How to Start an Amazon FBA Private Label Business in 2017

Hi, my name is Mark Adams. I want to welcome you to today’s episode. Really, we’re going to talk about how to get started as an Amazon FBA seller if you’re a beginner. Really, first and foremost, if you’re new to this podcast, I want to welcome you here. Normally, I don’t do things where I’ve got an ocean in the background.

But actually, I live in Charlotte, North Carolina, and usually you’ll see me in my office where the whole premise of the podcast is to invite you into my office so we can talk about Amazon.

Well, I actually have a place at Myrtle Beach, South Carolina, where it’s right on the water here, and you can see the ocean crashing in. I’ve had a good year, recording this at the end of 2017 in November, and I’m actually here. I’ve been here for a couple weeks now, and I’m going to be here for a couple weeks more.

It’s kind of hard not to work that long. So instead of doing the normal, traditional background, I wanted just to talk to you here. So please forgive the lighting and the sound. I’m sure it’s not as good as all of the other podcasts and things that I do.

To kind of get back to the topic at hand, I really want to talk about, if you’re here, you’re probably interested in, and a beginner, you’re interested in going into Amazon FBA. There’s so many things, and different things out there, I’m not going to really go into all the particulars.

But I really just wanted to try and give you a person-to-person scenario of what’s involved in being a seller, and really just talk to you for a second, and try and help you decide if this is for you or not, maybe share some of my experiences. I’m not going to talk very, very long.

But I just wanted to maybe give you just a run down and a perspective that will maybe weigh out some of all the other things that you’re thinking right now, and maybe just answer a couple questions along the way.

But as I just think about this, Amazon selling has been around certainly for a while now. There seems to be a consensus of people out there right now that it’s saturated, or a lot of people are in, or everybody’s doing it. Well, I would say it’s actually quite the opposite, because we’re in Amazon every day, all day, you tend to think that everybody in the free world and their brother and their cousin is doing some type of Amazon private label product.

Well, I think really, Amazon private label sellers, as we define them, and we all are, is probably less than 1% or 2% of all of Amazon’s business anyway. So it’s still just a little bit of a blip on the radar, and there’s still tremendous up side in things left.
As far as markets and products and things like that, every time for a second I think that a certain area is saturated,

I’ll deal with one of my coaching students and they’ll come up and have me help them with a product they’re working on, and I would have never thought of that product in a million years, thousand years, whatever it is. It always amazes me all the things that are out there.

There are literally millions of products on Amazon, tens of millions of products on Amazon, and those of us who are private sellers couldn’t begin to get to all of them in a lifetime. So if you’re thinking that things are saturated, I would encourage you to think just the opposite.

If you ever took a statistics class in school, you remember the big bell curve that went up and it went down like this. I still think we’re at the very beginning on the up side of the bell curve. So I still think there’s a tremendous amount of markets left. Certainly some of them are saturated.

However, if you’re just thinking a little bit outside the box, you still can find just thousands of markets and products out there.
So if that’s the case and you think, “Okay, should I get into it? What kind of money are some of the people making?” Again, it ranges from zero to millions of dollars.

I guess there really is no average number. But the students that I have taught and different things, just as a range, gosh, I’ve had just I don’t know how many people who have made $500 to $1,000 a month with very, very minimal and part-time effort, who just want to have a little bit of extra income, something for some of the extras in life.

I’ve had people replace their income at work and be able to leave work. I’ve had multiple, multiple people make well into six figures. I’ve had one person who has made, within their first year, they’ve made over a million dollars. That’s not sales. That’s profit.

Obviously, the amount of commitment and investment’s different at different levels. But this is a business that I think too, depending on your ambitions and your goals, that if you do what you’re supposed to do, you can make whatever you want to make.

In my own example, I’ve gotten to a level where I’m very, very comfortable, and I want to be able to enjoy the time and come to the beach and be able to do things, and sit there on the beach and drink a margarita if I want, and have the balance in life of having the money to do what you want, but more importantly have the time to be able to do it.

