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Amazon Automation: The Next Gold Rush Scam
Kevin David, Raphael Vargas, and many other gurus have begun promoting Amazon Automation in YouTube ads. There is no catch, you sign up, give them money, and they will build a six figure Amazon store for you.....
Just kidding. These gurus promote their ability to build an Amazon Automation store for you for a small down payment. They will claim that the returns are better than the stock market or real estate investing. They will make claims that it's completely hands off and you can begin earning thousands every month with passive income.
Amazon FBA, Dropshipping, or Amazon wholesaling business is going to have super tight margins due to the competition of selling products on Amazon.
What these gurus don't share with you is the breakdown of the expenses from selling products on Amazon. A few gurus who are candid and open about Amazon Automation share that they typically see 0% to 10% profit margin on average for most people starting out with Amazon FBA.
But there are huge risks for such small profit margins. What happens if your store gets suspended? What happens if your inventory runs dry and you don't have the money to buy the next shipment in bulk? What happens when you have returns?
These gurus share a lot of testimonials from their Amazon business coaching, but they never show the actual expense numbers for a reason. The margins are much tighter than they'd like to admit.
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