so you've heard about this online
business model this opportunity called
Amazon FBA or private labeling and
you're wondering what is it how does it
work and most importantly how can I use
it to get started selling on Amazon as a
complete beginner when this video I'm
gonna explain this using four simple
steps in a way that will make sense to
you if you're a complete beginner if
you're new to selling online starting an
online business and achieving financial
freedom what's up guys welcome to
today's video if you're new to the
channel welcome my name is miles and I'm
a seven-figure a year Amazon FBA private
label seller so I'm making this video
today because just under two years ago I
was in your shoes I was a complete
beginner having never sold anything on
Amazon you know not even knowing really
what it was and then fast forward to
today and I've sold just under two
million dollars I have two brands around
thirty products and I've used it I've
used Amazon FBA to create a life of
abundance and financial freedom having
done that for myself I'm here now to
help you accelerate your own Amazon FBA
journey so if you're interested in
learning about Amazon FBA and how to do
it the right way then make sure to
subscribe to the channel do click the
like button if you find these videos
valuable and I love interacting with you
guys so if you have any questions or
comments or concerns just leave them
down below and I'll get back to you and
if you are enjoying all of this content
that I'm putting out for free but you
want more guidance and comprehensive
access to everything that I've learnt
over the last couple of years then click
that first link down below in the video
description and secure your spot for
access to my accelerator program so in
this video I'm going to explain how to
get started selling on Amazon as a
beginner using a four-step process make
sure you watch right until the end you
have to understand all these four points
to be able to get started the right way
so without further ado let's start with
number one which is how does Amazon FBA
work so at its most basic FBA just means
fulfillment by Amazon so that is taking
advantage of Amazon's world-class
warehousing and fulfillment services and
fulfillment just means shipping products
to customers so if you're wondering
whether this is a scam or some sort of a
get-rich-quick scheme it's not the FBA
platform is one of the largest pillars
of Amazon's and your revenues I believe
it's around 14 billion dollars per year
that FBA generates and all that 40
billion the majority is actually
generated by third-party sellers so that
just means not Amazon so I'm a third
party seller and if you get started
selling on Amazon you will be as well
now
percentage of those sellers those
third-party sellers who are generating
more than a million dollars per year
that's around 20% of all sellers and the
number of sellers selling more than 10
million dollars is around 3% so you can
see that there's a lot of money in the
idea in the concept of FBA itself and at
its most simplistic form all we're doing
is finding products that we know will
sell well on Amazon and then using
Amazon's FBA service to ship those
products out to customers and if you're
wondering well you know why use Amazon
to do that why use this FBA service
think about this for a second if you're
selling on another platform let's say a
Bay and this is what I used to do when I
used to sell on eBay if you sell a
product to a customer you're going to be
storing all of your products that you
have available for sale in your house or
in your garage somewhere sitting in a
big pile and then when somebody buys
that product it could be through eBay or
through your website then you're going
to go rummage through that pile find the
product that they just bought and then
you're gonna go into your car take it to
the post office and ship it to the
customer yourself now that's okay if
it's one item per day but think about if
you want to use this to really generate
financial freedom you need to sell a
more than one item per day you're gonna
be selling ten and you know you're gonna
be trying to grow to a hundred units per
day a thousand there's really no limit
the more money you make the more units
you're going to sell but now let's just
consider doing that for 50 units a day
or for a hundred unit today and I can
tell you going from starting my Amazon
business selling a five unit today to
now selling around about 100 to 200
units per day there is no way that I
could have scaled to this point if I was
doing that fulfillment myself it simply
wouldn't be possible because again the
goal here is to be able to build
something that's scaleable that we can
use to really change our lives not just
make some money but really make a
significant amount of money so you can
see that using FBA is the key part of
this whole thing that makes it
infinitely scalable that allows us to
free up our time either to enjoy life or
to go back and start launching more
products and making more money so the
next thing is how do we actually sign up
and how do we start using FBA well I'm
gonna show you that right now
so first of all just signing up is a
really simple process you can do this
from anywhere in the world there is a
list of countries available but most
countries honestly fit into this list so
generally wherever you are in the world
