The Amazon marketplace welcomes 4,000 new sellers every single day. These newcomers join the ranks of 9.7 million existing sellers competing for customer attention. With numbers like these, you’re probably wondering whether the Amazon FBA gold rush has already passed you by. After all, everyone seems to be talking about selling on Amazon, from your college roommate to your Uber driver.

However, here’s what most people don’t realize: Amazon is a $2 trillion company, not a million-dollar startup fighting for scraps. Over 50% of all e-commerce sales happen on Amazon. Moreover, more than 66% of these sales come from third-party sellers like you and me. Even more impressive, over 350,000 sellers on Amazon are making over $100,000 a year in profit. Clearly, there’s still enormous opportunity here.

Throughout this article, I’m going to analyze the 10 biggest concerns keeping aspiring sellers on the sidelines in 2025. Furthermore, I’ll rank each concern on a scale from 1 to 10. This will show you exactly how worried you should be about each one. My name is Connor Buyers, and I’ve been selling on Amazon for the past 3 years. I’ve generated over seven figures in total e-commerce sales. Additionally, I’ve helped thousands of everyday people build six-figure Amazon businesses.

By the end of this post, you’ll discover which Amazon selling methods are completely dead. You’ll also learn which one represents the best opportunity you’ll ever have to build a legitimate passive income stream. The answer might surprise you, especially considering what’s happening with tariffs, competition, and the current economic climate.

Understanding Amazon FBA: The Foundation

Amazon FBA stands for “Fulfilled by Amazon.” It represents one of the most powerful business models for creating passive income in 2025. Essentially, you source products to sell and send your inventory to Amazon’s massive warehouse network. Amazon handles everything else from that point forward. When customers search for products on Amazon’s website, your listings appear in the search results. Once someone clicks and buys, you make money from that sale. Meanwhile, Amazon picks, packs, and ships the product for you.

This business model transforms traditional e-commerce by eliminating the most time-consuming aspects of running an online store. Furthermore, you don’t need to worry about customer service, returns, or shipping logistics. Amazon manages these headaches on your behalf. Instead of spending your days packing boxes and running to the post office, you can focus on finding profitable products and growing your business.

The beauty of Amazon FBA lies in its scalability and passive income potential. Once you’ve launched a successful product, it can generate revenue month after month with minimal ongoing effort. Unlike freelancing or service-based businesses where you trade time for money, Amazon FBA allows you to build real assets. These assets work for you around the clock, generating income while you sleep.

The E-Commerce Growth Reality

Despite concerns about saturation, the data tells a compelling story about e-commerce growth. Year after year, consumers are buying more products online. This creates an expanding pie rather than a shrinking one. Since 2020, e-commerce growth in the United States has accelerated dramatically. This trend shows no signs of slowing down anytime soon.

Interestingly, this growth should actually make selling online easier, not harder. More consumers shift their purchasing habits from brick-and-mortar stores to online platforms every day. Consequently, the total addressable market expands exponentially. Amazon captures the lion’s share of this growth. The platform processes billions of transactions annually and creates opportunities for third-party sellers.

However, most aspiring sellers approach Amazon using outdated techniques that worked four to seven years ago. The landscape has evolved significantly over this time period. Methods like basic wholesale and generic private labeling no longer deliver the same results they once did. Consequently, understanding which strategies still work becomes crucial for anyone looking to start an Amazon business in 2025.

The Four Main Selling Methods

Amazon sellers typically use one of four main approaches to generate revenue. Retail arbitrage involves finding deeply discounted products at local stores like Walmart or Target. You then flip them on Amazon at higher prices. While this method can generate quick cash, it requires constant hunting for deals. Furthermore, it never truly builds a scalable business.

Wholesale represents the second approach. Sellers buy products in bulk at wholesale prices and resell them on Amazon. For example, you might purchase a laser level tool for $15 wholesale and sell it for $99 on Amazon. Unfortunately, nothing prevents other sellers from finding the same product and competing directly with you. This makes the method increasingly difficult in today’s marketplace.

Private labeling involves sourcing generic products from overseas manufacturers. You add your own brand label and sell them as unique products. This method dominated Amazon for years, but it’s become oversaturated. Manufacturers and even Amazon itself now copy successful products regularly. Finally, there’s the Passion Product approach. This focuses on creating truly unique products that solve specific problems for niche audiences.

