Amazon FBA For Beginners 2023 (Step by Step Tutorial)

so in this complete tutorial I'm going to share everything that you need to know about Amazon FBA becoming an Amazon Seller understanding how to find products to sell how to Source those products how to do things like private labeling understanding shipping costs understanding Amazon fees and some other really great tactics for becoming a successful Amazon Seller in 2023. now we made a video about this a couple years ago millions of people found to be very valuable I couldn't tell you how many people really took some great information from that and used it to create successful Amazon stores so this is a full tutorial look it's it's going to be long okay I know there's a lot of other distractions you could be doing you could be on Tick Tock you'd be doing all kinds of other things but I can promise you this that if you sit down and you focus and you take notes take out a pen take out a piece of paper you take notes on this video I think you're going to have a decent chance at at least understanding the Amazon industry hopefully becoming a successful Amazon Seller and getting your first store up and running in this video you're going to really extract a lot of information even if it's just one gold nugget that is going to be an aha moment for you that's going to save you thousands of dollars potentially that is really the goal now I need to make a couple of things clear before we get deep into this video first of all I have nothing here to sell you okay I don't have an online course there's literally there's no course okay there's no upsell this is free information we don't offer any courses we don't offer any mentorship because I really do believe that you can access so much free information on the internet so let's get into this here is the just a brief overview of everything we'll be talking about in this video um now let's quickly understand what should you expect from this video and then also what should you expect going in and becoming an Amazon Seller like I said take some notes here but I want you to try to avoid something like shiny object syndrome which is something that I've suffered from for the longest time where I would think about starting a new business and I would get excited about it I would do it for two weeks and then I would move on to a different business right and I probably did this 15 or 20 different times I started a bunch of businesses I'd get bored with them I'd move on to the next big business opportunity but if you focus on one specific area one specific type of business then it's going to significantly increase your chances for succeeding because you're going to make a lot of mistakes you're going to learn from those mistakes and you're going to eventually become better and better and then also I want you to set some realistic goals for selling on Amazon so as I said there's a lot of Bad actors in the space but it is very possible to become a successful Amazon Seller in 2023 yes it's a lot more difficult to do it today than it was in 2014 but it is still very possible so I want you to set realistic goals and understand that you're not going to become a billionaire in 12 months from selling on Amazon there is a lot of competition and I think a realistic goal if I was first starting out would be to maybe try to profit a couple thousand dollars per month within the next year and that would be my goal um and and hopefully you can scale that up and you know there's people who make millions of dollars on this platform but set a realistic goal one that you feel as though you can achieve Eve that's not too far out you know if you say you want to make a billion dollars you're probably it's going to be really difficult right and it's you're going to get discouraged but if you set a goal that's relatively small like a few thousand dollars per month I think you're going to have a better chance at succeeding so let's get into the details on this video uh I will show you how to Source Products and find products and uh uh private label and everything else in this video but what I first want to actually talk about today is why you should sell on Amazon and why not go for other platforms why not do Drop Shipping with Shopify or maybe sell products uh through social media or or have your own website right why specifically Amazon and I think the biggest reason is because Amazon is 70 of adults in the US have Amazon Prime okay it's over 100 million people who shop on Amazon in the United States which is a massive massive proportion of the population um and so it makes up about half of all e-commerce sales in the United States at the moment which is of a absurd number when you think about it but I think the best reason why Amazon is such an attractive uh business opportunity potentially is that there's like people are already on the platform and Amazon is one of the biggest search engines in the world so behind like Google and YouTube I'm not sure I think Amazon might be number three there might be something else in there as well but people are searching millions of times per day on Amazon's platform and so there should be less marketing that you need to do for your products to sell your products like for example if you have a website with Shopify although it is great I do like selling on websites you have to bring those customers to the site you have to Market to them you have to run Facebook ads but with Amazon selling they're typically already on the platform and they're searching for it and so that can end up saving you money uh in your total costs when people are just finding your product through Amazon's platform organically same goes for things like eBay and and depop and other platforms you should have to do less marketing which is why I like those platforms okay so let's understand what FBA actually stands for and then also a a difference which is uh fbm so there's two different ways you can sell on Amazon's platform the most popular today is known as Amazon FBA which is fulfillment by Amazon and so what this is is you actually as a seller you actually are going to ship all of your products to one of Amazon's warehouses and then Amazon will ship that product to Consumers uh when they are purchasing it and it it kind of streamlines the process this is why Amazon Prime works so well today this is why Jeff Bezos was a real genius when he was innovating and pushing Amazon to become number one in e-commerce but Amazon they have massive warehouses they're able to ship out these products so you as a seller you ship in bulk your products to the Amazon warehouse and then Amazon they do all the distribution for you they're the ones who pack it up and they mail it out to everyone and they send it out and so in a lot of ways fulfillment by Amazon it definitely takes away a lot of stress of having to like go to the post office every day and ship all of your products um but it does have some downsides we will talk about that but generally speaking most people do gravitate towards Amazon FBA um it's best for high volume high margin products when you are able to get products for a very low