I have personally been running an Amazon Automation business and it has been the hardest thing I have ever done business-wise before. Amazon Dropshipping is pretty straight forward, but building an Automation Business at scale, that offers standardized results for our clients was challenging.
What is Amazon Automation?
Amazon Automation is a term that has grown in popularity over the last few years. It refers to a Business Model where a client pays a service provider to manage and run their Amazon Store. This business model has been around for about 7 years now and they can be both Amazon Dropshipping Automation or Amazon FBA Automation. The general premise is that Amazon Automation is an Investment and you pay a fixed fee and the account is run “Automatically” and you receive passive income on a monthly basis.
Is Amazon Automation a Scam?
I have been running this business for 3 years now, and as I mentioned it is the hardest business that I have ever built, but it was worth the hard work. I will like to talk about if this business model is a scam because a couple young men who are claiming that my Amazon Automation business is a scam and I will like to address some specifics and then we will both of to conclusion at the end of this if it is a scam.
These young men posted a video on YouTube of which I commented and requested that I be on their channel and all of my comments were deleted. Here is a screenshot of two of them. I think I have made at least 7 comments on this video but my suspension is that I am blocked from the channel.
So since I cannot have an actual conversation with these young men and address their claims directly, I will address them on my blog.
There are some claims made by these young men that are true and some made by them are completely false. So we will go into detail on the history of my Amazon Automation Business and where we are now.
The Beginning of My Amazon Automation Business
So I have been dropshipping on eBay for 9 years and 5 years ago I started to do Amazon Dropshippnig. I initially learned the basics of Dropshipping on Amazon from a company called DS Domination which was one of the first companies that promoted the dropshipping model a number of years back. As I grew in my Dropshipping Career I had created my own strategies as well as learnt from many of the “influencers” online and their Amazon Dropshipping Strategies. After years of experience, and taking every course on the internet on the topic of Amazon Dropshipping, I have realized that the only strategy that works with Amazon Dropshipping is Simply understanding the platform, where the demand comes from and supply to that demand. There is no rocket science behind Amazon Dropshipping, but the execution is what determines the winners from the losers.
Once I had started to run a number of Amazon Dropshipping Accounts for myself, I decided to start offering it as a service. Our first clients paid $3600 and we ran their accounts and made them solid income. One of those guys, (Pushpak Patel) is still a client of mine to this day. The pricing quickly went from $3600 – $7000 and our accounts continued to grow and the value of the service increased.
The Inner Circle
At this time I had something called the Amazon Inner Circle that I did with a Young Business Person and Salesman called Matthew. He had his own Amazon FBA Training years back and sold $4,000,000 worth of his training in two years so he suggested that we do a joint venture and offer The Amazon Inner Circle as a Joint venture and it went well. We sold 160+ $3000 entries into the Inner Circle and it was a success. The Joint Venture was a success for both us and our students. We were showing Amazing numbers and we all had Amazing Success with our Amazon Dropshipping Businesses. (Please keep in mind that every joint venture and partnership I get into, I carry the Labor Costs and Training of all Staff).
The Beginning of Scaling
Once the Inner Circle was wrapping up, Matthew and I decided that we should scale the Amazon Automation Business. This is where things got “interesting”. Pricing was raised to $15,000, Matthew was the salesperson that closed everyone at that time and we started to build the business. I was running the office in Nicaragua and he was based overseas, and I had an operations Manager named Tony who knew nothing about dropshipping. Tony and Matthew did not get along but for very different reasons. This had to be around April 2019.
As the pricing was increased and we started to get great results for our clients, Matthew had negotiated to get discounted gift cards from a supplier that could supply us $50,000 a day in Gift Cards as insanely good rates. We started to use the supplier and our Amazon Dropshipping accounts became even more successful. This was right around the time we started to post a series on “Building a $12,000.000 Dollar Business on Amazon” on my YouTube channel. This is where the madness began. We quickly took a number of accounts from 0 – $10,000 a Day in sales and we actually built a $12,000,000 in a couple weeks but our success came with a lot of problems.
I breezed over the last part because more than one person involved in that time is still going through legal matters as a result of hundreds of thousands of dollars going missing so with respect to that I chose not to put full names and details until that matter has been concluded.
Once we had assessed the level of the disaster, Tony (who was head of operations) came up with a game plan so that any clients accounts that we affected by the misuse of the gift cards and the bad management of the accounts will have the opportunity for us to manage another account for them. Each one of our clients has a contract with us and there is an option that we can open a second account. In talking to Tony, we had sent out offers to all clients who were affected for us to manage their accounts and then Tony came into some personal issues and left the company immediately.
So in December I was left with a company with about 19 successfully running accounts, 12 accounts to be onboard, 14 clients who needed a second account, and a team of employees that have had experience through every single problem that can come up in Amazon Dropshipping. The “Scam” element that keeps coming up in Amazon Automation services is the fact that most companies 1. Do not offer any sort of Money Back guarantee or Guarantees of Income and the client is “Investing” in passive income. Any clients that took away access from us or had an issue with their account is entitled to another Amazon Selling Account from us and Management for a minimum of 3 months.
Once the disaster was measured and I had to decide what direction to take my Amazon Automation Business, I started to research other companies. I looked at their pricing, their success rate, Marketing Tactics, and Guarantees and this is how I came up with the current pricing and strategy of our service. We charge at cost, we do not use any payment method other than the clients’.
Once we decided on this new pricing model we took on some more clients and we were having about a 65% success rate on our accounts when other companies were having about a 30% success rate. Covid happened and my employees started to work from home. This brought on a couple more issues. The employees wanted an increase in pay and payment for their extra electricity and the Internet and this was not built into the pricing that we had. I was also not happy with our 65% success rate so I decided to turn every single account on Vacation mode. A couple days after this point claim by these young men was made so this is what I am doing.
I am personally onboarding the accounts that are on vacation mode and we will be posting results in the next coming weeks as we grow these accounts. I will be onboarding one more client, a friend of mine who is into Digital Book publishing and this will be the last new account we manage until Entrepreneur Zone is properly launched.
Below is a link to my Calendar of which I will be putting public and Current or Passed client who has an issue with us can schedule a call below.