is fba dropshipping
Published on: February 4 2023 by pipiads
Table of Contents About is fba dropshipping
- I Tried Dropshipping on Amazon For a Week (Complete Beginner)
- Amazon FBA vs Shopify Dropshipping in 2022 - Which One Is Better For You?
- Dropshipping VS. Amazon FBA | Which One Is Better? | Amazon FBA Tips
- Is Amazon FBA Still Worth Starting In 2022? TRUTH Revealed
- Easiest Way To Start Amazon FBA From Scratch! (Exactly what i did)
- Amazon FBA - You're Better Off Just Getting a Job (probably)
I Tried Dropshipping on Amazon For a Week (Complete Beginner)
so in this video, I'm gonna be taking you through my experience of drop shipping on Amazon for a whole week. I'm gonna be completely transparent. in this video, I'm only showing exactly what I have listed, exactly how much I got it for and how much money I make. I mean even gonna go through the exact numbers of what they did in sales and, more importantly- and something that rarely ever gets shown in all these guru videos- that's exactly how much profit I make. obviously, if I'm spending a hundred thousand dollars a month to make a hundred thousand dollars a month, that's worth nothing and in e-commerce we call that vanity numbers and that's really just for sale. sometimes you just see these entrepreneurs making a hundred thousand, fifty thousand dollars a month, but you never actually find out how much actual profit are they making. so in this video, I'm gonna be breaking down all the numbers: exactly why I spent, how much everything cost me and how much did I actually take home after all the sales were done, and then I'm gonna be telling exactly what the mistakes I made, how can you learn from this mistakes and if this may be something that you would like to start for yourself. so make sure you stik around for the entire video to learn exactly what I went through, so that you can get a better idea what actually is drop shipping on Amazon. and, guys, if you're looking forward to this video, I won't need you to do one thing for me right now, and that's scroll down, hit that like button to make sure that this video gets pushed to a greater, wider audience so that it can possibly help them to. for those new to the channel, my name is Joe Igor. I've been doing e-commerce and specifically, drop shipping for the past three years now. I've been doubled in all sorts of businesses online, so make sure that you subscribe to this channel so that you can see more videos in the future. and okay, let's get into this video straightaway. [Music]. let me start by saying, just as this game, all the things expressed in this video, of my own opinion. they could or might not be correct. I might be completely wrong. this is just my opinion and my experience of what I've done, so make sure that you take that with a grain of sand. what the actual hell. as a kid, I used to buy things and sell them on eBay for a profit and flip them just to make a couple of pounds here and there. well, I had come across a different model, the dropship in model. and for you, those who don't know what the dropship in modeler is exactly, you basically list products online that you find from suppliers just like your local grocery stores, like Walmart, Best Buy and things like that. you list it directly on that website and when someone buys that, you go to the supplier, you enter in their details and you get it sent directly to them. so you never actually house the inventory, you never even see it. basically, you act as a middleman. you just list it on there and when it sells, you buy it and you keep the spread of the difference between your sale price and what you actually boy for. so the first thing I had to do- because I had no clue how to do it- was to do some research. so I started youtubing videos. I ended up watching hours and hours and hours of content, but the craziest thing is that they never showed me how to actually do it. they toked about: are you gonna find the products and you have to list them, and then you make the money this way, but they never show you if you know is how to actually do them. so I was kind of confused. I thought about buying a couple of courses but saw the ones that like a thousand dollars. eventually I sell for one that was two hundred ninety seven dollars and I bought that. so right from the get-go I was down two hundred ninety seven dollars in costs. the next thing I needed to do was separate Amazon seller account, which cost another $39.99. so at this point, you know, I was nearly three hundred dollars hurried down into this experiment. but that was fine because I was hopeful that I would make money in doing this. so after a couple of hours of watching this course, I think it exactly how to do everything. it still seemed a bit iffy. a few things kind of just didn't make sense, but I was just gonna go and jump in for it. so the first thing I needed to do was find products and list them on Amazon. so back in my eBay days it was pretty easy to find items that you could probably sell profitably on eBay. this was not the case for Amazon. as I soon found out, it took a lot longer to find products that you could actually make money on. you actually have to do a lot, of, lot of research, and this includes the first step of finding items that are not in Prime. you can do this, I found out, by downloading a google extension called primal way or various different other ones. so once you download that, you can go straight on to the Amazon page and you can find items that are not prime sellers. the next thing is to go through and figure out which ones are not sold by FBA or by Amazon either, because you do not want