Hello everybody. Welcome back to my channel. My name is Tamara Tee. I've been a full time Amazon FBA seller for
the last four years. In today's video, I am going to show you how
to make money on Amazon FBA. This will be a complete guide for all of you
newbie Amazon FBA sellers out there. Calling all newbie Amazon FBA sellers. If you are someone that is wanting to start
your very own Amazon FBA business, then I encourage you to stick around to the very
end of today's YouTube video because I am going to give you a complete guide on how
you can get started from beginning to end. I will also refer you to some previous YouTube
videos that I've done in the past. So you guys can get started along in your
journey. So today, I will point out the most obvious
things that you need to get started, the very first thing you need is obviously an amazon
seller central account. So I just googled amazon seller central, and
I ended up right here on the American amazon seller central website, you should be reading
through what they're saying on the website so you know exactly how to open your account. It's actually really easy. One of the most common questions I get from
newbies is can I sell on the American Amazon Marketplace? Or can I sell in Canada? Or can I sell in Australia? If I am from a different country? The answer is yes. In fact, I encourage you to start selling
on the United States website for 3999 a month plus selling fees. Because this is Amazon's biggest marketplace,
which gives you the biggest opportunity to make money on Amazon, you can start with an
individual account or you can sign up for a professional seller account. So if we go to pricing and go to cost overview,
make sure you guys spend some time on this page, because this will explain to you all
of the fees that will be associated when you start selling on Amazon FBA. So we have a selling plan, you can become
an individual seller or a professional seller, I highly recommend the professional plan for
3999 a month. Because this means you get to send your inventory
to the Amazon warehouse and have their warehouse workers ship your products to your customers
and take care of all of the customer service. You just sit back, relax and focus on other
areas in your business that drive revenue. So I strongly recommend a professional plan
at 3999 per month. And you may also want to see the plan comparison
as well. There is also something called referral fees
referral fees mean that Amazon will take a small percentage of your sales. This is why it's so important that you understand
your profit margins when you buy your inventory and we will discuss that later on in today's
video. When you buy your inventory, you have to make
sure that you are selling it at a good price on Amazon. Because after referral fees and after fulfillment
fees, you need to be bringing home some profits. If you are not bringing home any profit, then
we have a huge issue. So there are different referral fees depending
on which category you are selling on Amazon. So make sure you check this out as well. fulfillment fees depend on which plan you
have on Amazon. So earlier we were talking about the individual
plan versus the professional plan, the individual plan you are paying 99 cents per unit sold
and that goes to Amazon but if you have a professional plan, it's only $39.99 a month
and there is no cap on how many units you can sell. So if I go down to fulfillment fees right
here, it really depends on the size and weight of your product. So if you are doing FBA Fulfillment by Amazon,
the smaller and lighter products will cost less as you can see fulfillment fee per unit
will cost this much. I advise beginner sellers to start with something
that is smaller. So you want to be in the small standard or
large standard size here because if you are starting with really big products if you are
someone that thinks that you can sell tables and chairs, and laptop stands and drawers
and bookshelves and all those big chunky products, you are paying a lot more and fulfillment
fees and you are paying a lot more when you are shipping your products to the Amazon warehouse. So maybe you are finding products in China
or a different country. You have to ship it to the American warehouse. So the warehouse worker can ship the product
to your customers. And it will cost more because it's heavier,
and it's bigger. So for beginners, for newbies, I really recommend
these first three tiers. And anything over $5 in the fulfillment fee,
I think is a lot. Even for myself, I've been selling for four
years, my sizes for my products fall anywhere around 250, to about $3.48. So this is what I pay Amazon, to have them
ship the product to my customers, there will be other fees that are associated as well. So if we go to other costs, right here, you
have inventory fees, rental books, service fees, you guys probably won't be paying this
high volume listing fees, refund administration fees, these fees are not a lot. But they do add up, which is why it's so so
so so important that you know how to find your profit margin for your product. It's absolutely crazy to me, because sometimes
when I talk to newbie sellers on Amazon, they don't even know their profit margin, which
is why you should get some proper training and guidance. If you do want to make profits on Amazon. Remember, sales do not equal net profit. And in order for you to make money that goes
straight into your bank account, you really need to get into the nitty gritty of finding
your profit margin, and then doing some calculations on how you can get that money to your bank
account. When you advertise on Amazon, there are some
fees associated as well. We will talk about advertising in a little
bit. But make sure you spend some time on this
page before you open your seller central account. Because then you know exactly Okay, how much
