chances are if you're watching this
video you have ordered something on
Amazon before I've been a big fan of
Amazon for a while it's made my life so
convenient and a few months ago I
learned about this whole other side of
Amazon I stumbled upon these videos
about people making just outrageous
amounts from Amazon and I was like is
this real there's an entire community of
people making videos about making
hundreds of thousands of dollars if not
millions through Amazon and these are
normal everyday people so today I'm
gonna break down how they actually do it
we're gonna talk to another youtuber who
has made millions doing this and kind of
take a look at the bigger picture of
what this all means but first I want to
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really cool website and let's get back
into this whole Amazon thing so the way
that everyday people are actually making
money on Amazon is through a program
known as Amazon FBA which stands for
fulfillment by Amazon this is a program
that Amazon opened up back in 2006
before this Amazon mostly sold books and
other products that they themselves
source initially it was a way for small
businesses to sell their products on
Amazon and now it's become a lot of
people sourcing products from China
marking up the price and selling it on
Amazon and we all buy this stuff even
though it's marked up way
more than its initially word because
it's reckoning it this is a product that
has made a million so how do I know this
well I kind of went down a rabbit hole
watching YouTube videos about it and
also I know an Amazon seller who's been
really successful and gave me the inside
scoop well I mean there's there's a
million ways to make money online but
the problem is like most of them just
don't work well or if they do it's like
you're spending an hour to make like a
dollar yeah so you guys may remember
Kevin David from my follow-up video to
how much money a million views get and
his entire channel basically is about
how to make money online and he's done
it a number of different ways actually
but a big one is from being an Amazon
seller Amazon is the biggest e-commerce
retailer in the world you know most of
your watches and everyone in the USA
pretty much uses Amazon there's over a
hundred million Prime subscribers and
you know every of every dollar that's
spent online over 50% of that passes
through Amazon what people don't realize
is that Amazon isn't the you know seller
of these products for the most part like
a you know 70 70 percent or so of
product sold on Amazon are actually sold
by people like you and I like they're
not sold by Amazon and so you know you
can create these big brands selling
products on Amazon I'm not gonna lie
when I first saw this stuff I didn't
believe it was real like I just seemed
too good to be true but not saying
exactly how it works from someone that's
actually done it so let's get into the
specifics of how people actually do this
using the same business model that you
know Walmart uses where you wholesale
products for $1 each but you buy 500 and
you sell them individually for $20 each
via Amazon and Amazon does most of the
work for you they take all the products
to their fulfillment centers they pack
it they ship it they accept the money
you don't need a website so obviously
this is not some groundbreaking business
model this is basically what every
retailer uses but what's different about
this whole Amazon craze is people never
even have to touch the physical product
we all have products in our house I'm
sure that we purchased from someone
who's done this exact thing so how
people are actually doing this whole
Amazon FBA thing is they're going on a
website called Alibaba comm and Alibaba
is the biggest online commerce
in the world it takes pretty much all of
the wholesalers in China and puts them
online where you can buy a wholesale and
literally anyone can go on here and buy
products wholesale they have pretty much
anything you can imagine
I even found a boat on here pre
constructed houses and this
weird-looking car it's honestly just fun
to even go on here if you have no
intention of doing Amazon FBA because
they have the craziest stuff at a
fraction of the price here we have a
motorcycle for $400 a two-story duplex
container house like honestly that thing
looks really cool vacation house someone
get my laptop away from me before I buy
it you're telling me this is it can be
shipped to me I just I don't get it
here's kind of an interesting one I know
people are obsessed with these Jade
rollers well a dollar and 99 cents on
collie Baba
the thing with Alibaba is you have to
buy it in bulk like you have to buy a
hundred or more you can't just go on
there and buy one but with so many
products out there it made me wonder
which products actually sell millions on
Amazon and which ones don't really sell
anything at all I'm the first product
that we ever ordered like the first
border from Alibaba that I made I spent
around six thousand dollars back then I
had a 95 job I didn't have much money I
was like so scared about investing it
