Full transcript
0:00Hey, guys! My name is Alex and today I'm going to show you how you can start to sell on Amazon if you have only $100.
0:12What expenses are you going to have in the very beginning?
0:16Amazon seller account is going to cost you $39.99 per month.
0:22Then you will have to find the product that you will launch on Amazon.
0:27I have prepared a product and I'm going to show it to you.
0:33I have prepared a product in advance and I want to show you what expenses you are going to have.
0:42This product costs $11,04 on Amazon and the supplier price is $1,06.
0:59I'm going to use the excel chart and I'm going to fill in the columns.
1:03Product's name, lising's name, product's ASIN, amazon link, supplier's link, BSR, product's category, the number of FBA sellers.
1:19Now I'm going to copy Product's name, lising's name, product's ASIN, amazon link and supplier's link.
2:04You can find product's BSR in Product Information. You need to scroll down and you will find it.
2:18BSR is Best Sellers Rank. We can see that BSR of this product is 100461 and the category is Office Products.
2:33Now I'm going to put this number in the chart.
2:45The category is Office Products.
2:55You need to click on New from if you want to see the number of sellers.
3:07If the product is shipped not by Amazon, it means that this seller is FBM.
3:18It means that this seller is fully responsible for the product delivery.
3:31The second seller is also FBM. Other sellers are also FBM.
3:55It means that if you launch this product and start to sell it, you will be the only FBA seller in this listing.
4:09I'm going to put 0 in the FBA sellers column in excel chart.
4:20Now I'm going to use FBA toolkit site.
4:28And I'm going to put product's BSR in selected category (Office products).
4:39I put 100000 in this column and we can see that this product is sold 1 time per day.
4:48I'm going to put 1 in our chart.
5:01In the next column you can see how many sales you are going to have (it's counted automatically).
5:10We are going to order 20 items from our supplier. So we put 20 in the next column.
5:21Then we need to put the amazon price of this product in the next column.
5:33It is $11,04.
5:37Then we need to put the supplier price in the next column. It is $1,06.
5:45Then we need to count delivery cost to prep center.
5:49You need to add the needed number of items to your cart and you will be able to see the shipping cost there.
6:13In this case it is $8,77.
6:18And now I'm going to put 8,77 in the next column.
6:30Then we need to count the delivery cost to Amazon.
6:35The delivery cost depends on dimensions of the package.
6:42This product's weight is 2,02 ounces, which is approximately 0,12 pound.
6:53In my experience the delivery will cost $0,2 per item.
6:5920*0,2=4. The delivery cost will be $4 and I'm going to put this number in the chart.
7:18Tax in this case is going to be 0. I'm going to put 0 in the chart.
7:39Redemption fee is going to be calculated automatically and it depends on the fee of prep center you will be working with.
7:47For example the fee of prep center I'm working with is 4%.
8:03Prep center's fee is $0,65 per item. We are going to order 20 items, so 0,65*20=13.
8:09It means that prep center will charge you $13 for handling the products.
8:17We can calculate the FBA fee using Amazon FBA Revenue Calculator.
8:24I'm going to copy product's ASIN, then go to amazon seller central site.
8:38Then I will use Amazon FBA Revenue Calculator (I will put the product's ASIN there, click search, then click calculate).
8:50The Fulfillment fee is $3,48. Plus Monthly storage fee per unit.
8:593,48+0,08=3,56. I'm going to put this number in my excel chart.
9:20Amazon's fee is 15% of product's cost (it is calculated automatically).
9:26So now we can see that margin is $3,42.
9:45We can see that ROI is 139% and net profit is $67,15.
9:50As we can see the total expenses are going to be $48,17.
9:59But you also will need to pay monthly amazon fee (it is $39.99).
10:03Or you can choose an Individual account when you register and you will have to pay $0,99 for every sold item.
10:13If you are going to sell more than 40 items a month, it would be best to have a Professional account and pay $39.99 monthly fee.
10:20If you want to try how the whole Amazon thing works, you can register an Individual account and then you can switch to Professional account anytime.
10:35If you choose an Individual account, you will need to add an amazon fee for every sold item. It is $0,99 per item. I'm going to put it in the chart.
11:15Now ROI is 98% and net profit is $47.
11:23The total expenses are $48,17 (the cost of the product, delivery cost, taxes, prep center's fee, FBA fee, selling fee, per item fee).
11:59The one more important thing is after you sell the half of the products, you will need to ship the same amount of products again, so you keep your products in stock.It will cost you $48.
12:20I just showed you how you can start selling on Amazon in the simpliest way and if you have only $100.
12:29Thank you for watching this video! I hope it was useful for you. If you have any questions, please leave them in the comments. Don't forget to click the like button! Bye!