to compete with them. always you could be facing possible suspensions and you probably won't get honestly, even make probably a profit on it, because you can't compete with people and FBA, you see, on margins. so after about three hours I finally came across my first product, the first product that I could make money off. I think it was around three dollars and 23 cents. and what did I find? I found a Swiffer, a special type of Swiffer that I could make some money on. so I listed that straightway, hopeful that I would make some sales on that. so waiting for my money to come in. problem was by Devin- I had only listed one product- this was taking away than I ever thought it- and eBay. it was fairly straightforward: you could just find sellers that already selling good products, find out where that is and then list that too and compete with them. Amazon not as easy. de - I did a lot more research in. I researched for another couple hours- find products that could make on. I kept switching between different categories to see if that would help. still took a long time, and I think that's just the nature of the game. this one, in this business model. you don't look for, I guess, a you know quantity, you look for quality, and that's the name of the game. so by the end of day 2 I had found another two products that I could sell. it was a stepladder and of coffee machine. the craziest thing here, which I didn't think would actually work, is that the coffee machine that I found online and that I actually found later and warmer, I could get an $18 profit margin on it. so for me, I thought that there must be something wrong with it. probably won't sell, but let's just list it in case, because I've been so for three hours now. I'm so done. so let's just list this and get this going. so day three comes up. I wake up in the morning, check my emails and I made a bunch of cells. I can't believe it. I mean three hundred and eleven dollars and cells in one night. and guess what? the Swiffer was doing me right, because I had sold that thing over five times and it was making me money already five times. I already made fifteen dollars just by sleeping overnight. so I started searching again. I saw looking up different items, and guess what? I found another two items that I could list and make money on. one was some sort of like weird tube piping for washing machines and the other one was this filter that you could put in your AC unit. so in each of those I can make a couple of dollars profit and I thought it would be good, and then I would be on my way to being a six-figure Amazon seller. day four. so I started picking up by crazy. I started getting emails and emails and emails that these things were just selling, and the best thing that happened was the coffee machine was selling. I was making $18 profit per copy machine and the thing was just selling like crazy, just kept selling and selling. I honestly had to mute my email. so I kept making so many sells. I thought, wow, this is great, nothing can go wrong. this is where it happened, my first big mistake. so
Amazon FBA vs Shopify Dropshipping in 2022 - Which One Is Better For You?
amazon and shopify are two of the most popular ways to start generating income online, and for most new sellers, choosing between selling products on amazon or shopify is one of the earliest decisions you'll need to make as an online entrepreneur. there are some important differences between both platforms that may make one option better for you, so in this video, i'll be going over the pros and the cons of selling on each amazon and shopify, and what platform i'd recommend for most sellers. for those of you new to the channel, my name is michael and it's my passion to help make starting your first online business as straightforward as possible. so first off, i'll start by doing a quick overview of each platform. then i'll get into the pros and cons of each amazon fba and shopify drop shipping. so first up is amazon fba. using amazon's fulfilled by amazon program, you'll be selling on amazon's website and you'll need to create a listing using amazon's listing format. so this basically means that you'll need to follow all of amazon's listing rules in order to list products for sale. when selling products on amazon, chances are most of your customers will come from the amazon site itself as opposed to from a different website, and when shopping on amazon, products show up based on search terms that customers search, as opposed to needing to place ads on google, instagram, facebook and other platforms to generate awareness. when selling through the fba program, you'll also ship your products to the amazon warehouse before you make any sales and amazon will manage your fulfillment, your shipping and things like returns. for you, this means less work over time, but it also means that you'll need to purchase your inventory up front, which could mean higher startup costs. so, next up, we have shopify drop shipping. when selling on shopify, you have your own website and you're in charge of shipping your own orders. so, generally speaking, you'll have more customization options on shopify and basically that means having more control over what your product page branding and marketing look like. however, since you'll be selling products from your own website on shopify, you can expect to put in more effort to attract customers to your own website versus finding them already ready to purchase on amazon. so while you can save on certain seller fees by operating your own website, you'll need to set up more processes that amazon streamlines for you as part of