So as you probably already know, I spend most of my time working on my lead generation business these days, which is now making me a solid $50K a month.
In my opinion, lead gen is where it’s at, and I honestly think it’s the easiest way for anyone to build a 6-figure business.
That said, I like to keep my finger on the pulse when it comes to the Digital Marketing world, so I took some time to look into Kevin David’s latest brainchild, AMZ Automation.
I run an Amazon FBA business myself, so I was excited to learn more about the service.
In this review I’m gonna dive into it head first for you, and I’ll dig a little deeper into the founders that run it, Kevin David and David Arnett.
If you’ve done any digging around online you’ll probably know Kevin’s built a number of multi-million dollar online businesses, but now he’s thinking outside the box by offering this bespoke service, and he’s brought a high level partner on board with him.
Here's what you're gonna learn...
Ok, here we go...
1. AMZ AUTOMATION: What is It?
You’re probably used to Kevin David serving up Digital Marketing courses, designed to teach students how to make millions online.
That's all good and well, but AMZ Automation is a different ballgame.
This time instead of churning out another a “how to” course, he’s partnered up with friend, and Amazon FBA super star, David Arnett.
Together they’ve masterminded a turnkey service that completely handles your Amazon FBA business for you.
Sounds too good to be true? Maybe it is...
In theory the concept is simple.
You chose an investment level and then buy in to the AMZ Automation service, where Kevin David’s experts run an Amazon FBA business for you.
His team handles the entire process of sourcing your products, shipping them to the US, and then launching and getting them selling like wildfire on Amazon.
As your sales start to soar, they handle the process of ordering new inventory, and making sure you stay in stock, gradually scaling your business for you.
They deal with customer reviews, customer complaints, and everything in-between.
So what's your role in the business you ask?
Well honestly... not much.
You basically sit back and play an investor role, as you let them run the business for you.
2. FOUNDERS: Who are Kevin David and David Arnett?
Founders Kevin David and David Arnett are both mega successful entrepreneurs in their own right, both building several multi million dollar businesses.
As champion Amazon sellers themselves (we’re talking 8 figures), they’ve both launched mega popular Amazon FBA “how to” courses, which have helped thousands of students quit their 9-5 jobs.
Now they’re teaming up to offer this full blown, “done-for-you” Amazon FBA service, which supposedly takes the guesswork out of running an Amazon business, and lets you sit back and let their experienced team of pros do the driving.
Kevin runs the promotional side of things, while David owns a 55,000 square foot warehouse which they use to store products before shipping them into Amazon.
3. AMAZON FBA: How Does the Business Model Work?
If you’re seriously looking at getting in on the AMZ Automation service, then you probably already know the ins and outs of the Amazon FBA game.
Heck, you may even be a seller already?
Let’s do a quick recap though.
At the highest level, Amazon FBA is about selling products on Amazon’s shopping platform.
Cracking the Amazon FBA Code...
- Decide what product you want to sell
- Find a company to make it for you.
- Ship your product into Amazon's warehouses.
- List your product for sale on Amazon's platform.
- People find your product on Amazon and buy it.
- Amazon handle the logistics of the sale (delivery and payment).
- Amazon take a 15% commission and fulfillment fee, and pay you the rest.
This might seem pretty straightforward on the surface, but the reality is that Amazon FBA is a complicated creature.
It can be like the Wild West out there if you don’t know what you’re doing.
This makes the need for a service like AMZ Automation even greater.
4. MONEY: What are the Investment Levels on Offer?
Ok let's talk money.
Having a team of pros running your Amazon FBA business for you doesn't come cheap.
The service comes with 3 different investment levels:
Three Different Investment Levels:
Three Different Investment Levels:
On top of that you’ll be giving up 30% of your net income each month.
The model is based on investing your working capital + net profit margin each month.
So let’s say you were on the Standard Automation model and you made $3K net income a month.
That would mean you’d be investing between $7K-$10K as working capital, and then another $3K each month back into the business.
The idea is that you do this for 24 months to scale out the business.
5. SCAM ALERT: Is AMZ Automation Legit or a Scam?
So what’s the deal with AMZ Automation?
Is it a scam or is it the real deal?
Look, the AMZ Automation service is exactly what it says it is on the box.
It’s a high ticket (really high), turnkey service that will handle your Amazon FBA business for you.
This takes the stress out of learning the Amazon FBA game, and let’s you benefit from having your own team of Amazon killers run the show for you.
