- Trying to start Amazon FBA can be overwhelming.
With so many different steps and methods,
it's even hard to know where to start.
I've been selling on Amazon for almost two years,
and have made over 20 videos on Amazon FBA
to help you guys get started,
but it seems that you guys are still confused
about certain issues, and this is the reason why I created
this series called "Amazon Newbies"
where I'll be answering the most common queries
from the comment section of my videos every month.
So if you have any questions about Amazon FBA,
just leave it down in the comment section of this video.
Now, there are four different stages
of an Amazon seller's journey.
Section one will hold questions for stage one sellers.
These are FBA newbies who haven't started,
and are just looking for more info before they get started.
Section two will be for stage two sellers.
These are sellers who are made the Amazon FBA account,
but are struggling to find the first product.
Section three will be for stage three sellers.
These are sellers who are ready to ship their first product,
and finally, section four will be for stage four sellers.
These are sellers who are looking to expand
their Amazon FBA business.
Now, even if you're a stage one seller,
please do watch the whole video,
because there might be some questions
in stage three which might benefit you.
Make sure you don't forget to hit that like button,
as it will really help me with the YouTube algorithm,
and subscribe if you're new around here.
Now let's get started with the video.
So the first question in section one is, what is FBA?
FBA stands for Fulfilled by Amazon, and it means
that Amazon sellers like me can send the product we sell
to Amazon warehouses where they will store it,
and every time a customer orders a product through me,
Amazon will pack and ship the product directly
to the customer using Prime Delivery.
Question number two is, I thought you were doing Amazon FBA.
Why are you doing the packing and shipping yourself?
Yes, FBA does mean that Amazon will pack and ship
the products for you, but before Amazon can do that,
you yourself need to ship and pack the products to send them
to the Amazon warehouses.
Now, to explain it better, let me show it visually.
Let's say I sell these apples, right?
First I would buy it from my supplier
and get it shipped to my house.
Now, once I receive them, I will first check
all the products to ensure there is no damage.
Then the next step is to send these products
off to Amazon warehouses.
Therefore, I will need to pack them all
in a box and ship it to Amazon.
Now, once they have left my house,
then I don't need to worry about packing and shipping,
as Amazon will count how many units I have sent,
and then for every order I receive,
they will pack it in a box and send it to the customer.
I hope now you know how FBA actually works.
What's the minimum cost for starting a Amazon FBA?
I do not have a lot, only around 1,500 USD.
The minimum cost to start Amazon arbitrage is
around 250 pounds, the minimum cost to start
Amazon wholesale is around 1,500 pounds,
and to start Amazon FBA private label,
I would say you need a minimum of 5,000 pounds.
Storage fees is the smaller fees you'll be paying,
which is usually around one to 5% of your sales revenue,
depending on the time of the year.
For example, if it's Christmas,
there's a lot of products being sent to Amazon.
As Amazon gets busy, more people are shopping,
and therefore, Amazon will charge around 4%,
and when it's less busier,
they will charge less in terms of percentage,
so there's no way Amazon is charging you
that much just to store the product.
How do you list the product on Amazon?
I can't find its ASIN number on the website.
If a product is not already on Amazon,
then you will need to create a brand new listing,
and creating a listing is not as easy as it sounds,
because first you need to create an SEO optimized listing,
then you will need to pay a lot of money for ads
so then you can rank that listing on the first page
of Amazon, which means every time a customer looks
for that product, it will rank up in the first page,
and you will make sales.
So I would only recommend you create brand new listing
if you are selling your very own product.
I signed up, and it would only gimme the option
to select individual.
Is there any way I can change this?
Okay, so listen to me carefully on this one,
as many people get confused when signing up on Amazon.
So firstly, there are two plans you're on option
to choose from when signing up on Amazon.
The first one is individual, the second one is professional.
If you're planning to do Amazon FBA,
then I recommend you choose the professional plan,
which will cost you 30 pounds a month, including VAT,
and if you're in the US,
I think it's $40 a month including VAT.
Now, here's the important and confusing part is that
when you're signing up using the professional plan,
there will come a question which will say
please choose the entity, and it will give you an option
to choose from individual, sole trader, limited company,
or I think non-profit organization, so these four options.
The option you are choosing there is individual.
However, if you're just getting started with Amazon,
you can choose individual
and then just basically start selling,
and you don't need to inform HMRC or anyone
until you start making around a few thousand pounds
every single month consistently.
That's when you're gonna establish a limited company,
and then you can choose your entity type
to a limited company by simply contacting Amazon.
Talking about setting up a limited company,
here's a quick word from our sponsor
for today's video, Osome.
Osome is an e-commerce accounting company
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which helps me do my taxes for my Amazon FBA business,
as well as my bookkeeping.
When running an Amazon FBA business,
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to see how my business is performing.
They're a really easy to use online platform
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I can also speak to the accountants directly
through the platform, which makes my life a lot easier.