cost and you're able to afford the Fulfillment fees that Amazon charges I will share some of those fees later on in this video so you can better understand if you want to do Amazon FBA or fbm and so fbm is fulfillment by Merchant and the merchant would be you as the Amazon Seller and so the difference between this is that you're kind of like think about like if you're selling on eBay you are shipping those products out yourself and you can still do this on Amazon um shipping out products by yourself there are some great benefits to this like for example your shipping costs could be lower you also don't have to pay for like storage fees for example but the downside is that you know it's really only going to be good for people who are doing small scale selling like you're selling a few products um so it has its pros and cons but most big Amazon sellers are doing Amazon FBA um but you know there's there's no harm in doing fbm especially when you're first getting off the ground and you want to just sell a few products on Amazon test out the platform then I I do think that fulfillment by Merchant can be useful it also does depend on the type of product that you're selling like if you're selling uh massive uh pieces of uh like machinery and equipment then you might just want to like do that fulfillment by yourself because the shipping might be a little bit strange versus if you're selling like small items tends to be more so on Amazon FBA so that's the difference between the two I just want you to be very aware of them so now let's talk about how to find products to sell on the platform and there's really two main ways that I find products to sell on Amazon so the first strategy for this is kind of a little bit rudimentary but it's one of my favorite ways of doing this and this is how we've found our best products with the highest profit margins is by just doing basically manual search so what I want you to get into the habit of doing regardless of when you start your Amazon store is start to just run basic numbers on everything that you buy or every item that you see so for example I just bought some dumbbells the other day for working out and and they were like uh five pound weights because I want to do some you know whatever these exercises are where you do like the lateral raises but I bought those on Amazon and I thought you know what let me just run the numbers here and let's see how much profit could I potentially make how much could I Source these for so every time you buy something regardless of what it is like um I also just bought this right and this is like a laptop holder kind of just so I don't break my neck and it it like props up my laptop so I bought this the other day and so what did I do I went I Googled I found out how much can I get this made for right and I start to run the numbers I'll show you how to calculate profitability later on in this video but manual search can be a pretty great way to find products to sell on Amazon just by looking around at everything that you have and running the numbers on it and how much does it cost how much can you Source it for how much would shipping be how much would Amazon fees be you run all the numbers you plug them into a calculator and you come out with potential profit margins on that product now the manual search although I do like it honestly um it's not necessarily the best because it can be pretty time intensive and you can feel kind of limited to the products that you think about yourself so the other way to find products to sell is to use some type of software like jungle Scouts so jungle Scout is I think a really crucial piece of software for Amazon sellers there are some other options out there but I think regardless you are going to want some third-party software for selling on Amazon because this is what I use to find products and look for keywords and really optimize my products it and it ends up really saving a lot of money and making you more money if you are able to use all of their features so I will leave a link to it down below in the description of this video but let's say that we want to find some products so what we can do is we can go to product research and we can click on opportunity finder this is one of my favorite tabs on the platform so what you can do is you can look through all of the different categories and then also you can look at monthly units sold monthly prices monthly search volume so what this software does is it's pulling all the data from Amazon now it's not necessarily exact it kind of like extrapolates data I believe because they don't like have exactly sellers information but what they're doing is they they kind of crawl on Amazon's website and they try to extrapolate data and estimate how much people are selling and uh like how much volume certain products are selling so what I do is I go through on this software and I look at all the different categories now you can pick between these if there's a specific category that maybe you understand better or you feel like you can Source Products better for I I tend to actually really like things like pet supplies or home and kitchen or things like sports and outdoors but let's just say for this we will do all categories and then for the parameters here for when we're trying to find potential products to sell this this is going to get kind of interesting here so average monthly units sold I want to find products that sell at least 100 units per month right because uh if if there's a category that's only selling like one or two products per month I don't really want to be in that business it doesn't really sound like it's going to be very useful for me but then also if we're looking at things that are selling like a million units per month that might be too difficult for us because you know we don't have a million dollars to start off with uh to to get our products so let's say that average monthly units sold we want to have at a minimum of 100 and then for something like average monthly price um I tend to not sell anything on Amazon that is going to be less than ten dollars that's kind of a good rule of thumb because if you're trying to sell like a Rubik's Cube for uh four dollars it's going to be very very difficult to make any money on that you probably won't so anytime that you see people selling for something less than ten dollars they might be making like 25 cents profit if that on the product um so it's super difficult right I don't like to find those really really low cost products um it's just very very hard to actually make a profit on them because their shipping fees there's Amazon fees there's storage fees and those fees really do add up so I I want to say that I want a product with a minimum price I'm going to say 12 sometimes I do 10 sometimes I'll do 15. uh typically the higher the price the better in terms of products that you are selling on Amazon because it just gives you more room for potentially higher profit margins but sometimes I do plug in a maximum price as well because you know maybe you don't have the budget to sell like 500 dishwashers on Amazon because that's you know you