The Truth About Amazon FBA (What I Wish I Knew)
An Amazon FBA seller with seven years of experience breaks down the four traits of winning products: saturated niches with room for profit, sellers who understand their customers deeply, optimized listings that convert, and healthy margins to fund ads. He built brands like Factory Laced and Maverick by raising capital and flipping businesses after 3-4 years, and says the 2025 A10 algorithm rewards ads that both click and convert.
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All right guys, if I were to start Amazon FBA all over again, what would I focus on? And I've been doing Amazon FBA since 2018, so that's 7 years of being in this game when it comes to private label manufacturing products, going over some success but also a lot of failures along the way. And Amazon FBA private label looks a little bit different now than when I first started because I got started just like you guys, you know, spending $5,000, $6,000 on my first production run getting into Amazon FBA and kind of learning the ropes just by trial and error. Because now what I do is I purchase Amazon FBA businesses. So I raise money from investors, find profitable type of products or brands that I think that I can go ahead and scale to an amount where I can double, triple, even quadruple the monthly profit. Or, you know, the goal is to, you know, raise the profits a little bit and then, you know, sell this actual business again in 36 to 48 months. But now that I analyze businesses like from day in and day out, there's like common denominators as far as what makes products successful. And in this video, I kind of want to go over those common denominators because it's a lot easier and more simple than people might think. Because I feel like people get stuck in analysis paralysis mode the entire time. They start second-guessing what products to come out with. They start second-guessing if this is the right product to do. They start second-guessing if they should run more Amazon PPC or like, you know, running ads. And it can be very simple if you just reverse engineer what made people successful when it comes to Amazon FBA. And that's kind of the approach I take with myself if I'm buying a business, if I'm starting brand new, or if I'm helping students go ahead and start Amazon FBA business for the first time, is that I like to reverse engineer everything, right? Because I take, you know, products that are doing very well I start seeing if new sellers that launched in the last 3 to 6 months are making money as well. Because if new sellers are making money, it gives you the opportunity to get into that space, that category, that segment in Amazon FBA and actually start making money as well. So that's one common denominator, right? Like, not only are you coming out with a product that, you know, has demand, but a product that's actually saturated. Because that goes against the group— the grave of like what everybody says on Amazon FBA, and that's to find a product that has, uh, very high demand and low competition. Where in reality, if you find a product like that, eventually there's gonna be more competitors that come into that space. Eventually those competitors will take market share, and eventually you'll be left with a smaller and smaller percentage share. So like, in my approach is like, I like to go into niches that are already saturated because all I need to do is take a sliver of that market and I lay— and I make life-changing amounts of money, right? So that's one, seeing that new sellers are actually making a good amount of money. But number 2 is that I always say I got lucky when I first started Amazon FBA, um, and the reason why I got lucky is because I actually picked a product where I was the customer avatar. I was that person purchasing that product. I was that person with that pain point. And if you guys have followed this YouTube channel, you guys know that I own 3 brands right now. I own Factory Laced, I own Maverick, and I own Nudery Labs, right? So the first brand that I started from scratch was Factory Laced, and I used to collect limited edition sneakers, the Jordans, the Kobes, all these other, you know, I used to camp out for shoes. So I knew exactly like the different types of materials these shoes were, how to display them, how to repellent spray, what glues to go ahead and, you know, come out with, deodorants, displays, all the whole nine when it comes to what a sneakerhead is looking for on a product to keep their shoes in pristine condition. Because basically the hardest thing, or like the most thing that, that matters in Amazon FBA is conversion rate. And if you can have secondary images, your bullet points, your A+ content resonating to a customer, you're going to convert, right? So that's probably one of the most common denominators thing that the reason why I like to purchase Amazon FBA businesses is because that's the hardest thing to do is finding a customer avatar that's going to be excited to purchase your product, that's that's going to be motivated to purchase your product because people buy products because they're solving pain points, right? Or insecurities. And the bigger the pain point, the higher the insecurity, the more margin and the more you can actually charge for your item. So the reason why I like to purchase Amazon FBA businesses is because these people selling their businesses have already identified who their customer