Amazon FBA automation ? Scam or Opportunity?

A few days ago I saw an interesting advertisement on Facebook. It was for a new service that I have not seen before. Amazon Automation. This is not to be confused with coaching. The company basically offers to manage you amazon account, add a bunch of drop shipping products that are proven sellers to the inventory of your amazon account, then when a order comes through their team would place the order for you with the drop shipper to ship out the product. 

I watched their explanation video, they claim that within 4-7 months they will have your store doing $100,000 in sales per month. With a profit margin of 10-22%. That would leave you with $10,000 – $22,000 income per month. 

So here are some questions that popped in my head…. Why would they do this for other people? Why not create more accounts for themsevles and keep all the profit for themselves? They said it is because after a few accounts Amazon will find out and not allow multiple accounts. I personally feel that doesn’t make sense. They could open up several businesses and corporations and each of them would be a different entity, therefore I don’t see on what grounds Amazon would deny them. 

Let’s just say what they are saying about that is true. I wanted to know what is in it for them? They said that they will take 33% of the profits they get you every month. For example, the $100,000 in sales = $10,000 profit – 33% = $6,700. You would basically be left with $6,700 a month in income after their 1/3 fee. This part I was totaly ok with, if they are making sales for you and doing all the work involved in it, they deserve to get a cut. 

However, THAT’S NOT ALL FOLKS! Here is where the doozy comes in, they charge a $15,000 sign on fee, that must be payable via bank transfer, wire not credit card. Knowing that I would then not be protected by my credit card, I asked if they have a contract where their claims are in writing. He said yes, however he can not guaratee the $100,000 in sales even though he knows he can get there. Keep in mind this program is being instroduced by a multi-million dollar Amazon seller and coach. A legit one. 

More questions came to mind, if he can’t put his claims into writing, $15,000 is a lot of money to risk on people whoe seem pretty nice but I don’t really know personally. How am I protected here? The answer is, I am not. He mentioned that he would not fabricate his claims because his name is on the line, he has a facebook group and many people he coaches, he welcomed the opportunity for us to go on the facebook group and ask about him. If he lied , we would go on facebook and ruin him or on the internet. 

That is true, however $15,000 is still a ton of money to take a risk on without any sort of claims in writing. I ask for them to send me the agreement they do have. What they say in there is basically that “they are only building you a store” , “they can not guarantee you will make ANY MONEY” , “they can not guarantee the longevity of your store”. These statements sort of caused some red flags. 

I really liked the guy, and I do for some reason trust him and belive he is telling the truth. However there is still a risk and the amount of money is a big gample. I messaged them and let them know that if they were willing to modify their agreement addressing all their claims that I would do business with them. Unfortunatly they wre not willing to do that. I really would like to make that $6,700 a month on automation, but I just don’t know. If this guy screws me over I probably wouldn’t forget about that money for almsot ever….

What would you do? Would you send him the money or continue building your own Amazon seller account?

Comments

  1. I’ve seen these ads too, and I’m skeptical as well, especially with the startup fee. Can you identify which automation program you are referring to? Was it Steven Mayer?

  2. Build my own account… this seems really scary and scammy… This guy probably isn’t who he says he is and created a fake profile and pictures to say he’s someone he isn’t so when the shit hits the fan it really wasn’t him in the first place…

  3. i think its legit, i spoke with the adviser and he seemed nice and told me everything to expect to see if i were a good fit, however they are upfront and dont lie about anything, the advisor sent me a couple videos in my yahoo mail and talking about the whole process. by the way steven mayer has a youtube channel where he shows multiple accounts that he built.

  4. Hi
    Thanks for sharing your experience with this company. I recent saw their advertisement on Facebook as well and I was interested. But I didn’t know how much they charge after reading your post I got the inside of it. Personally I would go for it. 15K is a lot of money to invest on somebody you know. Especially the fact that they cannot guarantee any of their claims. So I wouldn’t go for it. Best of Luck!

  5. This is a scam! You have no legal standing to make a claim for your money back because their contract/agreement with you states that they guarantee nothing. There advertisements say they are doing this because they want to see people succeed and that they themselves are millionaires. This would not be consistent with asking for $15,000 as an up-front payment. Do not pay the $15,000. This is a scam!

  6. If it’s too good to be true, do not go through. Waiting for this show on Dirty Money or American Greed. Your red flags says something is not right and your gut feeling is it does not add up, so like any Ponzi schemes, you may see a few dollars until money runs out. Walk away is my recommendation.

  7. IM INTERESTED, OPEN MINDED, BUT WOULD LIKE MOE DETAILS.. HOW IS MY MONEY INSULATED FROM TAKING LOSSES. WHAT ARE YOUR FEES FOR HELPINH ME RUN THESE BUSINESS’S. I JUST HAVE ,ORE QUESTIONS, BUT CANT TALK RIGHT NOW.

  8. To me, it seems like he is the one looking to make more money and expansion through me. So therefore, it should be free for the initial start. Within time or months we both can be happy making some cash.

  9. If you have that kind of money i would rather use it to set up my own store myself and learn the process. There’s no way in hells ass that I’ll pay 15k to sign up, along with 1/3 of my profits that is not even guaranteed. I definitely would say no. But if that kind of money won’t affect you (which you stated it will) then sure, go ahead.

  10. no i wouldn’t not without a contract. and anyone can set up a store…. to good to be true and now there asking for 30 grand no fing way ….. if you believe this i have a bridge for sale in brooklyn it’s 200 plus years old

  11. I’m interested in this as well. I’ve been doing research on this and weighing out different providers. Did you sign up?

  12. Stay away! Almost all these Amazon automation companies are scams! I actually invested $15K in Sept last year l, and guess what, Amazon suspended my store, and I have not made any of that money back. It’s a total scam. They won’t disclose to you either that this business model (retail dropshipping) will probably get your account shut down and you have no way to recover your funds.

  13. Doing FBA(Fulfilment By Amazon)

    Let say you are a small timer book seller that grow a little too big(Amazon started out more than 20 yrs ago as an online book seller). Your inventory is getting more than 20 thousand books. You start dumping all of them into Amazon warehouse. They will take care the whole process(process order, pack and ship). Let’s say Amazon get 25% cut from total sale plus 75c rental monthly for a cubic feet that your books occupied in their designated spot in the warehouse. You just sit there and follow up with the sales to earn your money. They take care everything including customer services until your book sold out. You still have the confidence on control your products and profits on Amazon.

    Now with this new service of FBA-Automation, I am not sure for the guarantee you can make the money. You have no clue of what products you sell. For the control on the products, you vest them all on the people who advertise this service. The problem is the 15K is a very big amount of money. You gotta do FBA yourself first, you can do it with a few hundred bucks then explore the opportunities. It’s not very easy to buy low and sell high unless you have your own production.

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