Throughout this article, you’ll discover why Passion Products represent the only sustainable path forward. The other methods face insurmountable challenges from competition, pricing pressure, and platform changes. Meanwhile, Passion Products continue thriving despite market saturation.

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The 10 Major Concerns: Ranked & Analyzed

Concern #1: Oversaturation

The specter of oversaturation haunts every conversation about starting an Amazon business. With nearly 10 million sellers and 3,700 new ones joining daily, it certainly feels overwhelming. Everyone and their grandmother seems to be trying to make money on Amazon. Social media amplifies this perception, bombarding you with ads and success stories from Amazon sellers wherever you look online.

Nevertheless, oversaturation isn’t a universal problem across all Amazon selling methods. Retail arbitrage scores a 4 out of 10 on the saturation risk scale. This is because you’re sourcing products from local stores in your specific geographic area. Unless your entire neighborhood consists of Amazon FBA sellers, you’ll find unique deals that others can’t access. However, wholesale faces a devastating 10 out of 10 saturation risk. Anyone can find the same suppliers and compete directly on price.

Private labeling isn’t much better, earning a 9 out of 10 saturation score. While adding your own brand provides minimal differentiation, competitors can easily replicate your product. They can undercut your prices without much difficulty. In contrast, the Passion Product method scores only a 4 out of 10 for saturation risk. When you create genuinely unique products, competition actually helps grow the entire market. Competitors don’t steal your customers they validate your category.

Consider the example of AJ, an out-of-work bartender who joined my Amazon FBA training during the pandemic. Using Helium 10‘s keyword research tool, we discovered thousands of people searching for “cocktail flashcards” every month. They were also searching for “bartender recipe cards” and similar terms. AJ created the first product specifically designed to meet this need. In his first year alone, he generated over $500,000 in sales. When competitors eventually entered the market, his sales actually increased. They helped validate and expand the category rather than stealing his market share.

Concern #2: Temu Competition

Temu emerged as a major disruptor in 2023 and 2024. The platform offers rock-bottom prices on products shipped directly from Chinese manufacturers. For sellers using wholesale or private label methods, this platform posed an existential threat. Temu could undercut Amazon prices significantly and bypass expensive tariffs. They kept shipment values under $800, creating an unfair competitive advantage.

However, massive regulatory changes have fundamentally altered the Temu landscape. Products subject to tariffs no longer qualify for the de minimis exemption. This forces Temu to pay customs fees and tariffs exceeding $100 per shipment from China. Additionally, new rules require Temu sellers to provide detailed tariff classification numbers. This prevents them from sneaking products into the country without proper documentation.

Perhaps most significantly, Temu customers may soon need to provide their Social Security numbers. This requirement helps them avoid import taxes on purchases. However, it will drive privacy-conscious consumers away from the platform and back to trusted retailers like Amazon. Consequently, Temu represents an 8 out of 10 risk for wholesale and private label sellers. Meanwhile, it poses only a 2 out of 10 risk for retail arbitrage since those products come from local stores.

For Passion Product sellers, Temu earns a mere 1 out of 10 risk rating. When you create unique products that don’t exist anywhere else, cheap knockoff platforms simply can’t compete with you. Furthermore, everyone knows Temu specializes in the lowest-quality products possible. Premium or high-quality Passion Products face zero threat from this channel.

Concern #3: Startup Capital Requirements

Money concerns prevent countless aspiring entrepreneurs from starting their Amazon businesses. According to Amazon’s own data, only 11% of sellers launch with less than $500. Meanwhile, 22% require over $10,000 in startup capital. These numbers understandably intimidate people who want to build a business without draining their savings accounts.

Wholesale sellers face a 7 out of 10 capital risk. They must purchase thousands of dollars in inventory upfront. They also need to pay for PPC advertising and cover fulfillment fees before generating any revenue. Private labeling scores even worse at 8 out of 10. You’ll spend additional money on branding, packaging design, and minimum order quantities from overseas manufacturers. Retail arbitrage comes in at 6 out of 10 since you need capital to buy enough discounted inventory to generate meaningful profits.

Passion Products initially appear to carry the highest capital risk at 10 out of 10. Most sellers invest $2,000 to $10,000 to launch their unique products. However, there’s a game-changing strategy that drops this risk to just 2 out of 10: Kickstarter crowdfunding. By creating a Kickstarter campaign, you can validate your product idea before spending money. You collect pre-orders before spending a single dollar on inventory.

