There has been a lot of discussion on an Amazon automation scam that lures victims (or investors) in with claims of 6-figure profits and passive income without ever having to deal with a product.
These internet businesses promise to take care of everything for you in exchange for a share of your profits (and a big upfront payment, as well). But what does that truly mean in practice?
Is Amazon automation legit? Or is Amazon automation a scam?
Amazon Automation Scam – What Is It?
What exactly is the business scam related to Amazon Automation that everyone is talking about?
By making an investment in a pre-built Amazon automation store, many customers have suffered considerable financial losses. They discover that their Amazon store is not as profitable as they had expected after their initial investment. They consequently incur financial losses.
This is the case because, regardless of whether the Amazon store generates a profit, the agency responsible for running it must be paid each month.
What happens if your Amazon account is terminated for questionable behavior?
Not something they have to deal with.
To put it plainly: The only side guaranteed to profit from this arrangement is the agency administering the store.
This is not to say that all services offered by the Amazon Automation store agencies are fraudulent. But, it’s crucial to realize that success isn’t guaranteed.
It is strongly dependent on the performance of a third party when you are getting into this arrangement for an Amazon automation store. You are counting on them to create a working and profitable Amazon store. Often, that just doesn’t work very well.
To find out for yourself, simply search for “Amazon automation scam” on Twitter.
The profit must be sufficient to cover both the initial setup charges and the responsibility to pay the required financial percentages to the automation agency while it is running.
Of course, your account with Amazon must also continue to be in good standing.
That is difficult. Yet, there are instances of this that have and still do function as planned, with both sides benefiting.
What Is Amazon Automation Store?
Amazon store automation is a general phrase. It can be used to describe the application of one or more techniques to automate work related to your own Amazon store.
It may also entail hiring a specialized company to create and manage your entire Amazon business, providing you with a fully automated operation.
Are Amazon Automation Companies Legit?
In this situation, a company is hired to set up and develop an automated Amazon e-commerce store for you. You will be responsible for covering all of the expenses related to creating your store as the owner.
You will then give the automation agency a portion of your store’s revenue or profit once it is operational.
This could end up being a very expensive way to start a store that, once handed over, is never truly yours. In essence, it depends on the conditions of a third-party company (the automation agency).
Furthermore, if the store doesn’t operate as intended, you may end up having to deal with significant losses.
The Amazon automation service is also likely to mislead you regarding your expectations for the profitability of the store. But ultimately, there’s no certainty as to what’s going to be the result. It could cost you a lot of money if the expected earnings don’t materialize.
Creating Automation For Your Amazon Store
Owners of current or newly established Amazon stores take a more hands-on approach when setting up automation for their own businesses. These automated processes can lessen the amount of manual labor needed to run and maintain an Amazon storefront.
This is a far more individualized approach by its very nature. It can be helpful for individuals who have profitable Amazon stores and want to scale their operations.
Risks Of Using Amazon Automation Service – Is Amazon Automation A Good Investment?
It’s not unusual to come across online gurus that claim to make you rich quickly without having to put in the work.
Sometimes, these options can work for a small number of people. Unfortunately, a lot of people don’t get the stated opportunity to work out as planned.
There will be folks who say it worked for them and that it can work for you if you do your homework on Amazon Automation store services.
Any chance like this should be approached with enough caution. Let’s now examine the risks associated with adopting services that provide Amazon Automation.
1. The Agency Generates Revenue No Matter What
Although each agency has its own terms, you can be sure that their own earnings will be safeguarded.
While they typically take a portion of whatever sales you generate, their contract is also likely to have clauses that require you to pay fees even if you aren’t making money.
Perhaps, they’ll tell you that you’ll soon start making money, so you shouldn’t worry about that. It is in your best interest to know what your expenses will be like. You must take into account the potential long-term impact of the arrangement.
2. You Are Investing Your Own Money
The conditions for joining them and partnering to use their services vary amongst different Amazon Automation store businesses. Yet, to invest in their platform and use their services, the majority will demand that you pay a sizable fee upfront.
Also, you typically need to spend a lot of money to purchase the stock that they will be selling for you.
Generally, a financial investment may be required to launch any product or service. So, you should think about how expensive these up-front fees are and whether you’re ready to take that kind of risk.
3. Your Store May Be Suspended
One risk of having someone else manage your business is that you won’t always be aware of everything that is going on.
If Amazon finds that you have violated its terms and conditions, they may choose one of the following options:
- Issue you a warning and request that you remove the products
- Instantly remove the items you’ve posted
- They might shut down your store
Naturally, no one wants their store suspended because it stops them from selling products. Also, it can take a while to have your store reinstated and your selling privileges restored. You should definitely steer clear of getting to that point.
