Sometimes it’s better to let something go than let it suffer. The same could be said of your Amazon FBA venture. The fact that not everyone is cut out for this line of work, that online market conditions can change at any time, and luck itself plays a significant role in your chance of success. In this article, we want to talk about signs that are telling you it might be time to put your Amazon FBA journey to an end.
You aren’t seeing profits
We’ll start with the most obvious sign first. Profits, after all, is why we work in the first place. Everyone needs money just to survive as well as to take part in most of the things they enjoy. For better or for worse, that’s the way the world is.
People always ask: “How long do I have to wait before I see profits selling on Amazon?” No one can give you an accurate answer, no matter who they are. It depends entirely on your niche, your product, the amount of time you invest, your entrepreneurial savvy, and luck!
However, most people who found a winning formula started seeing profits in a matter of months. In the best cases, 1 month was all it took to start seeing a profit, particularly if you found a good deal on your first batch of stock. Two to three months seem to be the average time sellers report before they started to see green.
If you are struggling to see profits after 6 months, then you should start to worry.
Don’t assume that if you were profitable before, it will stay that way. If you don’t feel like going through all the effort to find another profitable niche, this might prompt you to quit. Your formerly profitable niche could have been overrun with competitors, Amazon itself could’ve started selling in it. Or the niche itself might have fallen out of favor.
You don’t enjoy what you are doing
Many people turn to Amazon FBA largely because they were unhappy with their day jobs. Why? Because enjoying what you do is important no matter what you do. If you spend 40+ hours a week doing something you dislike immensely, what’s the point?
Selling online is definitely not for everyone. Some people just aren’t cut out to be entrepreneurs. While selling on Amazon does remove many obstacles and adds padding to many common challenges, it still requires the entrepreneurial spirit.
- take on every risk with more dread than excitement,
- don’t have the patience to wait for results to show themselves, and
- dread dealing with all the different aspects of running a business
then you might be in the wrong line of work.
Of course, it could also be that your current niche or business model doesn’t suit you and you can always adapt if you have the time and money. If the experience stays negative no matter what you do, you’ll know for certain.
Time ≠ Money
For most of you reading this, one of the main reasons you got interested and involved with selling on Amazon and Amazon FBA in the first place is the dream of financial freedom where you are fully in control of your time. Whether that was to spend more time with your family or to work while traveling the world, it’s a good dream to have.
Amazon FBA is especially meant to save you time by taking care of customer service, shipping, and providing you with inventory management tools. However, if you find that the amount of time you put in is as much (if not more) than a day job without improved income and, most importantly, you don’t enjoy it, it might be time to get out. Most people start to see profits after 2-3 months.
While you can never switch off completely, after this time, you should at least be able to make some money without burning the midnight candle a few days a week trying to promote and sell your items.
How to quit Amazon FBA
How to delete your seller account
To delete your Amazon seller account, you will need to go to Contact Us and fill out a form. Amazon will then delete your account and communicate any additional steps with you. There are a few conditions which must be met before you can close your account:
- Outstanding orders must be fulfilled and resolve all transactions.
- 90 days must have passed since your last sale.
- You must have 0 balance in your account.
- Confirm banking details for final payment.
You can find all the information you need here.
What to do with your leftover stock?
If you decide it’s time to close shop for good, you’ll have the small matter of all your leftover stock in Amazon warehouses to deal with. There are three main ways you can deal with your leftover stock.
Take it back yourself
You can always go to the Amazon center and take the inventory back yourself. Maybe you would have better luck at a yard sale or local market. This is obviously not ideal if you have limited space available to put everything.
Amazon can also return the items to you, for a fee. The fee is $0.50 for standard-size items and $0.60 for oversize items.
Have Amazon discard it for you
Amazon also gives you the option to either dispose of or liquidate your remaining stock. You won’t have to worry about it at all after this point which is the obvious benefit. Disposal comes at a cost of $0.15 per item for standard-size and $0.30 for oversize items. If you decide to go with liquidation, you will receive 10% of whatever proceeds Amazon makes from your item.
Leave it and hope it sells
There are a few strategies you can employ to quickly sell stock. Ideally, if you choose this option, you would want to try and sell them quickly enough that you don’t feel the extra storage fees.
Flash sales or special price sales could be one way to sell them out quickly. You can also offer them with other products for free as a promotional incentive.
Not ready to quit, but need help?
If you are having a hard time putting together a winning plan for Amazon FBA, visit our blog where we provide advice on all things to do with being a successful 3rd party Amazon seller. For expert help and insights from experienced industry insiders, look for a Seller’s Playbook event near you where we will help you devise a winning play.