am I looking at to spend. But it really doesn't matter that much. At the end of the day, what matters is finding
a good profitable product, which we will talk about next. And as long as you have a good high demand
profitable product, I promise you, these fees will be non existent. So you should also look at Fulfillment by
seller. If you do have your own warehouse or you guys
are using a three PL you want to be familiar with some of the fees listed here. Okay, so we are not going to spend too much
time talking about the numbers. I'm sure you guys can do your own research
on this page. And once you are done, you just hit sign up
and then follow the prompts to create your seller central account. I want to stress that with every single business
that you decide to start, there will always be expenses involved. If there were no expenses if everything was
for free. If everything was handed to you for free and
shipping was for free and referral fees were free, there's no such thing. We will all be multimillionaires. But that is just not the case in reality,
and this is why it's so important to learn about numbers. Okay, moving on to the next thing that you
need to become successful selling on Amazon FBA, you need a winning product. So there are good products and there are also
really bad products. If you guys choose a bad product, you are
going to risk losing a lot of money. I'm not trying to scare you. But it's very important that you learn how
to look for money making products, products that will pay you products that have a good
amount of demand, but is not saturated products that have big profit margins products that
don't have too much of a heavy fulfillment fee when you are doing Amazon FBA. These are the type of products that you need. I previously did a YouTube video right here,
where I talk about all of the new ways to look for winning products for 2021. So please take a moment to refer back to that
video. But something you need when you are starting
your Amazon FBA business is a software tool that will help you look for these winning
products. I like to use helium 10 helium 10 is a big
software company that helps you look for winning products and helps you manage your entire
Amazon FBA product. Now I'm not going to go over all of these
tabs on the left side. But I do want you to become familiar with
this software. Because of this software is going to help
you scale to the moon. If you don't have a software, Amazon is not
going to work for you. You have to do keyword research you have to
build your product listing properly. You have to understand analytics and understand
marketing. Right here we are in black box Amazon product
research. Like I said go back to that previous YouTube
video I did because I go very in depth with these options right here. But long story short, you have to know how
much monthly revenue in a product you Want to look for what is the price of the product
that you want to search for? How many reviews are you looking for in your
competitors? What is the review rating? What is the shipping size here, I go very
in depth with these metrics in the other YouTube video. There are also some advanced filters here. So basically, you are trying to put in a specific
criteria, where it will pull up specific products that will make you money. So for example, if the monthly revenue of
a product is $1 to $500, you're not going to be making any money on Amazon, which is
why you probably need some guidance. When you are filling this out. You can watch the free video right here, you
click on learn, and helium 10 will guide you on how to use these metrics. But you need to know what you are putting
in. And you also need to know what categories
you need to be focusing on. That will make you money. Not all categories are good. In fact, a lot of them are not ideal for beginner
sellers. For beginners, you should be choosing a product
that is easier, that is lighter, not an electronic, not heavy, not easily breakable, there's so
many things that you should consider as your first product. Because you want to start lowering your risk
in the very beginning of your business. The last thing you want to do is sell the
wrong products and then end up losing 1000s and 1000s of dollars. Again, this is not to scare you, but it does
happen. And if you don't know how to enter the right
metrics and do your proper product research, then you shouldn't be selling on Amazon FBA
at all. This is definitely not a business where you
dive in blindfolded just to see how it goes. If you watch this YouTube video right here,
I talk about my first losing product, this loser product, I lost over $5,000 because
I didn't know what I was doing. Of course, that was four years ago. I'm in a much better position today. But I don't want that to happen to you. So make sure you know how to enter these metrics. And just watch the learn button to get familiar
on how to use this Amazon product research tool. If you want more free training from me, all
you have to do is click on Free Amazon training in the YouTube description below. You can sign up for my free training, watch
the training till the very end, and you will have an option to book a 1 on 1 strategy session
with myself or with my team. On the strategy session call, we will analyze
your entire business and situation and give you direction on where to go in your Amazon
FBA business so you can become successful. Next up, you will need to find suppliers to
make your Amazon FBA product. A lot of us use Alibaba. Now sometimes I get questions from beginners. And they asked me tomorrow, do you think it's
wise to look for a supplier in the United States or in a different country? The answer is yes and no. So a lot of the times I prefer Alibaba and