might only have five hundred dollars to your name and it's hard to you know sell massively expensive products um so 12 as a minimum price um and then monthly search volume you know I want to see things that are at least getting searched for 500 times per month at a minimum sometimes I'll set this a lot higher as well and then also we can look at things like search Trends right if it's like doing well or it's not doing well and then also seasonality and competition we don't want anything that's high competition okay because for example like if we try to sell exercise bands or even dumbbells for example um there's so much competition on that there are thousands of other people who can probably undercut us they maybe are manufacturers or have really great relationships with manufacturers so I want to find things that have very low to medium competition realistically I mean it'd be great to have very low to low competition but we can go up to medium just in case there's a product that we could kind of make a Twist on and potentially improve and then also seasonality right uh maybe like Christmas ornaments for example are going to be super seasonal uh and people are only buying them in the fall and in the winter and then in the summer spring nobody's buying Christmas ornaments um so some people like to play that game I I actually do like that as well I do like to play the holidays but um for this we will just leave it a kind of wide range here and then you can even include keywords for uh like to get really specific if you want to and then we can just click on search and what this is going to do you'll see what this does here it's going to crawl everything on Amazon and it's going to show us product recommendations and it's going to show us information like I said earlier this is a lot of this is extrapolated data um but it is very very helpful right so let's look through here and we see like squishmallows which is like a little stuffed animal people love them right now so those are selling really really well things like oat milk right sugar snap peas some of these products like I'm not going to consider selling like I'm not going to sell snap peas um but a lot of these are also Valentine's Day because right now we're in February February just passed and so you'll see a lot of those on there but squish models are really really popular and they have pretty low volume right so what I want you to do is go through something like this if you half jungle Scout if you don't you can still do this manually on Amazon you can search that's totally fine don't feel like you need to have this software to be successful on Amazon but I will say it is super helpful and I will leave a link to it down below and I think they should have like a trial period on there just read the details on their site you can find out about it um but go through here and and try to find things that could potentially be interesting okay so here's something that I I think a little bit interesting that kind of caught my attention is the dash rapid egg cooker and we can look at this information and see that average per month they're selling about 2500 units per month for this Dash rapid egg cooker at an average price of 37.63 yes the 30 the 30-day search trend is a little bit down but 90 days this is up it's very low competition um and the seasonality is kind of medium like mostly it's it's best in January all right so we've done our initial search on Jungle Scouts platform now we're actually over on Amazon and we're gonna go a little bit deeper into this and see if this is actually a viable product that we could consider selling and if we're able to source that product so I went over to Amazon just typed in Rapid egg cooker and we're looking at all the various different products now the cool thing about jungle Scout is that it actually has a Chrome extension so what we can do is we can look at all of the estimated monthly revenues from each product as we browse through Amazon the average monthly sales daily sales so they're estimating that this Dash company is selling about 24 000 units per month which is a pretty crazy number which is 489 thousand dollars per month which comes out to about five something million dollars per year in revenue from this one product and they're selling it for 19.99 it has great reviews so this looks very very uh attractive if we could potentially a tap into this market now they do have some competition a lot of it is all of their own brand did Dash rapid egg cookers right but if we go down further we might be able to find some other brands right so here is uh Elite Gourmet rapid egg cooker they're selling this for 13.99 per unit so this does show that there definitely is some competition here whatever this Elite company is trying to break in and they're doing pretty well doing about forty six thousand dollars per month in Revenue so uh and they even break down like the potential net profits per sale the total fees per sale and really trying to give you kind of a good understanding of if this is something that you could potentially make money on um so it does look like this is something that is worthwhile looking into maybe not for an initial product because it could be pretty high competition as I'm sure other people are trying to tap into the industry but even on something like this the Evo Loop rapid egg cooker selling about 1200 units per month which is 25 000 per month in Revenue so let's say that we're gonna go with this product I probably would do a bit more research um if I was doing this like actually like realistically and not just making a video here for you today um but going deeper right and and find out more information on like why are people buying egg cookers this style then cooker uh do people have complaints about it go through read all of the reviews on on these different companies like go through this product and then read all of the reviews specifically the bad reviews and find out what do people not like about this product what's wrong with it does it break um it burns eggs maybe potentially right find out all the bad things about it look it's rated really well so people do like it um but this could potentially help you create a better product that you can even potentially sell for a bit of a premium so I want to reiterate that this is just an example product here um but what what I think is really most important with finding products to sell on Amazon is that you do Niche down quite a bit right you're not selling generic products you're finding something that you can Niche down that there's less competition on and then also trying to start with just one one product and then expanding out from that if you start out with your Amazon store and you try to sell 20 products on day one like 20 different types of products it's going to be a big mess you're going to be all over the place it's going to be very Capital intensive you're going to be throwing a lot of money into it so I recommend start with one product and then once that product is Cash flowing it's making you money then you can Branch out to other products okay that's a really important