WEBVTT - Study Hall: Keys to Becoming an Amazon Seller 0:00:00.040 --> 0:00:03.600 An illegal alien from Guatemala charged with raping a child 0:00:03.680 --> 0:00:07.480 in Massachusetts. An MS thirteen gang member from Al Salvador 0:00:07.720 --> 0:00:11.840 accused of murdering a Texas man of Venezuelan charged with 0:00:11.920 --> 0:00:15.840 filming and selling child pornography in Michigan. These are just 0:00:15.920 --> 0:00:19.680 some of the heinous migrant criminals caught because of President 0:00:19.720 --> 0:00:23.320 Donald J. Trump's leadership. I'm Christy nom the United States 0:00:23.320 --> 0:00:28.120 Secretary of Homeland Security. Under President Trump, attempted illegal border 0:00:28.160 --> 0:00:31.680 crossings are at the lowest levels ever recorded, and over 0:00:31.760 --> 0:00:34.960 one hundred thousand illegal aliens have been arrested. If you 0:00:35.040 --> 0:00:38.920 are here illegally, your next you will be fined nearly 0:00:39.000 --> 0:00:43.000 one thousand dollars a day, imprisoned, and deported. You will 0:00:43.040 --> 0:00:46.680 never return. But if you register using our CBP home 0:00:46.720 --> 0:00:50.120 app and leave now, you could be allowed to return legally. 0:00:50.479 --> 0:00:55.240 Do what's right. Leave now. Under President Trump, America's laws, 0:00:55.400 --> 0:00:57.400 border and families will. 0:00:57.200 --> 0:01:01.160 Be protected sponsored by the United States Department of Homeland Security. Now, Josh, 0:01:01.400 --> 0:01:03.560 I've been an Amazon member for about that time. But 0:01:04.040 --> 0:01:06.080 what turns you on to the FBA side of it? 0:01:06.160 --> 0:01:09.120 So the FBA side of it, fulfillment by Amazon is 0:01:09.120 --> 0:01:12.240 what FBA is is one of the best ways that, 0:01:12.280 --> 0:01:14.480 in my personal opinion, you can sell on Amazon. So 0:01:14.480 --> 0:01:16.800 there's a few different types of ways to sell on Amazon. 0:01:16.840 --> 0:01:19.480 I'm glad you asked that question. Like I previously said, 0:01:19.480 --> 0:01:22.240 I was hustling stuff. So when I was going online 0:01:22.280 --> 0:01:24.319 trying to find ways to make money, I found out 0:01:24.360 --> 0:01:27.000 about arbitrage, which is another way you can sell online, 0:01:27.000 --> 0:01:30.400 which is where you take brand name products that already exist, 0:01:30.600 --> 0:01:34.000 large brand name products, you buy them at a discounted price. 0:01:34.040 --> 0:01:36.759 So if they're on sale or they're at the thrift 0:01:36.760 --> 0:01:39.479 store or something like that, and they're below MSRP, which 0:01:39.520 --> 0:01:42.959 is manufactured suggested retail pricing, you buy it at that 0:01:43.040 --> 0:01:44.920 discount and you sell it at full price and you 0:01:45.000 --> 0:01:47.440 keep the difference. So I was already doing that. I 0:01:47.480 --> 0:01:49.000 was taking my little bit of money and I was 0:01:49.040 --> 0:01:51.960 going to the Salvation Army and trying to find designer clothing, 0:01:52.280 --> 0:01:55.000 and I was reselling it on eBay for that full markup. 0:01:55.160 --> 0:01:56.960 And I was doing the same with Amazon. I was 0:01:56.960 --> 0:02:00.680 trying to find stuff online discounts coupons and buy it 0:02:00.840 --> 0:02:03.080 on sale and sell it at full price and keep 0:02:03.080 --> 0:02:05.560 the difference. So when he told me about Amazon, I 0:02:05.600 --> 0:02:09.440 started researching and learning about Amazon. I learned about arbitrage 0:02:09.480 --> 0:02:11.040 and I knew that you could do it on Amazon, 0:02:11.080 --> 0:02:13.680 but that was like a hustle. I wanted a real 0:02:13.760 --> 0:02:15.560 business that was going to work for me because my 0:02:15.639 --> 0:02:18.440 mentor always told me that the true key to success 0:02:18.480 --> 0:02:20.320 is to have your money work for you without you 0:02:20.440 --> 0:02:22.799 working for it. Like he told me, like, you got 0:02:22.800 --> 0:02:25.480 to eliminate the hustle mentality, Like, of course you got 0:02:25.520 --> 0:02:28.679 a hustle to get things started, but the