How to Sell on Amazon FBA For Beginners [2021 FULL Guide]

hey guys so today we're talking about Amazon FBA and why it's a great opportunity for you to make money now I've been selling on Amazon FBA since 2016 so it's been about four years now and in those four years I've realized that Amazon FBA is such a great way to make passive income yes you need to do a lot of work at the start to build the business to build the product but once you get that all set up you know like the money just keeps coming in and you rarely have to do anything so basically in this video we'll talk about what FB is what stands for and how you can actually make money using it we'll also go into how you can find products using specific tools to make your product research a lot easier we'll talk about finding suppliers getting samples placing bulk orders from overseas and having those shipped over to the States and also creating a quality listing that will actually get your products sold so all know I'll try to make this video as detailed as possible but you guys this is gonna be more of an overview and if you're a beginning FBA seller then this is gonna be the perfect video for you don't watch any of those really detailed videos yet you really want overview of what this business is like and how you can actually start and make your own Amazon app a business so the first thing I want to talk about is that there's actually two ways you can make money on Amazon there's Amazon FBA which stands for fulfilled by Amazon and in this method basically Amazon is handling everything you are sourcing a product you're making the listing and then you're shipping all these products over to Amazon's warehouse and when someone buys the product on amazon.com Amazon will pack it ship it and handle all the customer service this is also how you are able to offer Amazon Prime shipping on your price so a lot of people will only buy products on Amazon if it comes with that free prime shipping so I definitely recommend going this route the other method is Amazon FBA em and the stands for Amazon fulfilled by merchants it's sort of similar to FBA in that you still have a listing on Amazon but you don't get that prime shipping and one thing item does sell you have to fulfill it yourself so you need to pack it and you need to ship it to the customer obviously this takes a lot more time and it's way less passive than FBA but the good thing about fbm is that there are fierce fees when you're selling on FBA the fees can get kind of high but if you pick the right product that has hi enough profit you'll then like you'll still be able to be very profitable even with Amazon's big FBA fee and FBA is what I've been doing because I want that more passive type of business so this video is gonna go more into FBA rather than fbm for most new sellers I recommend that you get into private labeling and what private labeling is is you're taking these existing products that are already crated and you're basically creating your own brand and putting that brand on this generic product so that's exactly how I've built my business I find these generic products at these factories overseas and then I basically tell them hey I want to customize this product to this shape or this color or whatever and then I send them my logos my packaging all that stuff and they're able to create this product and make it look like it's my own product the vast majority of sellers on Amazon use private labeling so I do think this is the best way for you to get started the good thing about private labeling is that you can build a brand around it so you can take advantage of all these existing products and sort of create your own brand if you're focusing on one specific niche you can do a bunch of different products from that niche and have their brand centered around that type of product this way you can actually build some brand equity and if you ever want to get out of Amazon FBA you can probably sell your business to someone else okay so now we're on Amazon's homepage we're just going to go through and I'm going to show you a type of product let's just search resistance bands because that seems to be trending right now with this quarantine and all these home workouts so basically yeah this is Amazon you guys are probably very familiar with this you search whatever you're looking to buy and the thing Amazon is it's like the biggest search engine for for buying things in the world now Google it's like people searching on Google to normally get information or to find articles and stuff like that but on Amazon when people are searching things up they are literally looking to buy things so that's why it's such a great platform to actually sell them on because everyone on here is looking to buy okay so we are on resistance bands and yeah basically you search some resistance bands and you see all these different listings you can see that these are all sponsored so the sellers actually paying to be listed at the top about pretty expensive yeah there are tons of sellers selling pretty much the same product and this brings me back to my private labeling which I mentioned earlier these are all the same product you guys like it's made by one of the few factories in China and they're basically just slapping their label on it their brand on it and sounding it as their own and it's not scanning like everyone does this this is just what Amazon FBA is like so Amazon FBA obviously the goal is to get on this front page and in order to do that we need to have a ton of reviews you need to have a quality listing and you have a quality product because obviously that's going to affect your reviews and therefore your number of purchases and yeah if you make the first page of any product you're going to have tons and tons of sales like even for very specific niche products that you don't think many people will be buying well there are people buying that on Amazon so if you're able to find the niche product and actually rank on the first page of that you'll likely do very well now like I said when you were getting started with Amazon FBA you have to be extremely diligent with your product research if you find a product that is not going to sell well then your business is already going to be tombed and you probably won't make any money and you're probably losing money actually so that's why it's so important to find good products that actually bring you profit and there's actually demand for so one of the tools that I like to use and which is probably the most popular tool for Amazon FBA sellers is jumbles cow so we've already searched up resistance bands here jungle Scout has a chrome extension that you can install and basically I'm just going to click