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Is Amazon FBA Still Worth It In 2020?

Whereas Amazon sells many of its own products, more than half of sales on the e-commerce platform come from third-party sellers. Many of these items are stored in Amazon warehouses and shipped by Amazon employees. This system is called Fulfillment by Amazon — or Amazon FBA. It simplifies the shipping process for sellers and provides the same service for customers as if they had purchased direct from Amazon. It also gives Amazon a greater share of the profits for every third-party sale.

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The question is: for sellers, is Amazon FBA worth it?

How Does Amazon FBA Work?

Before we look at whether Amazon will be profitable for your business, you need to understand how Amazon FBA works.

Step 1: You send items to an Amazon fulfillment center. If you don’t produce your own products, the manufacturer can send them instead. There are around 100 warehouses in the U.S. Amazon will tell you where to send your items according to the type of products.

Step 2: Once Amazon has received your items, the warehouse employees will sort your merchandise and store it with a tracking code. Incidents of damage and loss are rare, but if something does happen to your products, Amazon will reimburse you.

Step 3: When a customer orders one of your items, Amazon will locate it and pack it. Your inventory will update automatically.

Step 4: Amazon will ship the item using the method the customer chooses.

Step 5: During shipment, both you and the customer will be able to track the item.

Step 6: Amazon will handle any additional customer support, such as customer questions and returns.

Step 7: You will receive payment for sales through Amazon FBA every two weeks.

It’s important to note that you can also use Amazon FBA to fulfill orders from  other e-commerce platforms, like eBay and Facebook, and even for your own website.

Is Amazon FBA Still Worth Doing?

When Amazon first released its FBA service, sellers leaped at the chance to simplify the shipping process. Since then, Amazon has become much more popular, resulting in more competition and higher fees. This has led some people to question whether Amazon FBA is worth it in 2020.

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To determine if Amazon FBA is worth it for you, there are few factors to consider.

1. Amazon FBA Fees

Amazon frequently updates its rates. Unfortunately, fees almost always become higher. Monthly storage fees are now at $0.75 per cubic foot from January to September and $2.40 per cubic foot from October to December.

In addition, you need to pay a minimum of $2.50 in fulfillment fees (these are instead of shipping fees) for each unit you sell. This rate is for the smallest size: no more than 10 ounces of shipping weight and 4 ounces of packaging weight. The fee for large items is $5.42 for up to 3 pounds and then $0.38 for every additional pound.

If you have oversize items (whether small, medium, large, or what Amazon calls “special oversize”), you’ll pay even more. A large oversize item, for instance, is $75.78 for the first 90 pounds and $0.79 for every additional pound.

Furthermore, certain categories of items have higher fees, such as clothing. For example, a small size item of clothing has a fulfillment fee of $2.92 rather than $2.50. The good news is Amazon eliminated its $0.40 surcharge for clothing, meaning it actually became slightly cheaper to sell clothing this year compared to last year.

Dangerous goods also have higher fees, as they require special storage and handling.

You can check out the list of fulfillment fees (which also explains what dimensions make an item oversize) to figure out how much you’ll pay for your items.

In addition, it’s important to note that you may incur other fees, such as FBA removal order fees, FBA disposal order fees, and for the FBA Label Service. There are also long-term storage fees for items that have been in storage for more than 365 days (up from the six months it was previously).

2. Your Product Range

Amazon FBA is better suited to some types of products than others. To avoid hefty storage fees, it’s best to have small items that will sell fast. Large, low-cost products may be too expensive in fees to be worthwhile.

3. Your Workload

Selling online can be a big commitment. Handing fulfillment over to Amazon may free up some of your time — after all, shipping will be one less thing to worry about.

All the same, using Amazon FBA will add a few tasks to your schedule. First, you’ll need to calculate how many items to send. It’s important to strike a balance between running out of stock and spending more than necessary on storage fees. Second, you’ll need to prepare items to meet Amazon’s requirements. This involves using the correct packaging — otherwise, you can expect to incur another fee.

4. Lower Shipping Rates for Your Customers

As one of the largest companies in the world, it’s easy for Amazon to negotiate better shipping rates with delivery services than your business ever could. Plus, Amazon Prime customers even receive free two-day shipping on all FBA orders. This makes your products far more appealing to customers. In fact, if you lack free shipping, Prime customers may buy from one of your competitors instead.

5. Customer Service

Fast shipping is just one benefit for customers. Another is a better return policy than your business would likely be able to offer. Unfortunately, the policy is great for customers, but less so for sellers: you’ll need to pay a returns processing fee whenever a customer returns an item. Still, it does mean you don’t need to deal with reverse logistics nor the messaging of customers to figure out if they qualify for a return.