that seller central program. shopify is also a great way to have more control over all aspects of your business, but this does come at a cost, namely the time and effort it takes to create your own website and to fill your orders, among other things. so now that we have a quick overview of what it means to get started on each platform, let's double click on the pros and cons of each. so first, the pros of selling on amazon. first off, amazon has a larger audience that already trusts amazon's platform. so if you think about it, if you're a brand new customer and you stumble upon a new shopify page, chances are you're going to be a little skeptikal before making your first purchase. second, amazon customers are warmer leads and they're on amazon for a reason: to make a purchase. so, versus just browsing on google or facebook and coming across your shopify ad, amazon customers are, generally speaking, a little bit closer to making their final purchasing decision. third, amazon handles shipping and returns for you. now, this can be a really big benefit for a lot of new sellers, because fulfillment and returns and managing all those processes can be quite time consuming. next, amazon also has very reliable, fast shipping. so if you're aware of the amazon prime program, you'll know that a lot of items are available for one to two day shipping, and this is really helpful in helping push customers to make that purchasing decision, that kind of quicker gratification of fast shipping. next, the potential to scale is quite huge on amazon, especially if you find the right products with enough demand, because amazon has so many customers and because so many people are going to amazon for a lot of their purchases. if you find the right product and put it on amazon and scale it, the chances are you can actually reach a lot of customers quite quickly. and lastly, amazon prime members spend more on average than regular customers. so another thing that people don't think about too often is the buyer psychology behind buying and having a prime membership. so as a prime member you want to make sure that your amazon prime membership is worth it. it's over a hundred dollars per year and the more purchases you make on amazon, the more you get out of that prime membership in the first place. so prime members on amazon will generally spend more than their regular member counterparts. next up we have the pros of shopify drop shipping. the first pro of shopify drop shipping is that there's very low startup cost. so with amazon, what you'd have to do most of the time is purchase all of your inventory up front or a big chunk of it, send it all to the amazon warehouse before you can even start selling your products. but on shopify, especially shopify drop shipping, what you can do is actually receive certain orders and fulfill them once you've received them, and a lot of this will depend on the connections that you have with third parties or manufacturers in order to make that happen. but, generally speaking, the startup costs on shopify are a lot cheaper than on amazon. next, when you're on shopify, you basically own your customer base and all of that customer data and their preferences are yours to analyze. and if you compare that to amazon, where amazon is giving you certain metrics that you can use to help improve your listing, on shopify, because you have total control over your website and what your listing looks like and the ads that you're running, there's a little bit more control and a little bit more creativity that you can add to the process. lastly, a benefit of shopify drop shipping is that seller fees can be a lot lower. so if you think about being on amazon, because you're using their website, you're putting your listing on their website, you're using their warehouse and their fulfillment methods. they can afford to charge you a little bit more for their services because you're creating those processes yourself. on shopify, generally speaking, those fees will be a lot lower. now let's get into the cons of amazon. so the first count of amazon is that you don't really own your customer relationships, so it's harder to contact your customers, tell them about a new product, it's harder to understand specifically why someone did not choose to purchase your product and you're kind of using the tools that amazon gives you in order to help make your product as good as possible. second, amazon can change their fees at any time, meaning big changes can impact your profitability. so let's just say that the seller fees increase tomorrow and suddenly your profits decrease. those are things that can actually happen on amazon. so just being completely up to date with amazon's terms of service is going to help you a lot in terms of planning your business and understanding how much profit you're actually generating over time. so let's get into the cons of shopify. so shopify, generally speaking, you're going to be working with a pretty cold audience, so the leads aren't quite as warm, meaning that people aren't as ready or willing to purchase as they are on amazon. also, on shopify, especially when drop shipping, you could experience longer shipping times. so because with drop shipping. you're making these connections and partnerships with people overseas and manufacturers. you can ultimately fulfill your order because a lot of these partners are overseas or farther from your customer. sometimes that shipping period can be a little bit longer and some customers can be a little annoyed by that. also, on shopify, targeting customers is a little bit more difficult, meaning that you'll.