end you 0:02:28.720 --> 0:02:30.600 should have the end in mind in the beginning, and 0:02:30.639 --> 0:02:32.400 the end is to have your business work for you 0:02:32.480 --> 0:02:34.840 without you working for it. He was always telling me 0:02:34.880 --> 0:02:37.480 about less touches and to work on your business, not 0:02:37.720 --> 0:02:39.880 for your business. So when I was looking at these 0:02:39.880 --> 0:02:41.920 different methods, I was like, I'm already doing this and 0:02:41.960 --> 0:02:45.200 I'm still hustling stuff and it's not sustainable. Like at 0:02:45.200 --> 0:02:47.120 that time, I didn't know what sustainable was. But he 0:02:47.160 --> 0:02:49.400 would break things down to me, like, you need something 0:02:49.400 --> 0:02:51.359 that you can sell over and over and over again. 0:02:51.440 --> 0:02:54.000 What you're doing is making you some fast cash. But 0:02:54.040 --> 0:02:56.720 you can't find these clothes on sale. You can't find 0:02:56.720 --> 0:02:59.639 these products on sale all the time. So when looking 0:02:59.680 --> 0:03:02.520 at these different methods and stuff in business. I said, 0:03:02.639 --> 0:03:04.679 you know what, like the light really, the light bulb 0:03:04.760 --> 0:03:06.800 really went off. I'm like these large brands like beat 0:03:06.880 --> 0:03:10.280 By dre or Apple, these large brands are finding products 0:03:10.280 --> 0:03:13.079 that have demand that people need, that they're buying every 0:03:13.120 --> 0:03:17.160 single day, irregardless of the day, the month, the age, 0:03:17.240 --> 0:03:20.680 the gender, and they're using Amazon to sell it. Right, 0:03:20.760 --> 0:03:22.679 they don't need a physical store. You don't. You don't 0:03:22.680 --> 0:03:24.040 need to do this. You don't need to make some 0:03:24.080 --> 0:03:26.880 special product. And there's products that people are gonna continuously need. 0:03:27.160 --> 0:03:29.120 So that's when I learned the difference between the two, 0:03:29.160 --> 0:03:32.280 and I dove in to FBA, which is private label, 0:03:32.360 --> 0:03:36.480 so you can sell on Amazon arbitrage, private label, or wholesale. 0:03:36.520 --> 0:03:39.920 These are different business strategies, but the strategy that I 0:03:39.960 --> 0:03:43.000 actually sell right, the business model is called private labeling. 0:03:43.280 --> 0:03:46.920 So instead of selling other people's products, large brand name products, 0:03:47.200 --> 0:03:50.200 we find products that people want that have high demand, 0:03:50.240 --> 0:03:53.280 low competition, and we create our own brands and then 0:03:53.320 --> 0:03:55.160 we sell them. So that's what I specifically do. 0:03:55.360 --> 0:03:59.320 So can we get into it the basic basic ground 0:03:59.440 --> 0:04:03.440 level one one explanation of what is FBI Understand that 0:04:03.520 --> 0:04:06.560 you're selling and is fulfilled by Amazon. You sell of Amazon, 0:04:06.680 --> 0:04:09.360 but what does it actually entail? Can you give the 0:04:09.600 --> 0:04:11.160 one oh one on the situation? 0:04:11.320 --> 0:04:14.000 Yeah? Yeah, So FBA is fulfillment by Amazon. And this 0:04:14.080 --> 0:04:16.360 is how to hold. Like a bird's eye view looking down. 0:04:16.440 --> 0:04:18.840 This is a hold how the whole business works. So 0:04:18.880 --> 0:04:21.800 we find these products. Once we find these products, we're 0:04:21.839 --> 0:04:24.839 gonna find a supplier. Rather in the US or overseas, 0:04:25.520 --> 0:04:27.520 doesn't matter where the supplier is at. The supplier is 0:04:27.560 --> 0:04:30.799 gonna make our product. Once that supplier makes our product, 0:04:31.000 --> 0:04:33.240 they're gonna ship it directly to Amazon. And this is 0:04:33.240 --> 0:04:36.080 where the FBA kicks and the fulfillment by Amazon. Once 0:04:36.120 --> 0:04:40.200 Amazon receives that product in their warehouse, they're gonna facilitate it. 0:04:40.240 --> 0:04:43.200 But then they're gonna disperse it to other Amazon warehouses. 