You can structure this business any way you want to fit whatever it is lifestyle. If you’re younger and you’ve got bills to pay, for kids to college, or whatever that is, that type of thing, you can certainly work more and make as much as you want. I’m at an age where I value my free time a little bit more. But whatever it is, you can shape the business any way that you want.

As far as the time and effort it takes to do things, I started my first product for $400, and I think that’s lower than most. But I think if you’ve got anywhere around $1,000, that’s a reasonable amount to start. Obviously, the more you have the better. But if you’ve got somewhere in that $1,000 to $3,000 range to invest, gosh, you ought to be able to do anything you want to get going in your product.

Because what I teach in my courses and my seminars and different things its really the whole strategy of this is being able to just to continue to launch products, until you get to the point wherever you want to get. If you can think of something maybe where you just launch one product a month, a even if that product ends up being somewhere around $1,500 a month, at the end of the six, seven, eight months, going forward, if you do nothing else, nothing else changes, you’ve got a $100,000 business at that point.

Then the beauty of it too is that your business also is a tangible benefit, because it’s something that you can sell. You’re seeing this businesses start to sell now for about two-and-a-half times earnings. In theory, in that example I just gave, you’re looking at end of a year somewhere around $100,000, quarter million on the sale.

You can start in January 2017, be three and a half, $100,000 by the end of 2017. Maybe you do more. But this is a business that the income is there, and certainly the lifestyle is there.

I think too, a lot of people seem to have questions about dealing with suppliers. I find that that’s been getting easier and easier. I’ve been doing this about three years now and dealing with suppliers almost 30 now, but the communication gets faster.

It gets easier. You’re starting to see things with payments get faster and easier. You’re starting to see technology come into this business. All the different things that make an emerging market start to mature and become viable.

If I’m just sitting here, if I’m you and I’m thinking, “Is this business right for me?” That’s something I think you ultimately have to decide. I think there’s never any same answer for everybody. But is this a doable business? Yes. A lot of people have done extremely well in this business. I think really the better question for you would be, is this business doable for you?

If you want to go through with a nominal amount of money, nominal amount of time, have a physical product business that you can create very easily, and continue to have income and/or sell if you want to down the road, I know of no other business where you can grow this quickly and get to a six-figure income, other than being an Amazon private label seller.

I’m obviously very much pro on being an Amazon seller and doing e-commerce. I think in the future you’re going to see things get even easier as time comes on. But if you’re sitting here thinking about this, the amount of risk involved is nominal. I had somebody ask me a question today, “What happens if I don’t sell my inventory?”

I had to sit here and think for a second, because I really don’t think in those types of terms. Because I think if you do everything well, the chance of that happening, well, it never happened to me, but let’s assume that worst case it does happen.

Say you’re probably selling a product for $20 on Amazon. You probably paid somewhere $4 to $6 everything total including shipping. You’re going to have some Amazon fees there, but you could lower that product to $8.99, $9.99, get your money back. The amount of risk here is negligible, especially relative to the upside there can be.

Ultimately, if you’re thinking about doing this, I find that the stuff of going and finding a product, getting it listed, marketing, rinse, wash, and repeat, is relatively straightforward. But what seems to hold most people back is the mindset part of this of, could I do it? Should I jump in? Should I not? I think, too, if you think through this process, you’ve got to move forward. Your downsides are slim, and it’s such a good and easy business.

If you decide not to do it, then that’s okay too. There’s no right or wrong for everybody. But I just still think it’s a very, very good business. I think it’s a wonderful business to start going forward for here in 2017.

If you’d like some free training, you’ll see the link here on the video. But it’s MarkScottAdams.com/free-training. That’s some videos I’ve put together that are a little bit more specific, that show you some of the things of picking markets, picking products, things I really can’t show you here from the beach. But it’s free training. Go ahead and take that. I think that will get you up and running and get you started.

With that said, I hope that that has been helpful as a little devil and angel sitting on your shoulders, if you will, should I, should I not. I hope that helps you come to the decision that’s best for you. But anyway, I appreciate you very, very much for being here. Enjoying things at the beach. I will talk to you soon. Thanks.

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