References

Amazon (2021). Dropshipping Policy. Retrieved from https://sellercentral.amazon.com/gp/help/external/201808410?language=en-US&ref=mpbc_201808430_cont_201808410

C Stine. (2019, June 20). Why Do So Many Amazon Sellers Get Suspended for Inauthentic? Retrieved from https://egrowthpartners.com/meaning-of-inauthentic/

L Pekarek (2021) The Truth About Dropshipping: The Good, The Bad, and The Ugly. Retrieved from https://www.bigcommerce.com/blog/dropshipping/#5-hard-truths-about-dropshipping-no-one-talks-about

R Liao. (2021, May 11). Prime today, gone tomorrow: Chinese products get pulled from Amazon | TechCrunch. Retrieved from https://techcrunch.com/2021/05/11/chinese-products-get-pulled-from-amazon

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Disclaimer: Results listed above or in any marketing material are not guaranteed. Results provided are explicitly provided as examples only. Your results will vary depending on a wide variety of variables. Results for other Clients should NOT be compared to yours in any way. Results are based on many various factors including capital, available inventory, brand approvals, time of year, account health, etc. Smart FBA Inc. does not guarantee or promise ANY results, outcomes, returns, or profit margins. All business owners are responsible for their business, accounts, liabilities, and applicable taxes. This should be treated like any other business model, including the associated risks, and is not a get-rich-quick scheme. The Amazon FBA Business Model takes time to scale, and inventory is required. Any information provided is opinion only and should not be considered investment, financial, tax, and/or legal advice. We are not licensed financial advisors or tax professionals. Smart FBA INC is not affiliated with Amazon

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What Amazon Automation Dropshipping Companies Don't Tell You