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Dropshipping VS. Amazon FBA | Which One Is Better? | Amazon FBA Tips
if you want to know why Amazon FBA is so much better than Drop Shipping, keep watching what is up. you guys. welcome back to a new video, and today we are going to tok about why Amazon FBA is so much better than Drop Shipping. what makes them different? what makes them the same? because I get so many comments on my videos of people saying, well, isn't this the same thing as Drop Shipping? and Drop Shipping is dead and this is a scam and don't go for it. so I am here to tell you that they are not the same thing. so let's tok about what makes them different. alright, so if you are new here, first let's discuss what Amazon FBA is. so Amazon FBA stands for fulfillment by Amazon, which basically means that you purchase products from Alibaba or from any manufacturer- it doesn't actually have to be Alibaba- and you are basically making the product better than it already is. you're tweaking it, you're making a difference, you are putting your branding on it. so the great thing is you're not Reinventing the wheel. you're buying an already made product and you're putting your branding on it. then you're sending it off straight to the Amazon warehouse for for you to sell on Amazoncom or amazonca or Amazon UK or whatever country you're in. so this is what Amazon FBA is, and whenever you see products that have the Prime logo on them, that means these products are being sold through the Amazon FBA program. now, Drop Shipping, on the other hand, means that you are finding a manufacturer again, whether it's in China or in the US or whatever country you're in, you can find a manufacturer in and you are finding a product that they have that you really like and you want to sell. you are not going to put your branding on this product, because what's going to happen is you will create a website, usually on Shopify. you're going to list this product on your website and then run Facebook ads to drive traffic to your website, and when people purchase this product, your supplier will then ship each order in plain packaging, because they're not going to print out your branding just yet when they're shipping order by order. so they're going to ship, fit in plain packaging and they ship. it usually takes around two weeks to get to the customer. all right now. this is the overview of Amazon FBA and Drop Shipping. now let's get into why I think Amazon FBA is way better. alright, so I have seen countless videos on Drop Shipping, to be honest of you know very, very young entrepreneurs making millions and millions of dollars off of this business module, but for me it just doesn't make sense. because- number one: I don't think customers have the patience anymore to wait two weeks to get their order- especially for me as a customer- and I always put myself in the customers shoes and try to see how the customer is going to think- and I don't think I would want to wait two weeks to get my product. and this is a huge hurdle when it comes to drop shipping, because the whole idea of Drop Shipping is that you are shipping from your manufacturer and usually those are in China, so they don't have the same day or next day delivery options. now my second problem with Drop Shipping is that, to be be honest, now it has terrible reputation. it's actually very hard to trust independent websites these days. they have to have a really good brand going, they have to have a lot of reviews. it's very hard for me to just go on a completely new Brand's website on Shopify and purchase off of them without having to think and have a million questions about this brand. so usually questions that I would have is: what is the refund policy? how long is the shipping gonna take? I mean, are they even going to ship my product or are they just gonna take my money and not ship me anything? so these are all questions that come up on every consumer's mind when they come to a new and independent website. now, another problem with Drop Shipping- because usually this business module doesn't require a lot of effort on your side- is that you're usually not using your own images or using your own content to promote it. and for me, if I am seeing repeated images on different independent websites of the same product, then I won't really know what the product looks like and what the quality is like, which is a huge problem. so let's say, for example, you find a product like these hair ties over here and you decide that you want to sell them on your own independent website. your process is going to look like this: first you're going to go on alibabacom and you're gonna find a manufacturer or a supplier that has this product. then you're gonna tell them: hey, I want to drop ship this product. are you able to ship it unit by unit? I don't want to purchase inventory, I want you to ship it unit by unit, and if they agree, then you're going to create your own website and you're going to take the images that are from the supplier and you're going to put it on your own website. now, keep in mind that these products, there's usually hundreds of Sellers and hundreds of websites that are selling the same product and that have the same exact images. and then you're going to take videos from your supplier and you're going to push these videos through Facebook ads. now, obviously, Facebook does not like Drop Shipping advertisements because it's usually not your own footage, so you might get flagged and you might might get that ad account taken down. so, to be honest, it's just a very messy process. and then for somebody to then purchase these hair ties from you, they're going to have to wait two weeks until they get the product and if they don't like the quality, then they will return it, which is a huge loss for you. so, on the other hand, when you list something like this on Amazon FBA, this is what the process looks like. so listing this on Amazon FBA means that you're gonna do the same thing, where you're gonna go on Alibaba and try to find a supplier, but now, instead of asking the supplier to ship