Is Amazon FBA Profitable in 2020?

Matt Clark

Amazon is basically Google for eCommerce. So it’s safe to say, yes, Amazon FBA is still profitable for sellers in 2020. I know, not exactly an epiphany. It’s true though, and we can show you how to start selling right now to be successful.

Guide Contents:

Make Your Product Listing More Profitable in 2020
Amazon SEO
Amazon PPC Strategy
The Right Product
Improving Product Photos
Get More Reviews
Profitability of Amazon in 2020

So Amazon FBA was profitable for new sellers in 2018, 2019, and the trend continues in 2020. Just look at the success Amazon continues to have, despite everything going on in the world. Amazon will remain a giant.

New sellers tend to worry. Is an Amazon FBA business a viable option in 2020? Is it too late to start? Is it too competitive? No way.

There’s always a path to success on Amazon, especially when you have the guidance and mentorship from Amazing and it’s community.

Make Your Product Listing More Profitable in 2020

Like any other market, you can think of. The successful businesses are the ones that devote their focus, energy, and time to thinking about long-term wins and solutions for their customers rather than getting rich quickly.

So is Amazon still profitable in 2020? Yes, especially if you follow Amazing Selling Machine. It doesn’t require an in-depth understanding of Amazon or eCommerce. We can teach you how to do it all, including the skills you’ll need.

As with any opportunity, most people are doing a lot more talking than executing the strategy and actions necessary to get this business going.

Here are some areas to focus on if you’re finding that Amazon FBA is not as profitable as you’d like to be in 2020. Implementing these fundamentals will make any Amazon business profitable in 2020, given the right product. This overview will help you understand how the entire process works so you can start thinking about this business.

Amazon SEO

On Amazon, SEO is just as crucial as on Google. With a couple of necessary improvements to your product listing, you can start to rank and compete for the #1 spot on Amazon.

Targeting the right keywords is as important as the product itself. Examine the number of searches for all of the possible keywords in your niche and determine the best way to incorporate them into your listings descriptions, titles, and bullet points.

If you want the best possible product listing optimization strategy, look at some of the key focus areas:

High-Quality Product Images: Your first image needs to grab the customer’s attention. Images should include a photo of the product and lifestyle images, showcasing your product in situations that would benefit your buyer. Study the competition and see what images are working for them.
Bullet Points: Hit on your ideal customers’ pain points, show them the benefits and features of your product while creating a desire to purchase in the customer.
Descriptions: Give your customers a new angle on your product, including product images, videos, and call to actions that reveal even more features. Keep the customer’s attention throughout the description and get rewarded with a higher conversion rate.
Reviews: Commenting on reviews, both negative and positive ones, allows you to clarify things and offer up additional information.

Amazon PPC Strategy

Check out our recent guide for setting up your first Amazon PPC campaign. Learn how to run profitable PPC campaigns and see the best-sponsored product ad setup for beginners. We also cover other parts of PPC strategy like:

Dynamic Bidding Settings
Best Sponsored Product Ads Setup
Product Display Ads
Automatic Campaigns
Suggested Bidding
Sponsored Ad Placements

The Right Product

If you’re concerned about Amazon being profitable, consider if you’re offering the right product.
For a handy refresher on product selection guidelines, check out the best products to sell on Amazon. Is your current product idea viable? Here’s a quick checklist to find out:

Selling Price: $15-70: this price point provides the highest profits while keeping returns and inventory orders reasonably priced.
Best Seller Rank: Ranked between 500 – 5,000: Number one is the most popular product, competing against products in the 500-5000 range will give your product the highest visibility.
Weight: Item should be no more than 3 pounds. This lowers shipping costs and optimizes profit margins.
Reviews: Stick to competing with similar products that only have less than 1,000 reviews, this eliminates competing with super-competitive products.
Product Title: Get the customer’s attention and include targeted keywords in your title. Use at least three key search terms in the title to maximize your clicks.

Improve Product Photos

Critical to improving the performance of your Amazon listing is enhancing your product photos. Photos represent your brand, your product quality, and that makes them essential for increasing sales. Look at your current photos and see if they meet these optimal guidelines for Amazon:

Lighting: Understand the lighting you need to do a professional shoot if you’re not using natural light, then acquire the lighting you need to showcase your product.
High Resolution: It’s best to have the highest resolution possible when shooting. Make sure your camera is shooting at its highest potential for best results, or consider upgrading your camera setup because you’ll inevitably need it.
Different Angles: Look at the different angles that your competitors are using to showcase their products because it’s likely they’ve already found some great angles. Start there and branch out into your own angle ideas until you’ve found the best positioning.
Tripods: When it comes to increasing your product photos’ overall professionalism, tripods are an easy upgrade to build yourself a professional photo studio at home.
Professional Cameras: Of course, the quality of your camera will ultimately impact your photos. If you have a fantastic camera already, you may need to upgrade your lens to make a huge difference.

Get More Reviews

Positive reviews are vital to increasing your sales on Amazon. If you want to climb the ranks of Amazon SEO and make 2020 profitable for your Amazon business, start with gaining positive reviews.

Here are some quick tips to start earning product reviews:

Find and Engage with People and Online Communities: Start seeking out your audience online. As you start to understand your ideal customer better and who to target, realize that they’re gathering somewhere online. Whether it’s a Facebook group, a forum, or you can create your own group and invite people who need your product.
Enroll in Early Reviewer Program: One of the simplest ways to start getting 5-star reviews. If you’re brand new, this is the best route to give your product some reach.
Product Inserts: Include these with all the sales you’re making and give your customers something special to leave positive reviews of your product.

Engage Customers: Instead of asking for something from your customers without offering anything more profound, consider how you can provide value to the customer and receive a review.