Amazon FBA in 2021 | What It Is + How Beginners Can Start!

Amazon FBA

What It Is + How Beginners Can Start!

We all wanted to make money online for our family, we wanted to pay off our debt and wanted to get more freedom for ourselves and that's the reason why two millions of people began selling on Amazon to actually make some money but the problem with most people is no one really knows what the opportunity is so they Google things YouTube things and they still don't know what it is so here we're gonna break down the opportunity decide if it's a good opportunity or bad opportunity and see if you could still make money and if you do how you can actually go ahead and get started.   

So let's actually break down what Amazon FBA is all it is it means fulfillment by Amazon essentially you go get the product and create the product or buy the product in some places like China and then you ship it to Amazon and they do everything else they handle customer service they deal with returns, they do some of the marketing for you and that's why a lot of people like it because Amazon’s gonna make the money for me and for you all.

What most people expect when they see you know the ads when it comes to Amazon FBA but is that really the truth for the beginner that's just getting started let's break down exactly how you can get started first so just find what products that you think would sell well so you can sell things like whatever you want so just like that you would able to see all of your product will go for like in dollars per product piece and the first step would just be literally going up to here clicking on the product and then finding a way if you could contact the supplier now all these people are usually like in china and this is why they're able to get like very disgustingly low prices because in China and I mean a lot of things are kind of made in China right. When you start getting the answers to the questions that you’ll actually enjoying so what most people do you need some type of startup capital for this.

So the next step you would do is, go to Fiverr and just type in logo design. So going up to here finding someone to create a logo for you and its good if you create a brand logo of your own business by yourself.  For as little as like you just have to scroll around and see I mean get some that’s more affordable. Within 24 hours and there'll be 1,000reviews I sure you. So you just look around at what actually will fit your budget or no. After you brand it the next step is you would of course send it to Amazon now when you send it to Amazon it would literally look like something like this and when people type in things like searching your products and go ahead and buy that so Amazon ships the product then handles the customer service and if they want to return then they'll also handle the return for you and the coolest thing is you get paid every two weeks from this process every single time you make money from this you know the cycle continues just go back to China get more inventory from your suppliers ship it back to Amazon and you continue the process until 100turns into a your investment turns into double like what some people do it.

 But let's break down your responsibilities because that's the most important thing you know Amazon will do most of the hard work but you gotta understand what you are what they are expecting from you is,

01: They are expecting you to choose the right product okay, if you lose money on choosing the wrong product that's not Amazon’s fault that's your fault. For example: spending two thousand or three thousand dollars on a product if everyone like your product they're gonna buy right. So keep in your mind that what is good or not.

Ended up, not you know you do much product research and do much of the marketing of your products to understand how to reach ideal.

If you choose the wrong product you can be out of not just several hundreds or thousands of dollars but also months of your life because you're dealing with China it takes time to talk to China you know it also you have to send some samples over to your house, you have to see if it's good quality because sometimes the suppliers completely suck right and it's very bad quality you don't want to spend more money on certain products if it's gonna be crappy material and then when you buy like several thousands of units to your place you literally gotta see if it takes several weeks to go like your place or to a freight forwarder to Amazon itself.  So you’ll have wait for like several months, maybe six months before you can actually get your product live on there right and the worst thing is if once your product is live you’ll realize that you chose the wrong product so most of your focus is trying to find the right products.

 Another thing that you're responsible is keeping your inventory in stock okay when this person runs out of inventory people aren't going to be the ones talking to your supplier you are going to be the one that is responsible for that if you do not keep your inventory in stock what happens is this gets removed from the top of the listing and it starts getting lower and lower and lower in like the search engine result which all Amazon is it's like a search engine which people go ahead and buy. People are typing in search your product, like these are all the things that people are actually searching for if you do not keep yours in stock and someone types in your product and yours is on here but you're out of stock guess what you're out of luck. They're gonna start dropping you even though you might be higher in the algorithm or in the search engine and last but not least is you're also responsible for marketing okay. The thing about this is there are literally two million sellers plus on Amazon and just with your product alone you see all these different competitors odds are if you're like the thousands person making same product same yours so you're probably not going to show up on the first page.