AJ used exactly this approach to launch his cocktail flashcards business with zero capital investment. His Kickstarter campaign generated enough pre-orders to fund his entire first production run. This eliminated financial risk entirely. This strategy allows you to test whether customers actually want your product before committing significant resources. Therefore, capital concerns become almost irrelevant for Passion Product sellers.

Concern #4: Amazon’s Haul (Low-Cost Store)

Amazon launched Haul in November 2024. This created a direct competitor to Temu within its own ecosystem. This low-cost store offers deeply discounted products shipped from China. Prices are often dramatically lower than regular Amazon listings. For example, adhesive hooks sell for $6.99 on Amazon.com but only $1.59 on Haul. These are the same exact product at vastly different price points.

This development represents a 10 out of 10 risk for wholesale and private label sellers. Customers can now find cheaper versions without ever leaving Amazon. Previously, shoppers might not bother checking Temu or Shein before making purchases. They chose Amazon’s convenience instead. Now, however, the cheaper alternative appears right in front of customers. This makes it impossible to compete on price alone.

Retail arbitrage sellers face only a 2 out of 10 risk from Haul. They source branded products from local stores rather than generic imports from China. The products available on Haul don’t overlap with typical retail arbitrage inventory. This creates minimal competitive pressure. Meanwhile, Passion Product sellers should actually celebrate Haul’s launch. They earn a risk score of just 1 out of 10.

Interestingly, Haul will drive more traffic to the Amazon platform overall. This creates additional potential customers who might discover your unique products. Since Haul specializes in generic, low-quality items, it won’t carry your one-of-a-kind Passion Products. Consequently, you’ll benefit from increased platform traffic without facing any direct competition from this new store.

Concern #5: Rising Amazon Fees

Amazon has increased its fees by approximately 30% over the past two years. This squeezes profit margins across the board. These rising costs eliminate marginal sellers who can barely turn a profit. Many aspiring entrepreneurs worry that fees will continue climbing until Amazon FBA becomes completely unprofitable. After all, if fees keep increasing while product prices stay the same, eventually there’s no money left to make.

Wholesale sellers face a devastating 10 out of 10 risk from rising fees. Their profit margins were already razor-thin to begin with. When you’re competing purely on price for generic products, every percentage point matters enormously. Private labeling fares slightly better at 9 out of 10. Brands can sometimes command small price premiums, but competition still limits pricing power significantly.

Retail arbitrage earns a 7 out of 10 risk score. Higher Amazon fees directly reduce the spread between your Walmart purchase price and your Amazon selling price. If fees consume too much of this spread, deals that previously generated profit become money-losers. However, Passion Product sellers enjoy a comfortable 3 out of 10 risk from rising Amazon fees.

When you create unique products with no direct competitors, you control your own pricing completely. If Amazon raises fees by 5%, you simply raise your prices by 5% or more. This maintains your profit margins effortlessly. Customers who want your specific product have no cheaper alternatives. This gives you pricing power that wholesale and private label sellers can only dream about.

Concern #6: TikTok Shop

TikTok Shop exploded onto the e-commerce scene with its massive 1.5 billion user base. This dwarfs Amazon’s 310 million users significantly. This platform transformed from a traffic source into a full-fledged marketplace. Now creators sell products directly to their audiences. Furthermore, dropshippers discovered they could source products from manufacturers and sell them on TikTok Shop. They offer prices at a fraction of Amazon’s costs.

For wholesale and private label sellers, TikTok Shop represents a catastrophic 10 out of 10 risk. These sellers now compete against other Amazon sellers and Chinese manufacturers. They also face competition from TikTok dropshippers who eliminate Amazon as the middleman. Since dropshippers source directly from factories, they can undercut Amazon prices significantly. They still maintain healthy margins while doing so. This steals customers who might otherwise shop on Amazon.

Retail arbitrage sellers breathe easier with only a 1 out of 10 risk from TikTok Shop. The platform primarily features unbranded, generic products. These don’t compete with the branded, discounted items that retail arbitrage sellers offer. Additionally, retail arbitrage customers specifically prefer shopping on Amazon. They trust well-known brands rather than random TikTok sellers.

Passion Product sellers face absolutely zero risk from TikTok Shop, earning a perfect 0 out of 10 score. You only worry about TikTok when competitors sell identical products and steal your customers. When you’re the only seller offering a specific product, TikTok Shop becomes an opportunity rather than a threat. In fact, you should consider TikTok Shop as an additional platform to market your unique products. You won’t blend into a sea of generic alternatives there.

