Reselling on Amazon could be highly profitable, but it takes time to see the fruits of your labor. As a result, some people decide to invest in Amazon automation to earn passive income while they maintain their 9 to 5 job. However, when you are looking for an Amazon automation company to run your store, you need to be aware of the potential risks associated with your Amazon store being automated. Some Amazon Automation Businesses advertise how passive income made from selling on Amazon could make you as rich as king Croesus but the recent events for the last few months have shown the complete opposite to what these unscrupulous companies had claimed. Some incidents have escalated so much that the FTC had to step in and expose the unlawful practices used by these companies taking innocent people’s life savings.
In this article, we put the concept of Amazon Automation under scrutiny and provide tips to help you identify genuine or fraudulent Amazon Automation Businesses and ease your mind about your investment choices.
What is Amazon Automation?
Amazon Automation is a service provided by an agency that creates an Amazon store from scratch, handles all the product sourcing and logistics, all in exchange for an upfront or recurring payment specified in the contract. While it might sound too good to be true, there are some legitimate companies out there that can help you make passive income from Amazon, but you need to do your due diligence to find the right agency that will help you secure passive income.
The Red Flags You Shouldn’t Ignore
When we are investing, it is essential that we get a return worth our money. But you also need to spot the sketchy promises from dodgy companies. Stay away from anyone promising high returns with little to no risk, and remember, if it sounds too good to be true, it probably is! Keep in mind that scammers master the art of persuasion, they tell you exactly what you want to hear. To avoid becoming the victim of these unethical operations, here are the 7 red flags you should not ignore before making your investment decisions.
🚩Promise of Easy Money
Activate your skepticism when some Amazon automation “experts” pretend you are going to be wealthy in the next few months because of their amazing strategies. We cannot guarantee that such a thing will happen unless you hit the lottery.
🚩Too Many Good Reviews Praising a Particular Amazon Automation
Nowadays, popular online personalities who “review” all sorts of products and services on YouTube, TikTok and other social platforms can greatly influence consumers’ purchase decisions and give an edge to businesses benefiting from their good rating. Many scammers also know this and they would have their accomplice to publish videos after videos to praise dubious Amazon automation business. Don’t you think it is odd to have so many positive online reviews popping up and applauding how Amazon automation made them never have to work again? It is almost too good to be true. Who knew making money could be that easy! For us, it’s a bit hard to believe and we know that reviews can be helpful to reflect the business’s worth, but they should be taken with a grain of salt since the reviews could be fake or even be bought by these agencies to make them look good online.
🚩Beware the Online Information about Amazon Automation
It’s no secret that a well-crafted video on the internet can cast a façade that makes any average joe look like an expert. Fake gurus harping on about the greatness of Amazon automation on YouTube is no exception. YouTubers being outspoken and showing confidence in expressing their opinions do not automatically make them experts in any subject matter. In fact, It may very well be the total opposite and we call this the Dunning-Kruger effect which occurs when an individual lacking any kowledge or skill in a particular domain becoming overconfident.
Do not fall for their seemingly persuasive rhetoric, because, before you know it, you may find yourself investing considerable savings into an ambiguous venture. That is why you must do your homework: trust but verify! All the outrageous claims won’t mean anything if the research you have done does not back it up. Be sure to research the company, owner, and any credible reviews you could find on reddit.
🚩The Amount of Money They Ask from You
If you have done some research, you already know that starting your Amazon Business from scratch is costly especially if you choose becoming an FBA seller. But when these Amazon Automation Agencies expect you give them between 10k or 20k USD upfront to start your Amazon business with recurring payment based on a % cut of the revenue from your store and there is no guarantee you will make profit from this considerable investment, it can be a risky venture. Also, we would like to remind you, Amazon is a very competitive marketplace so those who claim they found a way to make you rich in a blink are fooling you.
🚩Sketchy Contracts and Questionable Sales Pitch
Some of these scandalous companies have some tricks up their sleeves to get you to pay, here are the common steps employed to get their victims:
First, through their webpage or website, they may be collecting your personal data. Before giving any personal details make sure to check if the webpage information is legit before taking any further next steps.
Second, through online meetings with very convincing and pushy sales pitch, we know that under pressure some people might not be able to think rationally and agree to pay a deposit in advance that may enforce the contract.
Third, they might try to dazzle you with impressive, home-made PowerPoint presentations full of carefully selected data that skews in their favor.
Fourth, they may want to confuse you with ridiculous numbers and contradictory information that do not make any sense when you closely analyze them. The reason why these “ecommerce experts” threw to you so many numbers is because they want to get you lost and eventually make you drop your guard to scam you better.
Finally, if they use trendy terms like “technology powered by AI” without giving you evidence of their advanced technology, do not waste even more time with these scammers.
Be careful of what you sign or agree to, read all the lines of the contract, even the indents, do not hesitate to hire a lawyer to help you with the contract in case you have questions, or you do not understand some parts. Check all the conditions of the contract, especially how much profit they will take from you and what will happen if your store doesn’t sell anything, should you still need to pay them?
As the following message from Amazon seller forum mentioned below reselling amazon store is illegal:
“[…] Seller accounts generally are not transferable. Seller accounts provide access to the tools and resources that sellers use to list their products and manage their orders. Seller accounts also include account activity history and buyer feedback. Every seller on Amazon must have a seller account and an agreement with Amazon that establishes the terms under which the seller lists and sells their products. If the ownership of a business changes for any reason, the new owner must establish a new seller account.“
🚩When they Want to Sell their Company
Beware! Your scammer radar should be beeping loudly whenever a company claims it is so valuable that they are going to sell. Do not be fooled by this sales pitch because usually that indicates that the gurus are desperate and want to sell their company when they have financial issues and are not able to grow anymore, that is why they need to act quickly to avoid financial repercussions.
🚩Think About the Consequences
Investing in Amazon Automation Businesses can be quite a gamble, if things go south, don’t expect to get your money back, not even with a mountain of evidence to back you up. What’s even worse is when these people turn out to be “recognized scammers” with a long list of victims. With them, once your money is gone, it’s gone forever and it doesn’t matter if these “experts” get exposed online or face any consequences, your chances of recovering what you have lost are pretty much zero. So, if you are planning on investing, make sure you know the risks, otherwise, you could be looking at debts to be the only thing you get back.
Should You Run Away or Should you Have a Try?
Although it is entirely up to you to decide what to do with your money, we would like to remind you that Amazon Business Automation agency is like a double edge sword and the recent events that have rocked the Amazon Automation world should be a wake-up call to those who always skip the research before committing their investment. Also keep in mind that turning your Amazon business profitable takes time regardless of the amount of money you have thrown in. Do not be surprised if after a few months you still do not see the results of your investment. If you need help getting a grip on how Amazon works, there are plenty of free tutorial videos online that could help you start your own amazon business. If you’re after the true automation on Amazon, you might want to try investing in third-party tools like BQool AI repricer to help you adjust your product prices automatically. So be careful with your Amazon Automation investment and don’t take any unnecessary risks! Finally, we recommend you check the FTC website from time to time if you wish to learn more about how to avoid online Amazon scams, you will find quite insightful articles about all types of frauds and how to prevent them.
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