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We all know that Amazon, the world’s biggest ecommerce platform, attracts countless entrepreneurs, dreamers, and hopefuls, all vying for their slice of the pie. 

With the allure of passive income, many are drawn to a variety of different get-rich-quick schemes that are going to be present whenever there’s a lot of money to be made. Still, there’s  one big reason why the idea of “Amazon automation” rings true. 

That’s the fact that automation is at the heart of many of the practices that Amazon – and sellers on its platform – use to be successful. 

For example, let’s take the Fulfillment by Amazon (FBA) platform. Anyone who’s ever taken the (closely monitored) Amazon warehouse tour knows that it’s ground zero for the majority of Amazon sellers and a big part of their ecommerce success. 

It’s also home to a lot of diligent robot workers. 

FBA allows sellers to outsource order fulfillment to Amazon. When a customer makes a purchase, Amazon fulfillment specialists can pick, pack, and ship the order. Amazon also provides customer service and process returns for those orders.

What’s not to like?

Then there’s the automated processes that allow the Amazon advertising platform to systematically optimize bids for the new placements in order to improve conversion.

However, after looking closer at the search results, we quickly realized that there was something else going on, and it wasn’t all good.

Understanding (this Version of) Amazon Automation

Yes, this was something else altogether. In simple terms, it’s a hands-off approach to selling on Amazon. A third-party company manages every aspect of your store – from product research, sourcing, and listings to shipment and customer service. 

In return for this service, these companies typically demand an upfront fee and a share in the profits.

The promise? Sit back, relax, and watch the profits roll in. 

But can it be that easy?

After listening to just a few videos promoting “Amazon automation” services, here are some of the catchy ways that this program is presented:

• “Done for you” Amazon management 
• Data driven Amazon selling software
• Amazon FBA automation model
• Easily generated “passive income”

To be fair, let’s look at why more than a few would-be entrepreneurs have opened their wallets and tried this path to a passive income. There’s got to be something that’s driving all of this interest on the internet.

Why Amazon Automation is Trending On the Internet

There are four big reasons why Amazon automation has proven tempting to entrepreneurs: 

Passive income potential: Many of us are attracted to the idea of generating income with minimal ongoing effort. Amazon automation promises to set up and manage an online store, allowing owners to earn money without daily involvement.

Low barrier to entry: Compared to traditional brick-and-mortar businesses, starting an Amazon store requires less capital and infrastructure. In that way, a high upfront fee might be easily overlooked. 

Expert marketing: Companies offering Amazon automation services often use aggressive marketing tactics and success stories to promote their services, capturing the attention of potential clients.

Outsourcing appeal: The idea of having experts handle complex aspects like product sourcing, inventory management, and customer service is attractive to those who lack experience or time to run an online business.

For novices, Amazon’s ecosystem can be intimidating. Automation services promise to bring experts to your table. They claim to know the ins and outs of the platform, and theoretically, their experience should give you an edge.

Amazon automation also claims to speed up the process and free up significant time, allowing investors to focus on other ventures and carry on with their everyday life.

Big Amazon Automation Red Flags

Many promising ventures include associated risks. With done-for-you Amazon FBA business automation, the risks can be significant. 

Here’s a partial list:

High up-front fees: Amazon automation agencies charge high upfront fees. This can range from $10,000 to $30,000 or more. For sellers, this is a steep price to pay, especially with no guaranteed returns.

Lack of control: By outsourcing the entire operation, store owners have limited control over day-to-day decisions, product selection, and customer service. This can be problematic if the automation company makes poor choices.

Dependency on third parties: The success of the business relies heavily on the competence and integrity of the automation company. If they underperform or act unethically, the store owner bears the consequences.

Market saturation: As more people invest in automated Amazon stores – often targeting the same niche (or products) – competition increases, potentially leading to lower profit margins and difficulty in standing out.

Amazon policy changes: Amazon frequently updates its policies and algorithms. Automation companies may struggle to adapt quickly, risking account suspensions or reduced visibility.

Unrealistic expectations: Many automation companies promise high returns with minimal effort, which often doesn’t align with reality. 

Legal and tax implications: Store owners are still responsible for legal compliance and tax obligations, which can be complex, especially for those new to ecommerce.

Limited transferable skills: This is a big one. If the automated business fails, the owner may be left with little practical knowledge or skills in ecommerce to apply elsewhere. Many Amazon sellers celebrate early failures as pivotal lessons that made possible their ultimate success.

How You Can Strategically Automate Your Ecommerce Business Today

In recent years, the term “Amazon automation” has come to mean another thing altogether. It now represents a broader range of services and technologies, everything from AI-driven content creation and A/B split testing, to full-service account management offered by top Amazon agencies. 

These new automations can be game-changers for sellers, streamlining operations and optimizing sales. The continual advancements to artificial intelligence and machine learning have allowed Amazon sellers and agencies alike to save time, and boost profits by tailoring content to precise ecommerce niches. 

For example, AI can help sellers analyze enormous amounts of data in order to find out the search terms really driving sales and use that information to determine how to best appeal to a specific target niche. 

That results in a highly optimized, effective Amazon product listing.

Selling on Amazon – or on any marketplace – isn’t a static, set-it-and-forget-it exercise. It’s constantly changing. AI – particularly in the hands of a top Amazon agency – can continuously monitor listing performance and make adjustments to react to changing market dynamics or customer preferences.

As long as the machine (AI) serves the human, and not the other way around, automation can be a very good thing!

Choosing the Right Kind of Amazon Automation

Not every seller will benefit equally from AI-driven content creation or agency management. It’s essential to assess where automation can add the most value. For some, it might be optimizing listings, while for others, it could be comprehensive account management.

Automation doesn’t mean disengagement. To have the highest level of success, sellers should remain involved in order to understand what the AI or agency is doing and why, and then to regularly monitor the performance metrics.

Modern Amazon automation, whether through AI-driven tools or specialized agency management, offers sellers exciting opportunities to scale and optimize their operations.

Top Amazon Agencies Offer Accountable Automation

The increased popularity of Full Service Amazon Management has to do with the bespoke, or carefully handcrafted “personal” attention that individual Amazon sellers receive. 

After all, if success on Amazon’s marketplace was as easy as automating everything, there should be a leveling out of success on Amazon’s marketplace. 

But we’re not seeing that. Instead, individual Amazon experts – like Canopy Management – are strategically implementing automation in order to free up bandwidth so that they can hand craft individual strategies not just for individual Amazon sellers, but sometimes for micro events within an interlinked online sales and marketing strategy. 

The need to understand the Amazon platform’s constantly changing algorithms, policies, and recommended practices has never been greater. 

Artificial intelligence can only do so much. 

The heavy lifting will continue to be done by human experts with the Amazon IQ to leverage AI to stay in front of the mercurial changes endemic to ecommerce.

Looking for More Organic Sales on Amazon? 

What would adding 67% more organic sales mean for your brand?

Turns out that when you combine the massive experience of Canopy’s Amazon Experts with smart tools and tech, you get industry-leading results like this:

• 84% Average Year-Over-Year Profit Growth for Our Partners
• 2.7 Billion in Revenue Managed
• 99.1% Partner Retention Rate

Canopy Management is a full-service marketing agency for Amazon and Walmart sellers. Our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts.

When you consider the many ways that Canopy Management can help you grow your business, you’ll see why selling on Amazon is much easier “under the Canopy.”

• Strategic Growth Planning
• Listing Copywriting Optimization
• Listing Photography
• Product Videography
• Advertising Management
• Customer Service
• Demand Side Platform (Amazon DSP)
• Amazon Posts
• Full Service Management
• Amazon Review Aggregation