0:04:43.400 --> 0:04:46.000 And that's how we They can ship products. And it 0:04:46.040 --> 0:04:49.400 can be Prime eligible, which like eighty percent high eighty 0:04:49.400 --> 0:04:52.200 percent of everybody who shops on Amazon or Prime members, 0:04:52.360 --> 0:04:54.400 so over one hundred and fifty million Prime members in 0:04:54.440 --> 0:04:58.000 the US. And basically that means whenever we go online 0:04:58.040 --> 0:05:00.320 on Amazon and shop, we get our product to our 0:05:00.360 --> 0:05:03.839 doorsteps in two days. So Amazon facilitates it disperses it 0:05:03.880 --> 0:05:07.320 to other Amazon locations, and then when consumers people like 0:05:07.360 --> 0:05:10.520 me and you, go buy products online, Amazon picks it, 0:05:10.839 --> 0:05:13.400 they pack it, they wrap it, use their own boxes, 0:05:13.480 --> 0:05:16.599 their own labels, their own workforce. You know, it's under 0:05:16.760 --> 0:05:19.440 their warehouse, and then they ship it directly to customers. 0:05:19.720 --> 0:05:21.200 And if we get it and we're like, yo, this 0:05:21.240 --> 0:05:24.880 isn't what we wanted, or you know, it was warehouse damaged, 0:05:25.279 --> 0:05:27.760 or they just decided they don't want it anymore, Amazon 0:05:27.800 --> 0:05:30.200 even handles the customer service. So literally all we do 0:05:30.320 --> 0:05:33.240 is we find the products, we find the supplier, and 0:05:33.320 --> 0:05:35.960 we manage our inventory in our advertising, which is all 0:05:36.000 --> 0:05:40.240 done from the Seller Central portal, which Amazon created, And 0:05:40.000 --> 0:05:42.080 that's like the bird's eye view of how the whole 0:05:42.120 --> 0:05:42.799 system works. 0:05:42.880 --> 0:05:46.320 So the products aren't like company products, that actually just 0:05:47.040 --> 0:05:51.080 random products and you're labeling it under your company. That's 0:05:51.160 --> 0:05:53.400 kind of what I'm understanding. So can you give us 0:05:53.400 --> 0:05:56.520 an example of like what kind of products that would 0:05:56.600 --> 0:05:57.039 entail for this? 0:05:57.120 --> 0:05:59.120 Yeah? Absolutely, so I got I got like they're all 0:05:59.200 --> 0:06:01.359 around the house, this little lent roller like I've just 0:06:01.440 --> 0:06:03.640 used before the interview to get the lin off my shirt. 0:06:03.920 --> 0:06:05.960 We would find a product like this like, there's no 0:06:06.080 --> 0:06:08.920 label on this anywhere. And let's just say that there's 0:06:09.480 --> 0:06:12.640 a huge brand. Just because a huge brand sells this 0:06:12.720 --> 0:06:15.280 product doesn't mean that we can't sell this product. You 0:06:15.400 --> 0:06:18.080 just can't sell it as them if you're not a licensee. 0:06:18.160 --> 0:06:20.120 So we would find a product that people have a 0:06:20.160 --> 0:06:23.000 demand for, that people are going to use every single day, 0:06:23.040 --> 0:06:26.480 irregardless of where they live, how old they are, gender, 0:06:26.560 --> 0:06:29.240 et cetera. And then we would create our own brand, 0:06:29.320 --> 0:06:32.040 so now it would be private labeled by our brand. 0:06:32.080 --> 0:06:34.160 We would put our brand on it, we would ship 0:06:34.160 --> 0:06:36.440 it directly to Amazon and they do the rest. See 0:06:36.440 --> 0:06:37.960 what like a lot of people don't know, Like when 0:06:38.000 --> 0:06:40.039 you think of like when you need to blow your nose, 0:06:40.080 --> 0:06:42.080 you say, hey, can you pass me that Kleenex? Right? 0:06:42.440 --> 0:06:45.640 Kleenex is a brand. The name of the product is tissue, right, 0:06:46.120 --> 0:06:48.800 So that and that's like brand notoriety. That's what we 0:06:48.880 --> 0:06:51.560 do is we try to become APEX predators for these 0:06:51.560 --> 0:06:54.000 different categories, saying like when you get out the shower, 0:06:54.200 --> 0:06:56.560 use a Q tip, right, Well, it's actually a cotton swab. 0:06:56.640 --> 0:06:59.479 Q tip's the brand name. It's a private label brand name. 0:07:00.040 --> 0:07:02.560 We find these products that people need and we try 0:07:02.560 --> 0:07:05.800 to become household names. We just find ways to differentiate 