– How’s it going today guys, welcome back to the channel. So I’m here again with Jordan, the Millionaire Millennial on YouTube. – What’s up? – And, so we already did one video already talking about what
Jordan is doing on Amazon. We went through an example of finding a private label product. So if you guys missed that, that’s down in the description below, but in this video we’re
gonna be talking about what you need to know, kind of getting started
with Amazon FBA in 2019. I constantly hear about people saying, is Amazon oversaturated, is it still possible to be
successful with Amazon in 2019, and so I think Jordan is
probably the best person that can really answer
these questions for us and kind of talk about that, so– – Yeah. – I’m gonna hand it over to you. – Yeah no, I’m deep in
the trenches in Amazon so I know what’s going
on in the background behind all of the stuff
that everybody talks about, and I know what’s actually true, so– but there’s a lot of people saying, it’s oversaturated–
– Sure. – There’s too much going on, and that’s not true. I think it’s people trying to scare newcomers off of the platform. – Okay. – And so, I don’t think for any reason that it’s dying or whatever. And I wouldn’t say it’s dying until we see Amazon as a
company stop increasing, right? They’re growing very very fast, and to keep up that growth
they need more sellers. More products. – Sure. – So like, that’s the only
way that they can keep going, and until their stock price flattens out and starts falling off, I’m gonna say that selling on Amazon’s– – Yeah, or looking at revenue growth and other figures like that.
– Yeah. – Yeah, absolutely. I think what would be good to
talk about here too is like, with a product there’s a life
cycle with a product, right? – Yep. – So it’s not like you just
find one product on Amazon and that’s gonna be it for
you for the next decade. – No. No, yeah. No I mean, it can be. It depends on the product. – Sure. – So there are products that have a longer life cycle than others, but I mean, some of the
products that I’m selling today I’ve been selling for over two years. – Okay. – So it’s a pretty decent life cycle, but again it kinda depends on the product. If you really wanted
to sell fidget spinners when they were hot, your life cycle was a few months. – Okay. – And so, unless you timed it perfectly, you’re going to end up with
a lot of excess inventory and a lot of bad things are gonna happen. So I definitely like to go after the ones with at least a few years of life cycle, because you don’t want to
get involved in a product, get everything set up, work hard to bring it to market, and then you only sell it for a month. – Yeah, you have that, that’s not a long life cycle there to sell that product with all that upfront investment there.
– Exactly. – So do you find that, is it more competitive than it used to be? The same? Less? Or what are your thoughts on that? – It’s relative. The competition’s relative to the amount of customers. – Okay. – So are there more
sellers than there were five years ago? Yes, absolutely. But are there more
customers than there were five years ago? Even more so.
– Okay. – So it’s really, what’s the ratio of customers to sellers, and I think that that ratio
stayed pretty much the same consistently over the
past five to ten years. – Sure. And so are you finding that, with your products that you’re selling, is it still as profitable as it used to be or have your profit margins changed any? – No, our profit margins haven’t changed. I mean like, three years ago, like 100 percent ROI was pretty standard for
private label stuff. – Sure.
– Still is. – Okay. – You know like, it’s not, it’s not changing the way the profits are. People are worrying
about taxes and tariffs and import costs and things. Those costs get passed on to the customer. – Okay. – Like, unfortunately, you know? Like, I feel bad for
the customer sometimes. – Yeah. – But it’s like, I’m not gonna pay. It’s not injuring the business, ’cause those costs get passed on, so your ROI and your profit
margins don’t really change, it’s just the prices increase. – Okay, that makes sense. And so like, let’s say for example, somebody wants to get started on Amazon but they’re worried about having a short product life cycle or their competition. What can you ultimately do to separate yourself from
other Amazon sellers out there? – Yeah. The biggest thing
to separate yourself from your competition and other sellers is to make something slightly unique. And it doesn’t have to be like, I’m gonna go invent this new thing. – Sure. – Right? It can be as simple as like, bundling two complementary
products together. – Okay. – So for example, if
you wanted to sell mops, then you could also sell a mop bucket that goes with the mop. Those are complementary products that go together very well, obviously. If you’re buying a mop you probably also want a bucket. – You want a bucket, yeah. – So, you know, people
don’t wanna have to go buy a mop and a bucket. They wanna be able to buy a bundle where they know the mop and the bucket are the right size, they’re gonna work together. So like, that’s something that’s like, very simple that you can do. You’re not inventing anything new, you’re not inventing a bucket. – Sure. – So you can easily make
two complementary products and just put them together. And then you’re now differentiated among all of the other mops. – Now, when you say make, you obviously don’t mean
“make” these products. – No, I don’t–
– You’re gonna order– – Every time I say “make” anything, I mean have a manufacturer
make it for you. – Okay, have it
manufactured on your behalf. – You have it manufactured.
