- In this video, I'm going to go with the exact strategy
that I personally used to start in Amazon FBA business,
when I was first getting started, with just $250.
I'm going to talk about the whole strategy step by step.
Then I'm also going to reveal few really good products
which you can get started with just under $250.
So make sure you stick around till then
because this is going to be one of my most useful
and helpful video I've ever made about Amazon FBA.
If you're new around here, my name is Jatin Naran
and I'm documenting my entire journey
of growing my online business
with as much detail as possible
to help you start an 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.
Firstly, I wanna show you results of Harsh who took part
in my 50 day FBA challenge.
He started his Amazon FBA business
using this exact strategy back in October, 2021
and two weeks ago he messaged me saying
he hit 10,000 pounds in sales.
I'm showing this to prove that this strategy does work,
is very well alive and is worth your time.
When getting started on Amazon,
not every one of us have thousands to spend.
And I can very much relate to this situation
because I used to make around 1000 pounds a month
when I used to work at my old IT job.
So this strategy will be perfect for you,
if you're on a tight budget
and don't have a lot to spend.
Now to make it easier to understand
and implement this strategy,
I'm going to break it into three parts.
In part one, I will cover the initial cost.
In part two, I will cover what type
of products you will sell.
And in part three, I'll cover
how to scale your Amazon business.
By the way, if you like the way I teach
this Amazon FBA stuff
and you want a person to guide you,
hold you accountable,
and teach you everything from start to finish,
then you might wanna join my eight weeks live
online mentoring, the 50 day challenge.
You can register your interest
through the 50 day challenge website,
link in the description.
Anyway, let's start with part one, your initial cost.
When getting started on Amazon, the first cost
you will have is your seller central fee,
which will be 30 pounds per month,
if you're in the UK and $40, if you're in the US.
The next cost is going to be the tools and equipments.
This will include things like product labels,
box labels, packing tape, measurement tape,
weighing scale and boxes.
I have given a rough estimate
of how much all of these things will cost you
and I've kept box as free because you can probably get boxes
from a local supermarket by simply going there
and asking them if they have any boxes left.
You will need all of these things,
so you can prepare and send the products
to Amazon warehouses, so they can be sold.
The last and final cost you will have,
is the shipping fee you will pay
when sending products to Amazon.
The shipping cost varies on how heavy
and large products you are sending.
However, as Amazon's partnered with UPS,
the cost of shipping is relatively cheap.
For this strategy, I'll put $10 aside for shipping
which is a very fair amount.
This means your total initial cost will come to $94,
leaving us with a total of $156 to spend on products.
Now $156 is a decent amount to invest in products
but as you're on a tight budget,
you have to make sure that you buy the right products
that will actually sell.
So now let's move on to part two,
what type of products to sell.
Without good products, it's pretty much impossible
to have success on Amazon FBA
but thankfully there are thousands of good products
out there which you can sell
and every week new products are added,
so the opportunities will always keep coming.
When looking for a product,
there are three types of products on Amazon.
An arbitrage product, wholesale product,
and a private label product.
For this strategy,
the type of product you will be buying
is an arbitrage product which is basically
a product you can buy from your local supermarket
and resell on Amazon.
Here's an example of a product.
I can buy it from Argos for 15 pounds
and resell it on Amazon for 30 pounds.
The reason why you will be only looking into
arbitrage product is because, one,
you can directly buy it from a retailer near you,
and there is no minimum order requirement from them.
So you don't need thousands to invest.
Another huge benefit is that these products
are already selling on Amazon.
So you don't need to do any sort of marketing
or even create your own product.
You can literally use existing listing with other sellers
and simply start making money,
by selling the exact same product.
All right,Jatz now I know what type of product to sell
but what makes a good product to sell?
So the first thing is the product weight.
When looking for a product you need to make sure
you are looking for something lightweight.
This is because the heavier the product,
the heavier the FBA fees.
So as the size and the weight of the product goes higher,
the profit margins go lower.
Plus the shipping cost can be very high,
if the product weighs more than two pounds.
The second is the product category.
Now I don't recommend products in any specific category
because throughout my time selling on Amazon,
what I found is that on Amazon,
anything and everything sells.
You don't wanna sell products from only a specific niche
and miss out on all the other product opportunities
from other categories.
The whole goal is to have more products
which will result into making more money for you.
Just before I share the last thing to check it in a product,
let me tell you guys about Osome.
Making sales on Amazon FBA is easy,
but when it comes to handling taxes
and simple bookkeeping, it can get frustrating.
I personally don't have time for this
as it can take days to complete.
This is the exact reason why I use Osome.
They are a dedicated E-Commerce accounting company,
who will do all the bookkeeping, prepare management reports,
tax return, and are available for in-app conversations.
You can use the link in the description
to get various discount and offers, so check it out.
The final thing you need to make sure about product
is that it has good profit margin.
What considered to be good profit margin,
is being able to make at least 30%
more than what you're spent on buying
and sending the product to Amazon.
You can calculate this
by using something called ROI calculator like this one here.
For example, if I bought a product for five pounds
and then I sold it for 6.50 pound,
I would make a return of 30% on my money.
