The Amazon marketplace is a highly competitive space, and even businesses that are top sellers and profitable one year can easily be outcompeted or delisted the next, leading to significant revenue drops. It is important for Amazon business investors to have a high success rate and/or durable businesses that can withstand these setbacks.
The success rate of Amazon FBA businesses is not always high, and durability is important. Due to Amazon's ever-changing algorithm, businesses must be able to withstand drops in search rankings and revenue to remain profitable.
The hosts discuss the ease with which you can clone products from private label Amazon suppliers and point out the challenges of ranking high in the market.