that and it's going to pop up a bunch of different information that is extremely helpful so based on here you see all these products you see the seller you see the price it's going to tell you the monthly sales it's also going to have the monthly revenue then this is all estimated but you know it's pretty pretty accurate it's going to tell you the number of reviews the rating and the rake number the seller type so you can see that pretty much everyone is FBA Amazon actually means Amazon selling it by themself but you can see most of these sellers are gonna be an outside third-party sell and then finally the category and the reason why this is so important is because it tells you the demand for a product and it tells you what your competition is so for this product you can obviously see that yes there is a ton of revenue for the products on this first page but all these products have tons and tons of reviews so man 12,000 reviews 20,000 reviews as a new seller obviously it's going to be very hard to compete with these products since you're starting out with zero and as a seller you'll find that the number of reviews you have is extremely important and if you're not able to compete and get your number of views this high then it's going to be hard to rank for this product now that's not saying that you won't make any money it's just gonna be hard to get on the first page or second page or third page so optimally we want to see the number of reviews a lot lower like I like to see it when there's under 50 reviews because that means that you can actually create a new product and hopefully get those for the 50 reviews pretty fast but yeah but monthly revenue is also important to see because it just shows how much demand there is and yeah you can see mostly Sprague's are above $15 you want products that are generally gonna be at least 10 $15 ten on the very low side because once you get into products that are that cheap the Amazon fees are going to really eat up a lot of your profits if you're solving something for seven dollars for example it's very likely that the Amazon fee is gonna be like around four dollars so if you can't get that product how it shipped here send it to Amazon all that stuff add costs for three dollars then you will be losing money now another part of trouble scalp is you can actually go off to their own website you don't have to do it through Amazon and there's a lot of cool stuff you can do in here so for example right now I'm in the find product section opportunity finder and this is what it sounds like it helps you find opportunities it helps you find products that you might be able to sell that would be profitable so what you want to do is you know find whatever category you want to sell them so we can say since we're doing resistance bands let's say sports and outdoors and then you can select the average amount or monthly units sold so I guess I'll just leave this stuff here from now but you can change all these things optimally you want something local petition you want something with a good niche score but yeah I was just search this and see what we find this is gonna be an extremely generic search okay so it's pulled up all these things and basically it tells you the niche right and it tells you the category it tells you the average monthly units sold average price search volume competition in these scores so right now all these are very low it's gonna sort it by that and basically yeah this is oh gosh don't look at that yeah basically this is a way for you to actually find the products and one thing I always tell people is don't sell things that you want to sell these products are probably gonna be higher competition because you know people just think about these products from the get-go and they just do it so there are a lot of these very niche products that you don't know about and a tool like this helps you find these nations and building up an e-commerce store and building up an Amazon FBA store we don't care what the product is we just care that there are profits and that it's gonna be worth our time to actually create this brand create this product creates listing and sell it sorry so going back to Amazon yeah so this category is extremely competitive it's gonna be hard to do well in this category just because there's so many people selling it and a lot of the top results have just insane amounts of reviews so definitely keep that in mind so next up is once we've found product and I definitely recommend getting at least a few weeks to finding your product you're gonna have to find a factory to make this product and the best way to do this is just go to Alibaba comm so I'm gonna go there right now and search the product that you want to do so we're gonna do resistance bands so it's gonna bring up a ton of different listings and basically all these people on the right these are factories of a lot of them are factories some of them are actually trading companies if you are trying to get a product for the lowest price you'll do the best with a factory because then there's no middleman the good thing about training companies is that they often have a lot better customer service they have english-speaking reps and that can make actually getting your first product a lot so I've used both trading companies as well as going direct to the factories all right so let's look at some of these results so first up we can see you can see the pictures of the stuff that they're selling and if that's exactly what you want to make then that's perfect and you tells you the price a lot of times the actual price is a lot different than what they'll actually quote you and we'll get into that later but you'll have to message the supplier ask what their minimum order quantity is they're pricing their samples and all that stuff but we'll get into that later quick run-through of what you should be looking for you want to see where they're from so I mean I think most of these are going to be in China how long they've been on the platform so seven years is quite good also here tells you that they are part of trade surance which is good it's a free service that basically helps protect you in case something goes wrong with your order or they can't fulfill it or the products turn out like garbage and then also their transaction levels so it also tells you the response rate as well as the amount of transactions they have done in the last six months so we're going to go through here if there's anything you see that matches the product you want to do and they have like you know good transaction history good reviews all that stuff what I recommend you do is reach out to them you want to click on this contact supplier button and with that