each individual unit, you're gonna purchase bulk inventory, let's say 300 units. now I actually looked this product up and I believe you can get hair ties like this for around one cent a hair tie. so if this is 70- I believe, heritized, then it's going to cost you 70 cents for this entire bundle. so let's say you purchase a bundle of 70 hair ties each and you purchase 300 bundles for 70 cents, then you're going to then tell them: I want my branding on it. so, as you can see, these hair ties over here have a brand called goody. so you're going to maybe send them a picture of this and say: I want the same thing, but I want my branding on it. let's say my brand is on the trend. you're going to tell them to put own the trend right here. let's say your branding colors are gold and black. you then you're gonna ask them to do this whole packaging in gold and black. that way, your product is now branded towards your branding and your guidelines. now this product is ready to ship. what they're going to do is then put it in a box or put it in a poly bag or however you choose to ship it. and keep in mind you need to keep your shipping cost very minimal because you're shipping bulk of this inventory to the us, so you want to keep your cost very low. so let's say you put this in a nice black poly bag or a nice gold poly bag and then you're going to send it straight to the Amazon warehouse. once it gets to the Amazon warehouse, it will then be available on Amazon after you create your listing, of course, through Amazon Prime. so now you're going to have an actual sample of the product for you to take pictures and take real videos of, so people can see the actual, real product. when you run Facebook ads with these videos, people are then going to be redirected to Amazon and what happens is when they're redirected to the Amazon website and they see: wow, this product is a really affordable price, it's available on Amazon Prime, which means I'm going to get it the next day. I already have my payment information saved on amazoncom and I'm protected by their 30-day refund policy. it is literally a no-brainer and
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Is Amazon FBA Still Worth Starting In 2022? TRUTH Revealed
it's too late to start selling on amazon fba if you're going to try to use the old school private label methods or wholesale tiknique, and that's because amazon is oversaturated. china: all the amazon fba fees and two other reasons i'll tok about in just a minute. and right now amazon has over 9.5 million sellers and over 2 000 new sellers are joining every single day, which means selling on amazon is starting to get really saturated. but keep in mind, amazon is a 1.7 trillion dollar company. last year they did over 400 billion dollars in e-commerce sales and the crazy thing about that is two-thirds of all sales that happen on amazon are from third-party sellers, that's, people like you and me selling on amazon's platform. but what's most exciting to me about selling on amazon is this one graph: this is the total amount of sales that amazon has done for the last 10 years and you can see it's growing like crazy. and remember, two-thirds of all these sales are from third-party sellers. so not only is there a lot of opportunity with amazon fba, the opportunity is actually growing. the problem is most people are actually doing it wrong and i'll tok about that later in this video. now still people will say that it's oversaturated, that there's too much competition, and i do think that's true if you're trying to do boring private label or wholesale. and yes, there are 9.5 million sellers on amazon, but only 2.3 million of those sellers are actually active sellers. and of those 2.3 million active sellers, only 1.1 million are actually selling in the united states on amazon. and the crazy thing about this is that 43 of all active amazon sellers in the united states have made over a hundred thousand dollars by selling on amazon. that means there's over 400 000 people that are selling on amazon that have made over a hundred thousand dollars, and i'm one of those sellers. my name is travis, if you're new to the channel, and i have one product that i've been selling on amazon that's done over a million dollars in sales, and i'm making this video to show you the truth about amazon fba. so hit the like button. and i've personally tried a lot of different ways to make money online and amazon fba is by far the easiest way i've found to create a legitimate passive income business, and that's because amazon fba stands for fulfilled by amazon, and it's a way for you to sell products on amazon's website where you basically send in the inventory that you want to sell on amazon's website to their warehouse, and whenever a customer on amazon's website goes to the search bar, they search for your product, your product will come up at the top of the search results. they'll click on it, they'll buy it and you'll make money off that sale. now it's called fulfilled by amazon because amazon actually picks, packs and ships your products out for you, which means you can live wherever you want. you can spend your time traveling or doing whatever you love to do, because amazon is handling all the shipping and fulfillment of your products. and this is a great business model. but the problem is most people are doing it wrong. this is a chart of e-commerce growth in the united states and you can see people are buying things online more and more every year, and since people are buying things more and more online, it should become even easier to sell things online. but the problem is most people are using tikniques that used to work three, four, five years ago, and there's four main ways that you can make money selling products with amazon fba, but some of these are better than others, and the first one is retail arbitrage. this is where you go out and you find products that are deeply discounted. you buy those products and then you flip them on amazon where they're selling at a higher price and if you're tight on cash, this is a good way to make some side income. but