thing to understand here but generally speaking with finding products the riches tend to be in the niches um and and so go with those things that are less common that don't have a lot of competition and that's going to be your best bet okay so once we've gone through and we've found our product that we're going to sell now we need to Source this product and sourcing products is is something that can feel pretty intimidating for most people especially if you've never sourced products before a lot of this tends to be coming from different parts of Asia or uh Central America or areas that are going to have lower production costs like if you try to make a rapid egg cooker in the United States it's going to be very difficult because it's going to be very expensive labor in the US is very expensive so a lot of Manufacturers and suppliers for things like this we're going to have to look in different parts of the world so one company that maybe you've heard of in the past is Alibaba this is a really big company this is where a lot of people find their products they Source them from Alibaba and what this does I'm just searching for Rapid egg cookers here and what this does is it connects us with manufacturers and also like trading companies um that are basically like we're going to the source instead of buying on Amazon or going to the source and we're finding the suppliers the people who can make these products in bulk that we can purchase and then sell for hopefully a profit right so we're going to go through here and just kind of run some quick and dirty numbers and say you know is this something that's viable right A lot of these rapid cookers are selling for anywhere between 14 and 25 dollars per item so is this something that we can make money on right so we're gonna go through here and look for Rapid egg cookers this one is uh we can get them for about a little bit over two dollars per piece for actually pretty low quantities too like we get 100 to a thousand pieces for two thousand 30 cents as you go up higher you can get them for cheaper now the thing about dealing with Alibaba and manufacturers directly is sometimes it can be a little bit frustrating um because I've seen people make mistakes where they'll just not even try out products and they'll just buy a thousand of these items for two thousand three hundred dollars and they'll arrive and they'll be the wrong type of item or the product isn't like working properly or something is just not good about it and so this is why what you have to do is go through something like Alibaba also look through other suppliers like dhgate there's probably about a dozen different websites you can look on don't just look on Alibaba so I think the best way to do this is you're basically still in the product research phase right you think you might have something but you you need to understand that it still might not work out okay so what I'm going to do if I'm interested in selling rapid egg cookers is I'm going to try to get a sample from at least five different companies on this platform so I'm going to reach out to this company and try to just get one sample say hey can you send me one sample uh you know I might have to pay like five dollars or something just for them to send it over sometimes a lot of Manufacturers will send it for free because they want your business um but I'll send it to this one maybe to this one uh to this company right and I'll go through and find about five sometimes if I really want to be thorough I'll get like 10 different samples from 10 different manufacturers and I'll have them all arrive I'll test all of them out and I'll say okay which one's best like different price points and I'll understand which one is going to be my best option for selling and this is why like you can't list products on Amazon this week if you're a new Amazon Seller it's going to take time because you need to test out these samples it's going to take some time for them to get to you then after you test them out then you could potentially place a large order with that company through Alibaba and then they arrive and then you ship them to Amazon and so it's it's going to take some time probably from the time that you discover a product or from the time that you watch this video until you start selling on Amazon I'm going to say it's probably going to be about a month sometimes it could be even longer before you get everything set up and that's totally okay just make sure that you have some patience with this okay now let's run some numbers to see if this is actually viable for us so we can see that we can get these these uh rapid egg cookers for probably honestly about a dollar fifty per item especially for large like ordering it ordering them in much larger quantities um but a lot of these are listed for about two dollars you can you can negotiate with all the manufacturers and also depends on how you have them shipped over to the United States or or wherever you're selling in um but let's estimate some profitability so I like to use a basic quick and dirty number here and this is basically just uh known as the rule of thirds so if you are looking at an item about one third of that item could be product cost so let's say that we can sell this egg cooker for fifteen dollars per uh item well about one third of that is going towards product costs so five dollars yes we can get these for all two dollars that's great uh one third of that goes towards Amazon fees yup that sounds about right we'll talk about Amazon fees in just a minute here but we have fulfillment fees we have uh storage fees all kinds of different fees probably gonna cost about five dollars and then it leaves us five dollars left over for profit per item that we're selling okay so that is my quick and dirty analysis on that um but there are actually calculators that you can use to find out specifics on whether or not a product is going to be viable for you um and actually jungle Scout has some of those different calculators on their platform you can also do this manually if you look at Amazon's fee schedule okay so let's say that you have tested all these different samples and now you want to place an order with one of these companies on Alibaba let's just say that it's it's going to be this one here they have some pretty good uh prices overall right so the thing with Alibaba is that everything is really negotiable right you can talk to these manufacturers it can be a little bit difficult sometimes just because there sometimes can be a language barrier um or different ways of doing business but I would not recommend just placing an order through this here right because like if we type in a thousand it says it's going to cost us 2898 because shipping is going to be a hundred dollars look and this is through ocean Express so like I can just tell you right now this is this is uh too much money for shipping you can get the shipping cost for way cheaper than that um and so generally speaking like uh you can look at shipping through ocean Freight or uh through like air okay and the problem with ocean Freight like if you want to order a thousand of