6. Storage Space

If you lack space to store all your inventory, relying on an Amazon warehouse could be an excellent solution. If your products sell fast, Amazon may even offer you unlimited storage — which is never an option when paying for your own warehouse.

7. Quality Control

If you’re selling identical products to another business, you never know if Amazon will ship your customers the items you sent to the fulfillment center. This is because Amazon looks at the bar codes of items, which don’t differ according to seller. There is always the chance that a customer will receive a lower-quality product than one you sent.

Whereas you can opt out of this practice (it’s called merchandise commingling), this will likely slow down your delivery times. For instance, if a customer is on the other side of the country, Amazon will be unable to ship from the closest warehouse.

You also need to consider that you are handing over a major function of your business to another company. Whereas Amazon usually has excellent customer service, the sheer number of orders means there will always be some mistakes. If Amazon makes a shipping mistake on your behalf, your reputation could be at stake. You may receive a negative review or even lose a customer.

8. Accounting and Taxes

Accounting can be extra difficult when you use Amazon FBA. There is no way of automatically connecting Amazon FBA to your QuickBooks account, unless you pay for a tool that will do it for you. The other option to manually record fees in a spreadsheet. Depending on your sales, this could take up hours of your time.

And that’s just the start. You also need to think about sales tax compliance. Amazon can decide to move your items to a fulfillment center in a different state at any time — and you are not privy to this information. However, although sellers have voiced concerns that they could be at risk of liability issues, there have never been any problems to date.

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Final Word

Is selling on Amazon FBA worth it? That depends on your business. The benefits of Amazon FBA are that your customers will receive an excellent service (which may well encourage them to buy from your company again) and you’ll eliminate some tasks from your schedule, allowing you to focus on other aspects of your business.

The main downside of Amazon FBA is its cost. Furthermore, it won’t guarantee perfect customer service nor eliminate monotonous tasks. After all, you’ll still need to keep track of your inventory, ensure Amazon always has enough of every item, and provide some customer support.

Amazon FBA is definitely worth it in 2020 — for some sellers. Before you determine if it will be a profitable solution for your business, you need to calculate how much you’re likely to spend. You may even like to try Amazon FBA with just a few types of products to see if it works for your business. Then you can decide if you want to commit to the service for the long term.

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source: https://myva360.com/blog/is-amazon-fba-still-worth-it-in-2020

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Forgiveness is one of the most misunderstood subjects in the Bible. We sometimes view it merely as a therapeutic way of detaching ourselves from those who have harmed us. Yet the heart of true forgiveness is so much richer than we may realize.

Jesus underlined the amazing nature of forgiveness in Luke 17:4: “Even if they sin against you seven times in a day and seven times come back to you saying, ‘I repent,’ you must forgive them.” Jesus’s followers are to imitate the grace of God that pursues us in the midst of our sinfulness.

Forgiveness is not earned but given. It means to release the desire to get even or the “right” to require the offender to pay for what he has done. To forgive is to say, “You are free. Your debt is paid.” It is not engaging in willful amnesia, but it is choosing not to treat someone on the basis of what they have done, even though we remember it.

Forgiveness isn’t the same as reconciliation. Reconciliation is earned. Forgiveness clears the ledger; it does not instantly rebuild trust. Forgiveness cancels debts; it does not eliminate all consequences.

Consider these thoughts about forgiveness:

Face the Facts

Authentic forgiveness requires that we identify what has happened and understand its significance.

Feel the Feelings

There’s a danger of both “quick forgiveness”—a hasty verbal declaration that keeps us from processing the violation—and “slow forgiveness,” an ongoing “I don’t feel ready yet.” There’s an appropriate time to grieve the loss of what might have been.

A Decision and a Declaration

Forgiveness is a matter of obedience, an inward choice that declares, “I forgive you.” These words declare that the issue is dead and buried. When it comes to mind, we take it to the Lord.

Excerpted and adapted from The Risk of Forgiveness by Gary Inrig.

source: https://odb.org/deeper/what-is-true-forgiveness

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Is etradematrix.com legit? I got scammed. Updated story. Should you get into the craze of Bitcoin?

