Make thousands of dollars by copying and pasting products from Alibaba to Amazon. Tom Wang talks about a jewelry cleaner that he buys for $1.5 on Alibaba and sells for $35 on Amazon. He makes a $33.5 profit on each item sold. He claims to have made over $10 million by doing drop shipping, private label, and Amazon FBA. Tom believes that anyone can flip products in their spare time and make 7 figures with no experience. The best part? You do not need a shark tank idea, just good products that sell.
FBA Masterclass is a private mentorship program for individuals who want to start an e-commerce business. The online course teaches drop shipping, Amazon FBA, and private label. The goal is to help aspiring entrepreneurs launch an Amazon store through a system that sources popular products in Alibaba and sells them on Amazon for 5 to 10 times the purchase price. Some FBA Masterclass reviews say the video training is easy to understand, the support team is very responsive, and the goals are realistic. It’s not a get-rich-quick program and Tom is honest about the challenges of starting and scaling an Amazon store. It costs $6,997, and there's no refund. Inside the FBA Masterclass, students get
200 hours of video training (regularly updated),
live coaching every Monday and Wednesday,
access to secret super seller group,
learn from 8-figure sellers and private investors,
exclusive partnership and financing opportunities and,
Tom Wang is an online side hustler, YouTuber, Amazon-FBA seller, drop shipping mentor and podcast host. He moved to Canada from China in 2001. His early years as an immigrant were tough. His mother had to work three jobs. So he scalped tickets and flipped stuff for extra money. Tom always knew he wanted a better life for himself. He started 7 different businesses, from selling watches at the local night market to hoverboards on Craigslist. But he failed in all of them. Tom discovered Amazon FBA in 2017 and it was there that he slowly found success. He realized that his failures in the past were all learning opportunities. To grow his online income, he started a private label biz with his girlfriend, Christina. They sold skincare under their company, Sdara. Their products included Vitamin C serum and derma roller. The business was successful, and it was later sold for 7 figures. Tom Wang has already made 8 figures since he started in 2017. He shares his success story on Amazon podcasts like Viral Launch and Helium10.
FBA Masterclass, Amazon FBA, and Private Label
FBA Masterclass promises to help anyone make passive income through Amazon FBA in just 90 days. It’s one of the most popular and expensive FBA courses out there. Two of its ads on YouTube have been viewed over 3.1 million times. It’s a Trustpilot-verified company with a 4.5-star rating. So, it must offer something valuable to get that much attention online. Tom Wang, the creator, is a 7-figure Amazon seller. He’s an expert in drop shipping, FBA, and private label. He made around $200,000 by selling private-labeled skin care products on Amazon.
2023 Amazon Statistics by Jungle Scout shows that 63% of Amazon sellers are profitable in their first year of business. This means that even new Amazon sellers can make a lucrative online income. The same report shows that 22% of small and medium-sized business owners are making at least $10K monthly. 86% use Amazon FBA and 54% launch new brands through the private label. The e-commerce business is enticing and Tom seems to be a decent coach despite minor controversies. Overall, Amazon FBA and private label business models are legit ways of making money online. But there are serious challenges of this business model that beginners shouldn’t overlook.
The biggest issue with drop shipping, FBA, and private label is that you don’t have full control of your online business. Amazon always has the last say if they’ll let you continue selling on their platform or not. Tom Wang has a first-hand experience in this. His account got suspended by Amazon after it was hacked and delivered fake and poor-quality items. Tom recalls this moment as the lowest point of his entrepreneurial journey. The business he built from scratch with his girlfriend was gone in an instant. And he has no power to get it back. He’s not the only seller who went through this gut-wrenching experience. According to a Forbes article, Amazon Account Suspension 101, thousands of seller accounts are suspended every year. The most common reasons for suspension are selling fake products, late orders, and poor product quality. Tom’s case is pretty unique. He claims that his account was hacked, which led to getting suspended. Tom appealed to Amazon, but his requests were rejected twice. After that, it was all downhill for Tom. It’s unclear if he built a new Amazon store or continued selling on their website.
Aside from suspension issues, Amazon is also a highly saturated market. According to SellerApp, there are already 9.5 million Amazon seller accounts and 6.9 million (73%) of them are using the FBA business model. The Small Business Empowerment Report also shows that there are over 600 million products listings on the platform as of writing. And, 7,000 more are added every day. Amazon sellers are also at risk of counterfeits and hackers, just like what Tom and Christina experienced. If your private label is getting attention, you’re a target of hackers and counterfeits. Other sellers will copy your brand and logo and sell it on their own. As a result, you can lose business and stain your reputation.
Tom claims his skincare store made around $200K monthly before it got suspended. He’s not completely lying because it’s possible for new sellers to hit exponential numbers. But the chances are very slim. According to Jungle Scout, only 13% of sellers make over 1 million dollars in annual sales. New sellers have a 27% success rate, and they’re usually just making around $1,000 to $5,000. If Tom was just following traditional Amazon selling methods, then how did he achieve 200 times the average new seller income? He could be exaggerating his claims to sell the FBA Masterclass. But there’s no way to confirm.
FBA Masterclass is a potentially good training. But I don’t think it’s worth paying $6997 for this course. There might also be upsells and additional fees for tools inside the program. The Amazon FBA and private label business models are quite easy to understand. You can learn for free on YouTube to get an idea of what the business is about. And then decide if you want to explore this biz with Tom Wang or not.