How to Make Money on Amazon Selling OTHER PEOPLE’S PRODUCTS (7 Figure Cycle)

Sarah: And that’s it, we are live. Hey guys, it’s me, Sarah here from Wholesale
Ted, and welcome to today’s live video. Today, we are going to be teaching you guys
something pretty special. We’re going to be teaching you how to make
money on Amazon by selling other people’s products. And to help me with this video today, I’ve
got a special guest, Amazon millionaire Aidan Booth. Aidan and his business partner Steve made
over $5.4 million last year selling other people’s products. And so yes, when most people think about selling
on Amazon, they think about private labeling as in manufacturing brand new products in
China, creating and slapping your own brand onto it, and then shipping it into the Amazon
warehouses. And if they don’t think about that, they usually
think about retail arbitrage, which if you have been a longtime follower here at Wholesale
Ted you know I’m not a very big fan of, because it does not scale well. So today, we’re not going to be teaching any
of those things. Instead we’re going to talk about how you
can make hundreds of thousands to even millions of dollars selling other people’s products
legally. Now how can you do this? Well, it’s thanks to wholesalers. So let me show you what I mean. And just a quick note guys, we will be taking
questions at the end of the live training, so if you’ve got any questions, please be
sure to type them into the chat section and we will be answering them when we can. So let’s come and take this as an example
here. This is a dog bed that’s on Amazon. It’s an Aspen self warming bed. Now, if we check it out on Jungle Scout, we
can see that it’s a regular seller, selling over 500 units every month. Well, if you haven’t noticed, there is more
than one seller for this item. In fact, there are over 28 sellers for this
item. So how can there be this many sellers for
a branded item? Well, it’s because believe it or not, this
item is sold by wholesalers. So for example, here is a wholesaler that
regularly sells to Amazon merchants that have this dog bed listed in its catalog. So why would you choose to do wholesale selling
rather than something like say, private labeling? Well, I’m not going to say that either is
better, one is better than the other, that’s not the case. They each have their pros and cons. But there is one very big advantage to doing
this method over private labeling, and that is with this method here you don’t have to
do any marketing. So normally, if you are private labeling you
have to spend hundreds to thousands of dollars on launching a product and getting initial
sales. But with this method, you get to piggyback
off of existing sales for this item and steal a slice of them for yourself thanks to the
Amazon buy box. So let’s say you’re someone who wants to come
and buy this dog bed, and you come to this amazon listing to purchase it. Well, the chances are you’re going to come
to what’s called the buy box and click the ‘add to cart’ button. And so I’ve circled it here in red for you
guys. Now, that is how 80% of sales on Amazon are
made. Very few people come and click this button
here, which allows them to view other sellers and choose from a list. Instead, the vast, vast majority of people
just use the buy box. Now, when there are multiple sellers for an
item like this dog bed here, what Amazon will do is it will rotate all eligible merchants
for it and give them each some buy box time. Now, to be eligible, now there’s a short answer
there’s a long answer. We’ll give the short answer. You usually just need to have basically a
professional Amazon account that is in good standing and to be priced competitively. So if you went to purchase this dog bed from
wholesalers and then shipped it into the Amazon FBA warehouse and then you listed yourself
as a seller for this item, as long as your professional Amazon account was in good standing
and you priced your dog bed within a few cents of the lowest priced merchant for this item,
Amazon would give you some buy box time. And so as you can see, there’s no marketing
required, there’s no advertising required, you just get to make free passive sales. So that is it in a nutshell. And I really love this method, and I think
it’s a shame that basically nobody is talking about using wholesalers, because I think it’s
great for people that don’t want to be creative, don’t want to have to make their own products
or that don’t want to have to risk a bunch of money creating their own brands, you just
get to piggyback off of existing listings. And it’s absolutely legal, you are allowed
to buy these items from wholesalers and resell them. So I hope that that makes sense. If you guys have questions, again, we’ll be
answering them at the end of the training, so be sure to type them in the comments box. So again guys, I have with me today Aidan
Booth. He is one of the world experts in this method,
