IS Amazon FBA Dead? Can you Still Make a Living Selling On it
What. Is going on everyone, its rob here from steps, to success so wanna make a video for you guys going, over the topic of Amazon, FBA is it dead is it too saturated can, you still make and earning you know selling, products off Amazon, online, and how. Much more competitive, and saturated, has it become you, know in the past couple of months three to six months I know a lot of people have been jumping on it but, in this video I'm gonna go over a few really, good details, and show you guys some statistics. And hopefully. By the end of the video you'll feel, more comfortable you. Know making that decision whether if it is the right choice for you to start selling on Amazon, so some of the topics that we'll be covering in, this video our fulfillment, fees, so we'll go on to Amazon's, website take, a look at how it is that they charge you for different, size products, you know they have a different, set of fees for smaller products. Versus. Some bigger you. Know oversized, products, how it actually works, in terms of storage fees what, are some of the best seasons, to be selling products, on Amazon, you, know testing, it, on a real product, so I'll be actually showing you one or two really good products that I just found today, doing, some search using for launches product discovery and, exactly. Apply the concepts, that you as a normal, you know Amazon FBA seller, would, be using, if you were to actually introduce a product to your account and last. But not least we're gonna use the different, Chinese, website, platforms, such as Aliexpress. Alibaba. DHgate. To. Source, these products, and compare, them to the Chinese version of the same supplier website, 1688. And kind, of check out the Amazon revenue. For products, along, with actual. Profits, that you'll be making off products to see if it makes sense and as, well I'm gonna share with you some tips and tricks of how, you can actually go, beyond, just using an Amazon FBA product, research to to finding your products, I had a friend that reached out to me yesterday he said Rob I'm looking.
For A product on Amazon, but I see it in the states but not in Canada and in Canada, it's three times the price can. You actually help me source this product, and I. Did about five to 10 research, online and, I found them a really good product which actually, you know crossed my mind today I said why don't I make a video about this and share, it with my audience and show, them the potential of how just thinking, outside the box just a little bit whether, if it's through bundling, differentiating. Or actually making your product different in terms of color size, can. Go, a big, and long way to, making you successful and, profitable selling. On Amazon, FBA guys, so, again. I'm gonna show you guys, exactly what Amazon. FBA in my opinion is just starting and it's nowhere to even be to its full potential yet and how you guys can use it to make a ton of money selling products, online so. I'm gonna hop onto my computer in a few seconds and we'll. Get started, alright. Guys welcome, back so the first thing that I want to go over with you guys is, the. Actual Amazon, FBA fees. So, this is both the fulfillment fees, as well as the, storage fee so what fulfillment, by amazon, or FBA, actually, stands. For is they'll, be picking, your product, packaging. It shipping it putting it into the box and handling. With all the returns, and customer, service for your product, so, here amazon has, this on their website again if you guys want to check this out yourself, just go up and header on two services, the Amazon com slash, fulfillment, by Amazon, and then you can just go to pricing, which is the third tab here, so. In this, scenario though, giving you guys an example guy just so you have a rough idea of how. Much it will cost you, per unit to have Amazon, take care of the fulfillment fees, so, if your product is a small size, so again this can be a shoe box less than a pound or, about a pound, they'll be charging your about two dollars and 41, cents, per, unit if, it's. Larger, than that so if it's you. Know if it's about a pound but. In a larger scale so if you click the I it will actually show you the, packaging. Size or the box size for it so in this case is anything, that is, about 20 pounds less than the longest, side being 18, inches so that's slightly over a foot by, 8 inch on the shorter side and, 14. Inch, or less, on the median, size. Again. You have between one to two pounds and over two pounds so over two pounds is four dollars and 71, cents, for, a standard, sized product, and anything. When the week goes on top of that is 38, cents per pound extra, so you guys can actually calculate this, very easily so if you have a product that's gonna let's say be three, pounds you know that you're paying for seventy one plus, one, times 38 so it's 471, plus another 38, cents if it's a standard size now what if the product was actually an oversize, by oversized I mean it was like a box that's, longer, than they eat 18, inches so it could be 28, inches it could be 3 feet 4 feet then. In that scenario it's, 8 dollars and 13, cents for the small oversize, again, if you're not sure what that means is the, longest, side being 60, inches or less so 60 inches is about five foot so, are just slightly less than an average you, know height. Of a percent so it's about five. Five. Feet I don't. Know if you guys can see that through the webcam, but yeah so the median is gonna be about just, on this three feet and the longer side being a hundred thirty inches or less same.
