- Trying to start Amazon FBA (soft music)
can be overwhelming.
With so many steps and methods,
it's even hard to know where to start.
So in this video I'm gonna share my exact method
to start selling on Amazon from scratch.
Using this exact method,
I built a six figure Amazon store in less than a year,
with no marketing or even creating my own product.
So if I were starting all over today,
this is exactly what I would do.
If you're new around here,
my name is Jatin and I'm documenting my entire journey
of growing my online business
with as much detail as possible
to help you start your online business this year.
So if you're interested in starting your online business
and follow my journey,
then hit that like button
and subscribe for a new video every single week.
And now let's get started.
Firstly, I'm gonna hop onto my laptop
to show you guys the six figure store
which I built in less than a year.
So as you can see right now,
it's 105,000 pounds in total sales.
And it started since January, 2021
till currently, which is January, 2022.
The profit on this store was around 30%,
which equals to around 30,000 pounds
in just less than one year.
And in dollars is around $40,000.
I'm showing this because I just wanted to prove this to you
that this method works and it's worth your time.
So there are four things
that goes into building a successful Amazon FBA business.
The first one is your product,
the second is your analysis, the third is your supplier,
and forth is scaling your business.
Now I'm going to break down
each of these one by one as simple as possible,
so let's get started with finding the product.
Without good products,
it's pretty much impossible to have success on Amazon FBA,
but thankfully there are thousands of new products
being added on to Amazon every single day,
so the opportunities are always going to be there.
When looking for a product,
there are three types of products on Amazon.
The first one is an arbitrage product.
These products you can buy from a supermarket near you
and resell it on Amazon for a profit.
Here's a live example of a arbitrage product.
I can buy this Yankee Candle for six pound 50
and we sell it on Amazon for 14 pound 50.
Now, if I was to do the math,
I would probably make in,
let's just quickly check and analyze
how much profit I would be making on this product.
I can make three pounds,
after the taxes, around two pound 50 on this exact product.
So if I sold it 100 times in a month,
that will be 250 pounds profit.
The second type of product you can sell an Amazon
is wholesale product.
Let me show you a live example of a wholesale product.
This product right here sales for one pound 69,
but if you order more than six quantity,
it will be one pound 62.
Now, you can sell this in a pack of six on Amazon
for 11 pounds and 95 pence.
You can do the math for this one
and you can see how there's so much profit in here as well.
And the third type of product is a private label product.
This is when you go on websites like Alibaba
and look for a product and just stick your logo on it
and you start selling it.
For example, this one right here.
This product is being sold for 1499,
and you can probably get the exact same product from Alibaba
for around $1, and you can see the profit margin there.
However, with private label,
you have to create your own product,
you have to do marketing,
and that's the reason why I don't do it,
because there's a lot of costs related to this.
And this is why wholesale and arbitrage
is the best because you don't create a listing,
you don't do any marketing,
you don't spend a lot of money,
you can simply buy a product and start selling it instantly.
You can use existing listing with other sellers
and simply start making money selling the same product.
I've sold these two types of products
since I started my FBA journey,
and I have found success over and over again.
The next thing you look into a product
is the product category.
Now, when you do Amazon arbitrage or Amazon wholesale,
you don't need to care about
what category is the product in,
because on Amazon, every single category is just sell.
You don't wanna sell products from a specific niche
and miss out on the opportunities
from thousands of other niches on Amazon.
The whole goal is to have more products
so that you can make more money on Amazon.
The last thing I look for in a product
is good profit margins.
What I consider it to be a good profit margin
is to be able to make at least 30% more than you have spent.
So in simple, make 30% return on your investment.
You can calculate the ROI for any product
using a normal ROI calculator.
Now, I have shared one in my private club,
which you can join as well, but more on that later.
Here's an example of how it works.
If I'm spending five pounds on a product,
then I want at least 30% return on that five pounds,
which will be five pound my initial investment
plus one pound 50, which is the 30% of five pounds,
which will equal to seven pound 50 in total.
Now, this is pretty much everything
I look into a good product.
This product right here is an example of a decent product,
because you can buy this product from a supermarket,
like Asda for me.
It has good ROI, as you can see more than 30%,
and you can see that the category
for this product doesn't really matter,
because it's in Homes and Kitchen,
and to be honest, even if it was in another category,
it would have not mattered.
Now, the way you can make sure
that this product is not a private label product,
is by simply looking for something
called a buy box for this product.
So as you can see this product right here listing
has seven new sellers on this,
or seven sellers are selling this exact product.
Whereas this product right here
does not have something called a buy box,
or other sellers selling this exact same product.
That's basically how you make sure
a product is not a private label product.
The simplest way you can find products like these
are simply go to the clearance section
on websites of your local supermarket,
and just look at all the products.
As you can see all of these own sale.
If you just search up the name on Amazon,
you'll probably see that you can make a bit of profit,
and just buy off and sell it.
Similarly, you can go to a wholesaler
and look for a product, search it up on Amazon.
And if you're making any profit,
then then you go, you found a product for yourself.
However, sometimes looking for a product
can be long and time consuming.
