How To Start An Amazon Business | Amazon FBA Step by Step


– [Todd] All right, hello everybody. This is Todd Getts from
toddandleahrae.com, and in this video, we wanna talk to you about how to
start an Amazon business. This is one of the things that we are actually getting
really excited about. There’s a lot of people making a bunch of money just building businesses right on Amazon, through Amazon FBA. So in this video, I just wanted to give you a broad overview of exactly what Amazon FBA
is, all the steps involved, and how you can get started ASAP. Now, before we dive into this, I just wanted to give you a quick reminder to subscribe to our channel
for more training like this. We’ll be doing a lot
more Amazon FBA training, as well as other types
of online businesses. But go ahead and click
that Subscribe button. Click the little bell so
you get the notification whenever we come up with a new video. So go ahead and click
that Subscribe button to subscribe now. So what is Amazon FBA? Well, if you’ve been on Amazon at all, you’ve probably noticed this little thing that says “Fulfilled by Amazon” whenever you’re buying a product. You’ll see “Sold by”, and then it’ll give you a company, and then it’ll
say “Fulfilled by Amazon”. And basically what that means is that there’s someone else that
is manufacturing the product. There’s another company that
manufactures the product, and then they ship the product directly to Amazon, and then
Amazon is actually the one that sells and ships the product, and they just charge the manufacturer of that product a fee, and this is what we call FBA, or Fulfilled by Amazon. So why Amazon FBA? Why is this something that you
might wanna consider doing? One of the things we really
like about this is that it’s a very predictable
way to make money online. When you follow a blueprint. You don’t wanna just go about this blind, kinda not knowing what you’re doing and doing everything by trial-and-error. You definitely want to follow a plan that, follow the people who’ve
already had success, and when you do that, it’s actually a very predictable way to make money online. Amazon does $233 billion in sales per year and makes up 49.1% of
all online retail sales. They have over 310
million active customers, 90 million Prime members. 55% of people say that they
check Amazon for products first. Now, the point of all these statistics is not to bore you, but to show you how much of an opportunity there is if you can get a product
on Amazon to sell. You already have a huge audience of people who are ready to buy. They are on Amazon because they want to buy, and if you’ve got a product there that is selling well, you’re making just automatic sales, and
that’s the beauty of Amazon FBA. When you’re doing Fulfilled by Amazon, Amazon actually manages a
lot of the logistics for you. A lot of the things that would scare us away from doing any sort
of an e-commerce thing, we don’t wanna have to manage inventory. We don’t wanna fill our garage full of products and then be making trips to the post office every day to ship stuff out and process orders,
and all that stuff. We don’t wanna have to deal with that. With Amazon FBA, Amazon does
all of that stuff for you, the warehousing, the sales process, the shipping, the returns,
blah-blah-blah, all that stuff. Profit margins for Amazon
FBA is still pretty good. It’s around 30 to 50% when
you find a good product, and there are a ton of great products out there, a lot of low-hanging fruit that you can source and have shipped to Amazon, and you’re just making 30 to 50% profits on every single sale. The other beauty of this is that, when you build an Amazon business, even if all you do is you sell on Amazon, that’s a business that you can sell. That’s a business that
you could someday walk away from and come away with a seven- or eight-figure paycheck,
and that is your beach money. That is when you make your beach money, is when you actually sell your business and you don’t have to do
that daily grind anymore. And building a business on Amazon is one of the best, if not the
best, way to do that right now. So let’s get into this. What is the very first step? So the first step is you wanna do some good product research. You don’t wanna just put
any old product out there, and you don’t wanna have
to just make a guess as to what you think might sell. And so finding a product
that has a good amount of sales volume, and also low competition, is really what you want to look for. You don’t wanna come up
with something brand new that you don’t know if it’s gonna sell. What you want to do is look at what’s already on Amazon and what
people are already buying. And if you find a product like that and you see that there’s a good number of sellers that are making profits with something like that, then that’s something that you may
wanna consider sourcing and selling on Amazon, as well. And if you look at the screenshot at the very bottom of the screen here, this is just some information on the top-selling barbecue gloves. These are the top six
gloves that are selling on Amazon right now, and you can see that every single one of
’em is doing 20,000-plus in sales per month. And if you figure you can get as much as a 50% profit margin on that from one product, you are
making $10,000 in profits. Now, what you wanna do here is you wanna look for the low-hanging fruit. You don’t necessarily wanna go for the biggest whale, but you also wanna stay away from stuff that just has such low sales volume that you’re gonna
struggle to make a profit. You wanna make sure that the time and effort and money that you put into this is gonna be worth it. So what we use, there’s a bunch of third-party tools out there that’ll give you this type of information, the information that you
see in the screenshot below, but this is the information that you want to gather when you’re