As The other scenarios, guys you have a medium oversized large oversize and special oversized and this is what amazon will charge as a fulfillment and monthly. You. Know basically their service to take care of your products so the second portion of the fees that amazon will charge you is what's, called the monthly inventory stories, which, they charge you based on the cubic feet so cubic, feet is the. Way the, width times the length times, the depth so once you to multiply, those three numbers together and multiply, it again if you're selling within the first three, quarters guys so, January to September you're paying about 69, cents a cubic, foot if you're. Selling between October. To December its, 2040. Cents a cubic foot, so. One of the reasons that it's more expensive is because queue for a lot of sellers know that their revenue, the, profit, is gonna be double triple quadruple, based. On the other three quarters, so everyone, wants to get their product in Amazon's warehouse and Amazon, knows this that's what Amazon actually will charge you a higher, amount for, you to store your product into their warehouse. Come q4, because they know how fast you'll be going through your products as well so, Amazon. Will actually charge you a you. Know lower fee for fulfillment in q4 but they'll actually be charging, you a higher. Storage. Fee for, that's you, know for the q4 at the same time so you guys want to make sure that whatever product, that you're getting in you get to test that out at least in the first three quarters of you. Know you selling, the products so that way in q4 you, know your product is selling you know that you know consistent, level of sales is coming through and you're making those profit, so then you can actually without. Worrying, about paying, an additional say, you, know the difference, extra, for your store is you're actually focusing on bringing in all the products that will actually generate you, a ton, of profit, because you, know that's the whole goal with Amazon, so, again. We have the same fees for your oversized, now. Let's, go and estimate, your fees guys so you can actually compare, costs which I cover, using, the Amazon FBA calculator and.
Today We'll actually be going over. The. One product that I mentioned, in the intro of this video for. You guys to think a little bit outside the box rather, than just using you. Know product research - what can you do to differentiate, your product to bundle your product so some Amazon FBA 101. To help you guys you, know show you how viable Amazon, FBA really, is and how, you can actually still make a living selling on Amazon, guys so, let's, go over, the. More, enhanced. A detailed, version of the fees that Amazon, will charge you because this is very important, and I've had a quite, a few students, who. Did take advantage of this this. Is the 218. FBA storage, fee so they did increase, the, Amazon. FBA fees, this year as most. Of you guys do know, so. The. Prior, to April 1st they, had an older price so now instead of 64 cents a cubic foot the. Monthly inventory, storage fees is 69, cents so not that big of a difference but again for Amazon still makes a big, difference in terms of the volume that they push and. You. Can go through this yourself. Individually guys, so it basically has all kinds, of data here. Because. What I found. I noticed, with a lot of people is if you bring in a seasonal, product that lets say sells well through, q4 and you, end up ordering too much inventory and you don't sell it sometimes. You have a few options one, lower your price or you can sell, it out to if that's not your option does it actually make sense for you to store. This product, for, say six, months nine months out of the year so next season you can take advantage of selling it at the you know that high price again so I had a few students who did take advantage of this and we calculated, exactly how, much. Those long-term storage fees I work, for his product, but Amazon, also shows you this so you can calculate your own if you're not sure so for example, if you're. Selling a toy in the, toy category. That's about, 11 by 8 by 2 inches, and you're. Within 180, to 365. So, basically, you're within the 6 to 12 months in this scenario you're paying a dollar and 15, cents, for your storage fee so. If you have a hundred units just multiply, that by a hundred again, sometimes this makes sense because if you were to say, for 100 units reduce your price but two dollars obviously makes, more sense for you to. Pay. That storage fee keep it longer so you can make more money end of the day it's, just like a stock guys imagine you buy a stock at, $100 and it, drops to $90. But. You know sooner, or later the stock is gonna go up in value again would, you take the loss now or would you hold on to it to take the difference. In profit, later on so it's all the business decision that we need to make and it. Varies. Case-by-case guys, so. Go through this again. If you have any questions, comment, down below if you have a product you want me to take a look at or you just want to know, how these numbers reflect on your specific product, comment down below if you have any questions, so far about the video let. Me know so I can help you guys out because I want to make sure you guys understand, how, the different seasons, come into play with Amazon, FBA fees, both, in terms of storage fees and the FBA fulfillment, by Amazon fees so, this part is actually covered, so we can move on to the next stage because it becomes very important, when you guys are actually getting. Into Amazon FBA to leave your nine-to-five job and start making that. You know sales and profit do Verdean and scaling, and growing your Amazon FBA business, to that hundred thousand, two hundred thousand, a month income so. Let's go through product research guys so I was just doing it you know I wanted, to do a video for you guys using viral launches, product discovery and knowing, this video I'm not doing electronics, anymore so I wanted to take a look at health and household, patio lawn and tools and home improvement. So, the criteria stays, the same you want to make sure you're selling at least ten units a day or your competitors, are priced.
