The feasibility of Amazon direct sales (i.e. FBA model) needs to be comprehensively evaluated based on the current platform environment and operational strategy. The following is a key analysis:
1、 Advantages and opportunities
Traffic and conversion advantages
Amazon has the world’s largest e-commerce traffic pool, with a first order success rate of over 73% for new sellers on its US site. Additionally, the platform’s algorithm provides fair exposure to high-quality products, and small sellers still have the opportunity to enter the market through popular products. Currently, there are 50% success rates for new sellers
Logistics and Support System
FBA logistics can improve delivery efficiency by 30% to 50%, and with AGL cross-border logistics, reduce operational difficulties. Novice users can also utilize the platform’s resources such as brand registration and advertising tools
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2、 Challenges and Risks
Cost and competitive pressure
According to data from 2024, the advertising ACoS (advertising sales cost) of US websites reached 42%, FBA first leg shipping costs increased by 65% year-on-year, and Amazon’s self operated products accounted for 58% of the category, squeezing the space for third-party sellers
Compliance and operational thresholds
The increasingly strict platform rules, such as UL certification and EPR compliance requirements, may lead to inventory freezing; Algorithm updates (such as the addition of a weight for “customer retention rate” in A10) are detrimental to small sellers
3、 Key strategies for success
Product selection and differentiation
Focusing on niche products that meet specific needs, using ABA tools to analyze search trends, and optimizing product design through customer feedback (such as magnetic absorption nano boxes, Morandi color schemes) can improve conversion rates
- Refined operation
Advertising control: It is recommended to control the initial advertising cost within 30% of the single batch profit
Inventory management: Maintaining a 25-30 day turnover rate can increase storage capacity and avoid long-term storage fees
Brand protection: Record immediately after testing to prevent resale
4、 Current situation in 2025
Despite the increased threshold, Amazon remains the most stable platform for traffic. Successful cases have shown that profit can still be doubled through detail optimization, such as scenarizing the main image and displaying A+page videos
Conclusion: Amazon direct sales still have opportunities, but professional operations, compliance awareness, and differentiation strategies are needed. Novices are advised to try the FBM model and gradually transition to FBA.