considering sourcing a product. So things that we look at when we’re looking at exactly what type of product to source, we’re
looking at the Best Seller Rank. We don’t want anything that’s too high in ranking because if it has too high of a rank, if there’s a bunch of products that are really high in rank,
then that’s an indicator that it’s too competitive, where we’re gonna struggle to be competitive, even if there is a lot
of sales volume going on. The other thing that we look
at is the number of reviews. If all of the products have a ton of reviews, then that’s one of the things that’s also gonna make it more competitive and much harder to create your own sales. And then the other thing that we also look at is the monthly
sales volume and the revenue. So preferably what we’re looking for is something with
moderate sales volume. We look for at least somewhere around 10,000-plus for sales volume. We’re also looking for
a low number of reviews. So when we look at this one, if you look at the column all the way to the right, we see how many reviews each of these products have, and you can see that there’s a few of ’em with over 1,000 reviews, but there’s also ones that only have
a couple hundred reviews. And so that’s kind of a
good indicator that this is something that we might
be able to compete with. And then, as far as the
Best Seller Rank goes, we don’t want anything that has a bunch of really high-ranking products, and we also don’t want something that has just a ton of
really low-ranking products. We’re kinda looking for
that middle ground here. And there’s a lot of other factors that you may wanna take a look at, and different tools will give
you different information, but these are kinda the main things that we look at when we’re first
doing our product research. Step two is then, once you
find some good products that you’re considering selling on Amazon, you need to find a
manufacturer for that product. And the great news is that there are tons of manufacturers who are willing to compete for your business. You can find these on Google. Alibaba’s another one where
people find their manufacturers. But what you wanna do is you wanna contact several manufacturers and
get quotes from all of them. And you’ll be very surprised as to the range of prices that you’ll get from different suppliers for basically manufacturing
the exact same product. But once you’ve kinda narrowed it down to the best quotes that you’ve gotten, you wanna request samples of those products from
those manufacturers, and then once you receive those samples, you need to test ’em out extensively and find the best one, and then once you have the best product
with the best price, that’s when it’s time
to order your inventory. While your inventory is being produced, that’s when you want to start designing your packaging and your inserts. And your manufacturer can
sometimes do this for you. Most of the time, you probably want to get this professionally done. So you can go to places like
Fiverr to get this done. Fiverr’s a place where you can
find a bunch of freelancers. Upwork is another one. 99designs is a place where
you can run a contest, where a bunch of designers will compete, and you’ll have bunch of
different package design ideas from a bunch of different designers, and you can pick the winner. And so that’s a great way
to get some packaging done. DesignCrowd is another one
like that, and Crowdspring. These are all places where
you can run contests, where designers will
compete for your business. From my experience, you
typically get what you pay for. So I typically just don’t go to Fiverr to get product packaging done. I know other people that
do and they love it, once they find a good
person on Fiverr to do work. They can just go to them
over and over again. But from my experience, you just typically just get what you pay for. Step number four is, once your product has been manufactured, you’ve got the packaging and design all figured out, then it’s time to ship your product to Amazon. And if you’re importing from China, which for a lot of things, you’re probably gonna be importing from China, you’re gonna want to
use a freight forwarder. You will also wanna get
your inventory inspected in China, before it leaves, ’cause you can inspect it once it gets over here in the United States, but (chuckles) if you find something wrong, it’s pretty costly to send it back
and get another shipment. So you typically want
to get that inspected in China, before it comes over here. But you definitely wanna
use a freight forwarder because importing products
from China is quite a process. So using a freight forwarder is just so much easier of
a way to get that done. Step number five is,
you need product images. And you can do these yourself. Depending on the type of product and what your competition is doing, you can sometimes do this yourself. But the photos that you use for your product are very
important for converting sales. It’s one of the top things that’s gonna convert sales for you. So like I said, you can do this yourself, but for the most part, we always get ours professionally done. And there’s a bunch of places that will do professional
product photography for you. It’s just a matter of
doing a Google search and finding someone that’s
gonna do it for a good price. Next step, step six, is to
create your product listing. And there’s gonna be a lot of copyrighting that goes into this. So copyrighting in your headline, and in your description,
and in your bullet points, and you’ve also got images that you’re gonna wanna add to your listing, and there’s also some keyword stuff that you want to do here, because one of the benefits of
selling on Amazon is when you can actually get
your product listing to rank. So for example, if I
type in barbecue gloves and on the first page
your product comes up, that’s a guaranteed organic sale, so without having to
pay for any advertising. And that’s really what the goal is here, is to get on that first