Concern #7: Trump Tariffs

President Trump’s administration has implemented tariffs exceeding 100% on Chinese goods. This dramatically increases the cost of importing products from overseas manufacturers. This development terrifies aspiring Amazon sellers. They hear horror stories about products that previously cost $20 now costing $40 or more after tariffs. Consequently, many people assume that Amazon FBA has become financially impossible in the current tariff environment.

However, this fear creates the single biggest opportunity for new sellers in years. Established sellers remain stuck with existing supply chains and pre-negotiated contracts with Chinese manufacturers. Meanwhile, new sellers can strategically pivot from day one. You can choose to manufacture in the United States for consumables and cosmetics. You can also take advantage of de minimis threshold strategies. Alternatively, you can source from low-tariff countries like Mexico, Vietnam, or Thailand.

My own Amazon business hasn’t been affected by tariffs whatsoever. Several of our products in the food and consumable space already manufacture domestically in the United States. Therefore, our prices remain unchanged while competitors’ prices increase due to tariffs. This gives us a significant competitive advantage. We built this into our business model from the beginning, long before tariffs became a major concern.

Furthermore, tariffs are scaring thousands of potential competitors away from Amazon entirely. Every day, people decide not to start Amazon businesses. They hear the word “tariffs” and immediately assume the opportunity has disappeared. This mass exodus creates unprecedented opportunities for sellers who understand how to navigate the new landscape. Rather than viewing tariffs as a death sentence, smart sellers recognize them as a competitive moat. This moat protects their businesses from copycats.

Concern #8: Recession Fears

Economic anxiety dominates headlines as experts debate whether we’re entering a recession. Inflation continues squeezing consumers. Many aspiring entrepreneurs worry that launching a business during economic uncertainty represents foolish timing. After all, if people have less money to spend, won’t e-commerce sales plummet across the board?

Interestingly, 50% of Fortune 500 companies started during recessions. This proves that economic downturns can actually create exceptional business opportunities. Moreover, Amazon sales have increased every single year regardless of broader economic conditions. Even when consumers buy fewer products overall, they increasingly purchase those products online. This shift benefits Amazon sellers even during recessions.

Wholesale and private label sellers face a moderate 5 out of 10 recession risk. They can raise prices somewhat to offset inflation, but not too much. Raising prices too high means losing customers to competitors. Retail arbitrage earns a 4 out of 10 risk. Local market conditions matter more than national economic trends. However, Passion Product sellers enjoy a mere 2 out of 10 recession risk. This comes thanks to their unique competitive position.

When you’re the only seller offering a specific product, you can increase prices freely. This maintains profit margins during inflationary periods. Customers who want your product have no alternatives. This gives you pricing power that eliminates recession concerns. Additionally, business ownership provides flexibility that salary jobs don’t offer. When costs increase, you can simply raise prices. Salaried employees typically can’t demand proportional raises.

Concern #9: Chinese Manufacturers

Chinese manufacturers have earned a notorious reputation for copying successful Amazon products. They resell them at dramatically lower prices. These factories possess the ultimate competitive advantage since they’re already producing the items. This allows them to undercut everyone on price while maintaining healthy margins. Consequently, many sellers fear that Chinese manufacturers will inevitably destroy their businesses by becoming direct competitors.

Wholesale sellers face an existential 10 out of 10 risk from Chinese manufacturers. Wholesale involves reselling existing products without modifications. Nothing prevents the manufacturer from selling directly on Amazon. They can crush your business overnight. Private labeling fares only slightly better at 9 out of 10. Only your logo distinguishes your product from what the manufacturer produces. Unless you’ve built a Nike-level brand, that logo provides minimal protection.

Retail arbitrage sellers enjoy near-immunity at 1 out of 10 risk. They source branded products from local American stores. Whatever happens overseas has virtually no impact on the deals available at your neighborhood Walmart or Target. Meanwhile, Passion Product sellers might seem vulnerable since they often manufacture in China. However, they actually face only a 2 out of 10 risk.

Chinese manufacturers target easy victims. They look for products that look identical to items already on Alibaba. These require zero modifications or customization. Truly unique Passion Products require significant time and expense to replicate. This makes them unattractive targets for manufacturers seeking quick profits. Furthermore, you can require manufacturers to sign an NNN agreement. This is the Chinese equivalent of an NDA. It makes copying your product legally prohibited. This combination of practical difficulty and legal protection keeps Passion Product sellers remarkably safe.

