hey guys wick facil here in this video
we're going to talk about amazon fba
what it is and how beginners can start
earning a hundred to seven hundred
dollars per day passively
worth that after the intro
hey guys how's it going mike fasil here
welcome to the studio before we actually
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so i got started in amazon fba with my
dad actually around 2012 and 2013
and the reason why is because we just
wanted to make money online we wanted to
provide for our family we wanted to pay
off our debt so we wanted to get more
freedom for ourselves
and that's the reason why me and also
two million other people
began selling on amazon to actually make
some money
the problem with most people is no one
really knows what the opportunity is so
they google things
youtube things and they still don't know
what it is so in this video what we're
gonna do
is we're gonna break down the
opportunity decide if it's a good
opportunity or bad opportunity
and see if you could still make money
and if you do how you can actually go
ahead and get started
so let's actually break down what amazon
fba is all it is
it means fulfillment by amazon
essentially
you go get the product and create the
product
or buy the product in some places like
china and then you ship it to amazon
and they do everything else they handle
customer service they deal with returns
they
they do some of the marketing for you
and that's why a lot of people like it
because oh my god
amazon's gonna make the money for me i
could be passive i could live in the
beach i could go
chill in bali and spend all of my time
interviewing all the successful people
that live here on this weird little
island
like i said that is what most people
expect when they see
you know the ads when it comes to amazon
fba but is that really the truth for the
beginner that's just getting started
let's break down exactly how you can get
started first so how i got started back
in the day was i would go to alibaba and
i would just find what products that i
think
would sell well um and in our niche it
was like barbecue supplies so we would
sell things like barbecue gloves
um and grill mats so let's just type
this in barbecue
gloves and just like that we would see
all these barbecue gloves go for like
two dollars a piece
40 cents and whatnot and the first step
would just be literally going up to here
clicking on this and then finding a way
if we could contact the supplier
now all these people are usually like in
china and this is why they're able to
get like very disgustingly low prices
because it's china and i mean a lot of
things are kind of made in china right
so i remember back in the day you know
me and my dad would be messaging all
these people from china like hey
what kind of product is this oh can you
give me the specs oh what's the minimum
order quantity i could actually go ahead
and buy
can i put my own logo and design on it
the moment you know we started getting
the answers to the questions that we
actually enjoyed we're like okay let's
make a deal
so say we would go up there and say we
wanted to buy like 50 to 100 of these
pieces
for like a dollar a piece right that's
what most people do you need some type
of startup capital for this
um say we would spend 500 on i don't
know like
on 500 of these cotton gloves or whatnot
the next step we would do is go to
fiverr and just type in logo design and
what we ended up doing is i remember
going up to here
finding someone to create a logo for me
for as little as like five bucks
you just have to scroll around and see i
mean this one's more affordable it's ten
dollars and then they'll literally do it
within 24 hours and there's 1 000
reviews
so you could just look around at what
actually would fit your budget or not
but the moment we actually got a logo
and design we actually had them
go ahead and you know put it on all the
grill mats that we were actually selling
all the barbecue gloves that we were
sending it after you brand it the next
step is you would of course
send it to amazon now when you send it
to amazon it would literally look like
something like this
and when people type in things like
barbecue gloves or grill
gloves which is what you see right here
people would go ahead
come in here and go ahead and buy this
amazon ships the product
amazon then handles the customer service
and if they want to return
then they'll also handle the return for
you and the coolest thing is you get
paid
every two weeks from this process every
single time you make money from this
you know the cycle continues just go
back to china
get more inventory from your suppliers
ship it back to amazon and you continue
the process until 100
turns into a thousand dollars turns into
ten thousand dollars turns into a
million dollars like what some people do
it
but let's break down your
responsibilities because that's the most
important thing you know
amazon will do most of the hard work but
you gotta understand what you
are what they are expecting from you
number one they are expecting you to
choose the right product okay
um if you lose money on choosing the
wrong product that's not amazon's fault
that's your fault
i knew this because i remember typing in
for example
dog leashes and i remember spending two
thousand or three thousand dollars on