Alibaba is what I teach, because their prices are so low when you guys develop a really
good relationship with your supplier and you've been using the same supplier over and over
again, ordering larger quantities as you go along in your Amazon FBA business, you can
negotiate lower prices for your inventory as well, you will have to spend some money
on inventory. Now I don't expect anyone to spend 1000s and
1000s of dollars upfront for inventory. That's not how we do things at all. For my very own students, I like to teach
them to source products at a lower price to start. So at the very beginning of your business,
you should be sourcing products anywhere from $2 $3, maybe even $4. And if you are lucky, you will be able to
find products for as low as $1. I remember my first winning product, I was
selling a children's toy, and I sourced that product for 93 cents 93 cents, it was super
light. And that's it. I was doing over $30,000 per month after half
a year in my business, which I thought was really amazing. This was over three years ago. And a lot has changed since then. But I'm sharing this story with you because
there are so many different types of products that you can find at a lower price. And then you sell it on Amazon for a much
higher price. And again, make sure you know your profit
margin because without a profit margin, you are not going to get paid. So for most products, I do recommend Alibaba
but if you are sourcing products, anything that goes in your mouth, anything that goes
on your skin, anything that you eat, I would rather source those types of products in your
own country. So for example, I have a student that is sourcing
hot sauce and he sources hot sauce locally in the United States. You don't want to trust Chinese suppliers
when it comes to anything that goes on your skin or goes in your mouth because they may
not have the proper documentation. When you are shipping your products from China
to the United States. The border might ask for dock mentation, if
they find that there's anything suspicious about your inventory, and sometimes Chinese
suppliers may not have that documentation. So you have to obtain proper documentation
in your own country in order to sell these types of products. But you don't have to worry about that. Because I don't suggest any new amazon seller
to sell any skincare products or anything that goes in your mouth, you shouldn't be
selling vitamins as well as a beginner, because we're trying to lower our risk. If you are selling anything that goes on your
skin or in your body, you are now increasing your risk. Because what if someone gets sick from your
vitamins, what if someone gets a rash by applying your face cream, people can potentially sue
you and again, not trying to scare you. But we are trying to lower our risk as beginners. So make sure you find a product that is simple. That is light that has high demand. And if you do decide to source food, I see
that there are a few food products here that I highly recommend you to stay away from in
China, make sure you source it locally. But your best bet as a beginner is to start
with some easier products, maybe in beauty and personal care. Maybe in home and garden or office products
are really good as well. packaging and printing. There's so many different options. So don't make your life hard by sourcing anything
that goes on your skin, or goes internally inside of your body. Also, electronics are bad, because if your
electronic is not working properly, your customers may get electrocuted. So if you do source an electronic, I'm not
going to stop you. But make sure you guys are getting all of
your units inspected. Especially if you are sourcing anything that
is an electronic going in your mouth or anything like that we don't want to end up in a bad
situation. So Alright, what happens when you find a product
that you want to sell? Well, like I said earlier, you have to find
out your profit margin for your product. So I am going to use the kids play 10 as an
example today, by the way, don't sell a kids play 10 anymore. I know a few people selling this product and
they are making so much money. And now it's oversaturated. So don't sell the kids play 10 but this is
how you look for your profit margin. So now you are wondering how much money will
you actually be taking home. Let's look at this guy right here. So this is Mount Rhino space world's kids
play tent Playhouse. Okay, if you have helium 10 installed as a
Chrome extension, which you will need when you are doing product research. This is my helium 10 Chrome extension right
here. And you guys can download this just Google
helium 10 Chrome extension and download it. So you have a right here. But once this is installed, you now go to
calculate fees. You see how all of these products have calculate
fees. Click on that. So your supplier will be telling you the dimensions
of your product and you will be entering it in right here. They will tell you the weight, your freight
forwarder will tell you how much it will cost to ship your product to the Amazon warehouse
and then you just adjust all the numbers. After you find the information and write down
here it will give you your profit margin percent and tell you how much money you are making
from selling this kids play 10. So right here from January to September, we
are making $12 or 32 cents per unit. This is the net profit. But from October to December, you notice it's
a little lower. Well, that's because FBA fees go up during
q4 q4 stands for quarter four, which is the most busiest time of the year, because it's
Christmas and New Year's and everybody shopping during q4. So that's why your profit is a little lower
compared to January to September. But this is good to know. So you have an idea of how much money you
