How To Start Amazon Selling For Beginners In 2018 **Step By Step**

– [Presenter] What’s going on guys? So today I’m gonna walk you through, step-by-step, how you can
start your Amazon FBA business, because it can be confusing. There’s a lotta little things to consider, and I’m just gonna walk you through the steps you need to do, in
the order you need to do them. Now this won’t be super, super detailed, but this will give you a great idea of where to start, what you need to do, and certain things you could miss. Again, this isn’t
everything you need to know. It’s a lot of it, but it’s not- you need to know more
detail on these as well, so do more research. If you’re interested, I
do have a course on this, but let’s jump right into this. So, the very first thing you need to do, is create your business. Now, I get the question,
do you have to have an LLC or a legal business to sell on Amazon? And the answer is no. You don’t have to. I obviously recommend it, I have an LLC. I have multiple for different things. It’s easy to get, depends
on where you live. If you’re in the U.S., I recommend it. If you’re not in the U.S., again, you don’t have to have one. The only thing you need is a tax number. Now, it can be whatever. If you’re in the UK, you can do it. And to answer some of the simple questions upfront real quick, you can sell pretty much from anywhere. There’s a couple countries you can’t, South Africa being one of them. I think that’s the biggest one. You need about a thousand dollars to start selling on Amazon
for your first order, and you can sell on any
marketplace you want from anywhere in the world as long as you have the EIN number. So, how do we get an EIN number? Let me show you guys real quick. It’s pretty simple, all we have to do is literally just type in “get an EIN”. Now this will be for the U.S. again. Different strategy,
different technique to do it if you are somewhere else. UK, Canada, etc. All we do, click “apply online now”. You fill out the little
information it makes you- social security, name,
and a couple other things. And they’ll send you your
EIN number within 24 hours if you do it on a weekday. If you do it on the weekend,
it’ll take ’til Monday. So, it’s pretty quick, very easy to get, and that’s all you need to
really start your business. It’s just so they can track how much you make for tax purposes. Now if you do want to start a business, I recommend LegalZoom. There are ways to do it free, it’s a lot of paperwork and other things. If it’s your first time doing it, I recommend doing LegalZoom. If you’re tight on a budget, you could probably do it for about eighty to
ninety dollars yourself. Through LegalZoom, for
example in California, it’s probably about three
to five hundred dollars. So that’s it for starting your business. Now, you will need a name
and a logo for your business. You can make that on Fiverr if you want, completely up to you, super simple. Now the next thing we’re gonna do is create our Amazon account. So I’m not gonna sign into mine right here to show you guys, it’s super simple. It’s just all your personal information, which is why I’m not showing it, and there’s a couple settings in there that you don’t wanna miss. The next step is going to be
step three, product research. Now, this is by far the
most important aspect. It ain’t gonna be the
majority of this video. Now, with product research,
I always recommend using Jungle Scout because otherwise you’re guesstimating how
much something sells. So if it’s your first time, you don’t know what Jungle
Scout is, it’s a little app. So if I search something
up right here, bananas, and not spell them correctly because I don’t know how to spell, and I click this little
Chrome extension over here. Now I’ll leave a link to
this in the description, but it is paid, it’ll
tell you how many sales a month this person’s
getting, it’ll tell you their price, how many reviews they have, and I recommend going off
this to find products. Again, I’m not going to go
super in depth with this, but the parameters I personally
use for Jungle Scout is I want the majority of the first page to have over 300 sales,
I want the majority of them to be under 75
reviews, I want the price to be between fifteen and
fifty dollars on average, and I don’t wanna see a
lot of the same brand. So if I see Dole sells four
of the top 10 listings, then they might be a big name in there, and that’s not someone I
really wanna compete with. If they have all that, they
might dominate that market. So, that’s kinda brief overview
of the parameters I use. Next, let’s say we find a product. Now, let’s use “banana” again,
but we’ll spell it correctly. So, we found our product right here, so we’re right here guys. We wanna make sure it’s not seasonal. Now how do we do that? So, I go over to a website
called camelcamelcamel. Literally just “camel” three times. And you can search any sales history and any price history of
any product on Amazon. So let’s just say I wanna
do this product right here. So I can see their price,
so they originally came in at one eighty-five, and
now it’s listed at $100, so that might affect sales. But if I just click on