the problem with this business model- and why i don't recommend it- is you're not really building a business and you're not ever going to be able to have passive income, because every time you want to make some money you have to go out and hunt for some deals and then you got to do the work of putting those items on amazon to sell it. so you're constantly having to do more and more work to make money. the second model that some people do, but i personally think is dying, is wholesale. this is where you buy products in bulk at a discount. let's say, a hundred pairs of nike shoes that are normally a hundred dollars. you buy them for fifty dollars. you then take those shoes and flip them on amazon for their full retail price of a hundred dollars and you get to keep all the profit after all the amazon fba fees and everything else. now the problem with this is usually you're not the only one that's wholesaling that product, which means someone else is going to come along and they're going to lower their price by a little bit, which means you need to lower your price by a little bit, and it ends up being a race to the bottom where no one ends up being profitable. the same thing is true about private label, and this is where you buy a product from a website like alibabacom. you slap your brand, your private label, on the product and you sell it on amazon. now, this can work if you can create a really cool, really strong brand around your private label product. or maybe you find a product that nobody else knows about, but the problem is, as soon as everybody else starts finding out about this private label product opportunity, they're going to come in and again they're going to lower their price. you're going to have to lower your price and it's going to end up being a race to the bottom. what i recommend doing instead is creating a passion product. this is where you create a unique product that's better than the competition and you create a really cool, really strong brand around it, and, ideally, you try to create a product that does not yet exist that you wish existed, that if it existed, you would actually purchase. and this is what i did with my product and this is what i teach other people to do and i'll share some real examples of this, including how much people actually make doing this, later in this video. but the second reason why many people think it's too late to start selling on amazon fba is because of china, and it's true there are a lot of chinese manufacturers that are selling their products directly on amazon for way cheaper than you or i could ever sell those same products for, and that's because they can cut out the middleman. and this is one of the big reasons why i do not recommend trying to do wholesale or private label, because if you're trying to do private label and you're trying to compete against your own manufacturer, they're always going to be able to sell their products lower than you can sell your products for. and it's true that these chinese sellers will sometimes use dirty tricks to try to get american sellers blacklisted or banned from amazon again. this is why i recommend staying away from private label, because if you're going to a manufacturer, just taking their product, putting your label on it and trying to sell it on amazon, that manufacturer or another manufacturer is going to see what you're doing and they're going to just sell that same product on amazon directly. but if you create a product that's better than the competition and you create an amazing brand around that product, your product is going to be on a completely different level than the competitors, which means that you're going to get more sales, which ultimately means more profit for you. but still a lot of people don't want to sell on amazon because of all the amazon fba fees, and this is reason number three why it might be too late to start selling on amazon. and it's true, amazon charges a 15 fee just to sell on their platform, meaning if you're selling a product that costs a hundred dollars, they're gonna charge you 15 when you get a sale of your product. on top of that, if you choose to be part of the amazon fba program, you're going to have
Easiest Way To Start Amazon FBA From Scratch! (Exactly what i did)
- Trying to start Amazon FBA (soft music) can be overwhelming. With so many steps and methods, it's even hard to know where to start. So in this video, I'm gonna share my exact method to start selling on Amazon from scratch. Using this exact method, I built a six figure Amazon store in less than a year, with no marketing or even creating my own product. So if I were starting all over today, this is exactly what I would do. If you're new around here, my name is Jatin and I'm documenting my entire journey of growing my online business with as much detail as possible to help you start your online business this year. So if you're interested in starting your online business and follow my journey, then hit that like button and subscribe for a new video every single week. And now let's get started. Firstly, I'm gonna hop onto my laptop to show you guys the six figure store which I built in less than a year. So, as you can see, right now it's 105,000 pounds in total sales And it started since January 2021 till currently, which is January 2022.. The profit on this store was around 30%, which equals to around 30,000 pounds in just less than one year And in dollars, is around $40,000.. I'm showing this because I just wanted to prove this to you- that this method works and it's worth your time. So there are four things that goes into building a successful Amazon FBA business. The first one is your product, the second is your analysis, the third is your supplier, and forth is scaling your business. Now I'm going to break down each of these one by one as simple as possible. so let's get started with finding the product. Without good products, it's pretty much impossible to have success on Amazon FBA, but thankfully, there are thousands of new products being added on to Amazon every single day, so the opportunities are always going to be