They currently have an offer where you can register
a limited company with one pound,
and they'll provide you two months of accounting for free.
You can get this offer by simply using
the link in the description.
Anyway, now let's move on with the video.
Now let's move on to section two, question one.
When I buy a product, can I take it to my local post office
to ship, or do I have to use the method you listed?
All right, so once you have boxed your product
and you have completed this shipping plan
from your Amazon seller central account,
then you will have to go to the website
of the parcel company which you have chosen
in your shipping plan.
Now, the default company is UPS, because Amazon
and UPS are partnered, and they're the cheapest provider
if you're going to ship your products to Amazon.
But if you chose another parcel company like Royal Mail,
then you'll need to go to the Royal Mail website
and simply schedule the parcel to be collected
or to be dropped off.
Now in this example, I'm gonna use UPS,
so once you've completed your shipping plan,
go to ups.com and then go to shipping,
and you're able to schedule a collection,
and then you simply fill in the information,
and UPS will come to your house or wherever you want it
to be scheduled from, and they will come collect it.
However, if you wanna drop it off,
then you can choose the drop-off option
and simply go and drop it off to the nearest UPS drop-off,
and that could be the post office
or just a local corner shop.
Hi dear, I have a question.
I list a product tester exactly the same way
you explained here, and a few hours later,
I received an infringement notice from Amazon,
I think that's how you pronounce it,
that the seller of that product sent to me.
Can you make a video on how do I avoid that
from happening again?
Okay, on Amazon, there are two types of products.
One is a re-sellable product,
and the other one is a private label product.
Re-sellable products are wholesale and arbitrage products,
and private label ones are the products
people have added their brand logo,
and are selling on Amazon.
Now, to figure this out easily,
all you have to do is simply look
at how many people are selling that product.
If it's more than two to three sellers,
then that product is usually a re-sellable product.
Very helpful, bro, but after all the fees, delivery,
refunds, et cetera, I can't imagine there is any profit,
especially on those six jugs.
So the example product I showed was just for the purpose
of an example, so on that product, yes,
probably I won't make any profit,
but there are so many products on Amazon
which you can find right now and still make profit.
And the best part is that there are new products being added
on Amazon every single day,
so the opportunities of new products will always be there.
Can someone please tell me if I buy a barcode,
can I use it on multiple items?
So some of you might not know what this person is talking
about, but basically, when you are selling
your very own product which doesn't have a barcode,
also known as ASIN on Amazon, you need to buy one.
And to answer this question, one ASIN
or one barcode you buy can only be used on one product,
now, one product as in you can sell multiple units
of the same product, right?
But you can't literally stick the same barcode
on this iPhone and this Apple watch.
It's two different products,
so you need a barcode specifically for this,
and barcode specifically for this one.
I hope that makes sense.
The next question is a bit long one, so I will have to.
Hi Jatz, if I wanna sell a pack of 13 units
of the same product, do I have to go and look
for an official pack of 13 of that product,
or I can just buy individual ones and simply pack it,
and make it 13 units and send off to Amazon?
Well, the answer to that is that you simply go
and buy individual units and then pack it in a poly bag,
and make them 13 units, and then send it off to Amazon,
in this case 11 units, and then send off to Amazon,
because there's no way you are going to be finding
an official pack with 11 units of that product.
Hi Jatz, thank you for another valuable video.
Question, what if Amazon tells you to request
for an approval to list a product?
This is after step where I search over ASIN number
and choose condition of the product,
it tells me to attach in invoice for at least 10 items,
so it means I have to have the product already bought
in order to proceed with any listing.
When you start selling on Amazon,
you won't be allowed to sell
in certain categories, as you will need to be undated.
So in order to get undated, yes,
you will have to buy at least 10 units
of that product from a wholesaler,
and then upload the invoice which a wholesaler provides
to the application, and you will be approved to sell
every product in that category.
Now, make sure you buy the 10 units from a wholesaler
and not a retailer, like I dunno, Tesco or Walmart,
because they won't provide you with an invoice,
and with Amazon, because they only want businesses
to be selling on it, they won't approve a receipt,
which is what Tesco or Walmart will provide,
so remember to buy the 10 units
of that product from a wholesaler.
Holy crap, my throat is just messed up.
I need water anyway.
Moving on to section three question number one,
very informative video, but quick question,
do I still have to buy the product and hold it,
or can I ship it straight to Amazon from the wholesaler
to hold it, as I don't have any storage?
The answer is yes you can ask your supplier
to directly ship the product to Amazon, however,
make sure you ask the supplier to stick the Amazon barcode
on every single product before they send it off.
Now, the great thing about Amazon barcodes is that
it's not just unique to a product,
but they're also unique to a seller, which means that
if I am sending 100 units of this iPhone,
and someone else is sending 100 units,
but their 100 units is damaged fully, right?