you can sign up so go to services dot
amazon.com and then just click start
selling
this will take you through to the next
page and we are new to Amazon so go
create your Amazon account and from here
on just enter your details and pass on
through you can sign up as an individual
you just so you don't need a company yet
although I do recommend that you start
with a company for liability purposes
and for accounting later on but honestly
if you just want to get into this today
and have a play around then you can sign
up as an individual and you can easily
change these details later on you can
also change your bank details later on
and everything else essentially without
too much hassle so we can go in and do
this immediately and just know we have
two options to choose from the
individual seller plan and the
professional cell plan so the individual
plan is completely free you can sign up
immediately and not have to pay anything
but just know when you get started
selling you'll be charged a dollar for
every item that you sell so if you're
selling more than 40 the professional
sale plan which has a fee of $39 a month
will actually become more economical the
professional sale plan also gives you
access to Amazon marketing services and
other things that realistically if
you're trying to scale this business and
really use it to achieve financial
freedom you will need anyway but what we
can do a quick hack is you can sign up
for the professional sale plan if you
want access to those features
immediately and every month when you get
charged that $39 just send a message to
Amazon seller support and ask them to
refund the money because you haven't
used the account I go through all this
in detail in my Amazon seller central
tutorial I'm gonna leave a link to it up
here if you're interested in that it
really is a great breakdown of all the
features that you could possibly want to
know about in Amazon seller central so
number two find a product we're looking
for sufficient demand low competition
and a product that we can differentiate
or improve on in some way so you're
probably asking well how do we know how
do we know what's in the man and what's
selling how do we know what competition
is and how do we know how it can improve
or change a product well luckily for us
Amazon gives us all of that information
all we need are a few simple tools now
this second part finding a product this
is probably the most critical part of
starting an Amazon business there are a
thousand ways in which you can approach
this and a thousand different things
that you can look for and most of them
work it's really just a matter of
preference but for the purpose of
explaining this to just get started I'm
going to talk about this in simple terms
so let me show you
so as I mentioned before basically all
of the data that we need to evaluate
roughly whether a product is good or bad
in terms of the demand in terms of the
competition and in terms of the
differentiation we can really get
straight from Amazon so let's just start
here with an example and one thing that
I think is a really cool like mindset
hack is always when you're browsing
Amazon don't be browsing it just as a
customer we need to start thinking in
terms of a seller and in terms of an
entrepreneur and using Amazon as this
platform to sell products
so using this yoga mat as an example
let's just take a very quick look even
without looking at all into this data on
any like deep level what can we see from
this page the main thing that really
jumps out to me as a seller is the
review count so the review count is
going to tell us competition how much
competition there is for this particular
item and seeing that the top item has
you know 1100 reviews and the next one
below that has seven thousand six
hundred and eighty six here nearly a
thousand and so on and so forth we can
immediately see that all these sellers
they've been selling these products for
years and lots of people have been
buying them so without looking at
anything else I can only see from this
very first page that the term yoga mat
and the product yoga mat is going to be
really competitive because there are
just so many reviews that have been left
that I know that lots of people are
buying these and lots of people are
selling them so reviews is a key metric
for competition but how about demand how
much demand is there for these products
for yoga mats without again without
using any further tools Amazon gives us
this information in terms of the best
seller rank so what we have to do is
scroll all the way down down to here and
you'll see this Amazon best sales rank
in the product details
so best sellers rank or BSR for short is
as the name implies it's a ranking so
the number one BSR in every category
will be the best selling item and then
we simply keep moving down in the
rankings and this one again is number 32
in sports and outdoors and we can go all
the way down to probably hundreds of
thousands and obviously the one that's
at rank 100,000 is going to be selling
much much less than the one that's at
rank 32 or of course the one that's
number one
so that's just a rank that doesn't tell
us how much in dollar terms these ones
are actually being sold how many units
are being sold per day but we know that
in most of these categories if you look
at the top-level category and it's in
