What is up freedom fighters! It is Jess here and I am finally back guys it has
Been a minute and I missed you I actually moved to San Diego I am finally
Settled I'm gonna be bringing you guys a ton of new tutorials on how to make
Money online but today's video is gonna be just a little bit different we're
Gonna be talking about exactly how much you actually need to start a profitable
Scalable business selling on Amazon FBA so if you've ever considered starting a
Private label make sure you stay tuned because I'm gonna be going into exactly
How you can calculate all of your Amazon fees before you actually have your
Product so that you know that your profit margin is going to be extremely
Profitable so don't even think about going
What is up freedom fighters we're to be talking about exactly how much it costs
To start a profitable business on Amazon FBA I know there's a lot of gurus out
There that say that you can start with as little as five hundred to a thousand
Dollars but that's not really realistic in this video we're gonna be breaking
Down exactly how much it costs to start a profitable scalable business on Amazon
FBA so the first thing that we're gonna talk about is product research so in
order to actually find profitable products to sell on Amazon you're gonna
have to get a product research software so that you can find products that are
low competition and then have a really high profit margin this offer that I
recommend using is called viral launch and I was actually able to meet the
founder of viral launch Casey back in Mexico Ninja con a couple of months ago
and he is incredibly smart the software's only $29 a month and then you
can also add on the market intelligence Chrome extension for an additional 20
dollars and this obviously is it a tutorial on how to do Amazon product
research but if you guys do want to see a tutorial on how exactly to use the
viral launch product research software then just leave me a comment down below
that says Amazon FBA product research and if I get 50 of them I will make it
for you guys so once you found the product that you want to source you want
to find a couple of different manufacturers and China to actually
order samples from so you can compare the quality and also the cost you want
to make sure that you're ordering a completely done product you want to
check the packaging you want to check the logo design you want to check the
barcode you want to make sure that the product that you're ordering in bulk is
perfect and then it's high quality so definitely order a couple of samples and
once you actually do place your order you can actually get that sample fee
refunded from the manufacturer so that's just a little thing to make sure that
you ask for because 99% of them will actually give you that full cost if not
a portion of the sample feedback to you when you place a larger order so the
next thing we're going to talk about is barcodes
so you're gonna need to get a UPC code which stands for universal product
and that's how you're gonna actually list your product up on the Amazon
website now there are some rumors going on that Amazon's gonna be switching over
completely to gs1 bar codes but as of right now April of 2018 you can still
use UPC codes which are a much cheaper options and again I get mine from
nationwide barcodes and I'll put the link for that down in the description
below now that you have your products you've got your UPC code you're going to
want to get a logo designed and you might also want to invest in a packaging
design depending on what type of product you're selling I usually go on to fiber
or upwork to get my designs made and they're extremely cheap you can get a
logo made for cheapest $5 and package design usually ranges anywhere from 10
to $250 depending on the service that you use but I found some really amazing
artists and graphic designers on fiber and they're extremely cheap if you do go
into fiber make sure you're searching by best selling so that you know the
designer that you're using has worked with a lot of other people and that
they've actually done good work and they have good reviews so now that we've gone
over all the little stuff let's talk about actually ordering products now
you're probably wondering how many units should you order your first shipment on
Amazon and then also how much are they actually going to cost and this price is
gonna vary obviously based off of the product that you decide to stores
because if you order something small it might cost you know 50 Cent's whereas if
you source you know weighted blankets you might be
paying $50 per unit now for this tutorial we're gonna stick with three
dollars per unit and I always recommend that you order at least 500 units and
this is gonna be including your package design your logo on the actual white
glossy box and then also your barcode UPC code sticker that says Made in China
on the actual package if you're sourcing from China and that's really really
important guys you definitely want to make sure that you have that now the
reason that we order at least 500 units is because you don't ever want to run
out and when you first launch your product you're gonna have to do
giveaways and so you want to track figure out how many units your
competitor is selling per day and then you need to multiply that number by
ninety and the reason we do ninety is because you want to make sure that your
product is never in the Amazon FBA warehouse for longer than 180 days