there When looking for a product. there are three types of products on Amazon. The first one is an arbitrage product. These products you can buy from a supermarket near you and resell it on Amazon for a profit. Here's a live example of a arbitrage product. I can buy this Yankee Candle for six pound 50 and we sell it on Amazon for 14 pound 50. Now if I was to do the math, I would probably make in. let's just quickly check and analyze how much profit I would be making on this product. I can make three pounds after the taxes- around two pound 50 on this exact product. So if I sold it 100 times in a month, that will be 250 pounds profit. The second type of product you can sell an Amazon is wholesale product. Let me show you a live example of a wholesale product. This product right here sales for one pound 69,, but if you order more than six quantity it will be one pound 62. Now you can sell this in a pack of six on Amazon for 11 pounds and 95 pence. You can do the math for this one and you can see how there's so much profit in here as well. And the third type of product is a private label product. This is when you go on websites like Alibaba and look for a product and just stik your logo on it and you start selling it. For example, this one right here. This product is being sold for 1499, and you can probably get the exact same product from Alibaba for around $1, and you can see the profit margin there. However, with private label, you have to create your own product, you have to do marketing, and that's the reason why I don't do it, because there's a lot of costs related to this. And this is why wholesale and arbitrage is the best, because you don't create a listing. you don't do any marketing, you don't spend a lot of money. you can simply buy a product and start selling it instantly. You can use existing listing with other sellers and simply start making money selling the same product. I've sold these two types of products since I started my FBA journey and I have found success over and over again. The next thing you look into a product is the product category. Now when you do Amazon arbitrage or Amazon wholesale, you don't need to care about what category is the product in, because on Amazon, every single category is just sell. You don't wanna sell products from a specific niche and miss out on the opportunities from thousands of other niches on Amazon. The whole goal is to have more products so that you can make more money on Amazon. The last thing I look for in a product is good profit margins. What I consider it to be a good profit margin is to be able to make at least 30% more than you have spent. So, in simple, make 30% return on your investment. You can calculate the ROI for any product using a normal ROI calculator. Now I have shared one in my private club, which you can join as well, but more on that later. Here's an example of how it works. If I'm spending five pounds on a product, then I want at least 30% return on that five pounds, which will be five pound- my initial investment, plus one pound 50, which is the 30% of five pounds, which will equal to seven pound 50 in total. Now, this is pretty much everything I look into a good product. This product right here is an example of a decent product, because you can buy this product from a supermarket like Asda. for me, It has good ROI, as you can see, more than 30%, and you can see that the category for this product doesn't really matter, because it's in Homes and Kitchen and, to be honest, even if it was in another category, it would have not mattered. Now, the way you can make sure that this product is not a private label product is by simply looking for something called a buy box for this product. So, as you can see, this product right here listing has seven new sellers on this, or seven sellers are selling this exact product, Whereas this product right here does not have something called a buy box or other sellers selling this exact same product. That's basically how you make sure a product is not a private label product, The simplest way you can find products like these are: simply go to the clearance section on websites of your local supermarket and just look at all the products, As you can see all of these own sale. If you just search up the name on Amazon, you'll probably see that you can make a bit of profit and just buy off and sell it. Similarly, you can go to a wholesaler and look for a product, search it up on Amazon And if you're making any profit then then you go. you found a product for yourself. However, sometimes looking for a product can be long and time consuming. (object clattering). So that is the reason why I'm building a tool to help you with that. (children cheering). This tool will allow you to do your research and product analysis in one place. Now, if you want early access for this tool, then you can sign up for the waiting list using the link in the description. Now, before I move on to step two, I just wanna say that it will take time for you to become good at finding these products. So keep doing product research and you'll become good at it. Step two is doing the product analysis to make sure if the product you have found is actually good or not. You will come across so many good looking products, but when you actually do the analysis, you will find out that they don't even sell. This is the reason why doing your analysis is super important. As soon as I find a product on Amazon, the first thing I look for is a BSR, which is the best sellers rank. You can find that under product information, which is right here, And, as you can see, this product has 86,191 BSR, which is the best sellers rank. What I found from my experience is that the best products are usually under 100,000 BSR. 100,000 best sellers rank. The lower the BSR, the more the product is selling. So the first thing you would wanna make sure when looking for a product is a good BSR. The second thing you would wanna look for is something lightweight, because on Amazon, the heavier the product, the more fees Amazon will charge you. as well as you delivery costs also goes up. Make sur.