4. Lower Profit Margins
Every business aims for the highest possible profit margin. This enables you to take a salary and have resources to reinvest in your company.
There are strategies to sell on Amazon and earn money as well as other ways to earn money without selling. In any case, if you are using a Fulfilled by Merchant service through an Amazon Automation Agency, you might find that your profit margins are significantly lower. This is mainly due to their fees and costs and you would be better off if you had instead signed up for an Amazon account and used their Fulfilled by Amazon service.
5. Dropshipping On Amazon Could Violate Their Terms And Conditions
You may already know that in order to ensure customer satisfaction, Amazon has some extensive terms and conditions for sellers.
One of the items included in the terms and conditions is dropshipping and how vendors should approach it.
It is strictly prohibited, without exception, to buy items from another online retailer and have that retailer ship them directly to customers if the shipment does not list you as the seller of record. This is the case if someone else (including the other online retailer) appears on invoices, packing slips, or outer packaging.
If you choose to sell through an Amazon Automation Agency, you may run into this problem. As a result, you run the risk of unknowingly violating Amazon’s terms and conditions, which could lead to the suspension of your store.
6. Hire Someone After You Have Done It On Your Own
Even with the day-to-day operations, there is no harm in getting additional help to get your business off the ground.
The cost of starting a business can be quite high. Therefore, you need to thoroughly understand it before appointing someone to take over its management.
The issue with this type of business model and utilizing a pre-built solution in this manner is that it leaves you with a poor understanding of your store and how your Amazon business operates.
While things are going well, this is usually okay. But if something goes wrong and you have to take charge, it will be difficult for you to do so. You neither want yourself nor your business to be in that situation.
7. It’s Difficult To Get The Buy Box
Getting included in Amazon’s Buy Box is a fantastic method to increase sales. This is because it increases the visibility of your items.
There is high competition to be listed in these boxes because this is such an effective way to increase sales. It’s not always clear from Amazon what it takes to get featured or how they determine who gets to appear there.
We do know, however, that getting listed for orders that the supplier (or dropshipper) fulfills is significantly more difficult to obtain than for orders that Amazon fulfills.
How To Detect Amazon Automation Scam
You get numerous results when searching for Amazon Automation Services on Google. Every agency and platform claims to be different from the others while making a variety of promises.
Although many of them may not strictly qualify as scammers, you should make sure to conduct your own research before signing up for anything.
Most of these automation services are not significantly better than what you might accomplish on your own. Also, you get to keep a higher share of the income when you do the work on your own.
Be suspicious of anything that sounds too good to be true.
Ultimately, businesses are not around to make you wealthy unless there is a benefit to them as well. That is always something to keep in mind when you look at online business options and think about how to sell items on a website like Amazon.
Keep the following things in mind if you’re considering hiring an Amazon automation service:
1. Testimonials Are Probably Fake
If you have been researching how to create an Amazon storefront for your business, you have probably come across testimonials that are deceptive and don’t accurately describe the company.
What Amazon Automation business would actually leave a bad review for their own service? Therefore, keep in mind that testimonials are inherently biased.
Even while they might contain some accurate information, they may not be a true account of their experience with the company. After all, it’s quite simple to create a fake Amazon review (which is why you might want to use tools to check for phony reviews on Amazon).
For information on the Amazon Automation business scam from actual users, it’s worth searching on Twitter and Reddit. Not everyone is happy with their experience!
2. When Did They Start Doing It?
While evaluating Amazon Automation Services, one thing to consider is how long they have been in business and what kind of experience they have.
Perhaps, automating Amazon sales in this manner seems like an interesting idea. But despite agencies advertising these services, you won’t always come across businesses with relevant backgrounds.
3. Be Careful About Non-Disclosure Agreements
Some businesses may have justifications for requesting non-disclosure agreements from their clients and customers. These reasons usually include the need to protect a business’s intellectual property. This is supposed to honor the time that it takes for a company to investigate and create a service that they provide.
Your contract with Amazon Automation Agencies may require you to sign an NDA, which prevents you from discussing it with anyone. Although this might not necessarily be a cause for concern, it is something to be aware of and look into before agreeing to work with them.
There have been instances of certain Amazon automation businesses using their NDA to intimidate unhappy clients into remaining quiet about their experience. As a result, many people are afraid to openly discuss how they have been treated.
4. Look At The Reviews On Facebook
Facebook reviews typically give a more realistic representation of a company’s products or services.
There are sponsored reviews and recommendations that may slant opinions in favor of good assessments. Yet, they are subject to challenge due to Facebook’s semi-public nature and individuals’ capacity to expose fraud or fake reviews.