dog leashes i'm like oh my god everyone
loves
dogs they're gonna buy dog leashes right
so i remember coming in here and buying
a bunch of
like certain dog leashes and um it was
kind of like this but it was more like a
bungee thing
i ended up sending it to amazon and just
hoping that i was gonna make a bunch of
money
ended up not you know i didn't do much
product research into it i didn't do
uh much of the marketing behind it i
didn't understand how to reach my ideal
customers and because that i wasted a
lot of money
in a lot of different products in the
pet niche because i just had no idea
what the hell i was doing
if you choose the wrong product you can
be out of
not just several hundreds or thousands
of dollars but also
months of your life because you're
dealing with china it takes time to
talk to china you know it also you have
to send some samples over to your house
you have to see if it's good quality
because sometimes the suppliers in china
completely suck
right and it's very bad quality you
don't want to spend two thousand
dollars on certain products if it's
gonna be crappy material
and then when you buy like several
thousands of units to your place
you literally gotta see if it takes
several weeks to go go
like i said from china all the way to
your place or to a freight forwarder or
to amazon itself
so we're looking at like several months
maybe six months before you can actually
get your product
live on there right and the worst thing
is if once your product is live you
realize that you chose the
wrong product so most of your focus is
trying to find the right product
another thing that you're responsible
for is keeping your inventory in stock
okay when this person runs out of
inventory
these people aren't going to be the ones
talking to your supplier you are going
to be the one
that is responsible for that if you do
not keep your inventory in stock what
happens
is this gets removed from the top of the
listing and it starts getting lower and
lower and lower in like the search
engine result which all amazon is it's
like a search engine
which people go ahead and buy people are
typing in grill gloves
or dog leashes or heat proof or silicone
like these are all the things that
people are actually searching for
if you do not keep yours in stock and
someone types in grill gloves
and yours is on here but you're out of
stock guess what you're out of luck
they're gonna start dropping you even
though you might be higher in
the algorithm or in the search engine
and last but not least is you're also
responsible for marketing okay
the thing about this is there's
literally two million sellers plus on
amazon and just with grill gloves alone
you see all these different competitors
odds are if you're like the thousands
person making grill gloves you're
probably not going to show up on the
first page
of you know um amazon for the search
word you're probably gonna start
be all the way at like the end of this
right if i'm gonna type this in
like you're literally maybe on the 18th
page at this point right
no one ever goes to this far in the
search engine for
amazon right so you're gonna have to
figure out some other marketing things
you're gonna have to maybe figure out
facebook ads that's what we ended up
doing
one of the products that we could not
sell on amazon we started selling with
facebook ads through shopify and our own
e-commerce programs
that's exactly how we started actually
with shopify because we couldn't sell
some products on amazon
but those are essentially all the
benefits or all the responsibilities
number one choosing the product number
two keeping it in stock and number three
marketing
now let's talk about the benefits that
come with this when you actually have a
good product that you've
picked number one it's passive income
you know you're not dealing with
customer service you're not dealing with
complaints you're literally just oh
we're out of inventory go to china buy
product
have them send it to amazon and just
like that that's really it
you can even hire somebody else to do
that for you it's pretty inexpensive
and just like that that's where the
passive income lifestyle in all the ads
that you see actually make their money
the second thing is you don't have to
deal with logistics
you know i ran an e-commerce company in
the past and it's a nightmare i remember
coming back from traveling a lot and
it's literally seeing 50 returns that i
could deal with
i had to deal with you know realizing
what i'm going to do with the returns i
had to deal with the customer service i
had to build an
email marketing team i to build a
customer service team i had to deal with
all these things and it was very very
complicated
for people that aren't that tech savvy
it's very simple
with amazon fba you like oh we're out of
stock click buy from china
have them send it to amazon and just
like that you're making money another
thing like i said
you don't have to manage returns you
don't have to deal with customer service
it's very quick delivery which means
the customers are very happy and not
just that but like amazon prime is
literally like crack cocaine to most
people in america
like literally people spend thousands of
dollars every single year on
amazon just because you click a button
and for some reason it just shows up
within two days