because that's when you actually get charged long term storage fees which is
really gonna kill your profit margin do you want to make sure that you have
enough units to where you don't sell out but you also want to make sure that you
know once you are getting low you have enough time to restock and so I would
say at least 500 units but the best way to do it is to track your competitors
numbers that average and then multiply that by 90 and that is a really really
good place to start because you can assume that someone that's selling a
very similar product to what you're selling is going to be about the number
of units that you're also gonna be selling per day now before you release
that 70% final payment to your manufacturer you want to make sure that
you have a third party come in and give you a quality check report on your
products to make sure that everything is up to your standards that the logo
design looks beautiful the packaging looks great and that none of your units
are broken or if you have you know a specific thing that you know could go
wrong with your product you want to make sure you you pay someone to actually
come in and check to make sure that the units are perfect before your units are
actually shipped across seas so getting an inspection is super important they're
usually about a hundred dollars depending on the company that you use
now that your units are ready to go you're ready to ship everything over to
the United States you're trying to figure out you know how much is it
actually gonna cost to get a bunch of products over to the United States and
into the Amazon FBA warehouse well I can't give you an exact cost because
again this is going to depend on the product that you order it's going to
depend on the size the weight and the amount of units that you actually buy
but for this tutorial we're gonna say about six hundred and five dollars and
it also is gonna depend on whether or not you want to do sea or air so there's
a couple of different options for shipping you could do by sea which
generally gonna be a lot cheaper but it takes about two to three months or you
can ship by air which is much faster it's a little bit more expensive but it
usually only takes about three to ten days so if you're about to run out of
stock and you know that you're going to be able to sell those units and it's
gonna hold your spot in your rank on page one then it might be worth it in
the long run but that is completely up to you what you decide again shipping by
sea is gonna be much cheaper but it takes a lot longer
she can buy air more expensive but it's going to arrive in the warehouse you're
gonna be able to keep selling units much quicker so you kind of have to do the
math for yourself on that one the next thing we're going to talk about is your
product photography and this is so so so important guys I know that there are a
lot of gurus on YouTube that say that you can you know cheap out you can do
your own pictures but you do not want to do this because one image could make or
break your listing on Amazon because when people actually go on to a listing
they're looking at the images and that is usually what's going to sell your
products so you definitely don't want to be cheap here the service I recommend
using is actually a viral launch which is also the software company that I do
my product research with the basic photography package is 597 but it really
is worth every penny you don't want to cheap out on photography because your
images are what could really make or break your listing now not gonna go to
in-depth on viral launch but I do want to show you guys some of the things that
they offer because they really do it all so if you come up to solutions you'll
see everything that they have they have product discovery and market
intelligence which are the two product research software's that I spoke about
earlier they also have a keyword research tool as well as the product
photography which I was just speaking about and I'll just click on this you
guys can see some of the examples because they really do a beautiful job
and you know like it says here your images really are everything when it
comes to conversions and actually making sales and you'll see some of the
examples I mean they just do incredible lifestyle shots the images are really
high resolution and you know just extremely well so if you're looking for
someone to do your product photography I would definitely recommend viral launch
they do an incredible job with basically all things Amazon and if you guys are
interested in checking them out I'll leave the links
down in the description below that you can go directly to their site and see a
little bit more of what they have to offer the last thing we're gonna talk
about is your seller central theme which is $39.99 and that's charged by Amazon
to actually sell on the platform which brings our cost to just under three
thousand dollars to start a profitable scalable business on Amazon FBA but if
you really are serious about starting an amazon FBA business you might want to
look into investing into a course because that really is the best way to
see success if you've never ship products over from China it can be
really confusing and if you don't have trusted freight forwarders that are
giving you the right prices and you don't even know what the right prices
are then you know you could end up spending a lot more money and so in my
opinion you know my course paid for itself whether you decide to go with the