So yea, there's no scam alert here, although there are a few red warning flags which I'll cover later.
So does that mean you should buy into the service or not?
Read on and I’ll give you the big picture...
PROS OF AMZ AUTOMATION
6. FREE TIME: You Get a Team of Pros Running Your Business
So when you jump in on the AMZ Automation service, you’re getting a team of high level Amazon selling experts to take over your business for you.
This means it’s 100% hands-off, freeing you up with time to focus on your other interests, be they business or leisure.
7. PRODUCT SELECTION: They Handle it All
So from my experience, one of the scariest and most difficult aspects to selling on Amazon is picking the product to sell.
Because if you get it wrong you could easily dump $10K+ down the tube and be left with hundreds of inventory units that nobody wants to buy.
So the cool thing about the AMZ Automation concept is that they handle all of this for you.
They proudly advertise that they already have a catalog of product winners that are already proven to sell like crazy on Amazon.
Supposedly, when you sign up for the service, you'll get exclusive access to these products.
8. PRODUCT LAUNCH: Let the Pros Handle Your Launch
Another challenge for any Amazon seller (both new and old), is launching a new product.
With no reviews or product history, how do you get your product in front of thousands of people that want to buy it.
The AMZ Automation team handles all this for you too, using their 10+ years of seller experience to make sure your product comes flying out the gate at launch time, and hits the ground running with the right sales velocity.
9. INVENTORY: Supply Chain Management on Autopilot
I’ve been selling on Amazon for over 3 years, and I still struggle with inventory management.
With a 90 day lead time on most product orders, you’ll soon find that getting your supply chain in tune can be a tricky process.
You’re basically trying to predict how many units you’re going to sell, 90 days before you sell them.
This can make seasonal products difficult to manage, or any product for that matter.
In the AMZ Automation model, they handle all of this for you.
You’ll be totally hands off as you let their team of sellers use their experience to run your inventory levels for you.
CONS OF AMZ AUTOMATION
10. COST AND ADMIN FEES: You'll Need Capital
Ok so let’s not beat around the bush.
This service ain’t for little fishes.
With a buy in minimum of $10K, mid price point of $40K, and top end of $100K, AMZ Automation is for players with money to burn.
On top of that you’re giving up 30% of your profit.
Is that where the costs end?
Oh no...there’s more.
In addition to all of that, you’ll then have to shell out another eye watering $25K every year for admin fees.
$25K for admin fees?
Sounds like they are printing money to me.
11. PRODUCTS: You Have No Control
So earlier I listed one of the pros of this service is that you don’t have to carry out your own product selection.
The idea behind AMZ Automation is that the crack shot team behind the curtain will pick and choose products that they already believe are or will sell well on Amazon.
Great in theory, but here’s the downside.
You have no say in which products you sell.
Your hands are literally tied.
You simply hand over your cash, and they invest it into a range of pre selected products that they believe will be winners on Amazon.
On top of that, you don’t get any information about what the products cost.
I don’t know about you, but if it’s my business I’d like to know what I’m paying per unit for my inventory, what its costing to ship, and how my net profits are calculated.
Nope - Kevin’s team handles it all and they appear to be pretty tight lipped about the details.
12. GUARANTEE: There is None
So if you haven’t figured it out already, you’re basically playing the role of an investor when you jump into the AMZ Automation service.
You have absolutely no say in any of the day to day business, you’re just handing over your money (like an investor would), and then crossing your fingers that you don’t lose your shirt.
Here’s the thing though.
Most high level investors expect a certain return on their investment, but in this case there is absolutely no mention of what your net profits or revenue will be.
Their line…”No investment is guaranteed”...thanks guys!
13. CREDIT CARD: They Will Charge Yours Whenever they Need To
Another point that didn't wash well with me, was the fact that they keep your credit card on file, and charge it at will.
So not only do you have no idea what you’re paying for inventory, shipping or anything else, but whatever that cost is will simply be charged to your credit card without any warning.
Don’t forget you’ve paid anywhere from $10K-$100K for the privilege of allowing them to do this.
14. ONLINE REVIEWS: Red Flags all Over the Place
So like any online course or service, you’re always gonna find unhappy customers and negative reviews.
In this case, there were some pretty big bombs dropped about the AMZ Automation service.
One reviewer dropped $40K investing in this service and isn't happy about it.
15. DECISION TIME: Should you Buy it?
I couldn’t help but keep circling back to a few simple facts.
