How To Start Selling On Amazon FBA For Beginners! Easy Step-by-Step Tutorial 2019


– What’s going on guys? Today I’m gonna be showing you exactly how you can start your
own Amazon FBA business from scratch. Now this is gonna be a
step by step tutorial. There will be a link in the description for you to go download a PDF where you can go follow
along with what I’m teaching but I’m gonna jump on my computer. I have a checklist that
you guys can follow. We’ll go through. I’ll show you how to do
everything on my screen. So, let’s jump right in
and I’ll show you guys. All right guys. So what is the first step when it comes to starting an Amazon business? The first step is you need
to have an actual business. Now, this scares a lot of people but there’s different types. You can be a sole proprietor
which is the simplest, costs no money to smart, very easy. You can do it online. You can start an LLC
which is what I recommend, what I personally do. And you can use a website like LegalZoom. You just go and you
fill in your information and it’s pretty much as simple as that. They ask a couple questions. Usually takes about 15 minutes. Now, this way does cost money. There are ways to do this for free. But LegalZoom is the
easiest in my opinion. It’s probably two, 300 bucks. It varies by state and
what package you get. But they do all the work
and it’s very quick. Now, the second thing you’re gonna need is going to be an EIN. Now an EIN is an employee
identification number. You’re gonna need this
on Amazon no matter what so you do have to have this. You can get this in about two minutes. It’s completely free
and anyone can get this. Now this is if you’re selling in the US. So, EIN like I said, employee
identification number. You go to their website,
you literally fill in I think it’s six different boxes. You give ’em your social security and they’ll give you an EIN which again is an employee identification number which is for tax purposes
and that is why Amazon asks for it as well but you do need that when setting up your Amazon account. So you get that number. Now they’re open weekdays, I believe just normal
hours until five p.m. I think it’s six or seven a.m.
to five p.m. eastern time. You can get it emailed to you. Otherwise it’s still
next day and like I said, it’s completely free. It’s a government website. Now step number three
is you’re going to need your business name which if you created the LLC, sole proprietorship
you probably already have but you want a store name as well and yes, your store name
that you want for Amazon should be the exact same
as your business name. If it’s not then technically
if you have an LLC you’re not protected under that because you’re operating
under a different name. Now, there’s also DBAs
which is doing business as which we’re not gonna go into but you can operate under different names if you register it. So, how are we gonna get a logo name? Name, usually for me
this is the hardest part. I’m not creative. I had to just think of random words and I’ll throw random words together at the end of things. For me, if you look up
different Latin root words, Greek, Chinese, and maybe
find one that fits you that’s what I’ve done
for a couple of mine. Now, logo. You can create this yourself. It can be very simple. You can get someone on Fiverr to do it which is the website you can
pay five, 10 bucks for it or you can even, your logo can literally just be your name if you
want of your business. So, completely up to you. That is all of step one. Step two is to create your Amazon account. Now, when you’re doing this, this is probably a 10, 15 minute process. They’re gonna ask you a
bunch of different questions about your business. So your name, your business
address, your EIN, et cetera. Bank account info. And when you’re setting that up, you just go through,
answer all the questions. It’s very kind of self
explanatory with that and after you do that
there are a couple settings you’re gonna want to go into on Amazon and change in your account. Now, the video on screen right now I had some settings already set. So mine were preset correctly but you’re gonna wanna go into
a couple different settings. The first all under settings is the advertising charge method. Now this method is just how you’re paying for ads if you’re buying ads on Amazon. Now, originally some of
you might not see this until you create your first listing. Sometimes this setting is hidden. But once you do, this just
changes how you are charged for advertising. Normally it’s on credit
card. That’s by default. You can change it to your
Amazon seller account as the default method. So, instead of them
charging your credit card as soon as you spend money, they take the money out of whatever profit they’re paying you every two weeks. So you can wait an extra two
weeks and that money will be taken out of what they’re paying you back for your profit. So that’s the first setting. The next setting is the
labeling and the prepping. Now, who preps? Preps just means is the
product all the way prepared? Does Amazon have to do
anything else with it? Is it in a plastic bag alreadY? And the answer should
