- In this video, I'm going to teach you everything
I've learned in a half a decade of selling on Amazon.
We're going to learn everything from the basics
to how to make up to $2,500 in profit per day passively.
And you can do this in any country, from any location,
with as little as 15 hours per week
and just starting with $100.
That's what I did, now I've collectively been a part
of selling almost $8 million online.
So start that timer because we have
a lot of ground to cover.
And be sure to stick around until the end of the video
because I have a giveaway for some subscribers.
Amazon FBA allows sellers to send inventory
into Amazon warehouses.
But there are over 10 different ways
of making money on Amazon, but only a few are worth doing.
The two things you need to know about all these
is the main difference is the way you obtain the products
and how much money it costs to start.
So there are many similarities across all the methods,
but we're only going to discuss a couple.
The first way to sell is retail arbitrage,
so going into retail stores
to find items to send into Amazon.
But the problem with RA is that it's not scalable,
and you can't do it from anywhere.
Then there's retail arbitrage's cousin, online arbitrage.
And this is where you can buy items from the retail stores
but from their websites.
So let's stick with online arbitrage or OA for now.
But before we get any products on our path
to create a multimillion-dollar business,
we need to set up a strong foundation.
First by dragging your mouse over to hit that like button
for the YouTube algorithm.
Then you're going to need to sign up
for an Amazon seller account and a prep center.
A prep center is going to handle
all of the shipping into Amazon
and this will be especially important
if you're outside of the United States
or you're in the United States
and you don't have a lot of time
because you have a life
and other priorities.
Because if you thought we could send things directly
from Walmart or Target into the Amazon warehouses
you are sorely mistaken,
and that's because Amazon has
very strict shipping requirements
and failure to adhere to these
will result in a suspended Amazon account.
It's a good idea to find prep centers
across the United States,
but for OA specifically since we're buying things
from retail stores, we're going to have to deal
with this thing called sales tax.
And sales tax can take thousands
of dollars away from your bottom line.
So go to this website right here
and specifically look for a prep center
in the state of Montana.
Montana is one of the few states
that doesn't have sales tax.
So when you buy from these retail stores
you won't get charged to sales tax
and it's one of the most centrally located
sales tax free states.
This is not only going to save you on shipping
but time as well.
And when talking with the prep centers
you need to know these three things.
Do they deal with online arbitrage sellers?
How much do they charge you per unit
of shipping it into Amazon?
And how quickly can they get your items out?
Do not pay more than a dollar 50 per unit
and if they quote you more than 72 hours
to get your products into Amazon, find someone else.
Once you have a prep center, it's time to find some products
but first we're going to need some tools.
Keep a measures the sales consistency of an item.
If an item selling for $50 now
but yesterday it was selling for $35,
then that's a problem
and Keepa shows us exactly that.
Now, Keepa has dozens of options
to read the data on Amazon listings,
but here are the only ones you need to know.
What is the sales rank
and where were the sellers like us,
third party FBA sellers selling this at?
Third party FBA sellers are sellers like me
and you, that are selling these items on Amazon.
And sales rank is what the items ranked
at in the Amazon catalog,
and this is sometimes referred to as BSR.
The lower the sales rank, the better selling that item is.
Every category on Amazon has a different sales rank.
So if something is in books
and it's ranked a hundred thousand,
that means it's the hundred thousandth
best selling book on Amazon,
and if something's ranked zero
then that means it's not selling at all.
You can see specifically on this chart right here
the rank spiked upwards
but then came back down a few weeks later.
But on this site, I'm right here,
it's barely selling it all.
And on this chart you can see
that the item was selling for $261
and now it's selling for $323.
Quite the price difference
but how do we actually find the products?
Tactical arbitrage helps us find products in retail stores.
So instead of having to manually come websites to try
and find products to sell,
tactical arbitrage can scan the UPCs of the retail sites,
compare those prices on Amazon, including the fees
and once you get the results back from the scan
you can then quickly filter those results
to find what's profitable and what isn't.
Now this is a numbers game.