You know Amazon for the search word you're probably gonna start be all the way at like the end of this right if I’m gonna type (your product name) in like you're literally maybe on the lower page at this point right, no one ever goes to this far in the search engine for Amazon right so you're gonna have to figure out some other marketing things. You're gonna have to maybe figure out Facebook ads that’s actually those are essentially all the benefits or all the responsibilities.

Number one is choosing the product number.

Number Two is keeping it in stock.

Number three is marketing.

 Now let's talk about the benefits that come with this when you actually have a good product that you've picked. So number one it's passive income you know you're not dealing with customer service you're not dealing with complaints you're literally just oh we're out of inventory, go to China buy product have them send it to Amazon and just like that that's really it. You can even hire somebody else to do that for you it’s pretty inexpensive and just like that that's where the passive income lifestyle in all the ads that you see actually make their money.

The second thing is you don't have to deal with logistics.

So it’s very simple with Amazon FBA you like oh we're out of stock click buy from China have them send it to Amazon and just like that you're making money.

COMPLETE Beginners Guide to Sell on Amazon FBA

Another thing is you don't have to manage returns; you don't have to deal with customer service. It's very quick delivery which means the customers are very happy.

Most people in America like literally people spend thousands of dollars every single year on Amazon just because you click a button and for some reason it just shows up within two days right that instant gratification.

I think Dr Jeff Bezos makes like 200 000 or something like that it's because a lot of people are already on Amazon and millions and millions of people are already searching on it because like how you would search your problems on Google people are searching for products they want to buy on Amazon.

 Now let's talk about the disadvantages.  So number one of course it costs money, okay every single time someone makes a sale on Amazon. You know you literally have to pay Amazon a certain fee and they'll literally take it away from your profits right so if you're selling a lot of products expect smaller profit margins if you're dealing with things under like 30dollars another thing is of course with ease of ability of returns there's also going to be more likely chances of returns because Amazon has great customer service and they're always going to side with the customer expect your returns for Amazon FBA to be a little bit higher than if you were gonna do, you know your own website. Another thing is sales tax is pretty complicated, you know I’m not a tax advisor I’m not a tax consultant this isn't financial advice but one of the hardest things that most people do and have with e-commerce is dealing with the sales tax when it comes with Amazon because you got to understand each state in the U.S has different state like sales tax laws and codes and whatnot you have to be able to report on all that and it's just confusing and it's a logistical nightmare and I guess the best biggest disadvantage is how much cost up front you're willing to invest before seeing if you're actually going to make enough money or not right for one single, test of a product you would need maybe a couple thousand of dollars right and not only that but you may need like three to six months of testing right so the barrier of entry is a lot higher and expect you to actually break even with your initial investment maybe after a year or two right so if you're trying to get rich quick with Amazon it's probably not gonna be the best thing because it's an actual business and it takes time you have to deal with China that takes several weeks to communicate and actually send products to you not a lot of people factor in the fact that since you're dealing with China and all the confusion that deals with like sending products from China over here it's just like a logistical nightmare and if you don't have five to ten thousand dollars up front probably Amazon FBA is not gonna be for you but if you do let's talk about how to become successful remember product research is 80 of the battle and how you do that is you literally go to Amazon and what you like doing is go to the reviews and you got to find out how you can actually improve certain products that's exactly how people like literally do the best is when they find out what people complained about and they made a better product.

Number two, figure out how to bundle products now if you could see and would find out that people were buying but if you scroll down they were also buying this in return.  

A cycle shows how it works:

So Ended up here that way people would see like a higher perceived value and another most important thing is learning SEO Search Engine Optimization so you get to figure out how when someone types (searching your products), how to actually get your product to be the number one ranking thing on there. You know the biggest thing is of course reviews but of course you could see the titles playing to a big role not just that but the exact description all of these add into certain things that people are actually typing for.

 And last but not least if you really want to become successful this you got to learn how to build a brand off of Amazon that's what most people don't want to hear they're like I wanted to get rich with Amazon FBA but then they don't realize that you have to build your own brand separate from Amazon right, the successful people are the ones that build a brand and if you're not willing to do all that don't worry just takes some workshop, watch videos online and keep learning about it which helps you to get success in a faster and easier way to make money online.

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