– Gotcha. – So you don’t actually, you know, obviously we’re not
welding pieces together and molding– – And making buckets in your apartment. – We’re not doing anything like that. – Okay. So by basically providing that as a convenience service, it differentiates yourself–
– Exactly. – From your competition? – And that’s what I, you know, that’s my big focus point for 2019, is stop worrying about your competition and start worrying about your customers. If you can provide good customer value, then you’re going to stand above your competition anyways, so just focus on the customer and focus on what they want. – Sure. Now, are there
also things that you can do as far as customer service that would differentiate
yourself from your competitors? – Oh yeah. So I mean, the thing is on Amazon, customer service is handled by them. – Right. – And most sellers are like, okay, well fine, you know, Amazon handles customer service, I don’t need to worry about it. – And they say we don’t need to do it? – Exactly. Like I don’t know hardly any sellers that worry about customer service, but if you’re building like a brand and a private label product, if you can have customer service above and beyond what Amazon has, that’s gonna stand out
tenfold over your competition, so there is– – I know we mentioned
it in the last video, but can you just mention quickly what private label means in Amazon? – So private label is basically like when you have a product manufactured and have your logo and
your brand name put on it. – Okay, so you’re selling it
as your brand at that point. – Exactly.
– Okay. And so what are you implementing to really improve your customer service with these private label products? – So there’s a few different things. You can obviously do email followup. Amazon’s got certain rules about how many emails you can send customers. – Okay. – But what I really like is
using Messenger on Facebook, Messenger marketing.
– Sure. – And having like a Facebook
page for your brand, and then anytime a customer has any concerns about your product, or they wanna learn more, they can message you, and either you can do it
manually checking that, and that’s kinda where I would start, but you can actually make a Facebook bot. – Really? – That will automatically
reply to certain inquiries from your customer. And that’s just, I mean, that’s just gonna stand out. Like, significantly
more than anybody else. – Right, ’cause I’m sure
other Amazon sellers you’re not able to, maybe if they even have a Facebook page. – Exactly, most don’t. – And if you message them, you may not even hear back. So that’s really interesting.
– Exactly. – And any automated solutions
for your business as well are a plus because then you’re not– – You don’t have to actually do it. – Actively putting your
time into it, right? – Mhmm.
– For sure. And so have you also found that, by having private label products, that the brand that you have
also differentiates yourself from people selling, I guess, unbranded products? – Yeah. So I mean, it’s
actually against Amazon’s rule to sell “unbranded” products. – Oh, okay. – But a lot of people will do it anyways, they’ll sell just like some generic brand, they won’t even have their logo on it. – Mhmm. – I do think that if
you have good packaging, like make your packaging look really nice and just make your
product look professional and have your logo and your brand on it, and build a community around your brand, that’s gonna be the
best way, going forward, because people, they wanna
align with something. They wanna have a brand
that makes sense for them, so you find your target customer, find where they hang out, go to that place. Obviously online, you know, you don’t need to actually go to like, wherever they actually hang out. But then, you know, broadcast your product to them, and say, this is what our brand
stands for, you know? Maybe we donate a certain
percentage to charity or whatever. – Sure. – And people love that kind of stuff, and so they’re gonna buy your
product over your competitor’s because you have a reason that
you’re building the brand. – Yeah, that makes a lot of sense. And so, really it seems like you just have to be more creative or do some things a little bit different than your competition.