Concern #10: “It Used to Be Easier”

Nostalgia clouds many entrepreneurs’ judgment when evaluating Amazon opportunities. Yes, selling on Amazon was definitely easier 5 to 10 years ago. You could list almost any product and generate sales. Competition was lighter, fees were lower, and Amazon’s algorithm favored new sellers more generously. These facts lead many people to conclude that they’ve already missed the boat.

However, 66% of current Amazon sellers report wishing they had started even sooner than they did. Every single year for the past five years, people have asked whether it’s too late to start selling on Amazon. My business partner Travis created a YouTube video five years ago. He claimed that “right now” represented the easiest time to start. Looking back, he was absolutely correct. Every person who delayed starting because they thought opportunities would improve has regretted that decision.

The pattern repeats annually. Aspiring sellers hesitate because they believe Amazon will somehow become easier in the future. Then they return a year later asking the same question. Meanwhile, sellers who started “late” according to conventional wisdom have built six-figure and seven-figure businesses. The truth remains simple: yesterday was the best time to start, and today represents the second-best time.

This concern earns a universal 1 out of 10 risk across all selling methods. It fundamentally misunderstands how marketplaces evolve. Amazon will never again be as accessible as it is today. This is especially true with tariffs currently scaring thousands of potential competitors away from the platform. The combination of rising barriers to entry and departing competition creates perhaps the most favorable environment for new sellers in years.

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The Verdict: Which Methods Are Dead?

After analyzing all 10 major concerns across the four selling methods, the numbers tell a clear story. Wholesale earns a devastating 79 out of 100 total risk score. This makes it effectively dead for new sellers in 2025. You’ll face brutal competition from Chinese manufacturers, Temu, Haul, TikTok Shop, and fellow Amazon sellers. Everyone competes purely on price with identical products. Furthermore, rising Amazon fees eliminate whatever slim profit margins might have existed.

Private labeling performs only slightly better at 76 out of 100 total risk. Your brand provides minimal differentiation, but it’s not enough to protect you. Competitors, manufacturers who copy your product, and low-cost platforms will undercut your prices. The private label method dominated Amazon for years. However, that era has definitively ended.

Retail arbitrage scores a respectable 29 out of 100 total risk. This proves that money can still be made using this method. You’ll avoid most competitive threats since you source locally and sell branded products. However, retail arbitrage requires constant work hunting for deals and managing inventory. This makes it more of a job than a business. If you want to trade time for money and don’t mind the grind, retail arbitrage remains viable.

Passion Products emerge as the clear winner with only 19 out of 100 total risk. This method offers the highest profit margins, the most pricing power, and the best protection from competition. Moreover, you can start with zero capital using Kickstarter campaigns. This eliminates the financial barrier that stops most people. Once launched, Passion Products generate largely passive income. You can make money while traveling, spending time with family, or working another job.

Real Success Stories

The Passion Product formula isn’t theoretical. Thousands of everyday people have used it to build six-figure and seven-figure Amazon businesses. Brent generates over $1.8 million in annual revenue while working full-time as a first responder helicopter pilot. His Passion Product runs largely on autopilot. It requires only occasional check-ins to manage inventory and optimize advertising campaigns.

Calvin makes over $300,000 annually while maintaining his career as a full-time engineer. He never quit his day job because his Passion Product provides supplemental income. It doesn’t demand excessive time or attention. Juliana, a stay-at-home mom, built a $100,000 per year business around her family’s schedule. This proves that Passion Products work for people at any life stage.

My own Berberine Tea product generates approximately $2,000 monthly with minimal ongoing effort. We invested significant work upfront to launch the product. Now we simply manage inventory and check advertising campaigns once weekly. Last summer, I traveled throughout Europe while my Passion Product continued generating revenue automatically. Money deposited into my account regardless of my location or activities.

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The Cautionary Tale: Procrastination Costs

Several years ago, I coached a group of STEM students who were interested in launching an Amazon business. They spent four months deliberating whether to join my FBA training program. Analysis and uncertainty paralyzed them. Eventually, they enrolled and used our step-by-step system to identify a unique product idea. No one else in the market was selling it.

Travis and I reviewed their product during our one-on-one coaching calls. We immediately recognized its potential to generate $10,000 to $30,000 in monthly passive income. The market was completely wide open. They had identified genuine customer demand through keyword research. Everything pointed toward massive success if they could execute quickly.