0:07:05.839 --> 0:07:09.400 them and prove them and to gain market share through 0:07:09.400 --> 0:07:11.320 differentiating the products. And that's what we do. 0:07:11.400 --> 0:07:13.160 So you put your logo on it, you put your 0:07:13.160 --> 0:07:15.640 brand on it. But after that it comes to a 0:07:15.680 --> 0:07:17.880 manufacturing standpoint, like what's that process like? 0:07:18.000 --> 0:07:20.200 So once we find a product, so first we want 0:07:20.240 --> 0:07:22.960 to verify and validate the product before we even order it. 0:07:23.000 --> 0:07:25.120 So a few things we do is make sure it's 0:07:25.120 --> 0:07:27.200 not a seasonal product. So I don't know if y'all 0:07:27.240 --> 0:07:28.840 got kids, but I got kids and we had these 0:07:28.840 --> 0:07:32.120 fidget spinner things all around the house. Right, that's a 0:07:32.160 --> 0:07:34.360 trending product. It went up like this and just as 0:07:34.400 --> 0:07:36.800 quick as it went up, it knows dives. So once 0:07:36.800 --> 0:07:40.600 we verify that it's not a trending product, we move 0:07:40.640 --> 0:07:42.400 forward and you can go to Google Trends. It's a 0:07:42.440 --> 0:07:44.600 free tool. Type in the name of your product and 0:07:44.640 --> 0:07:46.840 you can look at a historical chart, so it'll show 0:07:46.840 --> 0:07:49.720 you like, for the last five years, ten years, has 0:07:49.760 --> 0:07:52.280 this product been selling every day? So once you identify 0:07:52.320 --> 0:07:54.000 it's going to sell every single day, because that's what 0:07:54.040 --> 0:07:55.520 we want. We don't want to hit or miss. We 0:07:55.560 --> 0:07:57.840 want something that's going to make money every single day. 0:07:58.160 --> 0:08:00.880 After we knock out the trending, then we look at 0:08:00.920 --> 0:08:03.400 the seasonality so we can go on Google Trends again. 0:08:03.680 --> 0:08:07.120 If it's only selling tours October like pumpkin carving kit, 0:08:07.320 --> 0:08:10.400 or November and December like Christmas lights, then it's a 0:08:10.440 --> 0:08:13.560 seasonal product. We don't want that. We want January through December. 0:08:13.800 --> 0:08:15.720 So after we do these little things to verify and 0:08:15.760 --> 0:08:18.120 validate that product, we go to ali Baba, which is 0:08:18.120 --> 0:08:20.640 where we find the suppliers. It's free to use ali Baba. 0:08:20.680 --> 0:08:23.720 You don't need any type of special account, nothing like that. 0:08:23.960 --> 0:08:25.360 And we're gonna go and type in the name of 0:08:25.400 --> 0:08:27.800 our product. So just we would type in lent roller 0:08:27.840 --> 0:08:30.600 into ali Baba, it's going to show all these manufacturers. 0:08:30.800 --> 0:08:32.640 We want to reach out to the manufacturer and we 0:08:32.679 --> 0:08:34.920 want to do our due diligence and make sure that 0:08:34.960 --> 0:08:37.280 they're one hundred. So how long have they been in business, 0:08:37.280 --> 0:08:39.319 how many employees do they have, what is their gross 0:08:39.360 --> 0:08:42.760 annual revenue, how many star ratings do they have? Look 0:08:42.800 --> 0:08:45.440 at them on Better Business Bureau and prevet them to 0:08:45.440 --> 0:08:47.720 make sure that they're legit. And then that's where you 0:08:47.760 --> 0:08:50.920 do your negotiating. Once you come to a conclusion on 0:08:50.960 --> 0:08:53.200 the price, you guys agree on a price. You find 0:08:53.200 --> 0:08:55.960 a manufacturer, you're going to give them thirty percent down 0:08:55.960 --> 0:08:59.439 on the product, so that starts and initiates the manufacturing. 0:08:59.480 --> 0:09:02.920 Once the man manufacturing's done, you pay the rest. Once 0:09:02.960 --> 0:09:05.120 you pay the rest, they're gonna go ahead and ship 0:09:05.160 --> 0:09:08.360 the product directly to Amazon. So they're gonna handle getting 0:09:08.400 --> 0:09:10.959 it through customs. They're gonna find the freight forward or 0:09:11.040 --> 0:09:14.720 everything for you. It's gonna be shipped directly overseas if 0:09:14.720 --> 0:09:18.120 you're using a China supplier and be checked in by Amazon. 