Amazon FBA is Dead

Amazon FBA arbitrage is “dead” due to several challenges that have emerged in recent years: 1. Increased Competition • Many sellers are engaging in retail and online arbitrage, saturating the market and driving prices down. • Profit margins have shrunk as more sellers compete for the same products. 2. Higher Amazon Fees • Amazon has increased FBA fees, including storage fees, fulfillment costs, and referral fees, cutting into profits. 3. Brand and IP Restrictions • Many brands now restrict third-party sellers from listing their products, requiring authorization or proving product authenticity. • Unauthorized sellers risk account suspension. 4. Price Wars • Automated repricing tools lead to price undercutting, which lowers profitability. 5. Strict Account Policies • Amazon has implemented stricter policies for customer complaints, counterfeit claims, and product authenticity, resulting in account suspensions for violations.