these items um it's it's going to take a pretty long time because this ship is coming over from looks like this supplier is actually indeed from China and so it's probably going to take like a few weeks for that to go into a shipping container comes over on a massive freighter all the way across the ocean probably goes through some canal through Panama Canal or through the uh Suez Canal and it takes a long time right um and so if you have the time available and you're not in a rush to get this plot to Market instantly then it's going to be lower cost per product right versus if you do this uh through air which you can probably change it right on here you can do this through Express which is going to be delivered much faster but look at how much more this is going to cost you which is going to be an arm and a leg almost like four dollars and seventy cents per unit but then this is likely going to be shipped by air so I would recommend just doing oceanfrip ocean uh Freight ocean shipping and you can negotiate with all of these companies you can call them up I'd probably recommend emailing just in case because there's a lot of time differences I think Beijing is like 12 hours ahead of New York so you can send them emails and communicate and see if you can get these costs lower now also depending on the manufacturer you also might be able to have them do something for you called private labeling where they have an option and you can learn this through email or even through the product listing sometimes they will mention that they do have those capabilities where they can actually like attach logos for you whether it's a sticker or some type of decal on the actual product itself it might cost you a little bit more but it's going to give you that brand recognition like going back to the the Amazon searches here right we see certain companies like Bella and dash have this kind of brand recognition I'm sure people have bought these in the past and they know Dash is a really great rapid egg cooker company so it is I would say it is very important to have a brand name and if you can get that decal on there from the manufacturer doing that that's great but also you can attach those decals yourself if you need to if the manufacturer doesn't allow you to do that I've seen that done before in the past where people will just have literally just stickers that they'll have made and then when the products arrive through Freights through ocean Freight they'll just attach the stickers onto the actual products when it arrives in the United States or wherever you are selling it before you actually send them off to Amazon you're going to inspect a lot of those things right so so let's go ahead and let's say that we wanted to place an order with this company we can contact the supplier email them talk to them over email make sure that you understand which supplier this is and do some research on this they actually do have reviews here and you can learn more about the company where specifically they are located right they have three point or they have 4.3 stars out of 5 33 reviews from people right average response time five hours and overall they seem to be a pretty reputable of a company they also speak Spanish English and French and they've been doing this for almost 20 years but make sure that you you still do like I've seen people have these problems where they'll get a sample it's really high quality and then they actually place an order they get the shipment of a thousand or five thousand uh items and they're maybe not as high quality so there is something to be said about having really trustworthy manufacturers and people you can rely on in the space and this is why like over the years we've now created great relationships with people directly in Thailand or in China where we have this great relationship with them and we know that we can trust them very very well you do kind of have to take some risk here because you don't know these people right off the bat but you know once you build those relationships you'll end up going on business trips to China I've only been to China once not for business but we probably will be going sometime next year just to look at some different factories and and kind of really get into it deep there okay so there are going to be a couple of details that I'm going to leave out in this video I'll try to make a longer video If people really want to understand like the specifics on getting those products from China or from the manufacturer to your doorstep and actually getting them onto Amazon's platform but for the sake of this video because I don't want to you know make you sit here for six hours we're going to continue on here and talk about the next step of the process here which is understanding Amazon seller fees setting up your Amazon seller account and then also analyzing how we can create the best product listing once you receive these products from the manufacturer all right so if you go to cell.amazon.com it's going to take you to the sellers page here where I want you to really explore and understand what the different fees are going to be with Amazon I'm going to be totally honest with you there's a lot of fees involved with selling on Amazon and kind of for good reason I mean they do a lot of the heavy lifting for you but they have things like referral fees and fulfillment fees and then there's other costs associated with that as well so let's first actually look at the selling plan because we have two different options here so on one side we have the individual selling plan and then we have the professional selling plan and now if you want to take this seriously the professional selling plan is going to be your best bet if you're selling more than like uh 20 or 30 items a month then the professional plan is definitely going to be for you but if you're first getting started you know you could do the individual plan um you are going to have some limitations on things that you can sell also the different tools available to you but there's there's no harm in starting off with the individual plan especially if you're just trying to get off the ground and sell your first few products that's totally fine if you can afford it I I would totally just jump to the professional plan immediately and just looking at the different features that are available here right with the individual plan yes you're able to list items and you are able to do Amazon FBA with the individual plan but you're not going to be able to access certain categories you're not going to be able to create listings in bulk you're not going to be able to manage your inventory on Amazon's platform and a lot of other features here so professional I would recommend doing okay so let's talk about referral fees this is also going to get you quite a bit here so this is basically what Amazon you can almost do this as like marketing fees from Amazon or um like how people are getting to your product they're probably not just finding you on social media and then buying your product on Amazon they're probably only finding it finding it on Amazon's platform already or maybe they're