0:09:18.120 --> 0:09:20.280 If you're using US supplier, then it's from the supplier's 0:09:20.320 --> 0:09:24.200 warehouse directly to Amazon. Then Amazon checks it in and 0:09:24.240 --> 0:09:26.680 you go back to that other process, right, They pick it, packet, 0:09:26.760 --> 0:09:28.160 ship it, handle returns. 0:09:28.240 --> 0:09:30.600 So when you're in Google Trends, from what I read, 0:09:30.679 --> 0:09:32.760 you want to find products that have high demand and 0:09:32.800 --> 0:09:35.880 low competition. Is there a certain statistic or a metric 0:09:35.960 --> 0:09:37.760 that you use when you're trying to find that. 0:09:38.000 --> 0:09:41.080 Yeah, so we use Google Trends for seasonality and to 0:09:41.080 --> 0:09:42.400 see if it's a trending product. 0:09:42.520 --> 0:09:44.480 Can you explain what Google Trends are. 0:09:44.679 --> 0:09:48.080 Yeah, So Google Trends is a website owned by Google. 0:09:48.080 --> 0:09:51.880 It's a free tool owned by Google, and it's a 0:09:51.920 --> 0:09:54.680 way to measure analytics on products. So if you go 0:09:54.720 --> 0:09:58.920 to Google Trends, it's products, celebrities, countries. You can go 0:09:58.960 --> 0:10:00.679 and type into anything and it's going to show you 0:10:00.720 --> 0:10:03.640 like historical charts and analytics on that thing. If you 0:10:03.679 --> 0:10:05.400 go to a movie, to'll show you when the movie 0:10:05.440 --> 0:10:08.360 was created, how long the movie's been out, how many sales. 0:10:08.600 --> 0:10:10.200 If you go and put a product in it, it'll 0:10:10.200 --> 0:10:12.960 tell you the first time the product showed up, how 0:10:13.000 --> 0:10:15.720 long it's been around, how many people on Google are 0:10:15.760 --> 0:10:17.560 going to type for this product. And the reason why 0:10:17.559 --> 0:10:20.679 we use Google Trends is because Amazon is the search 0:10:20.679 --> 0:10:23.720 engine just like Google, and Google's the largest search engine. 0:10:23.720 --> 0:10:27.280 So even though it's not Amazon direct metrics, it's very 0:10:27.320 --> 0:10:30.520 similar and very close because Google is a huge search engine. 0:10:30.679 --> 0:10:33.040 So we go and we find that data from Google Trends, 0:10:33.040 --> 0:10:35.800 and that's how we find out, Hey, this product selling 0:10:35.920 --> 0:10:38.680 you know, twelve months out the year. This product has 0:10:38.840 --> 0:10:41.440 depth of market, meaning it didn't just spike like the 0:10:41.480 --> 0:10:43.360 fidget spinner. Like if you go and type this product, 0:10:43.400 --> 0:10:45.080 and you're going to see for the last ten years, 0:10:45.320 --> 0:10:47.680 it's been selling every single day, it's been selling every 0:10:47.679 --> 0:10:50.240 single month. So we want to see a nice horizontal chart. 0:10:50.600 --> 0:10:53.120 When we look for products that have high demand low competition. 0:10:53.480 --> 0:10:56.000 There's no exact metric that's going to say like, hey, 0:10:56.040 --> 0:10:58.760 this product has high demand low competition. What we want 0:10:58.760 --> 0:11:00.280 to look for is we want to go direct to 0:11:00.320 --> 0:11:02.520 Amazon and type in the name of the product, and 0:11:02.520 --> 0:11:04.480 when we're looking at all the different sellers, we want 0:11:04.520 --> 0:11:07.040 to see how many of those sellers have under one 0:11:07.080 --> 0:11:10.160 hundred reviews, have under two hundred reviews that are still 0:11:10.200 --> 0:11:12.920 selling you know, ten plus units a day. If you're 0:11:12.920 --> 0:11:15.280 selling ten plus units a day, that's three hundred units 0:11:15.320 --> 0:11:17.400 a month. So that's like the bare minimum metric I 0:11:17.480 --> 0:11:19.800 look for. So that would equal low competition, and that's 0:11:19.840 --> 0:11:22.439 how we identify if it has high demand low competition. Right. 0:11:22.480 --> 0:11:25.640 Another way is there's something called BSRO, which stands for 0:11:25.720 --> 0:11:28.720 best seller Ranking. If you're on an Amazon listing and 0:11:28.760 --> 0:11:33.280 you scroll down, you'll actually see category and then subcategory. 