which is why I’m super excited to have him here today. And as I said earlier, him and his business
partner Steve made over $5 million last year on Amazon doing this. And something that they’ve also been doing
is teaching it to their students, like this one here. She was making over $60 thousand a month within
four months, which I thought was pretty incredible. And just a warning, Aidan is also a New Zealander
like me, so forewarning he has a funny accent. So let’s switch the screen here so that you
guys can see and hear Aidan too. Cool, there are now two of us on the screen. So welcome Aidan, thanks for coming and joining
us here on Wholesale Ted. Can you start out by giving the viewers an
overview of the method that you and Steve used last year to earn your $5 million, which
by the way congratulations, that’s really amazing. I think I gave a good overview, but just make
sure. You can go ahead and tell our subscribers. Aidan Booth: Yeah hey, so great to be here
guys. I’m coming in to you, I am from New Zealand
but I’m coming in to you from Argentina, which is where I live these days. And I just wanted to clarify something before
getting [crosstalk 00:05:56] the profit margin on that is between about 30-35%, so it’s not
like that’s 100% profit, but nevertheless it’s still a pretty big number and it’s still
a really good business. So basically what we’re doing is we’re buying
from wholesalers. These are distributors across, for the most
part, United States but it could be anywhere in the world really. We’re buying lots of different products, oftentimes
in really small quantities, and we are sending those in to Amazon’s warehouses and we’re
letting Amazon do all the heavy lifting with the logistics. Amazon sends all the products out for us,
and we typically get roundabout between 30-50% profit each time we sell these products. I think one, there’s two things we really
love about this business model. One of them is that we are able to cycle through
our inventory very very quickly, so what I mean by this is every 15 days we’re selling
out of our inventory. So if you imagine, on the 1st of the month
we’re buying 10 photo frames. By the 15th of the month, we have sold those
10 photo frames and we’ve got our money back plus another 50% or something on top of that,
which would translate into 30, 35, 40% net margin. There’s the first thing we love. The second thing that we really love about
this business model, and we’ve tried lots of different business models over the years,
is that traffic is a complete nonissue because we’re not paying for traffic, we don’t have
to do that. And we’re not trying to get ranked organically
on Amazon either. So what I mean by that is if you were to launch
your own product with your own brand on Amazon, what you would have to do is you would have
to get rankings. So let’s say you start selling a mouse track. This is your mouse track. You would have to work hard to get rankings
on Amazon for the word mouse track. We don’t have to worry about that, because
the products we’re selling already exist and they already have that ranking, so we are
as Sarah said, we’re kind of piggybacking off of this momentum that already exists. So it’s probably one of the only business
models that I know of where traffic is a complete nonissue. So yeah, I mean that’s, I think in a couple
of minutes what we’re doing here. Sarah: Awesome. No, that’s awesome. And as I said earlier, I love the strategy
and I think that people don’t talk about it anywhere near enough. So something I think that people find curious
is that you guys use USA wholesalers instead of important of importing your products from
China. Now for the record, I want to tell our subscribers
here, I don’t think that importing products from China is better or worse than importing
from the USA. I think they each have their pros and cons. But obviously Aidan, you guys are having really
good success purchasing them within the USA. So could you tell us what you think the advantages
are of using USA based suppliers and manufacturers compared to importing from China? Aidan Booth: Yeah, so I’ve actually got a
pretty good viewpoint on this because we also have another business, which is purely about
importing products from China. So we do both things, but what we’re talking
about here today is the wholesale side of it, which is USA distributors, USA suppliers. One of the immediate advantages that you have
working with the USA is that you can have a delivery time of just a couple of days. So you can literally send an email to your
supplier and say “Hey, send me 15 photo frames in to Amazon,” and a couple of days later
they’re already there. So time is a big thing. I don’t speak Chinese, and I find it a lot
easier to communicate with the USA suppliers for obviously reasons. It’s the same culture to what I’m used to,
and I always get great customer service, quick delivery times, and it’s a win win situation
all around. The other thing about these suppliers and
