How To Start An Amazon Business | Amazon FBA on a Budget


– [Todd] All right, hello everybody. This is Todd Getts,
from toddandleahrae.com and today let’s talk about how to start an Amazon FBA
business on a budget. Okay, obviously it takes an investment in order to start an Amazon FBA business and it takes an investment to
start any type of business. But with something like Amazon FBA, you obviously have costs, right? Upfront costs, such as
purchasing your inventory, getting it shipped in and
promoting your listing in order to get your initial sales. Those are all things that
you have to invest in before you make a single sale. So how can we do this and
do it on a low budget? Okay, so that’s what we’re
gonna talk about today. If you have not yet
subscribed to our channel, you definitely want to do that. Go ahead and click that subscribe button. And also click that
little bell to make sure that you turn on notifications so you get notified every
time we come up with a new training just like
this here on our channel. So let’s get into this. One of the keys to making a
profit with minimal investment. Now if you have not yet
gone through our video on how to do Amazon product research you definitely want to do that. I’ll have a link up. It should be in the
upper right-hand corner of your screen here. I’ll also have a link to it in the description of this video. But you want to check that out so that you don’t get lost in
what I’m talking about here. Because a lot of the tools
and a lot of the strategies I’m going to talk about, I’m gonna assume that you’ve watched this
other video first, okay? So make sure that you watch that, so you know how to do
just product research and then come back and
watch the rest of this one. So keys to making a profit
with minimal investment. Number one, obviously
we’re looking for a product that’s very inexpensive to source. But we also need to make sure
it has a good profit margin. That’s kinda the key here. Now there’s a lot of products like this. There’s a lot of products
like this out there. I mean if you just think
about any cheap thing that you have in your
house, you’ve got a ton of ideas that you can start
with right there, okay? But if you’re looking for a cheap product that’s inexpensive to
source that also maintains a good profit margin. We’re also looking for a product and this is one of the
most important things. It has to have several key words that are easy to rank for, okay? This is where it gets a
little bit more tough. This is where we’re gonna
use some special tools that show us exactly
how to figure this out. Our goal here is not necessarily to find the number one keyword
and try to rank for that. And when I talk about keywords, what I’m talking about is
what people type into Amazon when they’re searching for something. When someone types something
into the search bar like yoga mat or garlic press
or whatever else, right? What words are they
typing into the search bar to find what it is that
they want to buy, okay? That’s what we call a keyword. We need to find keywords
that are easy to rank for. When I say rank, I’m talking
about rank on the first page. So when someone types in garlic press your product is showing up on the very first page of results, okay? So this is where a lot of
the work is gonna come in is finding those keywords
that are gonna be easy for you to rank on page one for, okay? Then the other part of this
that we need to keep in mind is that whatever supplier
that we go with, whoever is gonna actually manufacture this product we need to make sure that they also allow a low minimum order quantity. Because a lot of times
what will happen is that you may find something that’s
pretty inexpensive to source. You may find something
that’s 20, 30, 40 cents to produce but the manufacturer
has a minimum order quantity of say 20,000 units. Well, 20,000 units times 40 cents each, you’re still paying $8,000 to
get that manufactured, right? So we need to find a
supplier that’s gonna give us a low minimum order quantity. Let me walk you through
an example of exactly what this would look like. Okay, so here I am in Amazon and Leah and I have young kids in the
house so one of the things we go through quite often
are toothbrushes, right? This is one of the things
that I just typed in here to see what was available
and baby toothbrush. We’ve got a good number
of results here, okay? Again, the tool that I’m gonna use to do my product research and there’s
a couple of them out there. The one that I prefer is Helium 10, okay? It’s this one right here
in my Chrome add-ons. Now Helium 10 is
something that you can get a free account with. I’ll leave a link for
this in the description of the video as well. There will be a link that you can click to get a free account with Helium 10. If you don’t have this yet,
definitely go ahead click that button and grab this tool. Because we need this tool in order to do this research, okay? I’m gonna click here to
bring up my list of tools and the one that I want right now is Xray. The first thing I’m doing
here is I’m making sure that there’s enough
demand for this product that it’s actually gonna sell, okay? The last thing I want to do is to try to sell a product on Amazon
that there’s no demand for. Okay, now baby toothbrushes,
I can pretty much assume that there’s gonna be a
bunch of demand for it and obviously there is. You
can see a lot of these products are doing six figures a month