like Google searching and they find it uh like on a Google search but nonetheless you're going to have referral fees for Amazon you have to pay to Amazon for every product that you sell so this does vary based on the different industry that you are in so like if you are selling baby products you're paying a minimum of 30 cents per item uh but it's going to be eight percent for products with a total sales price of ten dollars or less and 15 for anything more than ten dollars so for us right we're looking at uh probably uh cookware right like kitchen supplies and so we can go and find kitchen supplies and see how much is it going to cost us to uh sell with referral fees and I'm looking for kitchen supplies and here it is here so uh if we're selling this egg cooker Amazon's going to take 15 as a referral fee for selling our product so if we're selling our egg cooker for 15 and they're taking 15 of that I think that's two dollars and 25 cents if I did that math correctly in my head there uh in a referral fee for our egg cooker that we're selling okay so now we have to factor in all these different things right well looking at the price of that egg cooker which is going to be let's say about uh two dollars and fifty cents per egg cooker then we have uh uh two dollars and 25 cents for referral fees on Amazon then we have the Amazon storage fees which we'll talk about here and let's scroll down a little bit more the Fulfillment fees right so fulfillment by Amazon uh we need to look at how big our product is if it's going to be about large standard and it's maybe say it's going to be somewhere in the 8 to 12 ounce range it's going to cost us four dollars and 24 cents in fulfillment fees so we add up all those okay so four dollars and 24 cents is going to be the shipping fee that Amazon charges us plus two dollars and fifty cents for the product fee of uh sourcing this egg cooker plus two dollars and 25 cents in the referral fee that we're paying to Amazon now we're at 8.99 already you can see how this starts to add up quite a bit um and then there are going to be some other random fees as well like for example we need to calculate in that 39.99 per month that we're paying to be an Amazon Seller to have that professional so we can average that out based on you know how many products we're selling like if we're selling five products per month it's going to be a bigger cost than if we're selling a thousand products per month uh when we're calculating this on a per product basis but you can go through and really find uh how much it's going to cost you it is dependent on how big your product is so it honestly it might be a change that we can even squeeze into something that's in like this uh eight to twelve ounce range but it falls into this um small in light category and that might only be like a few dollars for us now we also have storage fees for Amazon this is one of the last fees that you'll have there are some other miscellaneous ones as well as you're going to learn as an Amazon Seller but storage fees is basically for having your product in Amazon's Warehouse it's not free right and this is why you want to make sure that you're selling products fast enough and that you're also not ordering too many products up front like if you order 10 000 egg cookers and you send them all to Amazon's Warehouse well you're going to be paying for Amazon's Warehouse somewhere between a 56 cents per cubic foot up to two dollars and forty cents per cubic foot depending on the product size that you have right so if it's standard size which would our egg cookers would fall into that category of standard size it's going to depend like in the fall wow it really goes up quite a bit compared to from January to September it's 87 cents per cubic foot is going to be our fee that's charged on a monthly basis so we do want to make sure that we're constantly moving these products and always selling them and that they're not just sitting in Amazon's warehouse for too long and they also do have things like for example um if they've been in storage at Amazon centers for more than 271 days then they're going to have additional inventory uh charges on top of that okay and then finally and you're probably sick of hearing about these fees now but here are the other fees associated with selling on Amazon so we have those inventory feeds we also have high volume listing fees which is going to be very very low but if we're you know listing hundreds of thousands of of items we can have that and then refund Administration fees as well so there's quite a bit on that for fees but we can see overall that even if we're being kind of less conservative we can probably have our total costs all in all for about ten dollars and we're selling this product for about 15 so it looks like there's a potential to make a few dollars profit per item that we're selling on Amazon with this egg crooked with this rapid egg cooker okay so that's fees I do recommend going to sell.amazon.com and just looking these over and really going in into the details to make sure that whichever product that you're considering selling is going to be viable and and hopefully you know is going to set you a better for Success now the other cool thing is on Amazon and this is owned by Amazon they have things like learn and grow which help you to actually create a better Amazon store look Amazon wants you to succeed they want you to use their warehouses they want you to be able to become a successful seller and this is why I said like you don't need to spend money to learn how to sell on Amazon because they have tons of free resources here look at this right here sell.amazon.com look at all these free resources for creating an Amazon store and they they have like different blog articles they have different videos for guidelines on sourcing products and everything else so it's really great this is why like don't don't go out and buy a course please don't buy a course you know some of them can be good like I know a couple of people who are really great reputable people who sell courses um but I know equally as many people who sell just absolute BS courses when it comes to Amazon seller and you can see that like I kind of get a bit annoyed by it because you know like they take advantage of people who are trying to learn how to do this so you can learn a lot of this on Amazon site or through free information so there's three more things I want to share with you in this video one of them is actually getting your company set up so you can start selling on Amazon then we're talking about how to list products and then I'm going to share probably the most important thing which is getting sales and actually getting people in the door and buying your product and how to optimize that and some different strategies I love marketing I love optimizing that so it's probably my favorite section and we'll save that for last Now quickly I want to talk about setting up a company so you can do this as like a sole proprietorship just on your own without a business but I really would recommend starting a business so you can file an LLC if you're in the