All right, all this makes sense
but where do I find these products from?
So there are three ways you can find these gems.
The first one is by simply walking
into your local supermarket near you,
go to the sales section and start checking them on Amazon
to see if you are able to sell them more
than what you can buy it for.
In this video, I literally found two products
under one hour, by doing this
and had a total profit of $100.
$100 for one hour worth of work,
I will definitely take that.
However, I know most people are lazy,
just like me and physically going to the supermarket
can be annoying.
- Hey, nobody got time for that.
- Which is why the second method to find products,
is perfect for you.
Is simply by going on the website of the supermarket
and going to its sales page,
where you literally see all the products
they have on discount.
Then all you have to do is simply copy paste
the name of that product to Amazon
and see if you can make any profit for that.
The third and final way to find these products
would be by using sourcing softwares.
There are many softwares out there
which will provide you a list of good products
which you can go through and simply order them.
So basically they will do all the work for you.
And in return you pay monthly subscription fee.
However, the problem I've seen
with most softwares like these,
is that they have so many products
which are just not good and will end up losing you money.
But if you're able to figure out
how to make sure the product sells
then you can really make the most
out of the sourcing softwares.
So now you may be wondering, all right,
so now how do I make sure the products I buy
and find actually get sold and I make money?
As soon as I find the product on Amazon,
the first thing I look at to check
if it's gonna sell is the BSR,
which is the Best Seller's Rank.
You can find this number under product information
for the specific product.
The best products which actually sell
are the ones with less than 100,000 BSR.
The lower the BSR, the more the product sells.
So the first thing you would be looking
when analyzing a product, is having a good BSR.
The second way to ensure your product sells
is by checking its rating
and making sure it's about three stars.
This is because no one's going to purchase the product,
if the rating of the product on Amazon is bad.
The last thing to check to make sure the product sells,
is that the product you buy is not a seasonal product.
You don't wanna buy a product which has many reviews
and has good profit, but does not sell throughout the year.
You can figure out if it's a seasonal product or not
by just looking at the product.
However, you can also use Google trends
and simply type in the main keyword of your product.
If your product is seasonal
you will see big dips in the line graph.
Let me show you some good example products
which meet all these requirements.
All right, so this is the first product.
As you can see, I can buy this product in Argos
for 15.36 pounds
and this is the exact product which goes on Amazon
for 32 pounds, which is literally double
of how much you'll be paying for.
On this product, you'll probably make
around eight to seven pounds profit.
So if you sell 10 of these,
that's 70 pounds profit for you.
And this product meets all the criteria
which are mentioned such as the BSR and all the other stuff.
This is a second example for product
which is FIFA 20 Xbox One Game.
You can buy it for 1.99 pounds on Argos,
and you can sell the exact same FIFA game
for 9.89 pounds on Amazon.
On this specific product, you can probably make
four to five pounds in profit.
So once again, if you sell, let's say a hundred of these
that's almost 500 pounds profit.
And finally, this is the last example product.
As you can see that you can buy this exact makeup stick
for and 3.56 pounds and it's going on Amazon
for 6.99 pounds.
Now, the profit margin on this one, is not a lot.
However, this is an example product
where as you can see the reviews, it's about three stars
which is all we are looking at in terms of the rating.
These are the type of products
you'll be looking for when getting started.
Once you buy and sell them,
keep recycling the money,
until you're made over $1000
because this is when you can start looking
into making even more money
by scaling your Amazon FBA business.
So let's move on to the last part
which is how to scale your Amazon FBA business.
Arbitrage product are a great way to get started
on Amazon FBA but you can't really build a long term
sustainable business around it.
And this is where Amazon wholesale comes in.
Amazon wholesale is when you buy products in bulk
on wholesale prices from a wholesaler
and send them to Amazon, so it can be sold.
From a retail store, you can't really buy
more than 20 to 30 units of the same product.
And this means you will only be able to make money
on the 20 to 30 units
Whereas with wholesale, you can buy thousands
or even multiple thousands of units of the same product
and keep sending it to Amazon.
Now, the best part about doing this,
is that you could be enjoying your holiday
in Maldives or be with your family
because you will have enough stock to send Amazon
and it will keep making you money.
Starting Amazon wholesale,
is definitely not as easy as Amazon arbitrage
as you need the right tools
and methods to find the best products.
I lost over a thousand pounds when starting Amazon wholesale
because I was doing everything wrong.
However, one of the methods I show
in the 50 day challenge to help you
find the right wholesale product,
is by opening an account with the wholesaler
and asking them for a product catalog.
This is where you will find a list
of thousands of products they have in stock,
and all you have to do is look for these products on Amazon,
and if you can make profit you can go ahead
and buy it from them.
This is pretty much how to start Amazon FBA
with $250 from scratch.
Now, obviously there's a lot more to running a business
like this, but that's why I'm dropping new videos
every week to hopefully cover everything I possibly can.
I have many videos on Amazon FBA.
However, this is the one you should watch next.
It's an in depth free course
where I will literally show you how to set up
your Amazon FBA account and get started.
But just before you click away,
if you found any value from this video,
then don't forget to hit that subscribe button
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so you never miss a video from me
and I will see you in the next video.