you're going to ask them if they can actually make you a sample how much that costs normally it's gonna be free but you pay for shipping you'll also want to ask their minimum order quantity as well as their unit pricing as well as any shipping options that they do have when you're starting your first product I recommend talking to at least two or three suppliers you want to get samples from two or three suppliers so that you can actually compare the samples make sure that the product is good quality and that you think it will sell and with that you can actually have them compete with each other on the pricing you can go back and forth with these suppliers and ask them to reduce their price because ultimately the whole goal is to get this product for as cheap as possible so that you can sell it for as much as possible once you find a supplier and get the product and everything looks good I recommend looking up some more detailed guides on how to actually create your first order through Alibaba trade assurance and how you can get all up to the United States using ocean shipping or air shipping it's very complicated you get to deal with customs and all that stuff so a lot of stuff for you guys to learn but it is very exciting so now the next thing you want to do is you want to create your Amazon sellers account and what you're gonna want to do is go to sell amazon.com and it will bring you to this page and this page is gonna have a ton of different information for you so I definitely recommend looking over it and seeing all the stuff that you should know ok so now we're at the plants and you can see that there are actually two different selling plants there's the individual plant as well as the professional plan pretty much everyone I know uses the professional plan because if you're selling over 40 products per month which I assume you will do at some point then it makes a lot more sense to go with a professional plan the professional plan is a straight $39.99 per month whereas the individual plan is $0.99 per product that you sell now I will say that if you are just starting out and you're making your account early and not actually selling anything then sure you can go with the individual California now and you can upgrade that later on once you get your product in it starts making sales so I sort of went through shipping just very briefly but I guess I'll go into a little bit more overview as to how you can get your products shipped from your factory overseas to the Amazon warehouse now there are two different shipping types the first one is air shipping and for most people if you're doing a very small product or you're doing a small order then air shipping is going to be the best thing to do it sounds like the way this I mean you're shipping it on an airplane so this is good for smaller orders that don't take up too much space that aren't too heavy and yes air shipping is more expensive per volume than per weight but it's a lot faster and it's a lot easier once you start doing these huge orders where you actually need like a big truck and different pallets to carry your items then it's probably gonna be smarter to do ocean shipping and this is when you actually put the products on a boat and they ship it over on the boat and it takes about 2 to 4 weeks for the products to actually get here depending on where you are in the United States but the good thing about this is that it is a lot cheaper when you are shipping big items when you're shipping kind of stuff it's a lot more economical than air shipping but for now I think don't worry too much about the shipping once you get to that point in the process you'll learn about it and you'll make the right decisions and you know the biggest thing that I tell people with starting any business and specifically ecommerce business is just get started you guys like start finding that product that you want to sell and just do it because you're gonna learn as you do it the last thing you want to do is spend all this time doing research getting analysis paralysis and then just never just starting it so just start it so once you've gone through the whole process of finding a product and making sure it's gonna be profitable find a supplier making that first bull order and getting it over to Amazon well you have to have a good listing and let's go over some of these listings and just analyze what they're doing correctly and what you should be looking out for when you're making your own listing so let's just click on this one it seems to be a very popular product for resistance bands ok so right away you can tell that the product image is very clear it tells you exactly what you're going to get and this is like it's like a thumbnail for YouTube it's extremely important that you have a clear picture that shows the consumer what they're going to get when they purchase this product it has to be on a white background just an FYI you can see that they have multiple pictures they tell you how you can use the product its features a bunch of text which is great it gives you a picture of the actual sheet that tells you all the different types of workouts what's in the box different ways to actually use the product so this is very smart when they use models to actually demonstrate using the product this is a very good conversion technique to actually get your customers to buy this specific product also has a video which is really good to have but let's also take a look at their title so you can see that the title is it's pretty generic but it's also very descriptive it tells you like that's all these different keywords it tells you what it does what you can hit with it and all that stuff and let's see another important thing with this is your description so you want to have these bullet point descriptions that really show you what the product is about if you're not too familiar with copyright I recommend looking up some YouTube videos on how to write these descriptions because it's gonna help you a lot now you want a good description to actually get your customers to buy but yeah you can see that they do really well here one thing that I do see a lot is yes people like to capitalize the first part and then they have a description that is not capitalized so also let's take a look at this listings so with this particular product you can see that they have a very cool and enhanced product description now if you're just selling you're just starting out and probably won't be able to have something like this once you have a brand and once you have that brand trademarked you can apply to amazon's and on brand enhanced program i think that's what it's called and actually be able to create these enhanced product