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How To Make Money on Amazon FBA in 2021 Explained in 10 Minutes | STEP BY STEP FOR BEGINNERS

hey what's up guys my name is tom over

the past three years my business has

generated close to 10 million dollars in

sales

selling everyday products on amazon

so in this video i am going to try my

very best

to explain to you step by step exactly

what i do and how i make money on amazon

so you can do it too in less than 10

minutes so let's

get started amazon i'm sure you shopped

on amazon before but did you know every

single time you buy something on amazon

you're probably buying the product

from someone like me so for example

let's say you're buying coasters

on amazon you go on amazon you type in

coasters then boom the search result

and you're trying to decide which

coasters do i like well

you click on one of them you look at the

pictures you look at the product detail

page

and then you like it you click buy to

ching someone else on the other side

just made money that person is also

known as the third party seller on

amazon

aka someone like me so i can actually

post products

on amazon that is mine and i can make

money every single time you buy the

product on amazon now

i don't create these coasters myself i

don't make these coasters myself

so how do you actually sell these then

what you want to do

is you want to contact a manufacturer or

factory

that is already producing these coasters

these manufacturers are also known as

private label manufacturers so if you go

on alibaba.com

type in coasters you will see a list of

companies

that actually produces these for five

cents 10 cents a dollar two dollars

whatever it might be

you are buying inventory from them and

you are now selling the product for a

higher amount on

amazon that's literally it i'll give you

guys another example

vitamin c serum you go on you type in

vitamin c serum

boom a bunch of different search results

and you pick one you click on it

hey i'm no chemist i'm not an

esthetician so how did i create the

vitamin c serum

all i did was i went on google type in

vitamin c serum manufacturers

i contacted one of them i bought a

thousand bottles

and more importantly i want to brand it

right i want to brand it to my own brand

and then boom i just created my very own

skin care line

so that's literally how it works that is

how amazon fba works but now

let me break this up into a step-by-step

process for you step number one

you need to find a product to sell

that's obvious

now the biggest question is what type of

product the biggest mistake that i see

people making is finding a product

they see around the house that they

think can be sold on amazon

without any data backing that up they

think oh this is cool i use this every

day

therefore everybody will everybody else

will use this every day therefore i'm

going to make a bunch of money

that is not the correct way of thinking

when you're doing business

so what you want to do is something

called market research this is called

basically in any business before you

jump into that business you want to know

what the customers want you know how you

want to know the market size

you want to know what people are looking

for all these different things just so

that you can actually launch a product

that is welcomed by your customers so i

use a tool called the viral launch tool

and i'll include a link in the

description where you can actually save

20 to 40 off but having said that using

this tool

is making your job and your life so much

easier because using this tool

you can see a wide a variety of

of things so a factor so number one how

many people per month

are looking up this product on amazon do

you think that's a pretty

important uh metric absolutely the more

people

that are shopping on amazon for this

particular product the better the bigger

the market size

but just because the product has a lot

of demand doesn't mean you should do it

because there's also a lot of

competition

now you can find a product with medium

to high demand but also low competition

you want to look at the review column

because at the end of the day if

everybody on page one have tons and tons

of reviews

you don't want to do that product you

want to launch a product where

all your competitors have little reviews

right

you also want to launch a product that

is easy to use you want to launch a

product

that is small and lightweight so you

save on shipping

and easy to use why because if someone

actually buys a product it's hard to use

they're just going to return it or worse

leave you a negative review on amazon

right so these are all the different

factors for example i don't want to

launch something that's seasonal

uh like snowboarding gear hey i want to

make money all year round i want i don't

want to launch like a fad

meaning something that's going to stay

today like fidget spinners and the go

away tomorrow i don't want to touch that

i want to sell something that is

very stable and it's something that

people need to use every single day for

the rest of their lives right so

that's step one finding a product step

two is sourcing

now the best place for you to find a

manufacturer is in china that's just the

way it is

right cheap labor pretty decent quality

products and whatnot

you can use a website called alibaba to

find these many

factor manufacturers in china now i know

a lot of people have dealt

hey what happens if i just wire someone

you know 5 000

for my product and it's all broken and

stuff when it arrives well

you actually use an inspection agency in

china they're a third party inspection

agency they'll actually go to the

factory themselves

they will do an audit they'll actually

look at your product to make sure it's

well

it's good to go before you pay the rest

of the money so that is your way to

mitigate

that risk and yeah so basically you go

on alibaba you type in whatever you're

looking for

coasters you see a bunch of listings

that sell coasters you can actually now

contact them

request samples look at the price

negotiate with them