– Yes. – But I love what you said about focusing more on just, you know, your customers than your competition, because if you’re providing
more value to people, that’s gonna really be what stands out. – And that’s what Amazon
built their company on, right? They didn’t– – Yeah, being earth’s most
customer-centric company, right? – Exactly.
– That’s their motto? – Exactly, being
incredibly customer-centric and if your company’s
values align with Amazon, you’re just gonna have an easier time selling on their platform. – Yeah. That makes a lot of sense. And there was a statistic I pulled up that I wanna mention here from Statista, about the growth of e-commerce, and it says that, in 2017 e-commerce was just nine percent of total retail sales. So of all the money being spent on retail, nine percent is being
spent through e-commerce. And I know Amazon has what, 50 percent market share of e-commerce? – Yeah, they own about 50
percent of e-com right now. – Which is unbelievable, that of all of the websites and things online people are buying from, half of it is Amazon.
– Yup. – But as far as market saturation goes, they’re saying that this is expected to grow to 13.7 percent by 2021, so from nine percent to just under 14, and the fact that Amazon has 50 percent market share of e-commerce, I’m pretty sure they’re gonna benefit– – Yes. – From that growth of spending being directed towards e-commerce overall. – Absolutely, they’re
just gonna keep growing. – I mean I could see that if
e-commerce was not growing, and Amazon’s market share of
e-commerce was not growing. – Yeah. – And there were more and more sellers going on the platform, and the customer base was flat, then at that point it’s more competitive. – Yeah. And I would
probably make a video myself and be like, alright guys, it’s over. – It’s over, it’s saturated.
– It’s done. But like, that’s not the case. You know, it’s the exact
opposite of what you just said. It’s like, it is growing.
– Right. – Amazon’s market share is increasing, there’s more customers
that are buying on Amazon, so just, you know, it’s still growing and it’s
still a great opportunity. – Yeah. For sure. So before we wrap this
up, I just wanna ask you, do you have any really quick or tips for people who wanna get started in 2019 or anything specifically? – I mean if you wanna get started in 2019, get started in 2019, you know? Don’t wait until 2020.
– Right. – Like actually do something this year and actually get a product
up and going, and like, that’s the first step is actually, find a product and sell it. And so many people get
stuck on that point, where they just, they’re like, “Oh I can’t find a good product.” It doesn’t have to be the best product. ‘Cause my first, like, several products, I don’t sell anymore, because they ended up doing okay, but it’s a learning experience. So just start doing something. – Right. – That’s gonna be my biggest
piece of advice to everybody. – And I know you were explaining as well how even if you have a bad product, in most cases you can
liquidate and break even? – Yeah, exactly. So like, the carts that we looked at– – Okay.
– In the last video, right? You have a 70 dollar margin. You could sell those 70 dollars
cheaper than everybody else. You’re gonna sell them. – Right, yeah, if your
competition’s selling them for 160, and you have ’em for 90 bucks. – Exactly. – They’re gonna sell. You might not make money, but you’re just trying to– – Yeah, worst case scenario is you break even and you’re
at position one again looking for a new product. – Sure. – But you haven’t lost any money. – Yeah, that makes a lot of sense. Alright, so that, I think
is gonna wrap up this video. In the next video we’re
gonna be talking about, is Amazon FBA for you? Is it the business for
you or are you maybe, it’s not for you? And really what it takes
to succeed with Amazon FBA. – Yup. – But so, where would people go if they’re looking to learn more about you and you know, your– – So, my YouTube channel’s
always a great place to start, and then you know, I’ve got lots of free trainings, and I’ve got a course as well that’s gonna take your from like, point A to point Z. Everything you would ever
need to know about Amazon. Everything that I’ve learned, all the pitfalls that I’ve fell into. Warnings, you know, to stay away from. So there’s a lot of training out there just from me that I put out.
– Sure. – But there’s tons of
stuff all over the place– – Yeah, I think there’s a lot of people doing YouTube videos, you have what? Close to 100 or something, or? – Yeah. – Yeah, so he’s got a lot
of stuff on his channel, free course as well and his main course, and I’m gonna link up all that down in the description below. But yeah, that’s gonna
wrap up this video, guys. Stay tuned for part three, and hopefully we’ll see you there.