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How to Sell on Amazon FBA For Beginners [2020 FULL Guide]



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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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