and to get the best possible price the

best possible quality of the product

and then from there you can place your

order so like i said you put a 30

deposit 30

deposit down first and then you send an

inspection agency in

to make sure that everything is done

properly only once it's approved by

inspection agency

that's when you give the remainder of

the money 70 now your product is

finished

producing in china this is the best part

guys

your factory will actually send your

products these coasters that are done

that belongs to you now

directly straight to amazon's warehouse

so you don't

need to actually have a thousand

coasters in your living room

or in your garage everything is stored

inside amazon's warehouse

okay this is where the amazon

fulfillment system comes in

fba fulfilled by amazon so what you do

now is once

you have everything inside amazon's

warehouse you create a listing on amazon

you create a store on amazon the store

is owned by you so this is your store

and you create a listing so you can sell

coasters you can sell

vitamin c serum you can sell whatever

you can sell as many products as you

want on amazon under the store so let's

just keep using

coasters as an example now coasters

um you list the product you have to take

some nice photos right

and you have to write some nice words

nice descriptions nice title you set a

price

this is all up to you this is your

coaster this is your business and then

from there

now your listing is now established on

amazon and because the product

is actually inside amazon's warehouse

you're qualified for that prime

batch that is why you see so many people

having the prime logo

it's because it's fulfilled by amazon

amazon delivered in one day or two days

that's how the prime

logo works now on amazon's side they

will charge you a referral fee that's

their commission

usually between eight to fifteen percent

of your selling price that's how they

make money

and they will charge you fulfillment

fees so that includes the shipping and

so on and so forth

so amazon usually if you sell your

coasters for

10 bucks amazon will take about three

dollars so 30

then your coaster might cost a dollar or

two dollars that's your cost of goods

sold

shipping maybe another dollar from china

to amazon that's all paid by you

the rest of it is your net profit that

is how much money you make per coaster

so let's say you sell 10 15 20 coasters

a day you make four dollars per coaster

hey you just made whatever it might be

four times 10 40 to 80 bucks

per day in net profit without really

doing that much because amazon's doing

all the logistics behind the scenes

now after you post it on amazon just

because it's on amazon doesn't mean that

it's gonna sell like hotcakes what you

need to do is get your product

ranked to the very first page of amazon

and that's where our system called rank

and bank

comes in we know how the amazon

algorithm works and this is really our

secret sauce

so we're able to actually rank these

products onto the very first page of

amazon so when someone types in coasters

they will actually see your product

among the competition hopefully your

product will be number one so they click

on it

they buy it and they and you make money

they get the coasters they like the

product

they leave a review so really that's it

that's literally what i do guys this is

the the system the business that i built

over the past

three years called amazon fba and the

cool part guys is

you don't need to be 100 rely on amazon

i think amazon is a great place for you

to actually

start your brand and start whatever

product that you want to launch

and then once you start getting cash

flow positive once you get the momentum

you can branch out to shopify you can

create a real brand

right so i'm not here teaching people

how to do drop shipping or anything like

that i'm literally teaching you guys how

to

create a real brand i know so many

amazon sellers that they started on

amazon

now they're on walmart now they're in

pet stores now they're in

costco they're in these department

stores because all they started was

amazon

our product has been featured in

magazines have been featured by

influencers because we're best seller

badge on amazon they go on amazon they

like a product

and so on and so forth so i'm here to

create a brand and one day the best part

is you can actually

sell this brand for a multiple meaning

someone will pay you

you know 3x 5x whatever it might be of

your last year's 12 month

profit and they'll pay you for your

business so

one day you can actually sell your

business as well and the best part about

amazon fba

is that is quite passive depending on

how you define passive and how big you

want it to be you can do this from

anywhere in the world

you can do this without experience you

can learn this game is not that hard

and i think i truly truly believe it is

literally

the best side hustle in 2020 and going

forward because everybody shops on

amazon so not white

so why not sell on amazon make some coin

make some money so

anyway um 10 minutes that's pretty good

most people say

i'll explain something to you in 10

minutes and then 20 minutes later so

i really try to squeeze as much

information in here for you in 10

minutes hopefully that gives you a

good understanding of how amazon fba

works and

by the way guys i also teach other

people how to start their own amazon fba

business

based on my personal experience i have

over 200 videos step by step a community

of 1500 students if you're interested in

that click on the very first section uh

click if you're on youtube click on the

first link in the description if you're

on instagram go to my bio

watch the short video and if it's a good

fit for you then feel free to learn from

me if it's not good fit for you

um i hope that you find something else

that is because life is too short

hustle make some money and be nice to

people

give back and live a life that you truly

deserve because we all deserve a better

life so cool

awesome guys i hope you guys enjoyed

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