the top hundred that is going to be
hugely competitive and we can go through
here and we can you know have a browse
through all of these lists for all of
these categories or we can look at the
Amazon bestsellers overall so actually
let's google and we can just Google
Amazon bestseller to take you to the
high-level most popular selling items on
Amazon now again we don't know how many
these are selling per day yet because we
haven't used any tools or anything to
tell us that but we do know that you
know these are incredibly popular items
and this is a good starting point to
just be browsing Amazon and viewing it
not just as a customer again but as a
seller and in my experience there are a
whole bunch of categories that you
should be focusing your efforts on
looking at so I would say that arts
crafts and sewing has good potential
baby also we can also look at beauty and
personal care health and household home
and kitchen industrial and scientific
kitchen and dining definitely office
products patio lawn and garden Pet
Supplies as well sports and outdoors is
another popular one and tools and Home
Improvement yes and also toys and games
so we can use these sorts of lists just
as a starting point or a jumping-off
point to deep dive down into each of
these categories which are recommended
you can look through others as well but
those ones that I mentioned are the ones
where you'll probably find the most
opportunities and once we start diving
down into them then we're gonna take a
deeper look at the whole demand versus
competition playing field so we know
that bs are approximately represents the
demand of an item and reviews
approximately represent the competition
of an item but how do we sort of take a
deeper look into certain products and
what that actually means in terms of the
dollars that we can make versus how much
we're gonna have to compete with other
sells for those dollars so this is where
we start getting into the use of third
party tools to help us translate this
data into something more meaningful and
also something that's much more detailed
and can allow us to really put hard
numbers to these things for each product
so the one that I'm going to recommend
that you use as a Chrome
tension is viral launched there is also
jungle scout and young Scout has a good
web app but for Chrome extensions I
recommend viral launch because it's just
the most comprehensive one it gives you
all of this data and it's also more
accurate than jungle Scout and the other
ones in my experience anyway so we can
see now that we can still see this BSR
which I just talked about but it also
puts in this monthly revenue and
essentially what viral launch or another
similar product is doing is they're
taking these BSR rankings which again we
said with simply ranks going from number
one down to you know a hundred thousand
but they have enough data points of BS
ours at different points in time that
they know how much roughly each BS are
equates to in monthly revenue so instead
of just looking this in terms of a rank
we now have the key metric which is how
much money is each product making and
viral and also gives us all this other
data just summarized in a neat table
which we can export here to CSV but it's
going to tell us you know what's the
price what's the margin
how many unit sales and again then going
back to that other key metric in terms
of competition how many reviews are the
how fast are those review reviews
accumulating and what's the what's the
quality of those reviews for that
product now suddenly this information
that was really spread out before we
were kind of just looking one item at a
time and just having this rank and you
know nothing really easy to compare
against we can now see what each product
looks like and this is just for the
first page but I can also repeat this
search for the second and third search
pages and so on and so forth and I can
do this with any product and then
compare different products with each
other as well so I mentioned the key
metrics that we want to look at our
adequate demand is there enough demand
is there enough monthly revenue in these
products that it's worthwhile for
showing them and then on the flip side
what are the reviews like what's the
competition like how much do we have to
do to get into this market so if we sort
this by monthly revenue this first page
of yoga mats we might be tempted at
first to think this is a great
opportunity because they're making so
much money you know these sellers are
making upwards of $50,000 a month in
revenue but what we have to consider is
the competition aspect and here we're
looking at well it's fifty thousand
dollars a month in revenue the review
quantity is thousands and if we go to
detailed statistics here in viral launch
we can actually see the actual
statistics and here for those first five
listings it's 3,000 reviews and if
you're looking at the bottom of the
first page it's still 1500 reviews now
getting reviews in 2018 and in 2019 on
Amazon getting reviews is not easy and
so honestly if you see a review count
that's that high just discount that
entire product you need to start looking
and digging down further into these
deeper products and generally what
you'll find is that actually as you add
more words onto a product name but it
becomes more specific and as you get
more specific you'll find that the