distributors is they are not sellers. So what we’re doing is filling the void. And they don’t want to be sellers, either. They just want to be wholesalers. They don’t want to be selling to the end user. So they need people like us who can go and
do that for them. And it’s I guess something else that I like
about working with these USA suppliers. We have had cases in the past, and believe
me, I’m a huge fan of buying products from China as I said, I’ve got a big business that
actually buys hundreds of thousands of dollars from China as well every single month. But we have had some instances where the Chinese
that are selling us the products have ended up trying to sell those products themselves
and competing with us. And again, this doesn’t happen all the time,
it’s just happened a couple of times, but it’s never happened to us in the US because
I think people understand that their core business is as a wholesaler and our core business
is taking those wholesale products and selling them to the end user. Sarah: Nice, nice. Just checking out the questions here in the
comment section, I think I’m going to jump ahead. I was going to ask this later, but I really
feel like I need to ask it now. Everybody’s really curious, they want to know,
do you have any advice for viewers here on how they can best find these USA based suppliers? You are a world expert in this, so I think
they would really appreciate your tips here. Aidan Booth: Yeah, so one of the easiest things
you can do is just do a google search and search for a trade association, that’s a good
keyword to use. So let’s say you want to start selling … Sarah,
you gave an example of I think it was a dog bed or a pet bed anyway. If you want to start selling dog beds, then
look for pet trade associations or dog trade associations and google and you’ll find them,
you’ll find them come up. And you’ll get access to your websites, and
then you’ll get access to tens of thousands of products that they sell and you’ll be able
to sell them yourself. And by the way, there are hundreds if not,
there’s actually thousands of wholesalers and distributors across just the United States. So you’re never going to have an issue finding
these people. Sarah: No, totally. And so here’s another question for you. Once you find these people, what is the best
way to reach out to them if somebody here is scared and they think oh, I’m a new seller
on Amazon, will they be friendly to me? What do you think, can they just reach out
to them? Aidan Booth: Yeah, I mean, as I was mentioning
before, this is their business model and they rely on people like us to sell their products
for them. It’s a win win situation, the more products
that we can sell, that’s money in their bank account as well. So they are friendly to work with, in most
cases you can open an account with them just by sending an email. Very rarely do we actually have to pick up
the phone and call them, but if we have to do that, it’s not that difficult either. Another thing that I love about this business
model is that it lends itself very nicely to outsourcing. So I’d be interested to know anyone who’s
watching this, just type outsourcing in the comment box if you’ve done outsourcing yourself
in the past or are interested in it. Because this is a method that you can outsource
with, and we’ve got people on our team who all they do all day is look for and negotiate
… Not even negotiate, just look for and make contracts with the suppliers. You don’t really need to negotiate, because
they’ve got their standard lists, standard product lists as well. I did see one comment that I might just reply
to there, Sarah. And someone said it sounds like it’s high
risk, and I think it’s actually the opposite of high risk. It’s very, very low risk, because you’re not
buying thousands and thousands of dollars worth of inventory to get started. You can literally get started by putting in
a $20 inventory order. Let’s say you’re selling, I don’t know, photo
frames, use that as an example. You’re selling some photo frames. You might order just 10 of them to start with,
and it might cost you $20. So you don’t have a huge outlay. You can start selling them, and once you’re
selling them you can rinse and repeat and slowly reinvest your profits to get bigger
and bigger and bigger. Sarah: Nice. No, that’s awesome. And this is making me think of something [inaudible
00:14:17]. So when you think about private labeling,
one of the advantages, people that are in that business is that they are only manufacturing
one item and just managing one single item. But you’ve got to admit, it sounds like your
strategy does involve selling lots of different products. Do you ever find it overwhelming, and how
do you manage selling multiple different types of products? Aidan Booth: Yeah, no it’s really not overwhelming,
because remember you’re dealing with a wholesaler who might have thousands and thousands of