You need to run as many scans as you can,
and I'm always having
at least five different websites running.
Now, tactical arbitrage
is over 200 different websites on it.
There's another website called Tactical Bucket,
where you can hook up websites
that aren't on tactical arbitrage
and then scan sites that may have much less competition.
Now, there are quite a few fees when selling on Amazon
and TA will calculate some of those for you
but it doesn't factor all of those in
and we need a way to calculate those,
which is why we move on to the third tool called Asinzen.
Asinzen is a chrome extension,
that when put on your chrome browser,
you can see everything you need to know
about that Amazon listing.
So take the items that are on tactical arbitrage
that have over a 30% ROI over to Asinzen.
We can plug the costs into Asinzen
and see the total profit that's there.
But just because we're buying a product for $150
doesn't mean that that's the price
we use to calculate the profit,
because there are extra costs we need to include.
And this is where I see
even seasoned Amazon sellers struggle.
So pay attention, the exact fees, what do we include?
First we need to include our preps in our fees.
So let's say a $50.
Now Amazon does charge 30 cents to label your item,
but if you use a prep center,
they'll label your items for you so that cost is included.
Then even if you get that item shipped
free to your prep center, the prep center's still
going to have to ship that into Amazon.
And Amazon does have amazing carrier rates
but you still have to pay for that shipping.
But I like to be conservative
and save 50 cents per pounds.
You can see the weight right here on Asinzen.
So for this two pound products right here
we'll say it'll cost an extra dollar.
That means we need to add an extra $2 and 50 cents total.
And after plugging that into Asinzen it would be $152,
but as we saw it was selling at 280 not long ago.
So let's plug in 280 price
into what we would be selling it at
and then we can see our profit is still $96 per unit,
but how many do we buy?
Here are my rules for how many to buy of an item
for online arbitrage,
and it changes depending on the business model,
but for OA, we need it at least $5 gross profit
and 20% ROI after all fees.
You can see this on Keepa,
when Amazon is on the listing, do not buy it.
When Amazon is on the listing, there is a yellow line,
and capturing at least 30 sales per month
but how do we find out how many sales we'll capture?
So look at the estimated monthly sales on Asinzen
and it says about 526.
You can see that this is a variation
which means that all of the variations on this listing
are collectively moving this much
but how much is this specific color
of Nintendo Switch moving?
The way we can find this out is click on that variations tab
and this one is getting 73% of the sales.
This means out of the 526,
this color is moving 383 units per month,
but we're not stopping there.
Click on that FBA offer tab.
You can see that there are four other people selling this.
The way Amazon works is you can sell things used
and you can sell things new.
You can sell things Prime or FBA,
and you can sell things not via FBA or out of your own home
but the people that sell things new and FBA
are the ones that get most of the sales.
So whatever item is new and a FBA,
and at the lowest price is getting all of the sales.
And if two people are selling the same product via FBA
and at a new price,
they're going to split those sales equally.
And this is known on Amazon as the buy box rotation.
So we can see two other sellers on this listing
selling via FBA at $314,
and we would be the third FBA seller,
which means that we would be splitting those 383 sales
three different ways,
and that would be 127 sales per month.
But that still doesn't answer the question,
how many do we actually buy?
Always buy up to 45 days worth of inventory
or 10% ROI per week's worth of inventory.
This means that if you have an item that's a 30% ROI,
you would buy three weeks worth of inventory.
For this item, it's a $96 gross profit or a 64% ROI.
So this would meet the max 45 day supply.
So we would take 127 captured sales times one and a half,
and that would be 190 units
and this would net us $18,000 profit on this one item
over the next 45 days.
But video games are expensive
and I found this grocery item that I could buy
for $3 and 50 cents,
and make $7 and 50 cents per unit selling it.
And I bought about 300 of these,
meaning that I turned about a thousand dollars
into about $3,000.
And all of this seems great.
It seems like easy money until you hit the biggest wall
that online arbitrage sellers face,
and that's gating.
This will be either the single biggest reason
you fail with online arbitrage
or it will be the reason you end up making
thousands of dollars per month
and achieving whatever financial goal you want with this.