revenue may go down but so - also will
the reviews and so for me it's about
finding a sweet spot normally my sweet
spot is around $5,000 to $15,000 a month
if I can get a product that is selling
around about that much I like that
because what it means is that there
aren't so many people looking at it
and there's also not so much money that
there's lots of competition generally
now I also have to look at the reviews
and while I'm looking at this range
that's five to fifteen thousand dollars
I would ideally like something that I
can get into that has an average of less
than a hundred reviews and again using
that viral launch tool you can see what
the average reviews are on page one so
there are a million ways of finding
these longtail more specific products
but one way a very simple way is to just
use Amazon's own data so we're looking
here and we go yoga mat would be okay
but you can see as you start typing you
actually get a whole bunch of
suggestions but Amazon is popping up and
what these are are the most relevant
related products to what we've already
typed in so here we could start looking
and honestly just go down this list at
random and just keep clicking through
and then start experimenting exploring
this whole Amazon ecosystem of all these
millions of different products and maybe
I want to look at yoga pants for women
and in fact here we could even
straightaway go even longer tail and go
yoga pants for women with pockets and
having gone down into this longer tail
this much more specific product much
more specific keyword if we just take a
quick scroll through here and look at
the review account and we can see
already how much lower these review
accounts are so here we are 63
you know still a few hundred there still
a few hundred there there's another one
with a hundred views 65 reviews and so
we can see that if we're a new seller
and getting into a niche like this he's
going to be much easier because those
reviews there's much less of them that
we need to compete against and again
we'll check viral launch and just see
and of course it makes sense that the
monthly revenue has gone down and viral
launch has a lot of really cool nifty
features like it actually will tag
outliers so in this case we're seeing a
hundred thousand in monthly revenue it's
indicated that this is not you know this
doesn't represent that niche so it's
actually excluded it from the data set
we can go and look into the detailed
statistics again and we can see that the
revenue here is much much lower but so
is the review account now I don't like
this ratio I think 400 reviews on
average for only $5,000 in revenue
that's not a great opportunity in my
eyes but again we go through this
process and we keep looking and we keep
seeing these products and doing this
process checking the data for each one
and eventually you will find a product
that meets these criteria so we've
looked at where we want to fit into this
balance between the demand or the
revenue and the competition or the
reviews but how about differentiation
now I can't stress how important
differentiation is if you're looking at
getting started and selling on Amazon
now in 2018 now the way that we're going
to use Amazon's own data to prove into
to show us how we can differentiate how
it can improve these products is simply
by going and looking at the reviews of
competitor's listings customer reviews
are an absolute goldmine of what we
should and shouldn't be targeting our
efforts towards if you can create a
5-star customer experience and you can
create a product that actually very
specifically meets the needs of your
customers the competition and the
reviews that you're competing against
they don't end up meaning very much when
your product is simply better you will
not have a problem selling your product
on Amazon so what we're gonna do is
we're gonna go and look at some of these
competitors so if we were interested in
selling yoga pants for women with
pockets what I would do is I would look
through all these listings go into the
specific listing look at the reviews and
I'm gonna show you now what I mean so
guys if I was looking to sell this
product I would go through these
customer reviews and spend hours pouring
through them particularly the three the
two and the one star reviews I would do
this for every main competitor because
what I want to be doing is identifying
what are all the core problems the
deficiencies what are the issues that
that customer has with this product
because I know that if I can release a
product that fixes all of these issues
all of these one-star reviews then not
only a customer is going to be happy and
choosing to buy my product I'm going to
accumulate reviews faster I'm going to
accumulate repeat customers faster and
my product is just gonna take off on
Amazon and so looking down here we can
see you know sizing is an issue so maybe
that's simply a matter of marketing
these products correctly having a
correct size and charts you're also
gonna have issues around the quality of
the fabric quality with the fabric again
too thin and so we what we do is we keep
looking through these and keep working
out what the problems are and once we've
build up enough information then we know
what we take to the supplier and I just
wanted to add on one extra example as
well another way that you can
differentiate and create a unique