products in their … You know, that they can sell you. So it’s not like you’re dealing with 20, 30,
40 different wholesalers. You might just be dealing with one or two
of them, and that could be plenty to begin with. So for starters, it’s not like you’ve got
20, 30 different points of communication. You’re normally just dealing with the same
people over and over and over again. That makes it quite simple. And in the next thing, as far as the actual
logistics and fulfilling the orders, that’s all taken care of by Amazon. One thing that you do have to do before you
send the products in to Amazon is you do have to stick a barcode on them. And there’s a few different ways that you
can do this. One is you can arrange it with your supplier. Second, your distributor, they might be able
to do it for you. You can use a third party logistics center
and they will receive your products, put a barcode on them, and if you’re doing a third
party system you might be spending 50 cents or $1 at the most per unit, so again, it’s
not a big cost. And then they can put the little barcode on,
send it off to Amazon, and you’re good to go. So it really can be 100% hands off. Like I’m down here in Argentina, and I’m from
New Zealand originally, and it doesn’t matter where I am because I’ve got my team and my
resources and different parts of the world doing most of the heavy lifting for me. Sarah: No, awesome. Yeah, I agree. I love the hands off model that Amazon FBA
provides. [inaudible 00:16:22] selling multiple products
and having a go wide strategy is absolutely fine guys, as long as you are not the ones
fulfilling all those orders and Amazon is. And I think I’ve got one final question for
you Aidan before we take it to the comments, because we’ve got lots of questions there. Because … Actually here, I’ll ask this question. What makes a product great to sell on Amazon,
because I think that our viewers would really love some tips on picking the right items
to sell, and obviously you’ve had a lot of success in choosing those products. Aidan Booth: Yeah, so one thing I’ll say there
Sarah is we don’t really go after these home run products. We sort of go after these more boring products. Maybe they sell a couple of units per day,
but that’s fine because we have lots and lots of them. And we kind of, we’re targeting these unsexy,
boring products and most other sellers that want to sell on Amazon, they go after the
home runs. They go after the products that are going
to be doing $10 thousand in sales a month, and we don’t. We generally stay in the less competitive
products and we just scale, because remember, the wholesalers that we work with have got
product catalogs of thousands, tens of thousands of products anyway. So that would be one thing I would mention. And that’s actually quite a big tip, because
it kind of goes against what most people have traditionally been told. The other thing is there’s a whole different
spectrum of price points that you can sell at. I mean, there’s no reason why you couldn’t
be selling products which sell on Amazon for $200, but the downside and the thing you have
to understand is if a product sells on Amazon for $200, it’s probably going to cost you
about $100 and that might lead to higher inventory order points. Now, if you want to get started really on
a shoestring budget, then maybe you want to stick to products that sell more in the $20
range, because you’re probably going to be able to buy them for $10 or even cheaper,
$15, you can probably buy those products for $5 or $6 and you’re not going to have a huge
outlay to begin with. Sarah: Nice, because, thank you. That actually leads me to a question from
the audience. So I think we’ll take it now to the questions. One thing that was asked a lot by people of
course is whether or not they can do this method despite having a very small starting
budget. Like what would you say, if you were going
at this method do you need to have $1,000, can you get started? Aidan Booth: Well you don’t need $1,000 that’s
for sure. I mean, you can definitely get started for
under $100 because you decide how many orders, how many units of something you want to buy. Some distributors out there will have a minimum
order quantity, but you can choose the wholesalers and distributors that you work with anyway. So if you see that they do have a minimum
order quantity of $100 or $200, then you don’t have to work with them. If you want to get the business going the
fastest way possible, then it helps you to put a slightly bigger order in to begin with. Let’s say you put in $100 to begin with. After two weeks, the idea would be that you’ve
sold that $100 worth of inventory and you’ve got $150 back. And then you reinvest that $150 into more
inventory and you send that to Amazon two weeks later. So at the end of the month, this is your second
inventory cycle, you would’ve sent $150 in and you’re going to get back plus 50% back,
so you’ll get $225 back. Then in the next two week cycle, you’ll buy