0:11:33.360 --> 0:11:37.360 So category may be home products, subcategory may be lent roller, right, 0:11:37.559 --> 0:11:39.840 and then it'll have a number next to it that's 0:11:39.880 --> 0:11:42.800 the BSR Bestseller ranking. So that's based out of a 0:11:42.920 --> 0:11:45.800 million out of let's just say there's a million sellers. 0:11:46.000 --> 0:11:48.520 It's based out of all million sellers. So we look 0:11:48.520 --> 0:11:50.960 at that listing and it's number ten. That's one of 0:11:51.000 --> 0:11:53.960 the top selling products. So we'll look at that competitor. 0:11:54.000 --> 0:11:56.280 We'll look at what they're selling, how many units they're selling, 0:11:56.920 --> 0:12:00.400 to make, you know, to make a statement as to 0:12:00.760 --> 0:12:02.800 does this product have high demand low competition. 0:12:03.120 --> 0:12:06.400 So that's interesting. I just learned something. So I was 0:12:06.600 --> 0:12:11.240 wondering what actually that meant to be a private label, 0:12:11.720 --> 0:12:15.320 But that's really interesting. So the private label is you 0:12:15.360 --> 0:12:19.520 pick a nondescript item like a lint roller, which nobody 0:12:19.600 --> 0:12:22.600 really knows who makes lint rollers, right, So now you 0:12:22.679 --> 0:12:25.439 put your private label on that, which is x Y 0:12:25.520 --> 0:12:28.080 and Z lint rolling company. So you get the lint 0:12:28.160 --> 0:12:32.600 rollers from China, some warehouse in China, and now you 0:12:33.080 --> 0:12:37.000 actually branded with your company, your logo whatever, x Y 0:12:37.000 --> 0:12:39.600 and Z lint rollers. You put it on Amazon and 0:12:39.640 --> 0:12:43.000 then they buy it from Amazon, so you never actually 0:12:43.080 --> 0:12:47.160 get receipt of the product. It goes to Amazon's website 0:12:47.320 --> 0:12:49.160 directly from the warehouse. 0:12:49.360 --> 0:12:51.320 We never touched it. It could be US, it could 0:12:51.320 --> 0:12:54.079 be China where wherever, we never touch it. 0:12:54.120 --> 0:12:56.640 And then when somebody goes to Amazon and types in 0:12:56.800 --> 0:13:01.840 lint roller, your product shows up on the first page. 0:13:01.840 --> 0:13:03.160 If you can make it to the first page, we'll 0:13:03.200 --> 0:13:07.080 talk about that, and nobody ever cares, like what the 0:13:07.120 --> 0:13:10.360 company is that makes the lint roller. They usually just 0:13:10.400 --> 0:13:12.719 go for like the lowest priced item, I think, or 0:13:12.840 --> 0:13:15.000 product you know the best reviews or who has the 0:13:15.000 --> 0:13:17.679 most star rating or whatever. And it's a variety of 0:13:17.720 --> 0:13:20.840 different products like that, like lint rollers, those things that 0:13:20.880 --> 0:13:24.000 you like stuff into your shoe to like form your shoe, 0:13:25.520 --> 0:13:28.560 nail clippers, like, there's all kinds of stuff that's just 0:13:28.640 --> 0:13:32.360 really nondescript. A couple of weeks ago, even toilet paper, 0:13:32.400 --> 0:13:34.680 when nobody could buy toilet paper. People's going on Amazon 0:13:34.720 --> 0:13:36.679 and buy toilet paper. You're not really tripping off of 0:13:36.800 --> 0:13:39.960 like it gotta be Sherman. It's like at this point, 0:13:39.960 --> 0:13:42.880 you just get whatever you can get. So now that 0:13:42.920 --> 0:13:44.360 I'm thinking about it, the more and more I think 0:13:44.360 --> 0:13:47.960 about it, I just think of different nondescript products that 0:13:48.480 --> 0:13:52.320 doesn't really matter what the name of it is, because 0:13:52.320 --> 0:13:55.439 nobody ever even knows the name of these products. It's interesting. 0:13:55.440 --> 0:13:58.480 I never thought about that before, So this is crazy. 0:13:58.559 --> 0:14:01.440 So how much money and you actually make in this business? 0:14:01.480 --> 0:14:05.360 Because now I'm actually interested, this is extremely interesting. How 0:14:05.400 --> 0:14:07.079 much money can you make on average? I know it 0:14:07.120 --> 0:14:09.280 probably varies, but on average, how much money can you make? 0:14:09.280 --> 0:14:09.920 I'm interested? 