Essentially you’re paying a premium (anywhere between $10K-$100K) to have someone build you a storefront that you don’t own, on a platform that you don’t own, selling to customers that you can’t contact again.
Most of all, all the risk falls on you.
If you fail, you’ve dropped some serious cash, and have very little to show for it.
No new skills, no storefront, no customer base...You get the idea right?
In my opinion Amazon FBA is a risky business model, and that's coming from someone that actually sells on Amazon!
If I'm totally honest, I only run my Amazon FBA business as a side business these days, because I tend to focus almost 100% of my time on my lead gen business.
How Does the Amazon FBA Model Stand up to Others? Like Lead Generation?
So how does Amazon FBA compare to Lead Generation when it comes to the element of control you have over your business?
Honestly, there’s no comparison.
The amount of control you have over your Amazon business is getting smaller and smaller each day.
With the Amazon business model, the success of your business comes down to where your listing ranks when a buyer types a keyword into their search bar.
With thousands of sellers joining every day, and their algorithm being a tough code to crack, this means your listing can bounce around all over the page at any given time.
When it does, get ready to watch your sales plummet (trust me I know).
All of this gives you zero control!
It’s also important to remember that when you sell on Amazon, you’re playing in their playground.
That means they can kick you out any time they like.
When they do that it could leave you stranded with thousands of dollars worth of inventory you can’t sell, and no platform to sell it on.
Amazon also have strict guidelines about how you set up your listing, how much stock you can hold at any one time in their warehouses, how you contact your customers...the list goes on.
In my lead gen business, I have 100% control over the business.
I get to choose who I work with, how much I charge and how many sites I build (they cost almost nothing to build).
The sky's the limit when it comes to the lead gen business model, and there’s no limit to how much money you can make in the long run.
When it comes to scaling your Amazon business, you’re gonna face various challenges.
The biggest one for me has always been cash flow.
Most people just don’t understand that a huge part of Amazon FBA is the manufacturing and shipping times (often up to 90 days).
This delay means that you are constantly reinvesting your profits into new orders, to make sure you don’t run out of stock.
This can make scaling your business a challenge, as your capital sits tied up in inventory that is either in a Chinese manufacturing plant, sitting on a ship somewhere in the Pacific, or in Amazon’s warehouses.
With lead gen on the other hand, there are almost zero scaling issues.
Each website you build costs about $50 a month, meaning that you can keep building more sites, without having to reinvest every penny you make.
When you consider you can rent out each site from anywhere from $750 a month, the ability to scale is insane!
In the group I'm in, some of the crew in there have over 500 sites and they are renting each of them out for $750 a month!
Do the math on that one!
Kevin David's Service Works, but Generating Leads is Better, Here's Why:
Look, AMZ Automation is an interesting service if you have money to spend, and you want to get into the Amazon FBA game.
But here are my honest thoughts...
As you now know, I sell on Amazon myself, but I actually make most of my income from my lead generation business.
So I feel it would be ethically wrong of me to advise you to go into the Amazon FBA game, when I'm hardly in it myself.
I'm all in on lead generation...
Lead Gen Always Wins...
MARKET SATURATION & COMPETITION
You're going head to head with literally millions of sellers covering over 6000 different product niches. Breaking into an established niche is next to impossible - and finding untapped niches are becoming increasingly rare.
Start up costs require roughly $5000 in initial inventory, $10,000 in advertising, and $3000 in listing optimization, packaging, and branding. All in all, if you want to have a chance at success, you'll need to spend roughly $15,000 to $20,000 just as an initial investment.
Nearly all successful products are copied and resold by either Amazon or Chinese manufacturers who then undercut their competition at margins that only billion dollar companies can afford. Every time you see an Amazon Basics or Essentials product at the top ranked listing, it's likely that dozens of independent sellers went out of business.
The key to long term wealth is in building and owning valuable assets, but with Amazon FBA, you own nothing. You're an enslaved middleman to Amazon, who care only about market domination and making a profit. Remember, you're there to make them money - and your use of Amazon is a privilege they grant you; a privilege they can revoke at any time.
Between identifying products and suppliers, passing quality assurance, securing inventory, and then product ranking, you're looking at over a year before you even have a chance at seeing a net positive income.
Profit margins are extremely low, meaning the only real way to make money is through mass ordering. Successful Amazon sellers often make less than 10% profit off of their sales.
Amazon's terms of service are fickle and ever changing. Bans are frequent and can spell disaster for FBA startups and established businesses alike.
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