be yes 99% of the time depending on your supplier. Who labels? This is another setting. Just put Amazon for now. We’ll explain that a little later. And the last setting is
the inventory placement. Now inventory placement, what that is is when you go and you are
sending your inventory. Again this will make sense once
we go all through the steps but when you’re sending
your inventory into Amazon, they want you to send it to
a couple different warehouses which is difficult, it can cost more money from your supplier because of shipping. Now if you go in and change this setting, you can send them all to
the exact same warehouse. Now there is a small fee for this but it is gonna save you a
lot of money on the shipping from your supplier. So, once you have your Amazon account up we’re gonna move to step three which is the most important part of this and that is product research. Why is this so important? This can make or break selling on Amazon. Finding the right product is everything because if you find something
that’s too competitive, you’re not gonna rank,
you’re not gonna be seen. It’s not gonna sell no matter
how good your listing is and everything else. But if you choose the right product and you get ranked and put
in front of the right people even if you have a bad listing, you will still normally sell well. So, what do we do for product research? The first thing is I use a
tool called Viral Launch. There’s a bunch of different tools. They all kind of do similar things. There’s Viral Launch, there’s
JungleScout, AmazeOwl. Bunch of different ones. Viral Launch is my favorite right now. It’s what I use. I use a combination of ’em
all but you only need one. What this is is you can go use this tool to sort through Amazon’s
database of all their products and you can put in certain filters. So I can say I want all products that are selling over 200 units a month but only have 20 reviews or
have less than 100 reviews. This can be a lot more
complicated product research and it goes very, very in depth. This is by far the most
important, most detailed thing you’re gonna learn about
Amazon is product research. So instead of trying to fit
all that into this video, I made a checklist for you guys which is at the very end of the PDF which will walk you through step by step exactly what you need
to do in order to find the right product to sell on Amazon. Now I do also have other videos on that if you wanna check them out. But let’s get back to this. That checklist, if you download the PDF which is the link in the description, you will get that. Now, let’s say we found a product. The numbers look good. We used our checklist. We need to make sure the
product’s not seasonal. Now what does that mean? Most of you know. Seasonal. Does it sell only in summer? Is it a seasonal product? Now how we can check this is a website called CamelCamelCamel. Now, what you do here is you go, you put either just the
link to the Amazon product, you can even search products
and it’ll pull ’em up from Amazon’s database and what it does is it’ll show you the price history and the sales history of the product. It does this by sales rank. The lower the sales rank,
the higher the sales. The higher the sales
rank, the lower the sales. What you wanna see when
looking on CamelCamelCamel is a relatively steady line. You can see different
time periods at the bottom and what you don’t wanna see is let’s say I’ve been selling for two years, you don’t wanna see them selling
well and then it drops down from maybe September to January and then it comes back
up and then same thing. If you see a pattern like
that, it’s probably seasonal. So we wanna make sure it
sells pretty consistently. One thing to watch out for though is if they run out of
inventory it will dip. So if it dips for less than a month, then it’s not something
I would worry about. Next we need to make sure
it’s not a patented product. You can do this. You can search different
patent databases online. They’re free or you can
talk to a professional. This is not something I’m gonna advise on but you can do your own research on this and then just make sure it’s not a restricted product or category. There are some categories that
require approval on Amazon and there are some products
you’re not allowed to sell. Couple of examples would be you can’t sell a glass blunt or pipe. You can’t sell growing lights for plants. You can’t sell a lock pick set. There’s a whole list of these on Amazon on the seller central page. If you just look up
Amazon restricted products they’ll give you a list of everything and you can just check to make
sure the product you found is not on there. After you do all that, you’re gonna go and track the product and make sure the sales
are staying consistent. Again, you can use a
tool like Viral Launch. They have tools that do this. They have a ton of
different ones on their site which I’ll leave a link to them
in the description as well. But you track the product. You make sure it’s selling well. Again, you can use
CamelCamelCamel for this to make sure the sales are consistent but you wanna make sure
they didn’t just spike up, sell well for a couple
days and then drop down. After step three is step four
which is finding a supplier. What you’re gonna do