0:14:10.120 --> 0:14:13.240 Yeah, So what we recommend. What we recommend is nothing 0:14:13.280 --> 0:14:16.880 less than thirty percent net profit margins. So net is 0:14:16.920 --> 0:14:19.400 going to be after everything's set and done, gross would 0:14:19.440 --> 0:14:21.760 be like the total number net is that keep that 0:14:21.880 --> 0:14:24.040 number that you get to keep. So we like to 0:14:24.040 --> 0:14:27.440 shoot for thirty as the minimum. Typically it's gonna be 0:14:27.440 --> 0:14:29.960 around forty to fifty percent, but it depends on the product, 0:14:29.960 --> 0:14:32.520 depends on the time of the year. Towards the end 0:14:32.520 --> 0:14:34.400 of the year, you know, price is going to be 0:14:34.400 --> 0:14:37.600 a little bit higher, on logistics, on fulfillment fees, just everything. 0:14:37.640 --> 0:14:40.440 But typically we like to see between thirty and fifty 0:14:40.480 --> 0:14:43.440 percent profit margin. This is after we buy our product, 0:14:43.840 --> 0:14:46.720 after which is the cog or cost of goods, after 0:14:46.760 --> 0:14:50.520 we ship our product, which is logistics, after Amazon stores 0:14:50.560 --> 0:14:54.320 our product, because we're paying fees. After we sell a product, 0:14:54.360 --> 0:14:57.360 they pick it, they use everything. After everything's set and done, 0:14:57.480 --> 0:14:59.600 we want to make thirty to fifty percent profit. So 0:14:59.640 --> 0:15:02.120 if we're selling a product for twenty bucks, we want 0:15:02.120 --> 0:15:04.560 to keep six dollars. And if you could be around 0:15:04.560 --> 0:15:07.640 thirty three percent, which is right around that bare minimum number, 0:15:07.880 --> 0:15:10.560 every three units you sell, you're doubling your money. So 0:15:10.640 --> 0:15:12.520 that's how you can really, you know, start to grow 0:15:12.560 --> 0:15:13.040 and scale. 0:15:13.200 --> 0:15:15.160 Yeah, this is so crazy because for so long we've 0:15:15.160 --> 0:15:17.280 been taught like, having generic things is not the thing 0:15:17.320 --> 0:15:20.040 to do, right, and this is a prime example of yes, 0:15:20.200 --> 0:15:22.480 this could be a big business of having generic items. 0:15:22.680 --> 0:15:26.000 But my question is what's Amazon's cut? Like, I know 0:15:26.040 --> 0:15:28.280 they take a percentage, what's that cut in this deal? 0:15:28.560 --> 0:15:31.960 Yeah, so it fluctuates. They're constantly changing like how much 0:15:31.960 --> 0:15:34.640 they're charging in a reference to the referral fee, but 0:15:34.720 --> 0:15:38.360 it's typically right around fifteen to twenty percent of the 0:15:38.400 --> 0:15:41.440 product costs. So if you're selling the product for twenty bucks, 0:15:41.520 --> 0:15:43.560 they're going to take you know, they're going to take 0:15:43.560 --> 0:15:48.440 four bucks. But that's everything storing the product, shipping the product, 0:15:48.600 --> 0:15:52.040 facilitating the product. That's the referral fee and everything. And 0:15:52.080 --> 0:15:55.240 like I said, on top of their fee and the 0:15:55.320 --> 0:15:58.600 product costs and the shipping and the advertising, and everything else. 0:15:58.640 --> 0:16:01.120 We still want to make that thirty to fifty percent 0:16:01.360 --> 0:16:05.520 profit margin because we're going directly to the manufacturer. We're 0:16:05.520 --> 0:16:08.080 not going to a middleman. We're not going to someone 0:16:08.080 --> 0:16:11.600 who's wholesaling these products. We're not going and buying products 0:16:11.640 --> 0:16:14.480 at a discounted rate. We're going directly to the place 0:16:14.520 --> 0:16:17.640 where they manufacture it, where the large brands go. We're 0:16:17.640 --> 0:16:20.240 going where Nike goes, We're going where beats By dra goes. 0:16:20.280 --> 0:16:22.360 We're going while all the top guys go, and we're 0:16:22.360 --> 0:16:25.760 getting it manufactured. So that's how we make our money, 0:16:25.760 --> 0:16:27.280 and that's how we get our margin where it needs 0:16:27.320 --> 0:16:27.480 to be. 0:16:27.640 --> 0:16:31.160 That's interesting because I always kind of knew that the 0:16:31.240 --> 0:16:33.520 money was in the non descript items because if you 0:16:33.520 --> 0:16:35.720 think about it, like, let's take something like a refrigerator. 