United States look I'm not like a lawyer so you should consult with someone like that if you really want to get serious about it but personally when I set up my businesses I just set up an LLC in my state and you can do this through something like ink file so I'll leave a link to them down below or an affiliate with them so it's a great way to start a business if you need to file your LLC or you want to be like a C Corp operation you can look into all of that we're not like that's not really the primary purpose of this video but if you are looking to create that business uh entity and make it like very professional then I will leave a link to them down below and they just help you through the process of setting up your LLC or setting up your C corporation or your S corporation and they do have some like FAQs on there helping you decide like which business is going to be the best for you so I will leave that link down below now let's actually talk more importantly back to the Amazon section of uh looking at listings and how to create the best listing out there okay so let's go back to our rapid egg cookers and let's look at say like the dash rapid egg cooker and I want to just analyze this and share with you kind of like what I would do differently and what's really working um so looking at this here we can see that they have a lot of words in the title this is really important anytime you're selling anything online you need to keyword stuff the title as much as possible all right so if if you try to list a product on Amazon and you just list it like um rapid egg cooker um you know for poached eggs or something and and you know blackly that that's all you have as a title it's going to be a lackluster title you need to keyword stuff as much as possible into this title with as many descriptions of this product as possible because you know not everybody's searching for uh rapid egg cooker some people are searching for things like egg cooker for hard-boiled eggs some people are are searching for things like omelette cooker or scrambled egg cooker um or like different various colors for that egg cooker okay so stuff as many words as possible into the title of course you know you don't want it to be like running on too far like if you don't have any other words to describe the product that's okay but just make sure you're not using like three words as as a description and you'll look around at all other Amazon titles and you'll notice that everyone else is putting a lot of words in the title okay and this is a great way to like build great listings is to look around like at all the various products that you buy just look at the top listing and what are they doing right analyze how they are creating their titles how they are creating their descriptions um and then kind of I don't want to say copy it but definitely like use that as inspiration you don't have to reinvent the wheel when it comes to listing products all right and then looking at the description for the product uh this is exactly how I set it up as well so using all caps for the first kind of like big tagline and then using bullet points for this so it's very digestible it's very easy for someone who's just scrolling on their computer or scrolling on their phone they can see like the most important things satisfaction guaranteed six egg capacity versatile Compact and it includes all these different things right so I love this strategy that they use here all caps for or the big kind of tagline and then follow it up with a couple sentences to kind of give you the description of it right six side capacity and then they talk about the specifics of it you know soft medium hard-boiled firmness while saving time and water and I I think this is an overall just really great description that they use now going on down here um you'll see things like frequently bought together if you can launch products that are very similar and get these to kind of come up in the frequently bought together category uh this is also very very attractive if you can kind of hack that but it's not always going to be like easy for people to do that so um the two other things are really crucial for selling on Amazon is the questions page which if we scroll down past the description yes of course fill this out make sure that you use lots of pictures and I love how they're using diagrams super easy digestible you want this to be when someone clicks on it they can just skim through very easy they can understand they don't have to do like triple takes and try to like understand the font don't use any weird quirky phone balance use regular normal fonts that are very legible but if we go down and we'll see the questions page this is something that is really actually important and I've seen people who don't answer the questions like if you're not answering these questions you're going to be losing customers and I've even seen people who make their own questions and then have them on here just to help customers understand more about what this product is right so make sure that you're not neglecting these and make sure that you're answering these questions and you're kind of like moderating and responding to people if they have problems sometimes they will ask them in the question section and you can kind of mitigate some of those potential risks there and then of course reviews are going to be absolutely crucial this is going to make or break your ability to sell products if you have bad reviews on Amazon if you're getting uh you know 3.5 out of 5 stars for your product and a lot of people are reviewing it very poorly this is going to crush you and Amazon will know that it's not a good product they won't run prioritize you and people aren't going to buy it and and so you want to really try to get the best reviews possible now you want to be careful you can't go out and like tell your customers to give you a good review you can't like write a note and say hey can you please give us a good review that is how you will get banned from selling on Amazon so please don't go out and do that um but honestly the best way to get good reviews is to just make sure that your product is exceeding expectations when someone sees a picture of it they see the product listing you're not kind of misleading them right if you say it's a six egg cooker and it shows up and it only fits four eggs people are going to give you terrible reviews right so you need to make sure that you are very honest with the description you're very honest with the pictures and then people will give you good reviews If the product is actually good okay so that's how you get good reviews um just like I said make sure you're not asking for good positive reviews because that is how you will get banned now let's quickly talk about actually pictures uh for your products so what I would recommend doing is just hiring a photographer look you probably know a photographer I feel like there's a lot of photographers out there I mean there's not a lot of good ones but there's definitely photographers out there so maybe it's like your cross-in or someone in your family or someone at your work