it's too late to start selling on amazon
fba if you're going to try to use the
old school private label methods or
wholesale technique and that's because
amazon is oversaturated china all the
amazon fba fees and two other reasons
i'll talk about in just a minute and
right now amazon has over 9.5 million
sellers and over 2 000 new sellers are
joining every single day which means
selling on amazon is starting to get
really saturated but keep in mind amazon
is a 1.7 trillion dollar company last
year they did over 400 billion dollars
in e-commerce sales and the crazy thing
about that is two-thirds of all sales
that happen on amazon are from
third-party sellers that's people like
you and me selling on amazon's platform
but what's most exciting to me about
selling on amazon is this one graph this
is the total amount of sales that amazon
has done for the last 10 years and you
can see it's growing like crazy and
remember two-thirds of all these sales
are from third-party sellers so not only
is there a lot of opportunity with
amazon fba the opportunity is actually
growing the problem is most people are
actually doing it wrong and i'll talk
about that later in this video now still
people will say that it's oversaturated
that there's too much competition and i
do think that's true if you're trying to
do boring private label or wholesale and
yes there are 9.5
million sellers on amazon but only 2.3
million of those sellers are actually
active sellers and of those 2.3 million
active sellers only 1.1 million are
actually selling in the united states on
amazon and the crazy thing about this is
that 43
of all active amazon sellers in the
united states have made over a hundred
thousand dollars by selling on amazon
that means there's over 400 000 people
that are selling on amazon that have
made over a hundred thousand dollars and
i'm one of those sellers my name is
travis if you're new to the channel and
i have one product that i've been
selling on amazon that's done over a
million dollars in sales and i'm making
this video to show you the truth about
amazon fba so hit the like button and
i've personally tried a lot of different
ways to make money online and amazon fba
is by far the easiest way i've found to
create a legitimate passive income
business and that's because amazon fba
stands for fulfilled by amazon and it's
a way for you to sell products on
amazon's website where you basically
send in the inventory that you want to
sell on amazon's website to their
warehouse and whenever a customer on
amazon's website goes to the search bar
they search for your product your
product will come up at the top of the
search results they'll click on it
they'll buy it and you'll make money off
that sale now it's called fulfilled by
amazon because amazon actually picks
packs and ships your products out for
you which means you can live wherever
you want you can spend your time
traveling or doing whatever you love to
do because amazon is handling all the
shipping and fulfillment of your
products and this is a great business
model but the problem is most people are
doing it wrong this is a chart of
e-commerce growth in the united states
and you can see people are buying things
online more and more every year and
since people are buying things more and
more online it should become even easier
to sell things online but the problem is
most people are using techniques that
used to work three four five years ago
and there's four main ways that you can
make money selling products with amazon
fba but some of these are better than
others and the first one is retail
arbitrage this is where you go out and
you find products that are deeply
discounted you buy those products and
then you flip them on amazon where
they're selling at a higher price and if
you're tight on cash this is a good way
to make some side income but the problem
with this business model and why i don't
recommend it is you're not really
building a business and you're not ever
going to be able to have passive income
because every time you want to make some
money you have to go out and hunt for
some deals and then you got to do the
work of putting those items on amazon to
sell it so you're constantly having to
do more and more work to make money the
second model that some people do but i
personally think is dying is wholesale
this is where you buy products in bulk
at a discount let's say a hundred pairs
of nike shoes that are normally a
hundred dollars you buy them for fifty
dollars you then take those shoes and
flip them on amazon for their full
retail price of a hundred dollars and
you get to keep all the profit after all
the amazon fba fees and everything else
now the problem with this is usually
you're not the only one that's
wholesaling that product which means
someone else is going to come along and
they're going to lower their price by a
little bit which means you need to lower
your price by a little bit and it ends
up being a race to the bottom where no
one ends up being profitable the same
thing is true about private label and
this is where you buy a product from a
website like alibaba.com you slap your
brand your private label on the product
and you sell it on amazon now this can
work if you can create a really cool
really strong brand around your private
label product or maybe you find a
product that nobody else knows about but
the problem is as soon as everybody else
starts finding out about this private
label product opportunity they're going
to come in and again they're going to
lower their price you're going to have
to lower your price and it's going to
end up being a race to the bottom what i
recommend doing instead is creating a
passion product this is where you create
a unique product that's better than the
competition and you create a really cool
really strong brand around it and
ideally you try to create a product that
does not yet exist that you wish existed
that if it existed you would actually
purchase and this is what i did with my
product and this is what i teach other
people to do and i'll share some real
examples of this including how much
people actually make doing this later in
this video but the second reason why
many people think it's too late to start
selling on amazon fba is because of
china and it's true there are a lot of
chinese manufacturers that are selling
their products directly on amazon for
way cheaper than you or i could ever
sell those same products for and that's
because they can cut out the middleman
and this is one of the big reasons why i
do not recommend trying to do wholesale
or private label because if you're
trying to do private label and you're
trying to compete against your own
manufacturer they're always going to be
able to sell their products lower than
you can sell your products for and it's
true that these chinese sellers will
sometimes use dirty tricks to try to get
american sellers blacklisted or banned
from amazon again this is why i
recommend staying away from private
label because if you're going to a
manufacturer just taking their product
putting your label on it and trying to
sell it on amazon that manufacturer or
another manufacturer is going to see
what you're doing and they're going to
just sell that same product on amazon
directly but if you create a product
that's better than the competition and
you create an amazing brand around that
product your product is going to be on a
completely different level than the
competitors which means that you're
going to get more sales which ultimately
means more profit for you but still a
lot of people don't want to sell on
