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It's a good question.
Amazon FBA is simply a group of warehouses tied together by sophisticated software.
Third-party sellers pay a monthly membership fee (digital product) for the privilege to access these warehouses (where very real people work incredibly hard).
BTW- now millions of people pay this monthly membership fee even if they don't sell a single item in Amazon's catalog.
There are so many third-party sellers that Amazon doesn't release the numbers! But to give you a perspective there are more third-party products than Amazon products.
When your products appear in the Amazon "catalog" they are simply sitting on shelves inside of the warehouses across the planet.
Now, if you are not selling the amount of inventory that you had hoped, you are still paying the $40/month ($39.99).
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That's almost $500/yr. It can also be higher when you add storage fee. (That monthly fee might be closer to $100/month). In which case you're talking about more than $1,000.00 dollars for items NOT selling (or an account you are not really using).
Is it worth it?
Several years ago before the bottom fell out I taught Amazon FBA workshops.
Without any backend or upsell just real strategies and methods for selling private label products on Amazon FBA.
I taught them for about a year, via Zoom, to a couple of non-profit organizations.
This was when the "average" person could still actually make money with the private label approach.
You may want to read the full article where I break down the entire scenario and what it means to sell on Amazon FBA today (2020 - during a Pandemic).
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