the sales rank right here, it will show me the whole chart of how much they were selling. Now this number right here
is the Best Seller rank. So the lower the number, the
more sales they’re getting. Now there is a conversion
based off category and other things, but we’re
not gonna go into that. We just wanna make sure that they’re not getting tons
of sales in February to July and then they get no
sales the rest of the time. So we can see they sold
a lot at the start, and then they start to slow down here, and now it’s still a little
bit slower, however not bad. So we don’t see a spike. A seasonal chart would look
like, okay, up here, up here, it drops down here, it
stays here for a little, and then it starts to
sell well again here. Alright, so after we checked
if it’s seasonal or not, we need to check if it’s patented. If it’s patented we can’t sell it, if it’s trademarked we can’t sell it. So when I say trademarked,
you can’t sell things using words such as like, Nerf, or Disney, or I wanna sell a Shrek hat. I can’t do that. That’s a trademarked
logo, a trademarked name. So any big thing like that,
that’s not our goal here. We’re tryin’ to find a generic product where we can put our logo on it. So all we do, go over to Google patents. Now, this is a gray area. Look up the patent laws if you want. I can’t advise you on whether
something’s patented or not. If I find anything that’s
close to it, I will not do it. So you just search whatever
the product is here. It’ll pull up all the
results and tell you, “Okay, there’s a patent
for this, this, this “that match these words.” Or if you can hire someone to search it for you
that’s a professional. Now, next, after we check if
it’s patented or trademarked, we need to make sure it’s
not a restricted product or in a gated category. So on Amazon, there’s certain products you’re not allowed to sell. And some of ’em are weird. An example would be magnetic balls. Little magnetic balls you can’t sell, for some reason, on Amazon. You can’t sell a glass pipe because it could be associated
with tobacco or weed. And you can see, there’s some categories they just put fidget
spinners a couple months ago, and these also do with
the gated categories. So I just Googled “restricted
products on Amazon”. It’s the first link on this, You can Google “gated categories”. Some of the gated categories
on Amazon include automotive, health and personal care,
some sections of it, beauty, a couple things like that. So make sure you’re
searching that, and also, sexual products as well. So you do need to be ungated,
that’s a whole other process. And after we do all that,
we’re gonna track the product. So Jungle Scout has a
feature, which again, which is this little app if you guys wanna Google “Jungle Scout”, where you can track the top 10 products. So let’s say I’m back on Amazon again. And we’re gonna look for watches. Watches and jewelry are gated, by the way. And let’s say we wanna
track the top 10 products and see how many sales they’re getting, because this is an estimation of 30 days, the Jungle Scout Chrome extension. So these sales are over
the last 30 days, however, what if they sold 90% of their sales the first day or two and
now they’re selling slow because they did a giveaway or something? So we wanna track the product
for about a week or two and make sure the sales
are still consistent. So with Jungle Scout you
take the top 10 products, you just put the ASIN in, which is just their identifying number for Amazon, and you just track the
product for a week or two, make sure their sales are consistent. And again, that’s on Jungle Scout. If you just go over here,
you can see the tool. They have a couple different ones. Alright guys, tryin’ to go a
little quick here so step four is find a supplier. So we know what product we wanna sell. Let’s say we wanna sell, let’s
go with camping hammocks, the old school example. So we wanna sell camping hammocks. Don’t sell them. So, I just searched camping hammocks. Now I’m on a site called Alibaba. It’s the biggest site by far
you can find suppliers from, mainly China, pretty much anywhere. Now what I look for on Alibaba
when looking at suppliers, is that they’re at least a gold supplier. So this little badge means gold supplier, and you can see how long they’ve been. One year, one year, 12 years. I wanna make sure they
have Trade Assurance, which means if I buy something from them through Alibaba and pay through Alibaba, that I’m protected if they
scam me, I get my money back. You can see their
transactions and just kind of all their status right here. I just make sure they’re a gold supplier and they have Trade Assurance. That’s all I really look for. Now, what I’ll do here, is
I’ll look for something. There’s a lot of different
types, so let’s say this is the type of hammock we want. You can see the price, and now the price usually doesn’t mean anything. Usually it’s a low-ball, sometimes it’s a little bit more expensive. This is a pretty expensive
product by itself, and usually it doesn’t include shipping. So it can vary a ton. So you’ll see their minimum order is a hundred pieces, for a lot of these. Some are 500, so you