Unfortunately, perfectionism and procrastination struck again. These students spent six additional months trying to perfect every detail before launching. They wanted everything to be absolutely flawless before taking action. During those six months of delay, another seller launched a nearly identical product. That seller captured the entire market share, generating approximately $60,000 monthly.

When my students finally launched their product, they did achieve decent sales. They built a profitable business. However, they missed out on what could have been a life-changing passive income machine. If they had simply launched three months earlier, everything would have been different. Someone else capitalized on their procrastination and now enjoys the generational wealth they could have built. This story illustrates why timing matters enormously when launching Passion Products. First-to-market advantage determines long-term success.

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The 3 Essential Elements for Success

Most aspiring Amazon sellers fail because they lack a proven system for finding profitable products. They waste months researching random ideas. They never understand what customers actually want to buy. Tools like Helium 10 reveal exactly what people search for on Amazon. This allows you to identify genuine demand before investing a single dollar.

The Passion Product formula provides a complete roadmap from initial product research through scaling to six figures and beyond. You’ll learn how to use keyword research to discover opportunities and discover how to create unique products that competitors can’t easily copy. You’ll also learn how to launch using Kickstarter to eliminate financial risk. This systematic approach removes guesswork and replaces it with data-driven decisions.

Mentor or Guide

Attempting to build an Amazon business completely alone typically results in costly mistakes. These could have been easily avoided with guidance. Manufacturers might scam you, or you might violate Amazon’s terms of service without realizing it. You might also choose products with fatal flaws that prevent profitability. These mistakes can cost thousands of dollars and months of wasted time.

Having a mentor who has successfully built Amazon businesses allows you to learn from their experience. You don’t have to make every mistake yourself. They can review your product ideas and identify potential problems before they become expensive disasters. They provide specific guidance tailored to your unique situation. This mentorship accelerates your timeline from months or years down to weeks.

Community Support

Building a business feels lonely and overwhelming when you’re the only person you know attempting it. Questions arise constantly: How do I negotiate with manufacturers? What should my PPC budget be? Is this review violation serious? Without a community to ask, you’ll spend hours researching online. You’ll find conflicting information that leaves you more confused than before.

Access to a community of sellers at various stages creates an invaluable support system. Weekly Q&A calls with experienced coaches allow you to get specific answers to your exact questions. You receive real guidance rather than generic advice from YouTube videos. Additionally, seeing other people succeed using the same methods provides motivation and proof. It shows that the system works for regular people, not just entrepreneurial superstars.

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Your Next Move: Time to Take Action

The evidence overwhelmingly demonstrates that 2025 represents the best opportunity in years to start an Amazon FBA business. Specifically, using the Passion Product method offers the most promise. Tariffs are scaring away potential competitors. This creates less saturation than we’ve seen in the past five years. Meanwhile, platforms like Haul and TikTok Shop eliminate wholesale and private label sellers. This further reduces competition for unique products.

However, opportunities don’t remain open indefinitely. Every month you wait, another seller might discover the same product idea you’re considering. They might launch before you do. Remember the STEM students who lost their $60,000 monthly opportunity. Someone who simply moved faster took it from them. First-to-market advantage matters enormously on Amazon. Procrastination carries real financial costs.

I’ve created a free 10-hour Amazon FBA course that walks through the fundamentals of finding and launching profitable products. This course provides tremendous value and costs nothing except your time. However, if you want personalized guidance, the Passion Product Formula program makes sense. It also offers access to weekly coaching calls and a community of sellers supporting each other.

The program includes everything you need to find your Passion Product, launch it successfully, and scale to $100,000+ in annual profit. We offer a money-back guarantee because we’re confident the system works when you implement it consistently. Spots are limited since we keep the program small to ensure quality coaching and community interaction. The question isn’t whether Amazon FBA works thousands of success stories prove it does. The real question is whether you’ll take action now or look back a year from now wishing you had started today.

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Frequently Asked Questions

Is Amazon FBA still profitable in 2025?

Amazon FBA remains highly profitable in 2025, but only if you use the right selling method. Wholesale and private labeling have become increasingly difficult. Competition from Chinese manufacturers, Temu, Haul, and TikTok Shop makes these methods challenging. However, Passion Products continue generating six-figure and seven-figure revenues for sellers. These are unique items that solve specific problems for niche audiences. Over 350,000 Amazon sellers make over $100,000 annually. This proves that significant money is still being made despite increased competition.