(object clattering)
So that is the reason why I'm building a tool
to help you with that. (children cheering)
This tool will allow you to do your research
and product analysis in one place.
Now, if you want early access for this tool,
then you can sign up for the waiting list,
using the link in the description.
Now, before I move on to step two,
I just wanna say that it will take time
for you to become good at finding these products.
So keep doing product research and you'll become good at it.
All right, so step one was finding a good product.
Now, before I move on to the next step,
let me tell you guys about my free private club,
where I share actionable steps
on how to start a successful Amazon FBA business.
There are currently over 13,000 like-minded people on it,
and if you wanna be part of it,
you can join right now using the link in the description.
Step two is doing the product analysis
to make sure if the product you have found
is actually good or not.
You will come across so many good looking products,
but when you actually do the analysis,
you will find out that they don't even sell.
This is the reason why doing your analysis
is super important.
As soon as I find a product on Amazon,
the first thing I look for is a BSR,
which is the best sellers rank.
You can find that under product information,
which is right here.
And as you can see, this product has 86,191 BSR,
which is the best sellers rank.
What I found from my experience
is that the best products are usually under 100,000 BSR,
100,000 best sellers rank.
The lower the BSR,
the more the product is selling.
So the first thing you would wanna make sure
when looking for a product is a good BSR.
The second thing you would wanna look for
is something lightweight,
because on Amazon, the heavier the product,
the more fees Amazon will charge you,
as well as you delivery costs also goes up.
Make sure you look for a product
which weighs less than two pounds,
because this is an ideal weight
where your fees won't be too much or too less
and your ROI or your profit margins
will be a lot more better.
Now, the last and final analysis you need to do
is make sure the product is not a seasonal product.
The reason being,
because you don't wanna buy a product
which you think is selling so much,
but once you send it to Amazon
is no selling because it's a seasonal product.
Seasonal products are products like a Christmas tree,
This product will usually sell
when Christmas is around in December.
So if you send that product in January,
then you might have to wait 12 months
before that product actually starts selling.
Now, the way you can figure out
whether it's a seasonal product or not,
is by just looking at it
and you will know whether this is a seasonal product or not.
But a good way is by using Google Trends.
You can simply put a keyword of that product,
and you will know by looking at the graph,
like the one right here.
if there's a trend,
you will know that this product only sells
or being searched up during a certain period of the time.
Now, there are so many softwares out there
to help you do your predict analysis,
but first I recommend you do the product analysis manually
so you can learn how to do it yourself.
The next step is finding a good supplier.
Once you've found a good product and a supplier
for the product, you will continue making sales every day.
Finding a product is easy,
but you should always spend time
looking for a good supplier,
because there can be multiple suppliers
with the product you're finding,
but the cheapest one will make you the most profit.
Reliability should be another key consideration
for choosing a supplier.
Reliable suppliers deliver goods on time
as well as as described.
Large suppliers are generally reliable
because they have enough resources and systems in place
to make sure they deliver if anything goes wrong.
However, you can often develop a closer relationship
with a smaller supply,
especially if you're the main customer.
In these cases, your supplier may also respond better
to different requests,
such as rush orders or holding on the stock.
The best way to find your supply
is simply locate them online.
By simply googling the product name,
you will have thousands of results come up,
so take your time to find the best supplier for the product.
A key tip I'll give you
is to try and speak to your suppliers through a call
rather than always emailing them,
because it's better and faster than emails.
Moving on to the final step, scaling.
Most sellers on Amazon reach a few thousand pounds a month
and then they find it difficult to scale,
this is mainly because they are a one man army.
And when you're a one man army,
doing the product research, packing, and shipping,
it becomes difficult for you to do everything.
This is where you can be smart and start delegating.
The number one thing you need to remember
when delegating is by figuring out
what is taking most of your time.
And I'm sure as a Amazon FBA seller, you'll be packing.
The first thing you can do
is actually delegate all your packing for the products
or preparing the products to send it to Amazon.
The time you will get back from delegating
will allow you to spend it on doing more product research
as well as other admin part of the business.
This way you can find more products
and make more profit
and increase and start scaling your business.
Another thing you can do to start scaling
is by recycling your money.
What I mean by that is that,
once you start making money on Amazon,
don't take anything out,
use that same money to buy more products
and make more sales.
This way you can continue the cycle
to keep growing your balance and account.
And the final thing I would recommend to do
when it comes to scaling is,
look for a person or a mentor who's already done this.
What's the point of trying to do everything yourself
when there are people already out there doing it,
you can get help from them
and simply learn from their failures
and start scaling much more faster.
So this is pretty much my exact method
on how you can start your Amazon FBA journey from scratch.
This is exactly what I did on this account
and made six figures in less than one year.
Obviously, there is a lot more
into running a business like this,
but that's why I'm dropping new videos every week
to hopefully cover everything I possibly can.
Next video I'm going to be posting an in-depth guide
on how you can start your FBA store
and show the tools and methods you can use to start.
So make sure you subscribed and turn that little belt on
so you do not miss a video.
However, in the meantime, I few more videos on Amazon FBA
which you can watch, just the one like this.
So I'll see you in that video.