Amazon FBA - You're Better Off Just Getting a Job (probably)
these gurus have a huge conflict of interest, because most of them want to sell you information, so they want to convince you. they have a vested interest in convincing you that the Amazon opportunity is this incredible thing and you can make you know. anybody can do it and whatever or whatever. and it's just not true. I have none of that vested interest, so I feel like I'm a pretty unbiased party. so what does the Amazon income opportunity actually look like? well, let's go through it. so there's this great website called market pulse, where they do Amazon analytiks and they put together this great sheet that basically shows you how much people are making. so there are six million sellers on Amazon, including the inactive ones. they estimate that there's probably 2.5 million active sellers with products for sale. so people who are trying to do it- this would be you- of those 2.5 million, only 200 thousand of them will be making a hundred thousand dollars in sales this year. now you might be thinking to yourself: well, 200,000 out of 2.5 million isn't a lot, but you know, $100,000 in sales- that sounds pretty good. well, this is the problem. sales revenue doesn't equal profit. sales revenue really couldn't matter. less profit is what you take home. it's the part that you keep after expenses for product paid advertising- you know reap market research- this gets whittled down to anywhere between 10 to 25% of that. that's your profit margin. people often overestimate how much they're gonna make in profit margin. I would say a conservative estimate, being on the conservative side. let's say you're making a 15% profit margin. that means that out of that $100,000 in sales, the exceptional people on amazon selling third party are making roughly fifteen thousand dollars a year. to put that into context, that's about the salary of a full-time McDonald's employee. but McDonald's guarantees they will make that Amazon. there's no guarantee. in fact, making that is the exception, not the rule, which is something I want to stress. it's so easy to feel like: oh well, of course I'm exceptional. of course everyone thinks that everyone who starts Amazon FBA, most of them are looking for a full-time income and of that. so I crunched the numbers for you guys so you could see really the percentages. I use those same numbers and I just crunch percentages of how many. what percent of those people are making it. 8.25 percent of people who start FBI, who are current active members, will make $15,000 a year. that is pretty terrible. but let's say, let's say you do $250,000 in sales. now you're getting closer to a full-time income, because that roughly gets out to about $40,000 a year. 4% of sellers achieve this- only 4% guys. 4%, that is roughly, because I made a little fun fact sheet: the salary of a Costco employee for a plumber: they make about fifty five thousand dollars a year. to make that equivalent with with Amazon, you're roughly gonna have to be making around four hundred to five hundred thousand dollars in sales to be making around $55,000 a year, assuming a 15 percent profit margin. now, about two percent of sellers achieve that. and we just go down the list because Amazon likes to tout around a lot that it has twenty thousand plus people making over a million dollars a year with Amazon sales, but they don't tell you that 1 million dollars a year in sales is really only like 150 thousand dollars a year, which, of course, is that a lot? yes, but that's not a million dollars a year, it's not even close. and it just goes on and on. what you end up finding out is that, uh, selling on Amazon, like most things, is a per. it follows a Pareto distribution, right, it follows this distribution, right. here it just slopes way down. so with a Pareto distribution. assume that you're going to be in this camp and then find out: are you happy with it? are you happy with being the majority, where the majority is not even making fifteen thousand dollars a year? that's the reality with Amazon FBA. if you join up Amazon FBA, you're probably not going to make fifteen thousand dollars a year. if you do very well and you're in the top 10%, you're probably making it up: 15,000- 20,000 a year. if you do even better than that and maybe you're in the top four percent now, you're making $40,000 a year. you're making what a Costco employee makes at for the top four percent. Amazon didn't get where they were by paying their employees a lot. they got where they were by being ruthless and slashing costs everywhere they can. so you can bet that in the future they're gonna try to shrink profit margins down as low as they can. so don't expect to be making millions of dollars with Amazon. on that note, because all these laptop lifestyle gurus always want to tok about Millions, let's find out. how much do you need to be making millions? well, you need to be roughly doing 5 million to 10 million dollars in sales so you can make a million dollars in actual profit. but you're only. you have about a point zero, four percent chance of joining, and this isn't even getting into the fact that a lot of these sellers who do huge numbers are selling their own product. they're not f being from Alibaba to Amazon. a lot of those people have private labels. they're doing, they're making modifications to the product. they have a whole team. guys, the biggest thing I want to tell you today is that this really isn't the business opportunity that a lot of these gurus are telling you, that it is there over representing it to sell you a course and to get rich off of you. that's how they're getting rich. by the way, they're not getting rich from selling on Amazon. they're getting rich from you. you're better off going to start your own guru course than ever doing this Amazon FBA thing. I think you're a lot more likely to make millions doing that. so, anyways, I just wanted to give you guys that little tok, a little Amazon reality check. so just be careful, know what you're getting yourself into, know the numbers. I'll put this spreadsheet up for you and, yeah, thank you so much for watching tok. to you guys later: [Music], but never to the trust [Music]. or the car: [Music].