This summary of the video was created by an AI. It might contain some inaccuracies.
00:00:00 – 00:13:47
The video provides comprehensive guidance on starting and scaling an Amazon FBA business through Retail Arbitrage, specifically bypassing suppliers like Alibaba. It details the process of sourcing products from local stores such as Ross, Marshalls, TJ Maxx, and Burlington, and reselling them on Amazon. Key steps include registering for an Amazon seller account, using the Amazon seller app to scan UPC barcodes, and understanding metrics like the Best Seller Rank (BSR). The video emphasizes the importance of selecting high-demand products with good reviews for profitability.
The presenter demonstrates practical examples, calculates potential profits, and covers obtaining a resale permit to avoid sales tax. Different products like sunblocks, wall vessels, and baby items are evaluated for resale profitability, with real-time examples showing significant profit margins. The benefits of using Amazon FBA, including easier scaling and efficiency in order fulfillment, are explained.
For newbies, the presenter suggests starting with low BSR books to build up accounts and progress to selling major brands through clearance items from stores like Walmart and Target, and eventually, wholesale sources such as Costco. The importance of establishing an LLC or S Corp for tax benefits and increased revenue potential is also highlighted. The video underscores the lower risk and financial requirements of retail arbitrage compared to private labeling and promotes a course designed to further guide aspirant sellers in building their Amazon business.
00:00:00
In this segment, the video provides guidance on starting an Amazon FBA business through Retail Arbitrage, bypassing the need for Alibaba or Chinese suppliers. The presenter explains the process of buying products from local stores like Ross, Marshalls, TJ Maxx, and Burlington, and reselling them on Amazon for a profit. Key actions involve registering for an Amazon selling account, downloading the Amazon seller app to scan UPC barcodes in stores, and understanding the significance of the Best Seller Rank (BSR). A lower BSR number indicates faster sales. For practical demonstration, the presenter visits Marshalls, scans products using the app, checks the BSR, reviews, profitability, and eligibility to sell, emphasizing the importance of choosing products with high sales potential and sufficient reviews. The video also differentiates between seller fulfilled (FBM) and Amazon fulfilled (FBA) methods, detailing their respective processes.
00:03:00
In this segment of the video, the focus is on using Amazon’s fulfillment option to resell products for profit. The presenter walks through calculating net proceeds by subtracting the cost of purchase from the retail price, with an example of buying an item for seven dollars and gaining a net profit of $1.49. They emphasize the importance of doing these calculations mentally to save time while reselling. The video also covers acquiring a resale permit to avoid sales tax, provides examples of scanning barcodes to identify items on Amazon, and discusses the profitability of various products like sunblock and wall vessels, highlighting their selling ranks, reviews, and profit margins. The presenter stresses the ease and speed of scanning barcodes but mentions alternative methods if a barcode is covered.
00:06:00
In this segment, various products are evaluated for resale profitability. Items like the Hang-O-Matic, dish drying mats, baby snuggle nests, baby frames, cell phone cases, and sunblocks are scanned to check their Best Sellers Rank (BSR) and reviews. For each, purchase price and potential resale profit are calculated to determine profitability. For instance, the Hang-O-Matic offers a significant profit margin when compared to its cost. The process also includes handling products requiring approval for sale, which is swiftly done through a simple request process. After gathering all items, the total expenditure is $264. The session spans roughly an hour and a half, estimating a profit of $180. Sales performance within 24 hours shows numerous items, such as sunblocks, are sold quickly, indicating successful flips.
00:09:00
In this part of the video, the speaker discusses the process of handling FBM (Fulfillment by Merchant) orders, which includes buying postage, printing labels, packaging items, and shipping them out. They also explain the benefits of using Amazon FBA (Fulfillment by Amazon), where Amazon handles the packaging and shipping of items, making it easier to scale a business without hiring employees. The speaker details their sales, including various items like sunblocks, frames, wall vases, mats, and cell phone cases, and calculates a total profit of $130 after subtracting costs.
Additionally, the speaker provides tips for new Amazon sellers on how to build up their accounts by selling books with a low BSR to gain sales and eventually get ungated to sell major brands. They suggest sourcing products from clearance aisles in stores like Walmart and Target, and later from wholesale stores such as Costco, Sam’s Club, and BJ’s Wholesale. The speaker highlights the potential profits by finding products like routers at Costco, projecting significant earnings.
00:12:00
In this part of the video, the speaker emphasizes the importance of establishing an LLC or S Corp for business purposes. The primary reasons include the ability to write off taxes on business purchases and access to selling more brands, thereby increasing revenue potential. The speaker illustrates a specific example involving buying Hasbro toys from wholesalers like eedistribution.com, obtaining an invoice, and then getting approval from Amazon to sell major brands, which is a significant advantage.
Additionally, the segment touches on scaling the business by hiring employees to assist with product sourcing and utilizing retail arbitrage instead of private labeling due to its lower risk and financial requirements. The speaker also introduces a course designed to guide individuals through the steps of building an Amazon business. The course is reasonably priced and aims to provide a comprehensive roadmap for success. The video concludes with a call to action for viewers to like, subscribe, and check out the course link provided.