November 2, 2023

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. 

As a stay-at-home mom, juggling kids and a side hustle while maintaining a clean home, I need a low-maintenance but quick-income biz. Tom Wang is back with a new FBA mentorship program and it’s one of the most expensive out there at $6,997. Is mentorship from an online millionaire what moms need to run a successful business from home? This FBA Masterclass review covers all you need to know about the program, plus what people say online about it. I’ll also share intriguing controversies I found about the course online. In the end, I’ll answer if it’s a good fit for moms and share my insights on the biz that made me a lucrative passive income in the last 7 years. 

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, 

private coaching, 

learn from 8-figure sellers and private investors, 

exclusive partnership and financing opportunities and, 

DFY templates.

The course has some gray areas. I found reviews that say Tom is not fully transparent about the start-up cost. There are also speculations that he lacks the experience of coaching a high-ticket course like this. FBA Masterclass is among the most expensive FBA courses. So, you’d expect a mentor who has acquired years of experience and education to lead the program. 

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 Review on YouTube

John Wilson reviews online courses on his YouTube channel. He also has an online course offer called High Ticket Affiliate Coach. The channel was created in October 2022 and has 3.89K subscribers as of writing.

John Wilson of High Ticket Affiliate Coach reviews the FBA Masterclass and shares what he believes are the 4 major problems with the course. The first problem is the price of the course and the cost of running the program. FBA Masterclass costs $6,997, plus an initial capital requirement of at least $10K to $15K. Second, are the one-star Trustpilot reviews from students that say they lost money after following Tom Wang’s business strategy. The third problem with the course is that it’s non-refundable. So, you don’t have a choice but to make it work for you. The fourth issue with the course is the high competition in the FBA space. John ends the review by saying that the FBA Masterclass might not be the best starting point for beginners looking for an online income source. 

Is FBA Masterclass Good For Moms?

FBA Masterclass could be good training for moms, but only if you’re willing to go all-in in the FBA biz. Students should also be cautious of upsells and additional fees for tools inside the program. Contrary to Tom’s claims, Amazon FBA is not the most beginner-friendly business. It’s a highly competitive industry and profit margins are slim. Getting into the FBA biz means competing with over 2 million third-party SME sellers in the world. FBA sellers also deal with low profit margins, only around 15% to 20%. Sometimes higher, but nothing above 25%. Sellers also pay the standard Amazon FBA fee, which is around 15% of the product’s selling price. On top of that, there are also fulfillment fees and inventory storage fees. 

Instead of selling China-sourced products, paying high Amazon fees while operating at slim profit margins, better build digital assets that generate a lucrative passive income on autopilot. Local lead generation creates digital properties that you can rent out to over 10 million businesses in the United States that don’t have their own sites. Ranked digital properties also generate leads that you can sell at 85% to 90% profit margins. With local lead gen, you don’t have to compete with millions of sellers. There are over 50 niches to explore and thousands of cities to get into, so the opportunities are endless. 

About the Author Pamela Salvana

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