here is you’re gonna find multiple suppliers for your product on a website called Alibaba. There’s different websites. There’s DHgate, there’s Alibaba,
there’s some for the US. I mainly use DHgate and Alibaba. If you’re gonna start
probably use Alibaba. And what you’re gonna do is
just search your product name and then you’re gonna go through and you can filter and talk to
a couple different suppliers. When you do the filters
you can filter them by trade assurance which
means if you buy a product and the supplier scams
you or tries to not send you the product and takes your money, well that was through
Alibaba’s trade assurance so they’ll get you that money back. It’s pretty much a no risk. You’re gonna find and
message a couple suppliers. Under their listings you
can see the product images, stuff about their product,
about their company. Find a couple you like and go through and message them exactly what you want. Say hey, I want this many units. I’m gonna send ’em into
Amazon, blah, blah, blah. You can also ask them for
a sample in that message and say how much does it cost? Some send free samples. I just got a product
sample about a month ago for one of my new products
and it cost me $40. It’s about this big. Probably weighs about a pound
and it was $40 for one unit. Now, of course that’s
not gonna be the price if I buy more units but just for a sample, just to test out the quality. If you use those filters,
you talk to the supplier you should be able to figure
out if they’re reputable. Are they someone you think you can trust? Do they speak English decently
enough to communicate? How timely do they respond
which is very important and next is MOQ. What’s MOQ? That is the minimum order quantity and you’ll see this on
different listings on Alibaba and that just means you can’t
order less than this amount. Now, is this set in stone? No. This is always negotiable. I’ve had someone who had an MOQ of 1,000. So it means I had to
order at least 1,000 units to even order from them
and I got them to drop it to 300 as a test order. So there’s different
techniques to go about talking about that. Next, shipping manufacturing time. So how long does it take to make? How long does it take to ship? Just things you should
include when you’re messaging your supplier and then
do they accept PayPal or Alibaba trade assurance? PayPal, Alibaba trade assurance, both if you get ripped off
you can file a dispute. Get that money back. And lastly, can you put
your logo on your product? You’re gonna want to put
your logo on your product. We are private labeling means
making products our own. So if I were selling those taco holders I was showing you guys
then I would want my logo either on the holder, on the box somewhere so it is my product. So make sure that the
supplier can do that as well. Now step five is make
sure it’s profitable. There’s no point in selling a product if you’re gonna lose money every unit. Sometimes big and heavy products the cost is too expensive. There’s Amazon FBA fees
which are based off of weight and size. I’m gonna use a tool called
the Amazon FBA Calculator which if you just type in
Amazon FBA Calc into Google it pops up. You can type in. It’s kind of just like CamelCamelCamel. You can type in any product, you can copy and paste the link, the ASIN and it’ll pull up that product. Now this is Amazon’s tool and you can plug in what you sell for. If I want the selling price to be 17.99 and for this we’re gonna leave the spot with cost to ship as zero
because we’re gonna include that in our product cost at the bottom and we’ll just put 3.50 here and then I just click
enter and it’ll pull up what my profit is, what
my Amazon FBA fees are. Now it’s basing it off of
other products like that. So you’ll see the fee at the top. The first one is the
referral fee from Amazon and that is just 15% of the sale price. So 17.99, what’s 15%? Now if you’re selling cheaper products it’s one dollar or 15% of the sale price, whichever is more. So keep that in mind. And next you’re gonna
have the Amazon FBA fees which is the cost for
them for Amazon to store, to pick and pack, and to
ship out all your units since they’re doing all of that for you, that’s what FBA is and
then you’ll be able to see your total profit at the bottom. So, that’s the Amazon FBA Calculator. You can play with different prices. See what your profit would be and general rule of thumb is
I like at least 30% profit compared to your sale price. So for this one you can
see we’re selling at 17.99. So $18 and my profit is
6.66 which is just about 30% profit margin which I am fine with there. Now step six is to create your listing. You’re gonna need to create your title, your bullet points, your description, and I’ll show you guys an
example of a decent listing. Their bullet points aren’t the best. Title is okay but it’s
all about the keywords the bullet points are all about showing the benefits and features
and the description is just a total description
of your product. So these images on this
one are pretty good. They show the product being used. They show people actually
interacting with it. Your first picture does
have to be the product with just a blank white