avatar is, right? Like for instance, like for Nudery Labs, we have different types of products in the supplement space. But each one of those products is, is broken down into, you know, a function of your body. So like we have one that helps your liver and doing detox. So they were able to go ahead and formulate ingredients that help exactly for people that have liver problems or people that are trying to flush out, you know, or cleanse or detox their actual liver, right? And I wouldn't have known that going into the space if I just looked at the numbers, right? You still have to understand exactly who is purchasing that actual product, right? And it brings me on to the next point is when it comes to advertising, because you have to have enough margin to advertise, especially in 2025 where the A10 algorithm when it comes to Amazon FBA is basically the more money you make to Amazon, the more they're going to reward you and make you more money. Because in the old school game, the old saying of things as far as how you got ranking is you got sales, right? So you can get sales even if you were unprofitable by just running ads. And eventually you'll go ahead and start ranking at the very top of these keywords. Well, it's a little bit different now when it comes to Amazon FBA, because yes, Amazon wants to make money on your ads, but if they're making money on your ads, but they're not converting the actual customer. So people are clicking on your ad and not converting. That means that somebody had a negative experience when it comes to Amazon because they're actually not purchasing your product. So how the Aton algorithm works now is that you want to allow Amazon to make money off of your ads that you're spending. But they also want to make money off your selling fees, off your fulfillment fees, right? So if you're able to make Amazon money in all those different places, then now you will go ahead and get rewarded, right? So understand that, that the only way that you can help the A10 algorithm is by improving conversion rate, improving click-through rate. And once you do that, you're going to get rewarded by ranking at the very top. But when it comes to advertising, you have to to have to have to have margin. Because my biggest differentiator when I go into a niche is one, understanding my customer avatar, but 2, being seen, having an impression. And that's what the Amazon game or the marketing game is for any type of industry. What price point can you acquire a customer? And based on that price point, can you make a profit? And when it comes to having enough margin on Amazon, I make sure that I am advertising Every single time. And I want you to do this exercise with me, right? So with Maverick, I have very, very high margins that allow me to be the highest priced item when it comes to weighted vest, even a running chest pack. But I want you to do an exercise as far as going onto Amazon and just typing in different variations of weighted vest, right? Like weighted vest, you know, 40-pounder, weighted vest 50-pounder, weighted vest for men running, for weighted vest, weighted vest for hiking, all these different types of, you know, segments that I have with weighted vest in them, I pay for all the time. And I'm able to outcompete my, my competition based on me having enough margin to run ads 24/7, right? Because that is literally the safest way to scale on Amazon because it's the most predictable way. Because if you rely solely on organic searches, yes, you'll get some sales like that, that will be great and you'll make a lot of money. On those organic sales, but then other days you won't make any sales at all. So by continuously running ads, you actually become more consistent. When— and the thing is that you'll be able to manage cash flow correctly, you'll be able to rank faster by just having enough margin, right? So again, those are some key steps that I want to go ahead and give with you guys today because I analyze businesses on a day-to-day basis. I look at businesses that have been started within the last year, 18 months, even as far back as 10 years on Amazon FBA that are still making profit right now, and they all have that same thing in common. They understand their customer avatar to a T. They understand conversion rate. They understand click-through rate. They understand margin of having with their actual product, right? But it all really comes down to, you know, you having the right tools in order for you to go ahead and be successful. Because you will watch a million YouTube videos— this might be one of them right now, right? You're watching this YouTube video to try and see how you can become successful with Amazon FBA. But at the end of the day, just worry about the things that matter the most. Don't plug in different types of, you know, product research methods or advertising methods to save you and give you the most profit, because at the end of the day, all that's going to come if you understand who your customer avatar is and you have enough margin, right? Because now you're going ahead and are able to test out different things when it comes to advertising, but you also know that the end consumer is going to purchase your product. So understand pain points, understand insecurities, and make sure your product and your whole entire listing is catering to that. And trust me, that will put you in the best position to succeed with your products and Amazon FBA in general.