$225 worth of inventory, you’ll send that in to Amazon, and you’ll get, two weeks later
you’ll get $225 plus another $112 on top of that so what’s that, $335 back. So it very quickly snowballs, so the bigger
your kind of starting budget is, and $100 is fine, the faster that’ll snowball. But you start getting this sort of compounding
momentum, it takes on somewhat of a snowball effect, a domino effect, and it just, it grows
itself almost. Sarah: Yeah, I think that’s a fantastic answer. There’s another question in the chat box which
I’m going to answer. So a lot of people have been saying, “Well
if you’re selling products and you’re listing your stuff as a seller, what if there are
like 25 other sellers,” because if we switch back here to one of my examples before, you’ll
see that there are 28 sellers for this Aspen pet self warming bed. So if you list yourself as a seller, are you
going to be competing with all of these sellers for the buy box? Well the answer to that is actually no, because
not all of those sellers are eligible to win the buy box. Maybe only a handful of them will be eligible
to win the buy box. Do you have any advice Aidan for people on
using the buy box to get free passive sales? Aidan Booth: Yeah, so this another really
important concept so I’m glad you brought it up, but let me just give you an example. Let’s say you see a dog collar being sold,
and let’s say there are five different people selling this dog collar, and two of those
people sell using Amazon FBA, which means Fulfilled by Amazon. And the others are being sold by a merchant. The people that are selling via a merchant,
which is fulfilled by merchant, FBM, we don’t really have to worry about them because they’re
not going to be prime sellers, they’re not going to be really competing with us. And oftentimes, they’ve got different prices
anyway because their shipping is not covered. So the sellers that we want to look at when
we’re analyzing an opportunity are the people that are selling on FBA, Fulfilled by Amazon. If there are two people selling on FBA, and
they’ve both got a very similar price so they might be selling the dog collar for $10 right,
one might be $10.05 the other might be $9.95, what Amazon will do is it will automatically
rotate the buy box between those two different sellers. So that means 50% of the sales will go to
one, 50% will go to the other. If you come into that marketplace as the third
seller and you’re selling at the same price, what Amazon will do is it will rotate the
sales now between three people, okay. The two that were there before and you, and
you’ll automatically get one third of the sales volume that exists for that product. So one of the things that we do when we are
doing our research and deciding if we want to sell a product is we like to look at the
sales velocity of the product. How many units are being sold per day or per
month? And let’s say you do some analysis and, just
for the sake of example let’s say that the dog collar was doing $600 in sales per month,
there are two people selling it, they would each get $300 per month. If you come in, then that $600 is going to
be divided between the three of you, and that’s how it works. So you can know, as long as you’ve got accurate
data when you’re doing your research you can know when you come into it what your sales
volume is going to be and what you can expect to make. Sarah: Nice, I think that’s a fantastic answer. It’s a seemingly complex thing, but it’s actually
really simple. So here’s another question which I think you
are an absolute expert in Aidan. People are saying in the comments they’re
from Turkey, they’re from other places, and they want to know how do you run this business
if you live outside of the USA, you are currently based in Argentina and you’ve been based in
New Zealand? What do you have to say for that, how hard
is it to do this business outside of being in the USA? Aidan Booth: Yeah, it’s not hard at all. There’s no geographic barriers that are put
up here. You don’t need a US company, you don’t need
a USA bank account. I saw someone mentioning taxes, well you can
just pay taxes in your own country. If you live in Hungary or the Ukraine or Australia
or wherever it might be, then you just pay your own taxes in your own country, because
that’s where your business is based. So it’s really a nonissue. Some of the suppliers, some of the wholesalers
might sometimes want to know a little bit about you and stuff, but they’re few and far
between. From time to time, they might ask for something
known as a reseller certificate. This is something that you can apply for and
get, it takes like two days to get and it’s really easy to get. If you do a google search, you’ll find out
how to get one of those. But again, that’s probably the minority and
you can certainly work with a lot of suppliers and wholesalers without any sort of red tape
at all. It’s pretty streamlined, it’s pretty straightforward. Sarah: Yep, and I want to just give a quick
