Amazon automation scams: how to spot them before you pay

What is an Amazon automation offer?

"Amazon automation" or "done-for-you Amazon store" companies say they will open and run an Amazon store for you. You pay a setup fee, often fund the inventory too, and they keep a share of the profit every month. The pitch is passive income: you invest, they do the work. Some are honest service providers, but this model has been used in many large scams.

What the FTC found

The US Federal Trade Commission (FTC) has taken several of these companies to court. Two public examples:

• Click Profit (March 2025): the FTC says customers paid upfront fees that often reached $45,000, plus inventory and profit-share fees. It says Amazon closed about 95% of the stores the company built, and over a fifth of its Amazon stores earned nothing after fees.
• DK Automation (November 2022): the FTC says "done for you" packages cost up to $100,000 plus working capital, with the company taking 30% of the store's net profit, and that few if any buyers earned the promised income.

These are claims in FTC court filings. They show the pattern to watch for, not proof that every company with this model is a scam.

7 red flags

1. A big upfront fee. $15,000 to $100,000 before any work is done. Real agencies may charge a setup fee, but it is a small part of the cost.
2. Income promises. "Guaranteed profit", "passive income", a monthly return or a "sales guarantee". Nobody can promise Amazon sales.
3. Profit share on top of the fee. Paying a large fee and then giving away 20% to 50% of profit means you carry all the risk.
4. They control the account. If the store is opened with their details, or they will not give you the main login, you do not really own the business.
5. Pressure to reinvest. Being pushed to buy more inventory instead of taking money out.
6. No real references. Only screenshots and testimonials, no client you can talk to, and no accounts you can see on Amazon.
7. Talking about you, not your product. A real agency starts with your product, margins and competition. A scam starts with how much you can invest.

What a real Amazon agency looks like

For typical price ranges, see how much an Amazon agency costs.

Questions to ask before you sign

1. Whose name and bank details will the seller account use?
2. Will I have the main login and can I remove your access at any time?
3. What exactly do you do each month, and how do you report it?
4. Can I speak to two current clients?
5. How do I end the contract, and what happens to my account and stock if I do?

When to hire help

An agency or VA works best when you already have a product that sells and need more time or skill: PPC, listings, account health or customer service. If you are still finding a product, learn the basics first instead of paying someone to build a business for you. If you want help with an account you own, our Amazon account management starts from $750, month to month, with no income promises.