How much money do I need to start Amazon FBA?

Startup costs vary dramatically depending on your chosen method. According to Amazon’s data, 11% of sellers start with less than $500. Meanwhile, 22% invest over $10,000. Retail arbitrage requires the least capital, around $500-1,000. Wholesale typically needs $2,000-5,000. Private labeling or Passion Products usually require $2,000-10,000. However, you can launch a Passion Product with zero capital. Use Kickstarter crowdfunding to collect pre-orders before manufacturing your first inventory.

What is a Passion Product and how is it different from private labeling?

A Passion Product is a truly unique item that you create based on verified customer demand. Private labeling simply adds your logo to existing generic products. With private labeling, you might find generic phone cases on Alibaba. You add your brand name and sell them on Amazon. With Passion Products, you identify specific searches customers make that existing products don’t satisfy. Then you create something genuinely new to meet that demand. This uniqueness protects you from competition and allows premium pricing.

How do Trump’s tariffs affect Amazon FBA sellers?

Tariffs primarily impact sellers who manufacture in China using wholesale or private label methods. They can potentially increase product costs by 100% or more. However, tariffs actually create opportunities for new sellers who can strategically adapt. You can source from low-tariff countries like Mexico or Vietnam and you can manufacture domestically in the United States. You can also use de minimis threshold strategies. Additionally, tariffs are scaring thousands of potential competitors away from Amazon. This reduces saturation for sellers who understand how to navigate the new landscape.

Can I really make passive income with Amazon FBA?

Amazon FBA provides largely passive income once your product launches successfully. However, it’s not completely hands-off. You’ll invest significant work upfront researching products, creating listings, and launching. After the initial setup, Amazon handles picking, packing, shipping, customer service, and returns. Most successful sellers spend only a few hours weekly managing inventory and optimizing advertising campaigns. Many Passion Product sellers earn $2,000-10,000+ monthly. They do this while working full-time jobs or traveling internationally.

Is it too late to start Amazon FBA with so much competition?

No, it’s not too late, but you must avoid outdated methods. Wholesale and generic private labeling won’t work anymore. The Passion Product approach remains wide open because you create unique items. You don’t compete with thousands of sellers offering identical products. Furthermore, 2025 presents exceptional timing. Tariffs and new competition from Haul are driving traditional sellers away from the platform. Every year, people ask if it’s too late. Every year, those who start anyway build successful businesses. Meanwhile, those who wait regret their hesitation.

What is Haul and how does it affect Amazon sellers?

Haul is Amazon’s low-cost store launched in November 2024 to compete with Temu. It offers deeply discounted generic products shipped from China. Prices are often 75% lower than regular Amazon listings. Haul devastates wholesale and private label sellers by showing customers identical products at much cheaper prices. However, Haul doesn’t affect Passion Product sellers. Unique items don’t appear in the low-cost store. In fact, Haul increases overall Amazon traffic. This creates more potential customers for unique products.

Should I use Kickstarter to launch my Amazon product?

Kickstarter provides an excellent way to launch Passion Products with zero financial risk. By creating a campaign, you validate customer demand and collect pre-orders. You do this before spending money on inventory. If your campaign fails, you’ve learned the product won’t sell without losing money. If it succeeds, customers fund your entire first production run. This approach transforms the typical high-capital-risk product launch. It becomes a low-risk validation process that proves profitability before you commit significant resources.

How long does it take to start making money with Amazon FBA?

Timeline varies based on your product choice and launch method. Retail arbitrage can generate profits within days. You’re simply buying and reselling existing products. Wholesale typically takes 4-8 weeks from finding suppliers to receiving inventory. Private labeling and Passion Products usually require 3-6 months. This covers product research through manufacturing and launch. However, using Kickstarter can extend this timeline while simultaneously funding your launch. Most sellers see their first sales within 90-120 days of starting the product research process.

Do I need special skills or experience to sell on Amazon?

No special skills or experience are required to build a successful Amazon FBA business. You don’t need technical knowledge, marketing expertise, or previous e-commerce experience. The most successful sellers often come from completely unrelated backgrounds. These include teachers, engineers, bartenders, stay-at-home parents, and recent college graduates. You simply need to follow a proven system. Use tools like Helium 10 for product research. Get guidance from mentors who have already achieved success. Persistence and willingness to learn matter far more than existing skills.