or someone's good at the camera have them set up uh the camera and create some pictures for your product now Amazon does prefer you to have a white background for your primary photo so just keep that in mind as your like main listing photo you want it to have a white background you can have different backgrounds on on other pictures but your main one needs to be white um but show people using it right like they set this up in a kitchen they show people cooking uh tomatoes and other cool things wow this is awesome you can make breakfast in this I didn't even know that you can make your omelette right it doesn't have to just be for like soft boiled or hard-boiled eggs you can do all these different things they show the different types of eggs you can make with it and it's very very helpful with all of these they also show the accessories that are included with this I love how they set this up and what I recommend doing like if I was going to actually like Source this product and launch this product um I would I would use this as inspiration I wouldn't copy it I I would not rip it off because that's also how you get into legal trouble but I would use this certainly as inspiration and not try to reinvent the wheel when I'm making a product description and taking pictures and also think about how can I potentially improve this one of the best ways is looking at their reviews and seeing you know what issues people have had and if we can try to solve those issues that people have had with the negative reviews that have been left on there um so now let's finally talk about getting sales for your product on Amazon this is this is my favorite topic I love talking about how to get sales so there's two main ways that you can get sales especially initially on Amazon so right now people who are selling uh these uh egg cookers and they're at the top Amazon already knows it's good product so they're just automatically listed at the top and it's kind of like pretty passive for them but the two ways for you to get sales especially initially is something known as PPC which is pay-per-click basically you're running ads to get you sponsored to get you to the top like how this one is here right so this first result here is sponsored and the second result is also sponsored and then you get down the third result now this one's not a sponsored so if you want to show up at the top and you want to get your first initial reviews you want to get your first initial sales you can do some ads you can run ads for your product on Amazon's platform you can do this through your seller dashboard and I honestly do think this is pretty useful like if you have the money to spend to kind of just get your product like get your first initial 10 positive reviews get your first uh 20 people 30 people buying your product just so you can get things moving a little bit I like to do this um and then eventually you know kind of taper down on the ads or if it's profitable just run ads continuously and always rank at the top like like this company does um the other option for getting your initial sales getting your initial reviews and getting your first 50 to 100 sales is to use a strategy that I've always done and I've been selling products online for over 10 years now which is to severely undercut the competition come in at a ridiculously low price to the point where people have to buy it and they look at all the other options they're saying okay why would I buy this for fourteen dollars why would I buy this one for twenty dollars when you might be selling yours for ten dollars and you know so this is what I've done for so long is I will run basically at break even or sometimes I'll even run at a loss just to get lots of momentum and get hundreds or thousands of people to buy my product get the thing moving and then slowly gradually I'm able to raise the price especially if it's a good product and you're getting good reviews it's going to be a strategy that can work it's risky because you know if if you don't have like Capital you don't have a lot of money already um then it might be a little bit more risky for you but if you can afford it to have tight margins then it's a great way to get your product boosted and get those first few hundred sales or a few thousand sales on a product and then gradually like I said raise the price um now the downside risk to something like this of undercutting everyone else in the space and running at a loss is that um sometimes it'll have the reverse effect and you'll list your egg cooker at ten dollars and now all of a sudden all your competition says uh oh they're sucking up all of the uh uh customers they're taking all of our customers now they go and they lower their price and it creates like this negative price War where basically you just keep like lowering your prices and it brings everything down and then everybody loses money that's a pretty bad um thing to see and you know that'd be pretty unfortunate but um so that that has happened to me a couple times in the past where my competition will lower their prices as well when they see me undercutting them all right so those are the basics of selling on Amazon I hope I was able to answer some questions for you and clear things up and kind of give you a basic path towards selling your first product on the platform I know there's certain things that we did not get a chance to talk about in this video so if you want to see more details if you have specific questions please leave them down below in the comment section or you can even try to DM me on Instagram I try to be as active as possible on that platform I do some q a sometimes so you can reach out to me there follow me on the platform I can't promise I'm going to respond to you so as long as you understand that because sometimes I just get very busy and I'll get hundreds of messages but I do try my best um so that is the video that's going to wrap it up we do have lots of free resources on this channel to help you scale your business don't forget to check out jungle Scout software to get you started with selling on Amazon and then also if you want to file your LLC with ink file I'll leave both of those links Down Below in the description of this video lots of free resources out there I wish everyone the best of luck in selling on Amazon some people are going to succeed some people are going to fail that's just how it's going to be but I really hope that you can succeed with selling on this platform so thanks for watching and I'll see everybody in a future video

Channel: Santrel Media

Views: 209,946

Keywords: nate o'brien, mike o'brien, santrel media, amazon fba, amazon fba beginner, amazon fba dead, amazon fba mistakes, amazon fba step by step, amazon fba success, amazon fba training, amazon fba tutorial, amazon seller tutorials, how to prevent amazon mistakes, how to prevent losing money on amazon, how to sell on amazon, how to sell on amazon in 2021, jungle scout, start amazon fba, top mistakes amazon seller, fba for beginners, amazon fba 2023, amazon fba for beginners

Id: thyEWVHbTdc

Length: 51min 31sec (3091 seconds)

Published: Thu Mar 09 2023