page of search results for the search terms that people are most likely to search for. So that’s really the goal here. Once you’ve created your product listing, now it’s time to promote your listing. Obviously, when you have
a brand new listing, it’s not gonna be ranking on page one. So you’re gonna need to do
some promotion on social media. We prefer Instagram and
Twitter for our free traffic. For whatever business we’re doing, Instagram and Twitter we’ve always used for just a ton of free traffic, and it’s just been the
most reliable source of traffic for us. But in addition to that, you’ve also got native ads on Amazon, and that’s what you see
in the screenshot here, whenever you see those sponsored listings, those are just done with Amazon ads. Instagram ads, Facebook Ads, Google Ads. You can also do things
like influencer marketing. So if you know a blogger, or if someone has a Facebook group, or someone is an Instagram influencer in your niche, those are people that you can contact, and for a fee, you can typically get them
to promote your stuff. So that’s another way to
make a bunch of sales. And you can pay ’em a
flat rate, and sometimes you’re paying them an
affiliate commission as well. And there’s other ways to get traffic, but these are pretty much the main ones that most people are doing. So in a nutshell, seven
steps to selling on Amazon. Product research, finding a manufacturer, packaging and design,
importing and shipping, product photography,
creating your listing, promoting your listing. There’s actually a lot,
within these steps, there’s a lot of other
things that you need to do. This is not something that’s
gonna be fast or easy. To get our first product up and live on Amazon, it took several months. This is not something that you can just do within a matter of days, or weeks, or even a month or two. It’s probably gonna take several months if you’re starting from scratch. Because here’s the thing. You do not want to mess around and make mistakes when
you’re setting things up or when you’re selling on Amazon because breaking the
rules can be very costly. There are certain ways that you have to do things, and certain rules that you need to follow, in order to keep in good standing with Amazon. And breaking those rules can mean that you lose your Amazon
Seller account permanently. And the thing is, when you lose your Amazon Seller account, it’s very unlikely that they’re going to let you open up another one. So you want to make sure that
you’re following the rules, you’re doing everything correctly. So if you’re a beginner, the
number one training program that we recommend is gonna be something that is gonna be able to
give you one-on-one help, so that when you have questions, you can get them answered, because a lot of people have specific questions about very specific things, and it’s very important that you’re gonna be able to get that one-on-one help. Also, it’s gonna be important to connect with a community that can answer your questions whenever you have them. And for us, when we were getting our first product up and live on Amazon, those are two things that were the most valuable to us, was
getting the one-on-one help and also being able to connect with a community that could answer our questions whenever we had them. Because, I tell you what, through those seven steps, we
had a ton of questions. There are a lot of Amazon training courses out there, and what I would say is that I would not go cheap on this, because for the investment that you have to put into an Amazon business, ’cause you have to pay, obviously you have to pay for your inventory. You have to pay for the shipping, You have to pay for the packaging. You have to pay for the product images. You have to put in a
big investment up-front before you ever make a sale. That’s kinda the downside of doing a physical products business. There’s a lot of investment that goes in up-front before you ever make a sale. And if you try to go cheap on things like training, that’s where you’re gonna really risk your investment. If you’re following a training program that just kinda leave you hanging, they don’t give you the one-on-one help, they don’t give you the community that you can ask questions in, you’re really selling yourself short. What you’re gonna be doing is, you’ll be getting a training course, and then you’ll have to pay for coaching on top of that, because you’re gonna want somewhere where you can get
your questions answered. So the training program that we recommend above all others, and we
have several of these, the best one out there for beginners, if you’re starting from scratch, you can find just by clicking the link in the description of this video, and it’ll take you to a video where you can learn all about it. But go ahead and click that link in the description to
learn more about that. That’s the training program that we go back to every single
time we have a question. Of all the training programs that we have, whenever there’s something that we get stuck on,
that’s the training program that we go back to, that’s the community that we go in and we ask the questions in, is this one right here. So click the link in that
description to learn more. Like I said, Amazon FBA
is one of those things that we are really
excited about right now. If you want to be able to build a business that you can someday sell for seven or eight figures, or sometimes even more, then this is definitely something that you wanna be looking at. I know that this is something that we are really excited about, and I hope you got a bunch of great
value out of this video. Once again, go ahead and
click the Subscribe button to subscribe to our channel. Also, be sure to like this
video and leave a comment below. Once again, this is Todd Getts from toddandleahrae.com, and
I’ll catch you next time.

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