product that doesn't yet exist on Amazon
and therefore guarantee that you stand
out from all the competition and that is
the concept of bundling and bundling ads
most simplistic is simply taking one
product that exists and maybe another
product and then combining those two
together so here I'm looking at workout
bands and the way that I generally look
at bundling opportunities is simply by
scrolling down to the frequently bought
together box and this is showing you
Amazon is telling you when somebody buys
this product that we're looking at now
what are they most likely to already
want to buy as well and the answer here
is so they're buying these workout bands
then they're also buying these core
sliders so these are like sliders that
you you know you slide along the floor
when you're working out and they're also
buying they buy more resistance band
sets here but this one also has door
anchors handles and and ankle straps and
so just purely looking at this we can
see that we could potentially create
this product that's going to be our
exercise bands these rubber exercise
bands and we can probably add in core
sliders as well and maybe if we want to
go really extreme and just make the
complete package that doesn't exist yet
on Amazon for you know the fitness
enthusiast then we could also add in
these other workout bands we could also
add in these door handles so that
basically with this entire kit
they can go and they can workout
anywhere and in any way that they want
to so Amazon is literally showing us
what is the best product to bundle in
with this first one it's right here you
can also look down here and see what
other people are looking at together and
really just pick a natural combination
that really makes sense so
differentiating your product improving
it and making it unique and standing out
from the competition is only getting
more important so think about can you
use a different color can you use a
different design can you improve the
materials can you combine your product
or change the function can you bundle
your product with another one to make it
unique think about those things and then
we'll move on to the next step which is
number three
finding a supplier so to do this third
part of the process we're going to use
Alibaba comm now if you're not familiar
with Alibaba let's just talk about what
it is versus what it isn't
so Alibaba is a platform that links
Chinese factories located within China
with essentially the rest of the world
and this is a fantastic opportunity just
like Amazon is for in terms of the
products Alibaba is fantastic in terms
of finding a supplier for those products
so when I first started using Alibaba I
was shocked by how simple and easy it
was to actually get you know almost any
product imaginable made halfway around
the world and then have it shipped to
the other side of the world in a very
quick period of time so there are a few
simple steps that we need to take a few
precautions that we need to have in
place to make sure that when we're doing
this we don't get ripped off we get the
product that we ordered and of the right
quality so let me explain that to you
now so we're here on Alibaba comm and it
really is as simple as simply typing in
the product that you're looking for in
this case I'm using the yoga mat example
again and then just looking down here
and what we want to do is make sure that
we select create assurance just click
this and we can also select Gold Plus as
well and all this really means is that
they've just gone through more checks
and more verification from Alibaba to
check that they are really selling the
stuff that they claim to be selling
that's about it really
the main control that I really rely on
is using trade assurance at least for
new suppliers trade assurance or PayPal
plus a credit card and you can we can
look at additional features down here if
we want to use any additional filters
on-site checked I don't think is really
necessary but if you want more security
and you
can tick that one as well and you can
also check if it's a company that has
done you know a minimum threshold of
revenue again these it just really if
you want that additional layer of
security it also depends as well how
many products you can actually find
using these criteria
so obviously yoga mat is incredibly
popular so I can find 15,000 products
even with these checked and then you
simply go down and if you want to add
extra filters you can but I would simply
go down and contact almost all of the
suppliers that have the product that I
want and you can go through and you can
click into these to see more detail from
the supplier the exact product offering
that they're doing you can see that the
reference prices that I have now
obviously this is open to negotiation it
also depends it really depends on the
quantity that you're going to order but
you can see more details how they accept
payment and definitely look through here
as well to see based on the
customizations the differentiation that
you decided on in the previous step
whether they'll be able to provide that
but realistically you're only going to
know when you click contact supplier and
you send them an email and request
further details so I would normally
contact lots of suppliers so you found a
list of suppliers that have the product
that you want you start talking to them