plug here. So we’ve actually got videos here on this
channel which teach you how to do that for those. Sometimes wholesalers, they are rare, they
will come and they will ask you for that information. They might want a resale certificate, whatever. We talk about that on this channel, so you
can find step by step tutorials. And everybody who goes through those videos,
they’re like, “Whoa, this sounded really complex, this sounded really hard but it’s actually
really really easy.” So thank you for that. I think that we will finish up our questions
a little bit by just talking a little bit more about the buy box, because people are
very, very interested in this here. They were asking what are the price requirements. We were talking about price, I mentioned it
before, to be eligible you need to be competitive on price. Do you have anything to say on that Aidan? Aidan Booth: I mean, we don’t want to ever
get into a point where we’re fighting to get lower and lower and lower on price because
everyone ends up losing on that, so what we typically do when we sell a product is we
want to look at the price history of that product, so there are a couple of different
Chrome extensions you can get which are free which will tell you the history of the price
of something. One that you can look up is called Keepa,
and what that’ll do is it’ll allow you to see the price history of a product and you’ll
see if it’s been fluctuating a lot or if it’s been steady. Ideally, it would’ve been steady. And then when you come into the market, you
just place your prices at the same price that what the other sellers are selling at. Normally, there’s a couple of serious sellers
and they might be at the same price and you would just place yours right at that same
price. If someone undercuts you by $5 you don’t have
to follow them down, you just stick at your price. The other guy’s going to sell out and then
you’ll start selling. So that’s how we do it. There are complex repricing strategies that
you can use, but honestly it’s overkill in most cases for most businesses, and you certainly
don’t need to worry about that when you’re starting out. Sarah: No, absolutely. So something I mentioned before guys is that
you don’t want to get into a pricing war on Amazon if you can help it, because what will
happen is if you undercut the price, your competitors will come and undercut you and
you will undercut them, and it’s entirely unnecessary because all of the sales, well
the vast majority of the sales are being made by people using the buy box. And to be eligible for the buy box, you only
have to be within a slight price difference of them. So if you price yours a few cents more than
them, you’re not going to trigger them to then go and lower their price. So that’s what you want to do, you want to
be within their price, you don’t want want to try to undercut them. You don’t need to undercut them, you just
need to be close to them to be eligible to win the buy box and to steal a slice of those
sales for yourself. All right, so I think that we are starting
to come, it’s starting to get a bit late so we are going to close it up. But thank you so much Aidan for coming on
this video today and coming out to us, thank you. Aidan Booth: [inaudible 00:28:09] it’s always
a pleasure to chat with you Sarah, and hopefully you guys have got some great content here. It’s been great to be here. Sarah: Thank you, thank you. It’s been awesome having you here. So again guys, I want to, before I close this
up I just want to let you know that if you want to learn even more including the tools
and the methods that Aidan uses to find these super profitable wholesalers so that you can
piggyback and basically steal sales from preexisting selling products, then you should definitely
sign up for our free webinar and live training. It is on January 26th at 3:00 PM Eastern Time. That is January 26th at 3:00 PM Eastern. That is eastern USA time, not Australian time. Sorry you Aussie viewers out there. And remember, you need to be registering for
this because this is not going to be streamed on YouTube, so you can find a link on how
you can register in the video description below. So again, thank you all for watching this. If you found this really helpful, then we’d
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came out today live. If you are watching the replay later and have
your own questions, be sure to ask them in the comments section. Admittedly, we do get a lot of questions,
but we try to answer as many as we can. And of course I’ve got one last freebie for
you guys. Here at Wholesale Ted, we have a free ebook,
‘How to Make $10,000 a Month Online With Dropshipping.’ If you’d like to download this ebook for free,
simply find the link in the video description below. And so again, that is a wrap. Thanks guys for coming out, have a great day.

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