Is Amazon FBA A Good Business Decision In 2022?
Amazon's latest big news - Amazon Course Online - has generated a lot of excitement amongst entrepreneurs, and rightly so. Amazon has clearly positioned itself as the leader in the online home selling industry, and its cloud services are clearly set to revolutionize how people do business. It's a bold move by Amazon, and one that will have massive ramifications for the whole home selling industry over the coming years. But is Amazon FBA a good business decision in 2022?
For many home selling business owners, Amazon's ambitions in the home selling industry are exciting, but they remain skeptical of whether Amazon's cloud services will be able to translate into success for these types of businesses. Some argue that Amazon's scale alone cannot guarantee success, especially as a start-up, and Amazon has yet to prove the public and financial analysts who predict its cloud services will boost its gross profit margins for its customers by up to 100%. Amazon's chief financial officer and head of marketing and online stores Jeff Penn recently told analysts that it is "too early to talk about revenue growth" with Amazon FBA.
This is similar to the line the company took regarding the future of Amazon Video, where they said it's too early to talk about profits. Is Amazon FBA a good business move in 2022? Given its massive scale and the fact that few people know much about Amazon's business model other than what it's promising them right now, this isn't a surprising answer.
However, some see Amazon's move as a sign that the company is serious about moving forward in its mission to transform the home buying experience. Amazon's entry into the home buying business has been met with cautious optimism by experts in the home selling industry, but it's still early days before we really know how Amazon's unique online marketing and customer attraction strategies will translate into real profits for buyers and sellers.
What we do know is that the entry of Amazon into the cloud-based business will open up the door for third party software vendors to enter the home buying market. Amazon's existing software and data centers already allow third parties access to the scale of the Amazon operation, and the company's willingness to partner with third party companies to provide cloud services has the potential to make them one of the biggest beneficiaries of the home buying market in years. If you're planning on entering the home buying industry, Amazon's cloud services may be an important factor in your decision to buy.