Between Twenty to thirty eight monthly. Revenues so I was just kind of glancing, over some products and I came over this product here so, we. See that the price is $27.99, were. Net. Profiting, 1863. Per unit with a fifteen review. Which is amazing, guys making ten thousand a month with, only 15 reviews BSR, is not that great but he's still making three hundred and forty six units, a month here so this is selling ten units a day and this is exactly what you guys want to do because selling. Ten units a day you guys you can get ranked for multiple, keywords and start. Getting that organic, traffic from page one because the last thing you want to do is spend money on PPC, and you. Know paying Amazon, on, top of your FBA fees and storage. Fees you, know your monthly fees for them to store your product you don't want to go and pay too, much PPC. Costs unless it's bringing you a lot of money and you're also making money, organically. On the side as well but the whole goal again is to get ranked on page one so. Let's open this product, and first, show you guys exactly what vara launched we'll dissect from it and analyze it together before I show you some really cool tips and tricks on how, to go above. And beyond, what everyone, else teaches you and how to actually keep, an eye out for different, kinds of products again like I said if you find one specific product, that is doing well. What. Are some ways you can differentiate bundling. Adding. Another. Product. That is you know different. Size different color, it could be a lot of different variations that you can actually add to it so let's. Go, over this tools in home category BSR, is eighteen hundred ten thousand a month twenty 79918. Knows net profit margin, 360. Reviews, sixteen. Review, rate nine percent is good average rating is four point five this again you guys want to pay attention to this you don't want to bring your product that has quality issues because that means you will be getting more returns so, that's, again, very good let's, go to market trends price. As you guys can see the market trends for this sale has been increasing. Price. Trend guys this is again one thing you want to pay attention to you don't want a product to be decreasing, in value review, in, price review. Has been increasing, again very good for launch gives it a homerun 300. 350, units should. Be selling well again 10 to, 13. Units. Per. Day. 20. Reviews to do well again, guys I have a ton of videos if you have a new product for your Amazon FBA account, how to go about getting those 5 to 10 reviews within, the first 1 or 2 days selling on Amazon it's an up and coming product. There. Are some product with high review rating so. Again nice thing about VAR lunch that I love is the fact that they're giving you guys some suggestions. So you keep, in the back of your head when you're going after these products, so you always want to do all your homework guys before you have your product as most, of you guys know Amazon FBA is a huge, huge. You. Know spending. Of your personal, time initially. With, before without, making any money but once you get your product into Amazon's, warehouse that's where all the hard work is done and now you just start seeing that organic, sales come through guys so, you may want to consider bundling, this product, again as I mentioned to you guys and the product is increasing, popular, it's a good time to get on it, cost.
Calculator, Again you're making 14 units in 14. Units, 14. Dollars per unit guys so imagine, if you were selling, you. Know 300, units 350, units you're making five grand net profit a month and that's exactly what you want just imagine you have three or four products like this you're making you, know over two hundred two hundred fifty, thousand, a year income. Geyser which is way, more than what an average person or even a top, five percent income, earner mix you, know in Canada or in the US and that's exactly the power of Amazon FBA and why I think it's so viable, for, you to get started selling on Amazon FBA in 2018, even if you have $1,000. $2,000. Budget it's. Way better than putting in this markets, way better than doing anything else with it and I believe if you put your time, and energy into it how, fast, and how quickly you can scale, your Amazon FBA is truly. Unbelievable guys. So. Let. Me show you guys first. This. Specific. Product that, we opened, here and. Hopefully. You. Guys will see by the end of this video how powerful. Amazon. FBA is. So. In this scenario the seller has 16, reviews guys. The, listing is done very well as you guys can see very. High professional. Quality, photos, showing. The product being used in real life again. You can tell that this person hired someone on Fiverr or did custom, photography. Again. Pictures are very very well done. Title. Is done as well, you. Know some of the keywords are fully optimized, you can see the bullet points scroll, down the bottom here description. Is okay not that great you guys can probably do a lot better. You, know description. By following this video but check this out right this is what I want to show you guys so I always check, keep our guys because. As most of you guys know viral, launch is an estimate, so keeper by nine nine nine trick method you, have to do it you have to do it because it's so important, to make sure that the numbers are congruent with what you're actually finding. On using, the Amazon. FBA product, research tools so in this scenario we're, going from a sales rank of, 146,000, which, is one day the seller initially, started selling, this product on Amazon. Right. Off the bat he started decreasing to 35,000.