This typically indicates that the platform contains some real experiences and opinions about how a company performs in the real world.
Amazon Automation Business Review – What Is The Alternative?
Starting your own FBA business is the recommended option if you want to enter the eCommerce industry.
Even while getting started requires some work and money upfront, you reap all the benefits. You may grow your eCommerce venture as an Amazon FBA seller without having to deal with inventory or product shipment and fulfillment.
It makes sense for both Amazon and the owner of the store to use the FBA services. Also, it qualifies the items being sold for Amazon Prime.
Selling through FBA has definite advantages in terms of:
- Product positioning
- Ability to rely on Amazon’s internal systems
- Assures accurate order fulfillment
- Simplifies inventory handling and management
Naturally, this leads to fewer returns from customers and higher feedback scores for the products and the storefront selling them. This results in a win-win scenario.
Amazon Automation Course Review
Several Amazon Automation courses are available today. Some are designed to help people learn and understand the techniques used to expand and grow a Fulfilled By Amazon (FBA) business.
The methods used are highly beneficial for your ongoing business growth within the framework provided by Amazon.
Other courses focus on selecting a company to set up and run your Amazon business. These classes are designed to move you towards a totally outsourced Amazon business operation.
This doesn’t eliminate the risks and high-profit standards necessary to make it a successful endeavor.
These courses are probably not the best use of your time or money.
Automated Amazon Stores – Does Amazon Automation Work?
One of the best things about eCommerce is that it allows you to work fewer hours per week than you would if you opened a physical store.
In the beginning, a hands-on approach is essential. It doesn’t mean, however, that you can’t apply automated services and virtual assistants to make the operation as simple as possible for you.
1. Amazon FBA Automation
Your Amazon stores can use Amazon’s fulfillment centers if you use Fulfilled by Amazon. Instead of you picking, packaging, and delivering the items yourself, Amazon does it all for you.
Running an Amazon FBA business involves some additional costs, but you won’t have to pay for your own warehouse space to keep products. Also, Amazon FBA makes it easier to manage inventory, allowing you to monitor stock levels and supply effectively.
Amazon is also more likely to move your products to the top of product lists and increase your visibility if you sell through FBA. As a result, these extra expenses quickly prove to be a good investment.
They take care of pretty much everything else for you in terms of order fulfillment after your products are posted. You now have more time to devote to developing other aspects of your company.
2. Amazon Automation Software
With the appropriate software, many of the repetitive chores associated with operating an Amazon business can be automated.
The following are some of the top resources for Amazon business owners:
- JungleScout – In addition to the help with finding successful products to sell, JungleScout features a fantastic tool for an automated review process. By doing this, you can get more happy customers to give your products positive reviews.
- FeedbackWhiz – Another helpful tool for tracking listings, automated feedback, and examining financial and accounting data.
- Accounting Software – You can link your Xero or Quickbooks account with your Amazon store using accounting software solutions like A2X.
3. Work With A Virtual Assistant
You can free up more time by hiring a virtual assistant to help you operate your Amazon business.
Here are some of the tasks that an Amazon virtual assistant may assist you with:
- Product Sourcing
- Inventory management
- Customer support
- Listing optimization
- Responding to reviews
- Graphic design
- Amazon PPC campaign management
- Keyword research
- Social media management
The best part of working with a VA is that you may hire them on an hourly basis through a marketplace. This can be more advantageous for a new Amazon seller than hiring someone full-time and having to deal with everything else that goes with it.
Virtual assistants typically provide flexible working schedules and a range of compensation options. Also, you have the ability to hire them to handle any administrative or customer service tasks that need to be handled. This gives the opportunity to have a significant portion of your business managed while keeping a close check on it.
Conclusion – Amazon Automation Review
Amazon selling is simple but not easy. There are, however, many Amazon millionaires, and others who have utilized Amazon to launch their own businesses and leave their 9 to 5 jobs.
Although it takes commitment and effort to launch your own Amazon business, the profit potential is high.
Starting an Amazon FBA business is one of the easiest ways to get started if you’re an entrepreneur trying to get into the eCommerce space. You can reach several users who already know and trust Amazon by selling on the Amazon marketplace. It is therefore the ideal place to introduce a new product.
There is clearly a path to making money this way, especially as more and more people choose to use online marketplaces like Amazon to buy their goods. The fact is that you can become wealthy if you select the right products and do what it takes to succeed.
Is the Amazon automation investment worth it? One thing is certain. Giving a portion of your sales and getting involved with an Amazon automation scam is probably not the right course of action. This happens to be the case if you want to offer yourself the best opportunity of earning as much money as possible with Amazon.