background of it though. That is Amazon’s term of service. Sometimes you’ll see ones that don’t but that is their rule. And when you’re creating your listing, you’re also going to have
to have some keywords in the back end or search terms and this is really important. There’s different tools to do this. Viral Launch has a tool where
you can search up keywords and they’ll show you the search volume based off of that exact keyword and also the broad search term for that. They’ll show you the
volume of all of those and that’s usually how
I go about selecting what keywords I want
to use for my listing. As far as images, you can get your images from your supplier but make sure they did not take them from someone else. They actually took those pictures and if you really wanna be safe, you can send a sample of your product, just one unit to a photographer and you can normally
get six to 10 pictures for 50 to $75. Now these are professional pictures and you can get them
edited as well if you want just the white background. It’s pretty simple to do. There’s a lot of services online. You can use Fiverr. There’s Amazon services just for this. I know Viral Launch has
a service like that. I’d search through Viral Launch and see if you were
interested in any of those. Now the next thing is we need a barcode. A lot of people get confused with this. You need a barcode when
you’re creating your listing. Amazon asks for it. Where do you get a barcode? You can get a barcode from Barcode Mania. They are GS1 certified which
is what Amazon wants for them. I’ve used these barcodes
and I’ve never had an issue. They’re five dollars each
or you can buy five for $10 if you know you’re gonna
sell more than one product. You get that, you put that barcode number into your Amazon listing and
you are done with that barcode. That barcode does not go on your product. What you do next is change your listing to fulfilled by Amazon which you can do under actions in seller central and once you do that, on
that drop-down there will be something where you can
see print item label. Now what that is it’s a different barcode with your title and your ASIN under it and that is what is gonna go
on your product’s packaging. That is what you send your supplier and that’s what goes on your packaging. Lot of people get that
confused with the barcode. Barcode you use the number,
put it in your listing. You’re done with that. You never use that again. This is now the barcode you use. Step number seven is
choosing your shipping. Now this is where some
people get confused. Do I do air shipping? Do I do sea shipping? There’s a lot of shipping
terms, customs and duties, blah, blah, blah. Package restrictions, weights, unit size, how many units can I send in? It can be very overwhelming
and the easiest way for me to put this is
I’ll put up a picture on the screen right now. You guys can pause this screen and it’ll show you all the shipping terms, what they mean, who takes care of what. The easiest thing to do if you have a light and small product
is do air shipping and do door to door. Now what that means is if
I were to do sea shipping, I’d have to go and take
care of duties and customs, sign different paperwork,
sending more money in, different things. Easiest thing is door to door shipping or all duties paid, also called DDP and that is just the easiest. You don’t have to handle anything. It’s straight from the
supplier to Amazon’s warehouse. You don’t do anything. That is as easy as I can make it. If you guys wanted to pause
on the different terms that can also help you. Air shipping, door to
door, all duties paid, DDP and sometimes they’ll
ask for a declared value. If it’s over $2,000
there is a fee usually. So how much is the package worth? Just say under $2,000 unless
you want it insured for more. Step eight is create your
shipping plan on Amazon. What you’re going to
need from your supplier. You’re gonna need some information. You’re gonna need to know
how many boxes are there? How many units per box? What is the weight of each box and what is the dimensions of each box? You’re gonna go in and
enter that information into your shipping plan. You’re going to change, you don’t change the shipping carrier at all. You’ll see on the side when you set it up, it’ll ask DHL, FedEx. You can just leave that how it is. You’re going to print the item labels and send the supplier like
we were talking about earlier and then you’re going
to send one more thing to your supplier. Once you’re done with the
shipping plan at the end, you can click print box labels and it is just the label
that goes on the entire box. So the outside of the entire box that’s holding all your units
and there’s one per box. So if you have 10 boxes,
you’re gonna have 10 of these. You’re gonna email these to the supplier and that’s what they’re gonna
put on the top of the box and in your shipping plan that
is how you get the address to send to your supplier to tell them where to ship it. This is just an Amazon warehouse. You do not get to choose what address. Amazon will assign you
one in your shipping plan. Click mark as shipped and you’re done. And you can come back, edit it any time. You can delete it, you can change it. So if you mess up, don’t worry. Step number nine. This is the more advanced stuff and this is gonna be
