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
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