- Can you start Amazon Wholesale with just $1200?
And more importantly is it even a good time to start?
Well, today I'm gonna be covering those two questions.
I'm gonna be going over three different scenarios
where if you start today with $1200,
how much money can you have by the end of 12 months?
And be sure to stick around to the end
of the video because I'm gonna be going over
some common pitfalls that people will make
that I see people make that will prevent you
from getting those kind of results.
So let's get into it.
(upbeat music)
What's going on guys?
Welcome back to another video.
My name is Kris,
and on this channel I help people
make money online.
Now, and I've been selling full time online
for about three years now.
And one of the biggest hangups I see amongst new sellers
is that you need all of this money
to start selling wholesale on Amazon.
And I've been guilty of this
by portraying this on my channel,
saying that it is capital intense,
and it really is a capital intense business,
but you can start it with just $1200.
Now the reason why I'm picking $1200
is because if you're aware,
and if you are in the United States
and you made less than $80,000
the last year and filed your taxes,
the government is going to give out
a $1200 check.
And you're in the United States,
and you made less than $80,000 this last year,
and filed your taxes, the government
is giving out a $1200 check.
Now even if you aren't getting that $1200 check
$1200 is easy.
Now before I get Into those scenarios,
I do want to make an announcement
that I have started a newsletter.
I've talked about it on my channel before.
It is now a video newsletter.
So three to five minute video once a week
just for the people in the newsletter.
And I also give out a free copy
of my book, as well as a free 30-minute phone call.
And I will be announcing that in the newsletter.
Now I'm only going to be announcing that
in the newsletter going forward.
So be sure to sign up for that,
link in the description below
if you haven't already.
Now before I get into the different scenarios,
I do want to just tackle the question
is it still a good time to start Amazon
given everything that's been going on?
You know the answer is yes it is,
and that will always be my answer
when it comes to starting anything.
I think it's always better to start yesterday
than it will be tomorrow, plain and simple.
Because the thing is is this,
there's always going to be another obstacle.
There's always going to be something else
that you're going to have to tackle.
I think of being an entrepreneur,
my personal definition
of an entrepreneur is a professional problem solver,
that's what I tell people I do.
I'm a professional problem solver.
And there's always going to be a new problem
or a reason why not to start.
Now we placed, we just landed some new accounts
this last week,
and we even placed orders last week.
Now are there some suppliers that are shut down?
Absolutely.
But you can still build up those relationships,
build up the infrastructure,
and still continue out product research,
and all these other things in the business.
Business has not stopped,
if anything it's increased.
Now before I get into the computer
I wanna talk about the sponsor
to today's ad-free video,
and that is Payability.
Payability is a financing company
that works with Amazon sellers
that allows them to scale their business.
And even though today I'm talking about
using your own capital to grow your business
there will come a point
if you continue with this
where you have so much stuff to buy,
so many suppliers to buy from,
and you just don't have enough money to do it,
or you don't want to effect your credit report
because when you use Payability
it does not use a credit check,
and the money that you borrow
does not show up on your credit utilization
so it won't impact you
if you wanna buy a house
or a car or anything like that.
Now Payability has a couple
of different features.
It has instant access
that will give you access to items
that you sell that day.
And then also instant advance
that will give you a lump sum
for future sales that you may sell on Amazon.
Now I do have a link in the description below.
I recommend checking it out.
As long as your Amazon has been open
for at least 90 days
and you've sold at least $2,000,
I highly recommend you check it out.
Link in the description below.
And if you do use Payability
email me directly
and I will email you a free copy
of my book "Online Arbitrage for Amazon FBA."
Link in the description below.
Thanks a lot, let's get into it.
Now I went ahead and I have three different scenarios
of what it will look like
if you have your $1200.
Now, the reason why I have three different scenarios,
and this is ROI.
So money back return on investment.
Return on investment of you spending $1200.
So that means that if you spend $1,000
you bring back, you know a 10% ROI is $100.
So that's how I have this labeled out.
Now I have a 20% ROI per month, a 10% ROI per month
and a 30% ROI per month.
Now the reason why I have three scenarios is
odds are your ROI is not going to be the same
across all suppliers.
I tell people selling on Amazon is a lot like this.
And this is the strategy I recommend
to people when they start is
think of it as like it's a lot of bunts and singles.
Kind of like Gary V's jab, jab, jab, punch video.
That's how I treat the business.
So you're gonna get a lot
of 15-20% ROIs,
some 30% ROIs here.
The more suppliers you build up the more picky you can be.
But once or twice a quarter
you're gonna get a home run product
where you can essentially almost double your money.
So I wanna,
I just wanna talk about that in this video.
So right here, we'll start with the 10% ROI per month.
You start with $1200.
That means that in the next month
you have $1320.
The next month you have $1452 and so on.
So at the end of 12 months
you have $3,423.74.
That's an extra $3500.
Well technically if you subtract the $1200
it's an extra $2200 because you have to invest $1200.
But this is without investing any other capital,
which we'll get to in a minute.
So that's $3400 right here.
The next is capital back at 20%.
So this is 20%.
This is a 10% better ROI.
And this is more typical on what we see.
We actually see an ROI a little bit higher than this,
but 20% ROI is pretty typical.
That's per month, okay.
20% per month.
That means that the first month
you're bringing back a total of $240 extra dollars.