just with baby toothbrushes. I can see that there’s a good
amount of demand for this. I’m also looking at the review count. This one is obviously dominating with almost 8,000 reviews now. I also see a bunch of others with just a couple hundred reviews. That’s what I’m really looking for. Again, I’m not looking to be
number one in this category. To be number one in any
category, it’s very difficult. What I’m looking to do
is get up here somewhere in the top five, maybe top five to ten. That’s what I really want to look at is what are the top five
to ten products doing as far as sales and revenue. I can see the top two here
are over six figures a month. This one is over 8,000,
this one is almost 5,000. This is close to 30, 23,000, 10,000 here. I’m seeing even within the
top five to ten results here that there’s a good number of sellers who are doing 10,000+. And even if I go further down here, here’s one 15,000, 12,000, 28. What that tells me is
that there’s still plenty of room in here where I
might be able to get in and still make a decent amount of sales as long as I can get on the first page. Again, like I said, I’m not
looking to be number one. But if I can get here somewhere on the first page preferably
somewhere in the top ten then I know that I’m going to be making a decent amount of sales. The
other thing I want to look at is I want to look at the FBA fees. For example, here’s the exact product that we’re gonna look at
is this one right here. Let me close this down. Is this Jordan 1 Step baby toothbrush. This one that’s designed like
this. Because I see this one. This has pretty much the same design. If I scroll down further, I
see here’s the same design. Same design here. I see a number of
sellers, basically selling the same toothbrush, right? They may or may not be getting them from the same manufacturer. Here’s another one, right? And there’s several of
them on the first page. I know that this is something
that there’s a demand for. Most of these, I think
they’re selling them in packs of four. That’s the other thing I
gotta keep in mind here is that people are selling
these in packs of four. Next thing I need to do, is
I need to find a supplier that can sell this to me for very cheap. Again, I’m going to go to Alibaba. I’ve already done the search and I’ve already found the manufacturer. You can see that there’s other ones here. Here’s one that does the same thing. If I go back a few pages,
you’ll find some more. But this is one that I found
with a pretty good price. As low as 11 cents per piece. If I click on this, here I can see, I can order as few as 2,000
pieces at 15 cents per piece. If I pack four of these into
one package, that’s 60 cents. I can source this, basically
the same thing that people are selling here. They’re selling it for
almost 12 bucks and I can get it sourced for 60 cents. If I bring up Helium 10 again, now I can start to kinda calculate what my profit margins are gonna
kind of look like, all right. Here’s this one right here, the Jordan 1 Step baby
toothbrush, zero to two years. If I look over here, okay
this is my Amazon FBA feed. This is what Amazon charges us whenever we make a sale on this. Let me bring up my calculator, and I’m gonna do this, I’m gonna go 11.98, that’s what they’re selling it for, I’m gonna minus the FBA fee. Then I’m also gonna subtract
the cost to source this. Now we’re left with $6.39. Now in addition to this, you’re also gonna have
to pay for shipping. That’s something that you
have to keep in mind here is that you’re still
not gonna make this much they’re still gonna be
shipping costs involved. But we’re just looking
to get a rough estimate as to what our profit margins might be. Now I’m gonna take this,
I’m gonna divide it by the purchase price and there’s right at this point before shipping your profit margin is about 53%. That’s really good. I’m liking this so far. Like we said, minimum
order quantity is 2,000, so that’s gonna be $300. For right now, our investment is $300, plus whatever shipping is. As far as starting an Amazon business, that is super cheap. That is gonna be super
cheap for you to start your Amazon business with. Now obviously you can go for more, but point being is that
you can invest as little as $300 plus shipping in
order to get started here. Now the last part of this like
I mentioned is the keywords. We wanna make sure that
this also has a bunch of keywords that are easy to rank for. The tool that we’re
going to use to determine that is also Helium 10. We’re gonna use Helium 10’s magnet tool. Now I’ve already done this search and I’ve already eliminated
a bunch of search terms that were not relevant. Again, if you don’t know
what I’m talking about you need to watch that previous video that I did about how to do
Amazon product research. But right away, we can
see that our main keyword, the one that’s gonna get
the most search volume. There’s 28,000 searches per
month for this baby toothbrush. This is gonna be probably
too competitive for us. We’d have to make 584 sales
within an eight-day period in order to rank on page
one for that search term. Kids toothbrush, again too competitive. We’re actually gonna
have to probably go down to something like this. Okay, 72, baby toothbrush,
12 months and up. Now that’s a search term that
gets 3,200 searches per month. We would only need to make 72 sales in an eight-day period, that’s very doable so that looks like a good one.
