An update on the Amazon Freedom Course review: while it is still true that I have yet to start an Amazon FBA business and make money from it, for some reason in the previous few months, I rekindled my curiosity in this form of passive income and have bought the JungleScout Chrome Extension and Web App. I did product research using the tips and tricks that Dan Vas taught me thorough his Amazon Freedom course for 3 days (about 4-5 hours each day) and is able to find 5-7 product niches and their corresponding Chinese suppliers.
So you may ask,” Did you buy inventory from Alibaba suppliers and start promoting them at Amazon?” I did not do so for some reasons. The most important reason is that the ROI (return on investment) for the niche I seriously intend to buy from suppliers on Alibaba was dismal. The projected ROI after shipment and Paypal fees and promotional giveaways is about less than 15%. This is assuming the best case scenario where other competitors in the Amazon marketplace did not start a price war and depress selling prices. And this is after you have put in the hard work of product research, supplier negotiation and marketing the items on Amazon. While 15% is much more than your average long term stock market returns, I feel there are other passive income ideas whose returns are much more attractive (e.g. domain flipping) and with much less time and effort needed.
Of course, you can still make serious money in this venture if you found a better niche. My product niche may not be lucrative enough in this case. There are some entrepreneurs that successfully made USD 4,000/mth (before tax) in Amazon FBA and they are based in the US. They announced their success in the Facebook group Amazon Freedom Entrepreneur Group.
In short, while I found my reward-effort ratio in this form of passive income to be disappointing, the research tools JungleScout Chrome Extension and Web App are good tools. They show you the estimated revenue of a product among various sellers, the number of reviews per seller and estimated number of units sold per month. If you purchase the Chrome Extension Pro, you also have the Opportunity Score which rates the profit potential of a product that you are researching. From a scale of 1 – 10, where 1 is dismal potential to 10 where the product has ideal profit potential (high demand with low competition). If you are serious in starting the Amazon FBA business for yourself, you should definitely get these 2 tools. The link for these two tools can be found here. If you have a budget constraint, you could do Shopify instead. Or even smarter: buy the JungleScout research tool then use Oberlo to dropship the products to your Shopify store, so you don’t have to incur capital risk for purchasing inventory in bulk from Alibaba. I did not learn this from the Amazon Freedom course; I thought of this idea myself haha.
After all this talk, if you are still keen to go for the course, I can refer you through this link. This is an affiliate link and your kind contributions will go about in maintaining this blog expenses.
Let me know what are your thoughts on JungleScout research tools after you have tried them!