The average profit margin on products sold via Fulfillment by Amazon averages between 10-25%, with some categories exceeding 30%, according to PIRS Capital.

HOUSTON, TEXAS, USA, March 23, 2023/EINPresswire.com/ -- TopRanked, an authoritative directory offering reviews of over 1000 affiliate programs, today reveals why affiliate marketers are turning to dropshipping and Amazon FBA to boost profits. And marketplaces like Empire Flippers can help them value and sell these business, sometimes within as little as a month.

“Affiliate marketing is the great equalizer that’s infinitely scalable and accessible to everyone. It doesn’t matter whether you’re a new entrepreneur with zero startup capital or an experienced power affiliate raking in six figures plus every month. There’s something for everyone,” said Dom Einhorn, TopRanked founder and power affiliate with 30 years in the business.

“But once affiliates make it off the starting blocks, there always comes the point where they ask what’s next? For many, that’s often exploring new traffic sources or niches. But something we’re starting to hear more and more is that affiliates are cutting themselves out as the middleman. Instead, they’re taking control of the business and promoting their own products.”

The motivation for affiliates taking control of the businesses they promote isn’t too hard to discover. For example, commissions on popular consumer goods in an affiliate program like Amazon Associates top out at 4.5%. Meanwhile, the average profit margin on the same products sold via an Amazon FBA business (Fulfillment by Amazon) averages between 10-25%, with some categories, such as home and kitchen, exceeding 30%, according to PIRS Capital. Last but not least, simple business valuation tools like the one provided by Empire Flippers can give the prospective FBA seller an instant idea of what their business is worth.

“Clearly, if you’re having a lot of success promoting particular products as an affiliate, then there’s absolutely zero reason why you can’t multiply your earnings by transitioning to promoting your own products,” said Lucas Caneda, TopRanked co-founder and COO.

However, while higher profit margins are almost a given, not every product category is ideal, with price-sensitive, high-competition categories generally performing the worst. In fact, according to Jungle Scout, as many as 48% of Amazon sellers see margins of 10% or less, while 26% are either losing money or earning less than 5%.

“While Amazon FBA makes for a great transition away from pure affiliate marketing, you’ve got to remember that it comes with additional risks and expenses. For starters, you’ve got to commit capital to build your inventory. And then you risk having that money tied up in slow-moving inventory that’s accumulating storage surcharge fees in an Amazon warehouse,” said Caneda.

For this reason, affiliates transitioning to Amazon FBA need to carefully weigh up whether the additional risks and overhead are worth it.

“In some categories, you’ve really got to ask yourself whether an extra 1-2% is worth the additional risks and headaches that come with transitioning to Amazon FBA. The harsh reality is that many categories are going to be more profitable as an affiliate for 99% of people,” said Caneda.

However, while there are certain downsides to consider when moving to Amazon FBA, the inverse is also true. To reference the same Jungle Scout numbers as earlier, 52% of Amazon sellers are seeing profits of over 10%, of which more than half are making over 20%.

“Quite often, when I speak with affiliates who’ve had enormous success promoting certain products, I ask why they’re not using this success to promote their own products. And while many quite simply have never considered it or aren’t interested, a startling number throw it into the ‘too hard’ basket,” said Einhorn.

Einhorn continued, “What shocks me about this is that we aren’t in the early 2000s anymore. Today, I can easily go out and buy a profitable, turnkey business on a marketplace like Empire Flippers and have everything from VAs to suppliers already sorted and ready to go.”

As TopRanked recently reported, purchasing an Amazon FBA business today via an online marketplace is relatively risk-free, contingent on selecting the right marketplace to begin with. Unfortunately, as TopRanked discovered, many marketplaces provide little to no support in the way of due diligence, business verification, or post-transaction support, meaning that affiliates looking to purchase an Amazon FBA business need to choose their marketplace carefully.

“Besides already having everything up and running, the great thing about purchasing an Amazon FBA business on Empire Flippers is that it’s a verified profitable business. This gives experienced affiliates a fantastic base on which they can leverage their marketing experience and existing online properties to skyrocket profits beyond anything they could hope to make as an affiliate,” said Caneda.

Beyond Amazon FBA, there are other options for affiliates looking to take control of their income and boost their profits, even remaining within the Amazon ecosystem. For example, influencers looking to sell merch or affiliates selling knowledge-based products are having equal amounts of success moving to programs like Amazon Merch and KDP (Kindle Direct Publishing), respectively.

Of course, TopRanked will always recommend affiliate marketing as the go-to option for new entrepreneurs and online marketers. But there’s no reason why those who’ve already figured out where they excel shouldn’t be looking at taking on new business opportunities. With a marketplace like Empire Flippers listing countless ready-to-go businesses leveraging close to 20 monetization categories, there’s also no reason why the hassle of starting something from scratch should get in the way.

“There’s nothing like affiliate marketing in terms of the sheer diversity of products and services you have access to. And quite frankly, sometimes the commissions are better. But when it comes time to optimize, taking on your own business, whether it be Amazon FBA or even just a simple dropshipping site, is often the best way forward,” concluded Caneda.

Dominique Einhorn
ChallengerX plc
+ +33637047412
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From Air Force to 7-Figure Amazon FBA Entrepreneur in Less Than 2 Years