you're like I could lose this alright
and you're sending it to like a Chinese
manufacturer it's very scary like I was
super scared but I was like I have to
get out of this job I'll literally do
anything so I actually ordered Kevin's
first successful product and you guys
will see that's kind of a random one so
this is it this is the large slate
cheese board and I'm actually kind of
pumped that I have this now because I
love a good charcuterie board I totaled
it just looks like something you'd see
at Bed Bath & Beyond Sonali Baba this
item was actually less than two dollars
once you factor in shipping and some
other expenses it's gonna be a little
more than that and then they were able
to sell that on Amazon close to $50 we
made our initial investment back to
6,000 that we invested in the first week
selling our products and then after that
everything else was you know profit but
we didn't take the money out we just
kept reinvesting it into more products
more products more products and then all
of a sudden like we were making you know
more for
Amazon than we were from my nine-to-five
job really quickly and so I just quit I
mean I learned that one reason this item
did well is because it's a gift item so
people aren't that likely to return it
another thing I learned is that Kevin
differentiated his products so instead
of it just being the slate he actually
included some utensils - I actually
ordered one of the competitor slate
cheese boards and this is all it came
with it didn't come with these little
guys here so this is another product
that I sold this was probably the most
explosive product that we ever sold it's
a scratch off masse but essentially like
you buy it as a gift and then like let's
say you've been at like Kenya or
something you would scratch off Kenya on
the map and it kind of like you know it
starts out black with some like kind of
dull colors and then there's like
beautiful kind of colors underneath it
so same thing with this product really
it's definitely a gift item these were
so popular last year I feel like
everyone had one another thing I learned
about why this product was really
successful and profitable is because
it's so lightweight so it's really
really inexpensive to ship it so the
best year that we ever had for this was
2018 just because q4 hasn't happened yet
for 2019 the best year that that will
have will be 2019 for sure the landed
cost for a scratch-off Mouse was like
two dollars and thirty something cents I
mean we were selling them for like
$29.99 so they're making about $27 per
unit and in some part of the year
selling a thousand units per day as
around twenty seven thousand six hundred
ninety dollars per day I spent so long
designing the map with my graphic
designer like in Photoshop it took
literally like you like actually
designed it oh yeah yeah for sure we
because we differentiated our it's like
I don't recommend that people go and
sell the exact same thing like we hid
like wonders of the world like for
example like the Eiffel Tower was like a
little like symbol on the map and we
tried to make it like fun there was like
map or flags on the bottom so clearly
people can make a lot of money doing
this and honestly anyone watching this
I'm sure could do it too I found that
this sometimes leads to a lot of poor
quality products on Amazon so this is a
clothing rack I bought on Amazon for
1899 the quality is so terrible it's
supposed to stay up here like way up but
never once has it actually
to stay up and work like so I found the
same garment rack on Alibaba three
dollars and 98 cents this is a little
car vacuum I bought this for $24.99 this
is the exact car vacuum if you order a
ton of them it can be as low as five
dollars and 13 cents and if you're
wondering the vacuum works pretty well
but they advertise it as high-powered
and it really doesn't work that well
other things to know just as someone who
shops on Amazon a ton of people are
selling the exact same products
literally made at the same Factory it's
pretty easy to tell when it's made at
the same factory so you might as well
just buy the cheapest one another
downside to this is it's really not the
greatest for the environment which I
don't want to ignore especially if you
end up buying a poor quality product
it's likely to just end up in a landfill
okay so that is the video that is the
truth about Amazon I hope you guys found
this interesting I just saw so many
videos like this but it was always from
the point of view of someone trying to
sell me something and I'm not really
trying to sell you guys on it like I
don't care if you do Amazon FBA but I
figure people watching are just gonna do
what they want to do I will say though
I've learned so much about this from
Kevin and he has a YouTube channel if
you guys want to check it out he goes
more in depth because honestly I'm kind
of like scratching the surface but yeah
I hope that you guys enjoyed this video
be sure to subscribe if you did comment
down below what you think of this whole
thing and I will see you guys in my next
video bye