right that instant gratification is
literally like a drug to most people
and that's why like every single second
i think dr jeff bezos makes like 200 000
or something ridiculous like that it's
because a lot of people are already
on amazon and millions and millions of
people are
already searching on it because like how
you would search your problems on google
people are searching for products they
want to buy on amazon
now let's talk about the disadvantages
number one of course it costs money
okay every single time someone makes a
sale on amazon
you know you literally have to pay
amazon a certain fee and they'll
literally take it away from your profits
right
so if you're selling a lot of products
expect smaller profit margins if you're
dealing with things under like 30
dollars
another thing is of course with ease of
ability of returns there's also going to
be more likely chances of returns
because amazon has great customer
service and they're always going to side
with the customer
expect your returns for amazon fba to be
a little bit higher than if you were
gonna do
you know your own website on shopify
another thing is sales tax is pretty
complicated
you know i'm not a tax advisor i'm not a
tax consultant this isn't financial
advice
one of the hardest things that most
people do and have
with e-commerce is dealing with the
sales tax when it comes with
amazon because you got to understand
each state
in the u.s has different state like
sales tax laws and codes and whatnot
you have to be able to report on all
that and it's just confusing and it's a
logistical nightmare and i guess the
best
biggest disadvantage is how much cost up
front you're willing to invest before
seeing if you're actually going to make
enough money or not right for one single
test of a product you would
need maybe a couple thousand of dollars
right and not only that but you may need
like three to six months of
testing right so the e the barrier of
entry is a lot higher and expect you to
actually break even with your initial
investment
maybe after a year or two right so if
you're trying to get rich quick with
amazon it's probably not gonna be the
best thing because it's an actual
business
and it takes time you have to deal with
china that takes
several weeks to communicate and
actually send products to you
not a lot of people factor in the fact
that since you're dealing with china
and all the confusion that deals with
like sending products from china over
here
it's just like a logistical nightmare
and if you don't have five to ten
thousand dollars up front
probably amazon fba is not gonna be for
you but if you do let's talk about how
to become successful
remember product research is 80 of the
battle
80 and how you do that is you literally
go to amazon and what i like doing is go
to the reviews
and you got to find out how you can
actually improve certain products
that's exactly how people like literally
do the best is when they find out
what people complained about and they
made a better product number two
figure out how to bundle products now if
you could see and i go to this barbecue
glove right here
uh this is what i did in the past i
would find out that people were buying
grill gloves but if i scrolled down they
were also buying this in return
and the total price was 32 bucks so what
i ended up doing
was i literally took two products and
just put them together and just made
them as if they were one product on
amazon
that way people would see like a higher
perceived value and then end up buying
it for me
i literally did that with barbecue
gloves and like those meat treading
claws
which were like this and as you can see
this is a typical example of bundling
you have grill gloves you have this
brush and then you have these meat clubs
i was like one of the first ones that
actually bundled the meat claws to the
grill gloves and that's what
allowed me to kind of stick in front of
the competitors
another thing is learning seo or search
engine optimization
you got to figure out how when someone
types in grill
mat or grill gloves how to actually get
your product
to be the number one ranking thing on
there you know
the biggest thing is of course reviews
but of course you could see the titles
playing to a big role
not just that but the exact description
all of these
add into certain things that people are
actually typing for
and last but not least if you really
want to become successful this you got
to learn how to build a brand off of
amazon
that's what most people don't want to
hear they're like oh my god i wanted to
get rich with amazon fba but then they
don't realize that you have to build
your own brand separate from amazon
right the successful people are the ones
that build a brand and if you're not
willing to do all that don't worry we
have a free workshop in the link below
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money online sign up for them below
if you're new to the channel and you
want to find out more ways to make money
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podcast on my home page
and check out all these other people
that made millions of dollars in various
other businesses online
and ended up leaving america or chile or
canada and now live in asia and bali in
thailand it's pretty dope
that being said i love you guys i'll see
you guys later
you