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So, I wanted give you guys a little more detail about the scammer, and a little bit of update about what is going. You don’t think that they will just happy walking away with my $1600, right? She (I assumed it’s a she, but it’s a fake profile, so who knows? I could be talking to a hairy, 4 feet 10 inches midget who has a Facebook profile under the name Clara J Woodard (“She” recently, March 2021 sent me an audio message thru messenger, it’s noisy in the background , and with a man voice in a language that I don’t understand, go figure that one out, LOL). Pretty picture, showing off the mining machine set up, picture perfect lady, gorgeous. Of course I was thinking about her when I was talking to her via Messenger. Hey, I am only human, don’t judge me, O.K? After awhile we switch to WhatsApp and communicated thru there. For whatever reason, people like WhatsApp better, maybe you guys can tell me the reasons. And all the chat we had on Messenger will deleted, at least her part was all disappeared. Again, I don’t know why, you go ahead and tell me already. And after a little while, she had to change her phone number connected with the WhatsApp, and she was kind enough to tell me that, because, you guess it. They are still waiting for me to “upgrade” my plan, the $1100 they haven’t get yet. Here come the juicy ending, she came calling again yesterday, saying that “she” was willing to put up half of the “transaction fee”, so that I could withdraw my “profit”. Wow, just wow, how dumb they think I am. Well, pretty dumb, I did get scammed. Anyway, that might not be the end of it, who knows. I will definitely keep you guys undated if anything comes up. And just as I began tried to write this blog, I think another allege scammer might be onto me (thru Facebook, again). Let’s wait and see how this one goes, you just have to wait and see. Cheers!

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Alex Wang: Ember Fund CEO Explains how his Company Intends to Make Cryptocurrency Investment Opportunities More Accessible

Ember Fund is a company that aims to fundamentally change the way people make investments in digital assets. The firm has created a technology solution that allows people to easily buy into a managed portfolio of digital currencies. The Ember Fund team intends to bring key trading insights and technologies traditionally only available to institutional clients to anyone in the world who has $300 to invest and a mobile device.

Ember developers claim that projects are fully decentralized/non-custodial, which means that its users are responsible for providing custody of their own assets. Users’ digital asset holdings are accessible only via their individual mobile device.

Recently, we caught up with Alex Wang, co-founder and CEO at Ember Fund. While speaking to Crowdfund Insider, Wang talked about making digital asset investment opportunities more accessible to retail investors. He also revealed what his company intends to do with the $357,000+ capital they recently raised in a Reg CF offering which is still live on Republic.

You’ve mentioned that you’re partnering with a cryptocurrency hedge fund in order to introduce institutional-grade investment products to retail clients through your company’s mobile app. Please tell us about this offering.

Alex Wang: “Blockforce Capital is a multi-strategy fund for institutional investors that optimizes return and risk through modern portfolio theory, active risk management, and quantitative finance. Ember Fund will be working with its team of data scientists, machine learning engineers, computational astrophysicists, and Wall Street veterans to launch an algorithmic Bitcoin portfolio.

This portfolio leverages machine learning and regression analysis to generate signals and automatically rebalance between Bitcoin and a stablecoin. The algorithm measures long-term market trends, seeking to participate in the general upside of the cryptocurrency market while strategically losing exposure during downturns. The model attempts to improve risk versus long positions by 30%-35% by exiting its position in downward trending markets.

We’re really excited to be partnering. Both companies align on the vision to democratize access to institutional-grade investment products. Until now, there just hasn’t been a seamless, compliant, secure way to do this. We see a ton of synergies between the two companies.

We’ve believe that we’ve built a powerful platform that allows anyone in the world to securely invest in portfolios in a non-custodial, user friendly way. Blockforce has an entire team of machine learning and talented engineers working full time to look at and analyze on-chain data to make sense of price movements. Bringing that on to the Ember platform and combining forces just made a ton of sense.”

You’ve noted that you recently launched a regulated equity crowdfunding offering on Republic. You also revealed that the company has raised over $340,000 in capital in only a few weeks after launch. Please tell us what you intend to do with the funds you’ve raised.

Alex Wang: “We’ve spent this past year building the infrastructure and various investment products. We’ve processed millions of dollars, hundreds of thousands of transactions and have tens of thousands of happy users. Our only goal is to deploy as much of this capital on acquiring more users as profitably as possible. What this means is testing new marketing channels and scaling up some existing channels that are already working for us.”

Your company will launch a quant fund that “algorithmically rebalances” between Bitcoin (BTC) and a stablecoin. Why have you developed this product? And why is it important or useful?

Alex Wang: “We’ve already constructed a few portfolios that are altcoin-heavy. The idea behind this fund was to construct one that only trades between Bitcoin and a stablecoin. Across enough time, we wanted an effective way to hedge the downside and capture as much as the upside as possible.

Something like this just wasn’t previously available to retail investors. We’re excited to be partnering with Blockforce on this. The entire point of crypto is to democratize financial products and custody your own money. We believe this product aligns with our mission and brings us closer to that reality.”

Alex Wang: “We’re using the Compound protocol to deliver this product. This is exciting for us because it will give our users an opportunity to park their crypto and earn interest in a non-custodial way. This is useful in down markets when users aren’t doing much trading and also beneficial to add to our algorithmic funds, some of which are in a stablecoin 60-80% of the time earning interest.