to launch our product. How are we gonna get sales? How are we gonna get started? The first thing we need to do
is get a couple of reviews. So how are we gonna do this? Reviews on Amazon can be tricky. There’s verified reviews
and unverified reviews. Now verified just means the person purchased the product on Amazon for less than a 50%
discount or just full price. Non-verified means they either
didn’t purchase the product, they purchased it at a
heavy discount, et cetera. Doesn’t matter what you have for ranking. There might be a slight
ranking factor with it but the overall consensus is no, it doesn’t really matter. So, when you’re trying
to launch your product you need a couple reviews. You don’t wanna go quickly with reviews. You don’t want fake
reviews but you can ask friends to review your products but sometimes reviews won’t stay. Amazon knows if you’re friends
with someone on Facebook. So asking friends on
Facebook isn’t a good idea. They know the IP address of your computer. If they see the seller
account and you go ask your mom or your neighbor
to review your product, they’re not gonna let that review stay and you can risk getting
your account banned there. There’s different
Facebook groups for this. There’s services where you
can give away some units and not ask for reviews. You can not ask for
reviews in exchange for a discounted product but
there’s a lot of sites where you give away products and people will usually leave reviews. There’s different ones like
Jump Send is one of them, that is through JungleScout. Viral Launch has a
launching service as well. There’s different ways to go about it. But you need to start getting some sales and giveaways look like sales to Amazon and a couple of reviews to
start boosting your ranking and I’d start PPC which
is just Amazon advertising right away as soon as you
get your first review. And that brings me to step 10 which is the last step which
is to advertise your product. You can use that same
keyword tool we used before in Viral Launch to create
an Amazon PPC campaign which is just bidding
on different keywords to show up your listing. If I can bid for 50 cents and
show up on the first page, the first listing, paying
50 cents per click, that’s great, that’s like
being ranked number one. You’re just paying to
be there a little bit. You need to start with that
with Amazon advertising. I normally start with $10 a day. I start with broad match keywords and I’ll put in an automatic campaign. Manual, you can adjust
whatever keywords you want. Automatic, it does a
lot of keywords for you. Amazon automatically creates it and tests a bunch of different keywords and the goal of this is to
let it run for a week or two, pool that data, and we
can look at that data and then optimize to only spend money on the keywords that are making us profit. We get rid of all the bad ones, we go create a manual
campaign with the good ones, and we let it run and we
consistently do that and optimize. That brings me to the end. Now what are you gonna
be doing the entire time this is all happening? What do you do after that? Never stop optimizing your listing. If you wanna change
things on your listing, if you can get better
images, better bullet points, et cetera, do that. Same thing with your Pay-Per-Click ads. Also, never run out of inventory. That’s the worst thing
you can do on Amazon and your sales rank will start to drop. If you do it for a week,
it’s usually not too bad but if you’re out of
inventory for a month, it’s gonna be hard to keep your rank ’cause you’re getting no
sales in Amazon’s eyes and you’re gonna start dropping. Make sure you’re
replenishing your inventory. You can get it in in time. If the suppliers are having holidays, Chinese New Year is coming up. That’s usually end of
January, early February to the end of February so they
take an extended break there so make sure if you’re selling already, that you will get your
inventory in in time so you do not run out. Answer any customer messages. This is part of your seller account health and you want customers to be happy. You pretty much wanna do
anything to not get bad reviews. Make the customer happy even if it means sending them a free product. It’s usually worth it and not
worth getting a bad review. And track your profits in an Excel sheet just to know if you’re
actually making money, where your money is, and what not. So I’m gonna leave a link
where you guys can go download this 60 page PDF I created where it teaches you
exactly how you can create your own Amazon business step by step. It’s similar to this video
but it’s a lot more in depth and there’s different
strategies and more detail to it that can take you further. There’s a link. You can download this completely free. It will be in the description but this goes over a lot
of what I talked about more in depth and advanced
other strategies I use and will just give you everything you need to get started. I’ll leave that link in the
description for you guys. I hope you enjoy it and I
will see you in the guys in the next video. (electronic music)

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