can only order from them if you’re ordering 500 or more. And one of the questions I get is, will they talk to individuals? Do you have to pretend to be a business? They don’t care if you’re an individual, they’ll still sell you stuff, so it doesn’t matter. You can act like a business if you want. So what I do when I contact them is I say, “Hello, my name’s Blahblahblah, “I own an e-commerce company that sells “on Amazon in the U.S.,
and I’m looking to add “a camping hammock to my line. “Can you please give me a
quote for 300 units? Ship to,” and then I’ll give them my
address as a reference point until we get the Amazon address, which we’ll show you in a little bit, and what the estimated cost would be to put my logo on the product,
and have it shipped here. We’re shipping straight
to Amazon by the way, but just as a reference point. So I just email them
that, and ask them what the estimated shipping time would be and the estimated
production time would be. Normal is usually a week to two for both, again depending on shipping, which we’ll go over in a little bit. Now, you can get a sample
starting out if you want. It’s about, depends on the product, but ninety to a hundred
dollars for one unit for them to ship it to you, because shipping’s expensive, if you wanna test out
the quality and whatnot. But if they’re a good supplier
where it’s 12 years gold, they have tons of
transactions, a higher rating and whatnot, you’re probably fine. But it’s completely up to you. Now, one thing to watch out for is, a lot of them want you
to wire transfer to them. Now, it’s not because
they’re scamming you, but they don’t pay fees that way. But to be safe, I always use PayPal because PayPal is kind of the
same thing as Trade Assurance. If they scam you, you can make a dispute and get your money back. So if they don’t accept PayPal or let you pay through
Alibaba Trade Assurance, which is just through Alibaba,
then I don’t work with them. And we wanna make sure we can
put our logo on our product. So that’s all for step four. Step five, we need to make
sure it’s a profitable product. So if you type in “FBA calculator”, we can put all our costs into here. So let’s say we’re
doing a camping hammock. Now there will be
fulfillment fees by Amazon for different products
based off of size and weight because they need to store it. So all we do is fill out
the Amazon Fulfillment side of a product that’s very similar
in weight and size to us. So it’s pretty much the same thing, they probably have a
similar supplier right here. So I’m gonna say, “Okay, I’m
gonna sell this for $29.99, and the cost for me to
ship to Amazon is zero because that’s calculated
in my product cost, and it cost me $6.50 a unit to buy.” So if we sell for $29.99 on Amazon, we are going to pay $4.50 in Amazon fees, which is just 15% of the
sale price, which is normal. Some categories are 12%, most are 15, and we have fulfillment fees. Now this is based off the size
and weight of the product, which is the fulfillment fee, and then a monthly storage fee. So per unit, if we sell at $29.99, we are profiting $14, which is great. We want anything 30% and above. Right here, we’re at about 50% almost. So normal is usually 30 to 50%. We wanna save some room
for pay-per-click also, which is advertising, which we’ll get to. And that’s pretty much it. You wanna make sure it’s profitable. Now, if I’m high-balling the price, I’ll say okay, well there’s
other people selling at $22.99, what would
my profit be at that? Okay, I’m still at $9, which
is pretty good profit still, it’s about 40%, I’ll take it. So this might be a pretty
good product to go after. It’s not, don’t do it. But that is how I calculate profit. Now, the next thing after this, is we need to create our listing. Now this can be pretty time consuming. This is gonna be a video on its own, but we need to put our title, our bullet-points, our description. Now for all of those,
the title you wanna get a lot of keywords in there. Amazon’s all based around keywords, so you want to put your most used term. So if I’m selling that
hammock I showed you, the first thing I want in my
title is “camping hammock”, whatever the main keyword
is I’m tryin’ to rank for, and then other small
filler words in the title such as “light weight”,
“durable”, “backpacking”, “perfect for traveling”, things like that, and try and load my title up where it makes sense but has a lot of keywords. And same thing with the
bullet-points in the description, but with those you kind of want to hit on the emotional selling points based off of kind of the benefits and
feature of the product. So “relax in this hammock”, “this hammock does blahblahblah”. Again, this could be a
whole vide in itself, I’m tryin’ to go quick here. The next is images. I get asked all the time,
how do you do images? I send my product to a photographer, about $75 to $100 for six
pictures, high quality. I get one with just a white background, I get a couple of it in use, and maybe just some of the
features if it has some, and it’s pretty much that simple. You can take them yourself, you can ask your supplier for pictures. Completely up to you. Now next, keywords. You can get 250 characters in the backend on your keywords on Amazon. Your title counts as a keyword field, so if I put “camping hammock”,