And Check this out guys. Consistent. Decrease, in BSR which means that he's selling more and more day over day two thousand. One thousand, two thousand, he's, out two thousand, so if you guys let's say you found this product you make you that $15, profit, every unit and you're ranked on page one with only 15 16 reviews just, imagine. Q4. Coming in. Instead. Of selling. 10. 15, units a day you're selling fifty sixty units a day guys so once you start selling sixty units a day. You're. Making 900, bucks a day just. The month of December you're making 27,000. Net profit margin tell. Me this is not something, that you guys want to spend time to learn more about and I've, had so many students, that are making you know went from making thousand, two thousand to ten thousand, to twenty thousand, and one income just by following these simple tactics, and strategies, guys Amazon. EFI is just a set of principle, and formulas, that you guys want to learn and once, you learn it it's so easy to replicate that same process to apply, to more, and more products, guys so. I, hope. You guys see the power of Amazon, but let's go back to another website that I mentioned. Beginning of this video that one of my friends was looking, for a product, so I was kind of going through Aliexpress. Trying to find a product that, is similar to it and seeing, if you can actually order, it as you guys can see I actually ordered this for him the other day. So. I want to open this listing and actually show you guys exactly how, powerful, Aliexpress. Alibaba. Dhk. Truly, is guys so, this product we shipped it to Canada. Free. Shipping which means you're not paying anything extra for customs, duties taxes, again if you're you know using a supplier on Alibaba, Aliexpress. DHgate. DHgate. And Aliexpress, they offer free, shipping for, most products, Alibaba, you want to make sure that you're getting a DDP code again. Delivery duty paid you never want to hire freight for yourself, especially you're new to Amazon FBA again I cover a ton of video that goes over this in detail so we won't be covering that in this video but, I want to show you guys something so. This, same. Seller, is selling a, where. Is it here. Selling. A 4-pack, guys, so. You're basically getting four, pieces. For. $28. The. Set that I got my friend which got delivered, including, shipping was. 1735. To 1804, so I think we paid 1804, just because we only bought two units so let's, go back to our trusty, Amazon, FBA calculator and, check out our storage fees and the FBA fees to see how, big, of a difference we can actually do you. Know selling this product if you were to compete with this same, seller and again, I always mentioned bundling, differentiating, through size color, etc.
In This case I want to show you guys something truly powerful guys. So. We'll go back to your Amazon FBA calculator and. As. You guys can see I said we're buying it at eighteen dollars and. Four. Cents shipping. Will put zero because the the price is including. Shipping and, instead. Of selling a four pack this. Product, that we're ordering here is an eight pack, so you're ordering twice, the size so instead of a four you're doing eight now, you might say what a person actually need eight instead of four that's a great question imagine that you're doing your part of your lawn or you're, putting a deck how, many pieces do you think an average person needs four pieces or eight so. My friend needed. 16. And. This is for an average size house so imagine, guys this, is the way that you differentiate, what would that person, who's buying your product need and this is what I always recommend going, selling, in a category, that you know a lot about because most people don't walk just look at the numbers and the product but don't go one step beyond, and think about okay is for. Enough should I be selling an 8 pack should I be selling a 16 pack again you know all these things should be going through your mind as you're looking at products so, what. I thought is instead, of. Selling. A four pack. Which. In, this, scenario you, can buy for $30. Again. Go check this out so if I buy an eight pack and sell at $30, I'm not making much money but since I'm ordering twice the size I said, what if I was to sell it five. Dollars cheaper so, it's selling, it 8 pack for 60 and compete, with the same price point as this seller what if I was to actually. Buy. It for 1804. Sell. It for 55, so, let's go over the numbers. Selling. On Amazon fees Amazon. Charging us 825. Which. Is the refund, for. 825, and then we have the FBA, fee which. Is five, dollars and sixteen cents which is the actual monthly storage, fee and the, fulfillment, fee. So. Seller proceed is 41:59. We're, making, $18. A unit so now based on the, same number that we found this seller selling.