you know that they already are gold
suppliers and they have trade assurance
so you're already pretty safe make sure
then that when you negotiate you're
putting a few other things in place to
protect yourself even more firstly
always get samples you need to see the
product and feel it for yourself if not
then you need to have somebody in China
who can do that for you but again we're
just starting so make sure that you get
those samples sent to yourself and have
a good look at them and make sure that
if there's anything wrong with them you
identify those issues and fix them be
very clear with your supplies and the
product specifications because anytime
there's room for ambiguity or
uncertainty chances are that's where
something will go wrong so make sure you
have a clear purchase agreement with
that supplier basically detailing
exactly how everything should be
in terms of negotiating a better price
it's always nice to have multiple
suppliers who can offer the same product
because then you can have them actually
fighting against each other to get your
business so once you have your supplier
worked out you're happy with the price
you've seen the samples and you've made
that agreement just make sure your paint
using trade assurance or paypal and
ideally using a credit card as well
you're then protected
using two layers of protection the only
other thing you should watch out for is
to get a pre-shipment inspection if you
get these Goods inspected and you pay
using those methods you've just sourced
your first product almost risk-free so
we've got our first product we sent it
in to Amazon and then there's only one
step left and that is step four launch
the product so we're really close to
success but now we need to get that
product selling on amazon selling
profitably and start making money so we
have to launch the product and I'm going
to explain why we need to do this and
how to do it so let me show you how so
we're back here looking at our yoga mat
example on Amazon and the key thing that
we need to understand now in terms of
launching a product is how do we get it
seen up here so this is what a customer
sees when they're when they've searched
in yoga mat and at first they're seeing
these two and then they're seeing a
bunch of these and then they're
scrolling down from the top and looking
at all of these listings so the key
thing is how do we get to the top
basically now there are a number of ways
that we can do this but what you need to
realize is that when you launch your new
product this is page one and then
there's page two and then there's page
three and COEs all the way to page 20 so
if you have a brand new yoga mat you are
going to end up down here somewhere so
we can keep going back page 3 page 4 all
the way to page 20 and you'd be down
there somewhere so going back to the
first page the way that Amazon is
ordering all of these listings is
basically based on sales velocity so
that means the number of sales that this
product is generating for the keyword
yoga mats so everything is based on
keywords with Amazon this is a key point
that we need to realize so to get up to
here we need to make lots of sales and
actually we need to match the number of
sales that this listing is getting now
we can see that again using a viral
launch tool so if we go to the detailed
statistics page and then scroll down we
can see that viral launch is telling us
how many do we actually need to give
away each day to get that sales velocity
to match those top listings and in this
case we're looking at the top five
listings on the first page and the
answer is we need to give away between
40 and 100 units every day and that
means that that's the sales velocity of
those products already up there and we
can do that for seven to ten days then
our product will end up at the top as
well
now that's one way of doing it is
essentially giving away all of those
products
over that period of time to get up here
the second way is using Amazon's PPC
that's pay-per-click advertising and
that's what these ones are see this
little sponsored here with the little
eye what that means is somebody is
actually paying to have their listing
put right up here right at the very top
and every time you click on that or a
customer clicks on that that company
whoever selling this yoga mat will
actually pay money to Amazon for that
privilege so we have these two options
of doing it we can either give away
those units so it's 40 to 100 units a
day to get ranked here alongside this
one or we can pay Amazon money directly
to have this product seen here and
remember that if we don't do that our
product ends up all the way back down on
like page 20 and that's how to get
started selling on Amazon FBA as a
beginner in 4 simple steps now I don't
want you to walk away from this thinking
that that's all there is to this because
there's so much more you know I'm still
learning new stuff about this every day
two years later but in terms of the
simplicity of this business model I just
don't know what other opportunity there
is where you can start with a few
thousand dollars and then literally in
less than two years be earning millions
of dollars every year I hope that you
found this video valuable guys again
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guys thank you so much the next video is
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[Music]