I do not need to repeat that in the keywords if it’s
already in my title. It still counts, so don’t
repeat any keywords, don’t put commas,
separate words by spaces. You get 250 characters, use them wisely. Now, the next part is the part that a lot of newbies get confused with, and that is barcodes. Barcodes on Amazon can be very confusing. What you need to do is
buy a barcode that is GS1. You can buy it from them directly, GS1, or you can go through a
site like Barcode Mania that buys from them in
bulk and then sells to you. It’s $5 for a barcode, you
only need one per product. If it has variations,
it’s one per variation. So, when you get that barcode, you put it in your listing. It’ll say, there’ll be a
little spot, you’ll see it. You put the number in your listing. After that, you save your
listing, you’re done. You don’t need that barcode ever again. It’s done, stowed away, save it. You won’t use it again. That is all you need for that barcode. There’s a difference between barcode and item labels on Amazon,
which I’ll show you. Next, we wanna change our
listing to Fulfilled by Amazon. So right after we create a listing, it’ll be Fulfilled by Merchant,
which is fulfilled by you. Which, don’t worry, as soon
as you create a listing, it’s not active if it’s fulfilled by you if you have zero inventory. Same with Amazon, you can
create it way ahead of time. So, we change it to Fulfilled by Amazon, and then a little button will pop up, and we have to click “print item labels”. Now this looks like a barcode too, but this is Amazon’s barcode, and the one we need on our items. So each unit’s outer packaging, so not like a box but
it’s outer packaging. So it could be a box, actually. So the outer packaging we
put this item label on. It’s the same for every
single unit, the same label. There’s one label, you print it 500 times if you have 500 units, stick
it on the outside of your unit, and Amazon scans it, and
that’s how they keep track of what products are yours and what listing it corresponds to. So after all the listing, we need to choose our shipping with our supplier. So are we doing air shipping,
are we doing sea shipping? And you guys have probably
seen some of the terms. What do they mean? So what you’re really gonna want to do is, let me show you some of the terms. As an example, they
have a good chart here. Now this can be kind of overwhelming, so I’m gonna break it down very easily. Sea shipping takes a while, it’s cheaper, it can take a month to three months, you have to deal with customs and a couple other
things most of the time. I avoid it normally, unless
you’re a more advanced seller doing larger, larger
quantities ahead of time. Air shipping, it’s a
little bit more expensive, it’s fast, you can get it in three to seven days
normally with shipping. Most of the time you won’t
have to deal with anything like duties or customs,
which, if you’re a beginner you shouldn’t have to
deal with that anyway. So make sure you choose
the right shipping. Mine I always do is DDP, which
is duties paid, pretty much. So with customs and duties. Duties, your supplier,
you want them to pay it. You don’t want to have to handle it. It’s a headache, it’s annoying, it’s just more work for you. So ask them for duties paid. The type of shipping I always ask for, which I have right over here, is I want air shipping door-to-door so I don’t have to go touch the product. A lot of times your supplier will want to drop it off at an airport
and have you pick it up, which you don’t want to do. You want it from their
doorstep to Amazon’s. And you want all duties
paid so you don’t have to stop in between and pay stuff here, or fill out paperwork here, and you want your package to have under a $2,000 declared
value, which most likely your supplier already knows to do that. But just make sure to tell them, if you’re doing bigger orders, because if you have anything over $2,000 and say, “Oh, I’m shipping
$10,000 worth of stuff,” you have to pay customs on
that, and there’s a fee there. Now next is step eight. So next we create our shipping plan. Now this, again, it could
be a whole separate video. All we do is get this
information from your supplier. The number of boxes, how
many units are in each box, how much each box weighs, and the dimensions of each box, and you put that in on Amazon when you’re creating your shipping plan, and then don’t change
the shipping carrier. You’ll see DHL, FedEx, UPS. You don’t need to change
that, that does not matter. And then we need to print our item labels and send that to our supplier since they’re gonna be putting those little Amazon barcodes,
those little item labels, on each unit, which they
might charge you for. Normal fee is usually
five to fifteen cents. And then we need to print box labels. So you’ll click “print”,
it’ll pull it up as a PDF, and that’s what goes on
the outside of each box. So if you have 10 boxes
with 30 units each, you should have 10 box labels. You send those to your
supplier, just a PDF. And they print those,