This is revolutionary because end consumers are finally able to trustlessly, securely make their money work for them without rent-seeking institutions in the middle extracting value. This is how the interest rates are so high compared to traditional lending products, you are literally going direct and disintermediating banks.

Also, the way that the protocol was built is unique in that it’s effectively a decentralized pool of assets where interest rates are programmatically set based on the supply and demands of that liquidity. This allows for near instant redemption of the loans and overcomes all the hurdles of traditional decentralized lending (having to review, supervise, underwrite individual loans).”

Please tell us about the main products and services that you are planning to offer in the short-term and the long-term.

Alex Wang: “In the short term, the lending product and the algo fund are the ones we are focusing on. In the long term, the possibilities are endless. I imagine a day where users from a third world country can earn Bitcoin (BTC), invest in the app and get access to an entire suite of assets (real estate, cryptocurrencies, collectibles, securities, fractional shares of a startup) and have a top-tier quants or asset managers provide their expertise and apply it to those assets, all without having to interface with the traditional banking system. That’s entirely possible and extremely exciting to us.”

Make Cryptocurrency Investment Opportunities More Accessible.

source: https://www.crowdfundinsider.com/

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Is etradematrix.com legit? How I got scammed! And how’s the Bitcoin craze got me into troubles. And you are not immune to it, trust me.

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So, it’s happened. I got scammed by being stupid. It’s about bitcoin mining, and I am out around $1600. In the back of my mind, I was always cautious this will be a scam, but my emotions got the best of me. I really wanted to get out of my current job, the enormous profits promise by the company (etradematrix.com) got the best of me (I bought Bitcoin around 14K last year 2020, and price of Bitcoin now April 2021, wow, talk about one two punch to my gut, 😒). I got “hooked” by Clara J Woodard on FB, you can find her profile on Facebook, and I recently saw here trying to “lure” people into her scam on the Rich dad, poor dad page. Please be really careful about this. I had check out the company myself, and it’s nothing but a fake company located in an apartment complex at England, I will show you certificate of the company, and the company had the same certificate with it, apparently by the same person register it. I had started with an investment of $500, then they said I have to upgrade my plan, another $1100. Finally, I thought I could withdraw my profit, and they insisted I have to clear a foreign transaction fee of $1800. If not, the withdraw could not proceed. Hmm….what do you think I should do. Of course you got scammed, you idiot. Perhaps it’s not so much about the money, it’s not that I was dumb enough to believe the lies. But, knowing that I have to go back to the job that I really hate makes me really depressed. Well, I learned my lesson, back to the drawing board and start over again. It’s just a matter of time I’ll get out of my current job. I’ll keep you update. Wish me luck.

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Below is an email from ScamExperts.com. I have reach out to them to really find out what I had suspected all along. You might already know some of the steps to prevent you fall into a scam, but I really hope this will help you to become an victim in the future.

Hi, Chun

My name is Gregory Robinson and I am the Senior Scam Expert #SSE002 here at ScamExperts.com. I am reaching out to you in regards to your scam inquiry submitted with us on Jan 17, 2021 12:46 pm about etradematrix.com.

After a thorough investigation, we have determined the offer to be a SCAM attempt and we highly recommend you take the following steps:

  1. Immediately cease all communication with the scammer. 
  2. Block their phone numbers, email addresses, and/or websites.
  3. DO NOT send them any money.
  4. If you have already sent them payment via a check, bank card, or credit card, contact your financial institution immediately and have them stop or reverse the payment.
  5. If you wish to warn the public and expose the scammers, please create a public report here.
  6. If you are targeted by scammers, your personal information may have been breached. We highly recommend that consumers whose information has been breached obtain identity theft protection service as soon as possible. There are several companies that offer identity theft protection in the US. One of the most affordable identity theft protection we were able to find is the protection offered by LifeLock. View your protection options here.

If our investigation has helped you, please consider sending us a small token of gratitude. Click here to send a $1 tip. 

Please note that the information and opinions contained in this email are not endorsed by LifeLock. We receive compensation from LifeLock when someone becomes a paid customer. This helps support our scam prevention efforts.

We wish you the best of luck, and please let us know if you have any further questions.

Sincerely,
Gregory Robinson
Senior Scam Expert #SSE002
ScamExperts.com

If you ever come across these two companies, run away quickly. You could tell by the certifications, and google their proposed registered office address, and you will see that there are clearly not a legit company!

Just because I am down, doesn’t mean I am out, I had recently made up my losses from this scam thru trading options on Robinhood, if you would like a free stock, you could join Robinhood now! Please remember always do your due diligent before any kind of investment.

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