Skip to content 
(925) 293-3313
Debunking the Myths: Your Amazon FBA Reality Check
The story of “effortless” Amazon success is a powerful narrative—one that fills your feed with images of passive income and freedom. But as industry experts know, the initial ease of setting up shop quickly gives way to complex challenges.
In this deep dive, we break down the critical truths and hidden obstacles that are rarely discussed, drawing on the expertise shared in the video by Josh Hackett, CEO of EHP Consulting Group. Understanding these realities is not a deterrent; it is the essential first step toward sustainable, long-term success on the platform.
1. The Sudden Stop: Deactivated Listings and Aggressive Competition
The first myth to dispel is that sales momentum equals security. In reality, generating sales often marks the point where your business becomes a target.
The “ugly truth” is that success attracts ferocious competition [00:08]. Aggressive international competitors, often from China, watch successful listings and move quickly to undercut them. They launch cheaper, potentially lower-quality versions of your product, flooding the market and threatening your sales velocity.
Key takeaway: If your product is easy to replicate, you are vulnerable. Don’t just launch a product—launch a fortress.
Your Essential Defense Strategy
Success on Amazon requires shifting your focus from “what is selling well?” to “where is it difficult to compete?”
Audit Your Niche: Use tools like AMZScout to analyze the geographical breakdown of sellers in your category. If a niche is dominated by sellers from China, you will face an extremely high price war [01:02].
Target “China-Proof” Niches: Look for categories with built-in barriers to entry.
- Regulatory Compliance: Seek out products that require specific certifications or must adhere to complex U.S. laws (e.g., pesticides or infant products). Competitors from other countries often lack the local knowledge and willingness to invest the time and money in these documents [02:59], [06:58].
- Localization & Quality: Products that rely heavily on excellent, native-level English for instructions, manuals, or even packaging, can be a major hurdle for competitors who struggle with localization. A high-quality crochet kit, for instance, showed success because its instructions were superior to the competition [03:55].
2. The Internal Pressures: Fees and Competitor Warfare
Even if you successfully manage the external competition, two internal forces constantly test your profit margin and resolve:
Rising FBA Fees: Amazon consistently increases its fulfillment fees—even an average increase of 8 cents per unit each year can erode the profitability of low-margin products [03:22]. You must ensure your product has a high-profit margin baked in from day one to absorb these gradual increases.
Review Attacks: Unfortunately, competitor malice is a reality. Established sellers in a niche may engage in unethical practices, such as getting friends or family to leave targeted negative reviews on your product. Being prepared to “fight back” and work to get these malicious reviews removed is simply a part of doing business [01:47].
3. The Path Forward: Research, Logic, and Continuous Learning
The only reliable path to long-term success is a commitment to diligent research and a process of continuous iteration.
Prioritize Research Over Emotion
Successful Amazon sellers base their decisions on logic, not emotion [05:54]. This means leveraging robust product research tools and consistently following a rigorous checklist.
Utilize Free Compliance Tools
Before you finalize a product, utilize Amazon’s own free tools. You can use the Compliance Self-Assessment tool within Amazon Seller Central to quickly identify if your product is restricted or what certifications are required [06:42]. This step can save you months of costly mistakes and simultaneously reveal high-barrier niches where you’ll face less competition.
The Cycle of Success
According to EHP Consulting Group, very few sellers hit a home run on their first try. The winning formula is: Learn, Implement, Launch, Learn Again, Launch Again. If your first launch isn’t a straight success, the second often is, provided you apply the lessons learned [05:21].
🚀 Your Next Step: Launch with Confidence
The difference between failing fast and scaling big often comes down to the quality of your early research and support.
If you are serious about navigating the complexities of Amazon FBA—from securing high-margin products to managing inventory, compliance, and manufacturer relations—don’t go it alone. The experts at EHP Consulting Group offer full account management to handle these vital operations for you, dramatically increasing your chance of success [08:32].
Contact EHP Consulting Group Today to schedule a call and discuss how their professional team can manage your entire Amazon journey.
If you learned something new from this breakdown, please drop a like on the video and subscribe to the EHP Consulting Group – Amazon Expert channel for more expert Amazon content! [08:04]
YouTube Channel Link: EHP Consulting Group on YouTube
TikTok Profile Link: EHP Consulting Group on TikTok
Written By: Jhan Rose Magbanua
Email: [email protected]
Website: http://www.ehpconsultinggroup.com
Number: 925-293-3313
Date Written: December 2, 2025