6 Brutally Honest Truths About Selling on Amazon (From $70M in Sales)
Sunday, September 21, 2025
6 Brutally Honest Truths About Selling on Amazon (From $70M in Sales)
I’ve been selling on Amazon for 7 years, tried every business model, and generated over $70M in sales. Along the way, I’ve seen what actually works—and what doesn’t.
If you’re an Amazon seller trying to scale, these 6 truths will give you the unfair advantage most sellers never discover.
1. Arbitrage is Only Getting More Difficult
Don’t get me wrong—you can still make money with retail and online arbitrage. But the scalability and risk make it a tough long-term play.
The main issues:
• Price tanking – By the time your inventory hits Amazon, dozens of other sellers are competing on the exact same product. Prices drop until profits disappear.
• Brand restrictions – Amazon is restricting more and more brands (especially in clothing, beauty, and household). Many sellers find themselves unable to ship products they just invested thousands in.
Arbitrage will always exist. But if you want to build a sustainable business, you’ll eventually need a model that scales.
2. Wholesale is Not All Sunshine and Rainbows
I transitioned to wholesale after year two. It’s the smarter long-term play, but it’s not “easy mode.”
The challenges:
• You’ll get rejected by most brands.
• You need a professional foundation (website, LLC, business credit).
• Outreach is a numbers game—you might need to contact 100+ brands to land a few profitable yeses.
But the payoff is huge: once you secure those accounts, you can scale infinitely.
3. Cash Flow Will Make or Break You
When you start winning wholesale accounts, you’ll run into a new problem: cash.
Brands expect you to stay in stock, especially if you get exclusives. That means placing reorders weeks (sometimes months) before you run out—tying up huge amounts of capital.
Managing lead times, inventory turns, and reorders is a critical skill.
4. Margins Are Shrinking
Amazon sellers across all models are feeling the squeeze.
In the past 18 months alone, Amazon has raised:
• Fulfillment fees
• PPC costs
• Storage fees
• Removal & return fees
Margins are thinner than ever. The solution? Focus on higher-margin wholesale accounts and track every single expense, return, and leak in your business.
5. You Need a Team to Scale
Amazon is simple: buy low, sell high. But execution at scale is anything but simple.
Most sellers cap out around $1M in revenue if they try to do everything themselves. To grow beyond that, you’ll need:
• Virtual assistants (product research, data entry, account health)
• Domestic employees (logistics, supplier management, strategy)
• SOPs and workflows to systemize operations
If you don’t build a team, you’ll eventually bottleneck yourself.
6. There’s No “One Size Fits All” Software
This is the part nobody tells you: there’s no magic software that does everything.
In my 8-figure business, I use:
• SmartScout for brand research
• Restock Pro for inventory forecasting
• Sellerboard for analytics
• Repricers like SellerSnap
• Prep/shipping software like 2D Workflow
The tool isn’t the “edge.” How well you use it is what makes the difference.
The Game Will Keep Changing
Amazon updates fees, policies, and workflows constantly. The sellers who survive (and thrive) are the ones who adapt quickly.
If you’re ready to stop guessing and start scaling with a proven blueprint, I break down these truths and more in my full YouTube video.
And if you want to learn exactly how we help sellers secure profitable brand direct accounts, check out our Brand Direct Blueprint.
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