descriptions for your listings when you're just starting out the only thing we'll be able to put into these product descriptions is text so basically right here you're just going to describe what the product is and why it's the best próxima yeah this this listing is obviously extremely good and here is the sponsored products relate to this item so all these other sellers are advertising the products they are bidding on keywords in order to be shown here when people do end up on this listing so yes some people will you know look at this listing and then actually decide to buy one of these products this is probably the most important part of your listing and that is the review section I mean you can't really build reviews but just know that it's extremely important for the life of your product as you get more and more sales people will start to review your price and this is what is going to really make your product successful if you have thousands of reviews on a product then you're going to be doing really well as long as the product reviews are good and you know having a listing like this with so many reviews its equity it's like a company you can sell this listing to someone else in the future if you want one thing I like to do is actually email your clients one day make a purchase and once they receive the product I like to set a non-mac email that goes out I think two or three days after the product is delivered and it basically just asks for a review I recommend any new seller do this because that's going to increase your conversion rate by a lot for most products if you don't send these emails to them maybe one or two out of each hundred purchases obviously we want more than once two reviews per hundred sales we want at least five because that's going to really help your product take off so guys I have to reiterate that's launching an Amazon FBA business is not a fast business to make money you'll likely not make money for at least the first few months I mean right when you start you'll be doing a lot of research you have to learn a ton about how to talk to suppliers how to get those products shipped over how to get samples how to negotiate on the pricing is it's just a lot of things that you need to focus on and learn from the reason why I think so many people are successful on Amazon is because this platform is the king the queen of just ecommerce like everyone does their shopping on Amazon and when they have so many eyes so many potential customers on this platform if you're able to find a product that is profitable that people are actually looking for where there isn't so much competition then that's the winning formula and if you follow through if you create the product and you make a good listing then this product will sell I guarantee you it is a huge initial investment of time at the beginning guys like building up an e-commerce brand is not easy but once you set this whole system up and you have it you know reoccurring where you just get sales and Amazon takes care of everything then it's extremely passive you guys I I don't spend any time managing my Amazon store the only times I have to actually do something is when I run out of stock and even then it's very simple all I have to do is contact my supplier get things made ship it here and then that's pretty much it it will just continue to sell on its own on Amazon's platform a lot of people think it's too late to get into Amazon FBA and while it is harder now than it was four years ago it's definitely still possible I see people starting out recently that are doing well it is harder but you guys if you're smart and if you do the right product research then you will be successful and that just brings me to the point where you guys you have to be extremely careful with the research and that's why you need a tool such as jungle scout if you go into making an Amazon FBA brand without doing your product research using a tool like jungle scout then your chances of failing it's a lot higher so I definitely recommend making that initial investment it's not very expensive I'll have a link to it in the description below but if you are considering starting on Amazon FBA then guys you have to get a jungle Scout or another tool like that so hey you guys I hope you got a lot of value out of this video this is just kind of like a step-by-step brief guide into how you can actually get started building your Amazon FBA business do I recommend it I do it is more risky than a lot of other businesses you could start because that initial investment of your product you have to buy in bulk and if it doesn't sell or it's not profitable then you could lose some money but like I always say you guys just need to take action just do it don't think too much about it don't be too worried about losing money because the lessons you learn in starting this it's going to be priceless like you'll learn so many different things about e-commerce about sourcing products about building your own listings and profit ography and all that stuff that even if you lose money and I'm saying even because you probably won't you're gonna get a lot of value out of that money Amazon FBA has helped me out with my other businesses and it's just like the perfect business to start from home you can literally do Amazon FBA from anywhere in the world like you can sell in the US on Amazon and be in Bali Indonesia that's why this is such a cool business opportunity and hey guys we're living in this really cool times there are so many different ways to make money and if you're looking for a way to make money that's more unique which is very flexible where you can do anywhere you want with a lot of earning potential the Amazon FBA could be the right business freak anyways thank you guys so much for watching if you like this video make sure to hit that subscribe button I make a ton of videos about investing entrepreneurship and personal finance oh and if you have any friends that are interested in Amazon create make sure to share this video I think it's gonna help them out a lot so that's it for today thanks so much and I'll see you guys in the next video peace [Music]

Channel: Charlie Chang

Views: 802,090

Keywords: how to start amazon fba, 2020, selling on amazon fba, how to sell on amazon fba for beginners, how to sell on amazon for beginners, how to sell on amazon fba, e-commerce, side hustle, make money from home 2020, make money from home online, make money from home as a teenager, alibaba, junglescout, tips for amazon fba, amazon fba find a product, amazon fba research tips, amazon fba step by step, amazon fba 2020, amazon fba for beginners

Id: oS4FG-AwUGU

Length: 24min 25sec (1465 seconds)

Published: Thu Jun 11 2020