0:16:36.120 --> 0:16:41.160 The average person might buy three, maybe four refrigerators, like 0:16:41.200 --> 0:16:44.000 in their entire life, like life time, they might buy 0:16:44.040 --> 0:16:46.360 four refrigerators in the entire life. Maybe not even that much. 0:16:46.800 --> 0:16:51.760 But you pick something like a lint roller or you know, 0:16:52.800 --> 0:16:55.520 Q tips things like that. 0:16:55.000 --> 0:16:55.800 That's reoccurrent. 0:16:55.880 --> 0:16:59.080 Yeah, it's reocurrent thing. You might buy one hundred lint 0:16:59.160 --> 0:17:00.480 rollers gave you ho. 0:17:00.480 --> 0:17:02.680 It's a secret sauce. This is the secret sauce right here. 0:17:02.680 --> 0:17:05.440 The reason why a perfect product. Let me just break 0:17:05.440 --> 0:17:09.080 this down. So I like products that are lightweight. So 0:17:09.119 --> 0:17:12.879 there's two different products. There's lightweight products, there's oversized products. 0:17:13.080 --> 0:17:15.920 So lightweight products would be something like this. Oversize would 0:17:15.920 --> 0:17:18.359 be the chair I'm sitting in. So lightweight products are 0:17:18.400 --> 0:17:21.719 cheaper to manufacture, cheaper to ship, ship, cheaper to facilitate 0:17:21.800 --> 0:17:24.560 number one. Number two. The reason why this is a 0:17:24.560 --> 0:17:27.600 beautiful product is because this is a usable product. So 0:17:27.680 --> 0:17:32.480 I like consumable products, usable products in giftable products because 0:17:32.480 --> 0:17:35.840 people continuously use them. So if I buy, like, let's 0:17:35.840 --> 0:17:38.159 just say this desk that my computer's setting on, I 0:17:38.160 --> 0:17:40.600 only need that once and that's it said and done. 0:17:40.720 --> 0:17:42.920 This lent roller, once you run out of the tape, 0:17:42.960 --> 0:17:44.760 you might buy the lent roller set, but once you 0:17:44.880 --> 0:17:46.679 run out of the tape, you need the tape again. 0:17:47.160 --> 0:17:49.000 Or if we have a giftable product that can be 0:17:49.040 --> 0:17:52.240 gifted for a man or a woman, guess what. There's birthday's, 0:17:52.280 --> 0:17:58.040 father's day, Mother's Day, Valentine's Day, graduation. They're constantly being given. 0:17:58.160 --> 0:18:02.320 Another example is supplement and supplements are very small very cheap, 0:18:02.359 --> 0:18:06.640 to make, very small, very cheap, to ship, very cheap, 0:18:06.680 --> 0:18:08.359 to fulfill, and guess what, at the end of the 0:18:08.359 --> 0:18:10.400 thirty days, you need it again. So you can actually 0:18:10.400 --> 0:18:13.439 have a subscribe and save, meaning it's a continuity package. 0:18:13.480 --> 0:18:15.760 People order it and they get it every single month. 0:18:16.080 --> 0:18:17.840 So some of the products I look like, I'm in 0:18:17.880 --> 0:18:20.399 the beauty really big and I'm in office in the 0:18:20.480 --> 0:18:23.480 office products very big because these are products that you 0:18:23.600 --> 0:18:26.040 constantly use that you need to re order. So I'm 0:18:26.040 --> 0:18:28.400 constantly thinking, like, we don't want a one night stand 0:18:28.400 --> 0:18:30.960 with our customers. We want the marriage. And so many 0:18:30.960 --> 0:18:33.480 people focus on that one night stand, like how can 0:18:33.520 --> 0:18:35.639 I make the most amount of money on the first touch, 0:18:36.000 --> 0:18:37.800 or what's the product that people were gonna buy a 0:18:37.800 --> 0:18:40.720 lot of on that first touch. I'm thinking down the road, 0:18:41.080 --> 0:18:43.119 what's a product that you know, I may not crush 0:18:43.160 --> 0:18:45.280 it on the first touch, but they're gonna be locked 0:18:45.320 --> 0:18:46.879 in and we're gonna have a marriage. They're gonna need 0:18:46.920 --> 0:18:49.040