What else do we have here? Here’s one that’s 104. That’s another 3,000 searches per month. You can decide whether
you want to go for that. Again, it’s doable, but
when we talk about trying to sell 104 units in an eight-day period. Typically the way that you do this is by deeply discounting your product. You can do that with coupons. You can do that with rebates. You can do that with all
sorts of different tools. There’s companies that will actually run these promotions for you. Now obviously the more
products that you need to move the more expensive it’s gonna be in order to get to that page one ranking. If I can do this for 72
units instead of 104, I’m definitely gonna do that. But this is definitely one
keyword that I would want to try to rank for. Here’s another one, 64. Baby toothbrush six to 12 months. That’s 2,774 searches per month. Here’s toddler toothbrush, age one to two, another 2,600 and only 56. We’ve got several keywords here. Add these all up and you’ve
got almost 10,000 searches per month that you are gonna show up for without having to do too much work. If I scroll down this a little
bit more, small toothbrush. This might be something that you may want to try to rank for. Kids toothbrushes, okay. Since we’re packing four
of these in a package, this is definitely a relative search term. This also gets almost
2,300 searches per month and you only need to make 72 sales. Here’s another one right here. This is actually kind of what
we would call a misspelling. Baby tooth space brush. That’s a different search term. That gets 1,372 searches per month. You would only need to make 48 sales in an eight-day period
to rank for that one. We’ve got a good four, five,
six different keywords here that really are not that competitive that you could rank for. If you manage to rank for all of these. Right, like I said, that’s
over 10,000 searches per month that you will be showing up for. Like I kinda mentioned
in the previous video is that when you add up all
these other smaller keywords you’re doing almost as
well as ranking for some of the very top keywords
in that product category. That’s really our goal here. We’re not trying to dominate the very top. We’re just looking for
this low-hanging fruit and making sure that we can
rank for something like that. This is just one example
of how you can find a product that’s very
inexpensive to source that has a good profit margin and it also has several keywords that are not that hard to rank for. Also something that we were able to find the supplier with a low
enough minimum order quantity that you can get started for as little as $300 plus whatever cost
to ship this into Amazon. Now are you gonna get rich with this? No, not with one product. But the idea here is not to get rich off of one product. The idea here is to, you know, once you got one product like this then you release another and
another and another. If you’ve got 10 different products that are all producing
$10,000 in revenue each which is really not that hard to do well now you’re doing
$100,000 in sales per month and whatever your profit margin is. Maybe you’ve got a 30 or 40% profit margin well now you’re making $30,000 to $40,000 in profit per month. That’s the idea here. It all starts with
finding one product like this and then another and another. Now obviously, there’s
much more to building an Amazon FBA business than
what I’m just showing you here. If you want some more
really in-depth training what I would suggest is
that you click the link at the top of the
description in this video. It’ll take you to one of the best trainers in this industry and
I’ll show you more about how you can started with an
Amazon FBA business on a budget. Click the link at the
top of the description to get started with that. If you like this training and
you want more like it, click the subscribe button to
subscribe to our channel. Make sure that you like this video and also leave a comment. Once again, this is Todd
Getts from toddandleahrae.com and I will catch you next time.

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