are bringing home. And this would be the margin. This is the percentage of your product. So January to September, we have $34.23 and
then October to December, it's slightly lower. This is nothing to worry about during q4 because
you will be selling larger in volume as well. Since everybody is shopping during the holiday
season, you can expect to make a lot more sales in volume and volume will make up for
your net profit. A general rule of thumb to follow so you guys
know you need a net profit margin from anywhere between 25 to 35%. A lot of us we have about a 30% profit margin. And the reason why you want that 30% profit
margin or 35% profit margin or 25% is the lowest I would go when comes to private label
products on Amazon, you need some room for advertising and you need some room in your
profit margin where you can restock your inventory. When you run out of inventory, you need to
restock, and you have to buy inventory again. So that's why you need a high enough profit
margin. So you can afford all of those types of expenses
in your business. And right here, there's ROI from January to
September, and October to December as well. So one thing to keep in mind, again, is to
make sure your profit margin is healthy. I personally don't source products if it's
lower than about 27%. Sometimes our products only have a 23% profit
margin. And that is because we're taking money out
from the business and launching new products. Whenever you launch new products, it will
take a slight dip in your profit margin percent. And that is normal because you're reinvesting
into your business to grow your revenue long term that's very important to understand. But long story short, just make sure you have
a healthy profit margin before you decide to pay your supplier to make your product. Last but not least after you find your product
after you source it. After you figure out your profit margin and
you are ready to go. You guys have to learn how to launch your
product. Get your product to page one, because that
is where all of the customers are. I mean, imagine yourself shopping online. Do you ever scroll to page 20 or page 30? Page 10 to look for a product? Of course not, we always like to look on the
first page. And when we find that product, we just add
it to cart and buy it and that's it. That is a normal behavior of shopping online. I know a lot of people do that. So you have to learn how to launch your product. I launch all of my Amazon FBA products by
using Amazon advertising, Amazon PPC advertising which stands for pay per click. So you will be running ads using Amazon advertising
to rank your products up to page one. Now this is a whole different conversation. I can go on and on and on. literally go on 24 hours about learning how
to use PPC. So I suggest you to watch this tutorial right
here. A step by step Amazon PPC tutorial, where
I teach you how to set up your Amazon PPC campaigns and understand the structuring of
your campaigns so you can get some success with launching. You guys should not be paying your suppliers
at all. Please do not spend any money on suppliers. Do not spend money on inventory until you
are confident and knowing how to use Amazon PPC advertising anything online is really
challenging, especially if you are a beginner. And yes, you do need Amazon PPC in 2021. And going forward to successfully launch your
product. So these two sellers right here, these four
actually, they are all sponsored. This means they are using Amazon advertising
to force their ad to page one. So shoppers will see their ad and hopefully
buy their product. If you are someone that has no clue about
Amazon advertising right this moment, do not worry, because I have so many videos on my
YouTube channel that will help you get started. And again, do not spend any money until you
are fully confident and have a really good solid idea on how to launch your product. This is the PPC platform that you will be
using. And right now it may seem intimidating and
confusing. But I assure you it's really not. You just need to learn everything from beginning
to end before you spend any money. So you are in full confidence before paying
your suppliers and getting your business up and running. Think of it like this. When you are running Amazon PPC sponsored
ads and putting your products on the first page here, you are going to drive more traffic,
the more traffic and the more customers that land on your product listing. They like your product, the more money that
you will make. But if you don't know how to get the traffic,
then having a winning product will be useless. You can have a really good product. But if you don't know how to launch it, that
will be another big problem. It's like opening up your own coffee shop. Maybe you have a big passion for coffee and
you want to open up a physical location where you can sell coffee to customers. Well what good is having really good coffee
if you don't know how to attract customers, you can have a coffee shop but there will
be no customers. So same situation here. You can have a really good product but if
you don't know how to launch your product and get your customers you will not get paid. I hope today's YouTube video has been helpful
for all of you beginner Amazon FBA sellers. If you want more free training from me, all
you have to do is click on free Amazon training in the YouTube description below. You can sign up for my free training, watch
the training to the very end and you will have an option to book a one on one strategy
session with myself or with my team. On the strategy session call we will analyze
your entire business and situation and give you direction on where to go in your Amazon
FBA business so you can become successful. Alright guys, if you have any comments, just
drop it in the comment section below. I'll see you guys in my next video.