Now, because I have my Amazon barcode stuck on my products
which I'm sending to Amazon,
Amazon will know that these are my products and not those,
because if either of us didn't have an Amazon barcode,
Amazon could just think that I have sent
in the 100 damaged units,
and they will just say my product was damaged.
That is the reason why it's important
to stick the Amazon barcode onto the product.
But there is one problem that some suppliers don't offer
any services of labeling the barcode,
or sending off directly to Amazon, so in that case,
you will need to get it to your office
or a storage unit which you have.
Do you have to buy all the sticker sheets for barcodes
et cetera, or can you just print on normal paper
and stick it on with the tape or with the tape?
Yes, you can print the barcodes on the A4 sheet,
and then cut it out and stick it individually
on the product with the tape,
but it is not really time-efficient,
so I'll recommend just spend 10 pounds,
and you can get like, 100 sheets,
100 A4 sheets with 27 labels on it,
and then you can peel off and stick on the product,
which makes your life a lot easier, and time,
time is most important to you when it comes
to time as an FBA, because you can spend that time
which you spent on peeling, not peeling, sorry,
cutting off and taping it and stuff like that,
you can spend that time finding better products.
Why wouldn't you just sell the product,
and instead of storing the product, just buy it
as it comes, and put in your customer address?
So what this person is saying is that why can't you sell
a product which you don't store,
and every time a customer orders,
you buy the product directly from the supplier,
and put the address of the customer
so it goes directly to the customer,
and you basically don't have to hold an inventory?
Now, this business model is also known as drop-shipping,
but the problem with this model on Amazon is that
it is against Amazon's policy,
which means Amazon can ban you
if they find out that you're doing Amazon drop-shipping.
However, there are still people who love taking the risk,
and still do Amazon drop-shipping, but the margins
on the stores are like, what, 10, 5%?
So I wouldn't really say it's worth it.
The next question is my favorite.
Dude, the way you speak, it's like a honey pot giving honey.
That's kind of cute, man. (chuckles)
I mean, when I first read it, I was a bit blushing,
'cause I don't usually get a lot
of amazing comments like this, so thank you Business Master,
and I'll keep giving more honey from my mouth.
That sounds so wrong, but let's move on.
Now, moving on to section number four question number one,
hi Jatz, I'm having a problem with the competition.
Can you help how to avoid automatic price drop
to win Buy Box?
So on Amazon, you can set up an automatic price drop
against your competitor.
So if let's say I am selling at 9.99,
and a competitor comes in and starts selling at 9.98,
I can set an automatic price drop one P below that person,
so I will go to start selling 9.97 immediately
once he drops his price,
and that way I'll keep winning the Buy Box,
and the other person can almost never win the Buy Box.
However, this is what you can do to tackle this issue,
and there are many competitive pricing methods which I use,
but this is one of them,
and especially for automatic price drops.
So what you are gonna do is wait till midnight,
and then you're going to start dropping your price slowly,
slowly, slowly, and you're gonna take the price
to a point where you can buy all of that seller's stock,
and you can make profit
by just reselling it again on Amazon.
So take the price down, and then buy all that stock,
and then once you get the stock,
stick the labels of your bar code and send it off.
Hi Jatz, if a product is sold by Amazon,
will that always be top of the Buy Box regardless of price?
Great video, bud.
Yes, if Amazon is selling a product on that listing,
they will always win the Buy Box,
but if you can beat them in price,
and you can go lower than them, you can win the Buy Box,
so that's only one way you can go
and compete against Amazon on a product.
I listed a already listed product but with different prices,
but my product is not showing on the Amazon search list.
It's only showing on the suggestion list.
What should I do?
I think this person probably doesn't know something
called a Buy Box.
When you list a product which is already selling
on Amazon, and you send the stock to Amazon,
you'll be added to something called a Buy Box.
A Buy Box is a list of every single seller selling
the exact same product, and Amazon will give each seller
a turn in order to win the Buy Box and make money.
However, usually the person with the lowest price wins
the Buy Box most of the times.
The next question is will Amazon FBA survive
after the recession?
This is a great question,
so let me ask you a question first.
Are you planning to buy anything this Christmas,
a gift for your girlfriend, boyfriend,
your sister, your mom, anyone?
The answer's probably yes, you are planning to, right?
So whether there's a recession or not,
people will always be buying stuff online,
and that is the reason why Amazon FBA is not dying
or going anywhere soon.
Even during times of inflation,
consumers are still shopping online.
I hope by now most of your doubts
and questions have been cleared,
but obviously, there is a lot more to running a business
like this, and that is the reason why I'm dropping
a new video every single week on Amazon FBA,
so make sure you hit that subscribe button,
and turn that little little bell on
so every time I upload, you get notified.
However, in the meantime,
I have many more videos on Amazon FBA
which you can go watch, like this one right here,
so I'll see you in that video.
Take care, have an amazing day, and peace.