amazon because of all the amazon fba
fees and this is reason number three why
it might be too late to start selling on
amazon and it's true amazon charges a 15
fee just to sell on their platform
meaning if you're selling a product that
costs a hundred dollars they're gonna
charge you 15
when you get a sale of your product on
top of that if you choose to be part of
the amazon fba program you're going to
have to pay a pick and pack fee and this
depends on the size and the weight of
your product but for instance with my
product here they charge me over four
dollars to pick pack and ship the
product out to the customer and on top
of those fees there's other fees that
nobody talks about like storage fees and
receiving fees and a bunch of other
random things i've talked about in
previous videos but keep in mind even
though amazon does charge a 15 fee to
sell on their platform they've spent
billions of dollars marketing their
websites getting customers to their
website and most websites as i mentioned
earlier would probably have to spend at
least 15 on marketing to get people to
their website but with amazon it already
has built-in customers and that's why
they charge that 15 and for the amazon
fba pick and pack fee you actually don't
need to pay this fee you could change
instead of doing amazon fba you could do
amazon fbm which stands for fulfilled by
merchant and this is where when a
customer buys your product on amazon's
website you actually pick pack and ship
it out the problem with this is is
oftentimes the shipping is going to be
more expensive than the pick and pack
fee and by doing fulfilled by merchant
you constantly have to be fulfilling
orders instead of being able to be free
to live wherever you want and spend your
time doing what you want to do so in my
opinion the fba pick and pack fee is
well worth it and by being part of the
amazon fba program it allows your
product to be prime eligible meaning
when customers go to amazon they're
gonna see a little prime badge next to
your product meaning that they can get
it in one to two day shipping which will
make it so that you get a lot more sales
because people like to buy prime
eligible products and ultimately that
means that you're going to make more
money in the long run and yes as i
mentioned there are a lot of other fees
with selling on amazon but honestly all
those other fees don't really add up to
much for instance in my first year
selling this product on amazon i did
over 360 000 in sales now obviously that
is revenue and not profit i'll share my
profit in just a minute and i ended up
spending over 50 000 on the fifteen
percent amazon selling fee i spent
another forty eight thousand dollars on
the amazon fba pick and pack fee and all
those other amazon fba fees including
storage fees receiving fees and a bunch
of other random things was around twelve
thousand dollars and after you subtract
the cost of my product ppc and just
other fees associated with running my
business in my first year selling this
product on amazon i did over a hundred
twenty thousand dollars in profit and
i'm not the only one that's done this i
taught my girlfriend how to sell on
amazon and she's done almost 80 000 in
sales and after you subtract her product
costs all her amazon fba fees and all
her other expenses she's done over 20
000 in profit and she was able to create
her business and make that money while
traveling with me and she ended up
making enough money that she was able to
quit her job and i'll share some more
real stories of people selling on amazon
in just a minute but the fourth reason
why most people don't want to start
amazon fba or think it's too late is
because it does cost money to start an
amazon fba business there's the cost of
creating your business which depends on
what state you live you can either do a
dba which is usually around 99 or you
can create an llc which can cost as much
as 800 in some states there's the cost
of creating a logo for your business
there's the cost of creating the design
of the packaging there's the cost of
getting a sample from your manufacturer
there's also the cost of doing a
production run and there's the cost of
getting that production run shipped from
china or wherever you have your product
manufactured over into the united states
but i'll actually share with you a
technique that you can use to get all
the startup costs associated with
starting your business paid for so even
if you don't have enough money to start
an amazon business you can still start
an amazon business using the technique
i'll talk about in just a minute and
this is what i did and what aj did to
start his business as well but just so
you know how much it usually costs to
start an amazon business 28 of people
that start a business started it for a
thousand dollars or less and 40 percent
of people actually started their
business for 2 500 or less and one of my
students stephen who shot films for a
living was constantly taking out his sd
cards putting duct tape over it and
writing on the duct tape what was on the
sd card and he thought to himself there
has to be a better way so he created
this product which is ready-made labels
that go on sd cards and he was able to
start this business for less than
fifteen hundred dollars and now he's
making over two thousand dollars in
profit per month from this business
another student mina started his
supplement business with less than
fifteen hundred dollars and he's now
doing over a hundred thousand dollars in
sales per month with all of his
different amazon businesses so don't
think you need a lot of money to start
your amazon business in fact aj started
his amazon business with zero dollars
and he used my secret technique the
passion product formula to create his
business and one of the steps of this
process is to actually do a kickstarter
or an indiegogo and this allows you to
raise all the money you need to start
your business and he ended up raising
over a hundred thousand dollars for his
business which more than paid all the
startup costs associated with creating
his business so even if you don't have a
lot of money you can still start an
amazon business but still the fifth
reason why some people don't know if
amazon fba is still worth it is because
it does take a little bit of time before
you actually start making money selling
your product in fact only 20 of people
said that they were profitable within
the first three months of selling on
amazon and only 37 percent of people
said that they were profitable within
the first six months of selling on
amazon which leads to probably the
biggest mistake i see new amazon sellers
making and that is analysis paralysis in
fact 66 of all sellers wish they would
have started selling on amazon even
sooner and my first amazon business was
making 10 000
in profit every single month which means
if i would have started my amazon
business six months earlier that would
have been an extra 60 000 in profit so
every single minute you're waiting to
start your amazon business you're
missing out on money that you could be
making and the truth is it's not too
late to start selling on amazon you just
need to know the right way to do it and
i did a complete free amazon fba course
that you can get just by clicking right
here it's an entire playlist of youtube
videos that'll show you step by step how
you can create your own amazon fba
business so click on that playlist of
videos that are going to show you how to
create your amazon fba business for free
so click right here and i'll see you in
the next video and thanks for watching