You made $240 that month.
That means the next month you're at $1728.
So that means that you're $528 higher than when you started.
So at the end of 12 months
you're at $8,916.
Now the reason why I put a 13 month column
is just so you can see the jump.
Just understand the compound effect
of your money here, the snowball effect.
Look at this, the last month is $10,700.
So $10,700 you just increased your money by.
It really starts to compound later on.
And then the last,
last one is if you're compounding your money,
30% ROI per month.
Now this is going to be a little bit harder
to do in the beginning.
I think once you build out your suppliers
and you really build out a network
you're gonna have so many different types
of products being sent to you,
I think snagging a 30% ROI is much more probable.
But even if, even if you can't get a 30% ROI,
and let's just say you're hovering between
the 10 and 20%, like I said there comes deals
once every quarter where it's like
let's say you get to this point right here
where you're at $1,728,
but that deal comes along where it's like hey
100% ROI, all in, let's go.
Now if you've been selling on Amazon,
you know that that's typical
that you can see that.
It's not unprobable for that to happen
if you've built your network out.
That takes that $1,728
and it doubles it to $3500.
So just, I want you guys to understand that.
But to get back to the 30% ROI,
you're looking at a total
of $21,000 at the end of December.
Now if you're thinking oh my God
this is too good to be true,
well it isn't.
This is not a scam.
This is not me trying to pitch you on a dream
because there's a lot
of hard work, pitfalls along the way.
I like to say selling on Amazon,
it's not rocket science,
and anyone can do it.
I'm just a normal dude.
Like I am not special.
If I can do it, I guarantee you can do it too.
And that's the attitude I've always had.
And that's the attitude I have
when I see someone else do it.
I'm thinking okay if they can do it I can do it too.
But, there are three mistakes I see.
And there's more than that,
but these are the three biggest mistakes
I see people make.
And the first one is is not reaching out
to enough suppliers.
So think of it like this.
If you're, I've never sold real estate before,
but if you've ever done any kind
of sales job, you're starting with zero books of business.
You have zero business.
So you have to put all of your energy into getting contacts.
And what I teach people in the mentorship program I have,
reaching out to at least 25 different companies per day.
Preferably probably 30 to 35,
but at least 25 per day.
So Monday through Friday, 25 a day, no questions asked.
I don't care if it's you
or a VA or whatever.
But if you're not doing that
then you're not going to see success, plain and simple.
You need to be getting at least 10 or 15 lists a week.
Run those lists through scan unlimited,
a scanning software I talk about.
You can quickly evaluate the items and go from there.
Because you're, even when you do find a company
that wants to work with you,
some of those items aren't going to be profitable.
And by some I mean a lot of them aren't.
So it's really, you gotta dig at first.
Number two is just not making good purchasing decisions.
So it's, let's say you actually do find
some suppliers to work with,
but now the problem I see people making are
they're just buying bad stuff.
Either, and it could be bad for a number of reasons.
Maybe the ROI is good,
maybe they're purchasing too much of it.
Maybe they didn't calculate all
of the fees that went into the item.
Mayer there's some kink in the logistics system
that they're not seeing,
and it's going to, you know, get into Amazon too slow.
Or maybe they didn't calculate
the amount the supplier had correctly.
There's so many things I could see
that people do when it comes to
yeah the supplier will sell to them,
but they're still buying bad stuff.
And so that's, you know,
and one bad purchase can really take you out.
So let's say you have $1200
and you spent $600 on one supplier.
Let's say the item's a complete bust,
well you now only have $600.
So, and imagine that going further down the road, right?
Let's say, the example where it was like,
let's say you have $10,000 further along in the year
and you spent that $10,000 on a bad item,
well that could potentially wipe you out.
And that's one of my rule of thumbs is
when you're making purchases
there's always risk allotted,
and so you need to make sure
that the risk is worth the reward
and you never make a move
that will wipe you out.
You should never buy something
that could potentially wipe you out of the business.
And my third mistake I see people make,
and I see this on all levels, okay,
and even myself I'm guilty of this.
I've been guilty of all these sometimes,
so don't think that I'm not,
I haven't been guilty of some of these.
So the last one is just thinking too much.
Yes you do need to do proper product research,
and you do need to ask questions,
and I'm not saying just go into it blindfolded,
but there comes a point guys
where there's analysis paralysis
and you just have to do it.
Okay so whether you're just starting
or maybe there's something in the business
that you're already going with,
and you just aren't there yet.
Maybe there's just something in the back
of your head telling you
I shouldn't do this.
I've seen this so many times.
There are people who watch my videos
and they still haven't bought anything on Amazon,
and I know this because they reach out.
Don't be one of those people.
If you are one of those people, reach out to me.
What can I do to help you out?
I will do, that's what these videos are for,
are to help you guys out.
So now guys if you are interested in a mentor,
I do have a mentorship program available,
you can see that in the description below,
The Art of Amazon Wholesale,
where I will help you build your Amazon business,
weekly live streams, all this other stuff,
very hands on, to get you going as quickly
and efficiently as possible.
And also I do have a link to a free Facebook group
in the description below as well.
It's always awesome to network
with like-minded individuals in the eCommerce community,
especially when you're just working from home by yourself.
So that's it for this video guys, take care,
and see you in the next one.