course that I took or if you decide to go with someone else just find someone
that has already been successful and learned from them because it's so much
easier to pay to actually learn how to do things correctly then to try to
figure it out on your own and fail miserably and lose a lot of money so
it's definitely something to take into consideration if you really are serious
about Amazon FBA as a business now the last thing that we're gonna talk about
are some of the Amazon fees that are charged once your products are actually
in the facility and this is not something that you need to worry about
right now but I do think that it's really important to know that there are
these fees beforehand so that you can figure out exactly how much your profit
margin is gonna be before you do decide to source a product so the first one is
the referral fees which is gonna be about 8 to 15% of your sale price of
your product that's on Amazon and that's gonna be based off of the category that
you're actually selling in you're also gonna be charged at fee fees and storage
fees and those are going to be determined by the weight and the
dimensions of your products and the way we figure out the average of these fees
is by using the FBI calculator which I will
show you guys exactly how to use right now let me just pull the screen over
right here so if you go on to Google and you just search FBA calculator you'll
see this top one here is seller central dot Amazon slash profitability
calculator and this is what we're going to use to figure out our profit margin
and so the first thing we see is find your product on amazon.com so in order
to calculate our profit margin of the product we want to source before we
actually source that product we can find a similar product that's selling on
Amazon and actually pull the Aysen number and so to find the asa number all
you would do is you just go on to Amazon and you would find a product that is
just like the one that you're wanting to sell and so for this example we'll use
this garlic chopper and you would just come down to the bottom and you'll see
here that the ASA number is right here so we would just copy this code and it's
also up at the top and the URL you look to see where I'm highlighting right here
you can find it there as well and you would just come back to the FBA
calculator and paste in the ASA number and you'll see that it pulled that exact
same garlic chopper so the next thing that we would want to do is come down
here to where it says Amazon Fulfillment and we're gonna fill in a couple of
these things so the first one it's asking about is the item price so what
are we going to sell this item for and so we can see here that this product is
selling for $15.99 so we would price ours very similar maybe a little bit
more maybe a little bit less depending on your strategy but we'll just use
$15.99 here and then how much is it gonna cost you to ship that item to
Amazon and that's obviously gonna vary by weight but we'll just say 50 cents
per item for this tutorial and then what is the cost of the product so maybe
you're sourcing this product for a dollar fifty per unit and so we'll put
that in there as well and then you come down to calculate and it's gonna give us
all of the fees so we're gonna see a couple of different things here now
if you had a merchant account and you are going to be fulfilling the items
yourself you would be focusing on the your fulfillment section and those
numbers would show up on the left side of the graph but for this tutorial we're
going to be focusing on Amazon FBA meaning that Amazon is going to be the
one that is fulfilling the order and so all of those numbers are going to show
up on the right side of the graph so the first one you see is revenue and the
revenue is going to be the actual cost that we're selling the product for so
we're gonna be selling the garlic chopper for $15.99 and so the revenue
shows up as $15.99 now the next column is the costs so this is gonna be the
fulfillment cost by Amazon selling on Amazon fees and then the cost of the
goods which is nine dollars and 18 cents and then the seller proceeds are the
revenue minus selling on Amazon fee minus the fulfillment fee and that's
before the cost of your product and before actually shipping your product so
the main two we want to focus on our revenue and cost and so if you subtract
the revenue minus the cost you're gonna get your net profit which is how much
you're actually going to make per item selling that specific product on Amazon
and you'll see here that it comes to six dollars and 81 cents which brings us to
a net margin of about 42 point five nine percent which is great I usually
recommend that you stick between that forty to fifty percent mark to really be
profitable on Amazon so that is that guy's it is as simple as that that's how
you use the FBA calculator we went over a ton of different stuff today
we talked about all of the costs that it takes to make a profitable scalable
business selling on Amazon FBA we went over fees and so I hope you found this
video extremely helpful and if you did make sure you leave me a comment down
below let me know you liked the video say hey say what's up anything you guys
want to talk about just leave it below and I'll make sure that I get back to
you guys and if you guys haven't already make sure you smash that subscribe
button turn on those notification bells because I'm gonna be putting out new
videos for you every single week
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