Per, Day, which. Was. 369, units. A month, which is what they're selling again guys so let's go back here if you're selling. 369. Units. A month at. 23:55. This. Is how much you'll be making net. Profit. After all fees once, you get your, product ranked on page one so. You're making eighty seven hundred a month now let's multiply this by twelve months one. Hundred and four thousand, guys you're making a hundred thousand, a year income. Income. Not sales, income, so, imagine, just on that one month or q4. In, general. Making another forty thousand because your sales will easily double or triple you're, making, 130 hundred forty thousand a month all for, one product. How. Powerful, is it for you to have two three products within the same niche creating. A brand around it and easily. Easily, replicating. That same process for multiple, products so, I hope you guys see the power of you. Know Amazon FBA at the same time I want to show you guys something else before, we. Move on take. A look at the product itself guys it's not, that appealing to, the eye I mean it's okay but not that great and take a look at this product honestly it looks so much nicer like, you know the whole copper, view you have different colors that you can pick from you have it you can actually pick the emitting color the waters you, know whether you want it black you want it so, there's a ton of things that you can actually differentiate, on, so you know you can actually look at what. Kind of different material, cannot use on the product, what color do I want what color of the light-emitting, do. I want so there is a lot of ways you can differentiate from other sellers as well so in this scenario we, set and start over four pallets to an AIPAC and a similar product, but better-looking, and I honestly believe, that this, product itself will do it a lot, better than. The. Other product. That the seller was selling again as. You guys can see everything, similar to Alibaba or D educate you have high quality photos. That the you know the seller can provide for you check, this out guys it looks beautiful honestly it looks really, nice and this, is exactly what you guys want to portray to your customers, who are purchasing a product on Amazon, FBA again. You have return and refund with, Aliexpress. Just like Alibaba, you are protected, and it's. It's honestly, a really, really good platform that you guys should be checking out every, single time when you're sourcing your product on Alibaba, or Aliexpress, so. Again. Guys one, thing that I do cover in the Amazon FBA steps, to success, course, is checking. The product on 1688. Which is the chinese version of Alibaba, Aliexpress, and be educated where you can find these products even, cheaper another twenty thirty percent cheaper sometimes because you know these are the website for local people that they actually can source these products. Within. Their own country a lot, a lot less expensive so always check your prices and again it gives you guys a competitive. Edge when you're negotiating which, so far is getting a better price guys so. Before. I end this video again I want to show you guys and I wanted to show you guys taking you from A to Z actually, taking, you through finding, that product, talking to you about how Amazon, FBA works, through. The fee structure and how. Much profit you can make by bundling and differentiating, so in my opinion Amazon, FBA is just starting if you look at the statistics, with Amazon's. Actual. Revenue as a whole, 2015. They went from a hundred billion to. A hundred and thirty billion one hundred fifty, nine hundred seventy seven last, year guys so they've grown at a rate of fifteen twenty percent year-over-year and, this is a company that's producing over, a hundred, billion a year in sales so. What, do you guys think do you think Amazon FBA is that or is it just the beginning because I honestly, believe there. Will be more, more and more products coming to Amazon FBA people, will be sourcing it out of China because of the quality, so it's nowhere, being, where it should be guys so Amazon FBA is not that it is not saturated and it's still an amazing, opportunity, for you guys to take advantage, of it again.
Guys If you enjoyed this video and you're interested, in taking your Amazon FBA game to the next level make sure you check out the steps to success course. Where I offer my one-on-one mentoring, so I'll help you with find the product help you track it, source. It with suppliers, negotiate. The best rock-bottom, prices. Ship, it to Amazon's, warehouse all the way to creating PPC campaigns doing giveaways getting your product ranked to keep you know page 1 and start, getting those organic, sales coming through so I'll be providing unlimited. So, this doesn't end it goes for as long as you need unlimited, one-on-one. Mentorship for, as long as you need so make sure to check it out link will be below in the description, box again if you, have not used viral launch before and you need a 50%, off coupon I will be providing a link below in the description as, well 50%. Off coupon guys if. You guys enjoyed, this video or you're new to this channel make sure to subscribe give this video a thumbs up if you. Enjoyed the content and leave me a comment let me know if you'd like me to cover any topic, regarding, Amazon FBA for. Entrepreneurship. As a whole I created this channel to help you guys grow individually. Bettering. Yourself and, your business making more money year-over-year, guys, so again, I thank every single one are you for joining me on this video and I can't wait to see you guys on the next one.