Amazon gates or prevent sellers from certain brands
and categories to prevent counterfeit items.
And the rule of thumb is the more gated it is
the more lucrative it is.
And that's just because there's much less competition here.
All Amazon is is just the logistics game.
The goal is is who can get ungated
and get the products into the hands of the people
that need them?
Great gated categories to get into are toys and games,
supplements, beauty products, just to name a few.
And to get ungated in something,
you need to send in an invoice or receipt
dated in the last 180 days that has at least
12 units of the product
that you're trying to get ungated in.
So let's say you want to sell these Nike shoes
but you can't sell Nike.
What you would do is you would go over to East Bay
purchase 12 of those shoes,
then get your invoice or receipt,
and then submit that to Amazon.
And then a few days later, you should get ungated in Nike.
And if you do get denied,
it's usually has to do with the information
that you have on the receipt or invoice.
And two other great sites to get ungated
in certain brands are aent.com and Entertainment Earth.
And once you find items to sell one of the best places
to look for items are sellers that are already
on the listings that you're selling.
Odds are you're not the only one finding these products
so why not see what your competitors are selling?
So then you can take those Amazon identification numbers
or ASINs, plug those into tactical arbitrage
and reverse source them.
So now that you have products going into Amazon,
it's time to get our last tool,
and that is a Repricer.
Because Amazon works on the buy box rotation,
if someone lowers their price by a penny
then that means that they're going to get all of the sales.
So this could mean tens of thousands of dollars per month
but if you have a repricer
and someone lowers by a penny, you can go down
and match their price,
and that way this can work while you're sleeping.
I've even lowered my price by a penny,
just to see if the person I'm selling against
not only has a repricer, but how good of a repricer is it?
Will it follow me down immediately
or does it take 15 to 20 minutes?
And then I can get sales in that 15 to 20 minutes.
The repricer I recommend is repricer.com.
Once you set that up, then you can find even more products.
And if you want to take it a step further,
you can go to sites like onlinejobs.ph,
or Upwork and try to find people to source products for you.
I have a free crash course on how to use
tactical arbitrage down below
and you can even give that to them
and have them learn how to do that,
and then source from tactical arbitrage.
And you can start online arbitrage
with less than a hundred dollars.
But on the family tree of selling on Amazon
there's a couple more scalable ways.
And the way I'm making the majority of my money
of selling on Amazon is via wholesale
or buying from the distributors or brands
that are selling to these retail stores.
However, to start this business model,
you need about a thousand dollars.
And not only is it more scalable,
but it's easier to get ungated,
it takes less time to purchase the products,
and the products that you're selling
will have less competition.
And all you have to do is just Google
whatever brand you're trying to find wholesale
and then the word wholesale,
and then start reaching out to suppliers every single day.
I usually shoot for about 30 emails per day.
And if you do that Monday through Friday,
you will find a couple of suppliers
and all it takes is one supplier to change your life.
There's also a method called Private Label
or instead of selling other people's brands,
you can launch your own brand on Amazon.
And to do that, it costs a bit more.
Last month, I spent about $17,000,
and I should be launching my brand by end of month
and this is the highest risk,
but highest reward way to sell on Amazon,
and definitely not where I recommend starting.
Now, if you didn't understand a lot of that,
don't worry, it's okay.
You're not supposed to.
This is supposed to be the tip of the iceberg, so to speak.
And when learning a new topic,
sometimes you're just getting a broad overview,
will make it much easier to learn
when you actually dive in a little deeper.
So what I want you to do is go back through this video
take notes of things that you want to learn more about
and then do research on those topics.
Now, as I promised I'm going to do a giveaway
for a few subscribers.
Down below, I have a six hour step by step program
on how to sell via Amazon FBA.
It's extremely affordable,
and there's a private Facebook and Discord group
with direct access to me.
So lifetime access to the course,
Discord and Facebook group,
to three people that answer this question.
I hit an Easter egg somewhere in this video,
at what second mark did I hide it?
Good luck!