put those on each box, and that’s how Amazon tracks those boxes. At the end of your shipping plan, Amazon will give you a little address on the top left of your screen. You copy and paste that,
send it to your supplier. That’s the address they’re shipping to. You click “mark as shipped” on
the top of your shipping plan right next to that
address, and you’re done. Now, don’t worry if you mess this up. You can go back, you
can delete it whenever, you can revise it, you
can start completely over. It’s not a big deal if you screw up and say you’re sending
10,000 units and you’re not. Now step nine. Your product arrived at Amazon, Amazon’s holding it, it’s active now. Now how do we get it ranked? What do we need to do? So, we need to get some reviews. So you can get your friends to
buy and review your product. They don’t even have to buy it, they can leave a review by itself. There’s a couple different strategies. Again, so in-depth these
would be other videos. This is general. So ask friend for review,
they don’t have to buy it. Get five, 25 reviews. It will depend on the
competition of the product, and start getting some sales. You can do this by running ads, you can do this by doing
giveaways of products, but Amazon’s algorithm is all
based off of sales volume. So if you’re selling one
a day and I’m selling 10, I’m gonna be ranked higher than you because I sell more. So we need to start getting some momentum and getting some sales. So we can start advertising,
which brings me to step 10. Advertising on Amazon, you
pretty much choose a keyword. Say, “I want to bid this much per click when someone clicks it.” If you see a little “sponsored”
at the top of Amazon, that’s what that is. Those people are paying to be there. Now, if I’m bidding a dollar and you’re bidding a dollar fifty, you’ll show up in the
number one spot on the top, and I might be on the
bottom of page one or two because I’m not bidding high enough. And each time someone clicks that, you’ll get charged whatever the bid is. Normal is usually fifty cents to a dollar. It will vary on the
competition of the product. So how do you find
keywords to do this with? There’s a lot of different search tools, like MerchantWords,
where you can search up different keywords and
see other related ones and their volume of searches, and you can put all of
those in your PPC campaign. Super easy to create. But what I recommend
doing is just starting an automatic campaign on Amazon, so they choose all the keywords that they think are relevant based off your listing,
your keywords, etc. And you put the default bid. Alright, I want to bid
fifty cents per click. And I’d let that run for a week or two, spending about $10 to $20 a day. Completely up to you. And then they’ll show you information. They’ll say, “Okay, well the
keyword hammock got 20 clicks “and you got zero purchases from it, but lightweight camping
hammock got five clicks and you got three purchases from it.” So you can pull that information, see what keywords are doing
well, what are doing bad, and you can create a second
advertising campaign in Amazon called a manual campaign
where you get to choose the exact keywords instead of Amazon, and on that one you only put in the ones that are making you money. So if I’m making $10 per unit, anything I’m spending less than $10 on to get one sale, I’ll keep. So you can see that based off
the percentage on the side, you can see the clicks, the
impressions and whatnot. And I just delete the ones
that aren’t making me money, and scale up the ones that are. It’s pretty simple. Now, a couple thing to do
after you’ve done all this, those are the 10 steps. I tried to make it quick for you guys but never stop optimizing your listing. Start tweaking images,
titles, bullet-points, see what works better, just testing them. Same with your advertising. Make sure you never run out of inventory. If you run out of inventory,
you stop getting sales, obviously, your sales rank starts to drop, your listing isn’t ranked as high, you’re getting less and
less sales because of that. So running out of inventory is probably the worst thing you can do on Amazon. Next, answer customer
messages if you get any. You might get one a week. Try and answer ’em quick, it does show on your seller rating, and then track your profits in Excel. When it comes tax time, it is income tax. So, I hope that was helpful for you guys, I hope it wasn’t too long. Again, I tried to make this general, I can go more in-depth with all of them. If you enjoyed this video,
make sure to like, subscribe. And if you’re interested
in learning more details in how to do this extensively, more on product research and everything, I do have a course on this. It will be the first
link in the description. With it you get two months
of access to me as well. So it’s a video series. You get access to all
the videos for lifetime, you can go at your pace, watch ’em as many times as you want, and then you get two
months of access to me if you have any questions, if you want me to look
over products or anything. So, hope you guys enjoyed,
and I will see you guys tomorrow in the next video.


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