Amazon FBA Wholesale for Beginners (Walkthrough with Examples)

hey everyone this is Stefan from Project Life Mastery and today I'm excited to share with you a method of selling on Amazon that most people have never heard of it's a way that you can get started making money on Amazon that doesn't require as much money as much time and as much risk as other traditional ways of selling on Amazon and it's a fantastic way that you can make a great side income or even a full-time income if you really commit yourself to it and so for the last 10 plus years here on Project Life Mastery I've been involved in selling on Amazon I've explored many different opport unities I brought on many different guests and many different people that have programs uh to really find the best ways that people can make money online myself included and so uh I've been committed to that for a long time and I understand a big part of my audience they're always looking for opportunities they're always wanting to know what's new and what's fresh and what are ways that they can make money in order to change their life and create the lifestyle that they really desire and so with this method it's different than other ways that I've traditionally shared here on Project Life Mastery I've noticed that with many other opportunities there could be barriers to entry that prevent people from getting started and of course if you don't take action you're not going to succeed and so what I've been really impressed by with this method is the success rate in comparison to some of the other ways that you can make money not just on Amazon but just making money online in general um for example the private label model which is a great model and you can really make significant sums of money uh with I've noticed that the barriers of entry in terms of the amount of money that's involved to get started the months that it can take in order to Source a product and the number of steps that are involved it could be quite intimidating for someone especially if they're brand new uh to selling on Amazon and so uh with this method I for example my friend Steph Summers who I'm going to introduce you guys to here in a moment you know he's shared many different opportunities and is more in the trenches um than I'm right now on Amazon because I'm in a different stage of my life but he's someone that I trust and someone has a lot of data as someone who's in the trenches actually doing this stuff but also coaching mentoring and helping people succeed in many different ways of selling on Amazon and so I've been really impressed by the results that he's been able to get with his students doing this method in comparison to for example private labeling and so um I've been getting back into the scene I've been you know interviewing and reaching out to my contacts and my network to kind of find out the latest on the landscape of Amazon is and he shared some things with me that really powerful and something that I just feel like I need to share especially for those that are in a position of being maybe a newbie or somebody that you know doesn't have a lot of experience but they want to get started they want to make money they want to change their life you've got that hunger that motivation and uh this could be a great fit so that's why I wanted to share this now this method is known as Amazon wholesaling and it does require a level of explanation it does require um somebody to actually give you examples of it so uh my friend stepen Steven Summers from Marketplace superheroes he volunteered to create a video training here on Project Life Mastery uh he's going to share his screen he's going to give you some examples and show you this method and then also um we recorded a separate interview that's going to be released after that and uh in this interview I pick his brain ask him a whole variety of questions about this so that you can learn more about it and so uh I'm excited to share this with you guys hopefully you guys enjoy this and uh I'll let Stephen take away from here and then I'll be back at the end to share with you some next steps so Stephen take it away we're going to get right into it today and we're going to show you how we find wholesale opportunities on Amazon we're going to talk about the wholesale model in general so the first thing I want to mention is before we actually go in and do the research what are we looking to do here we're looking to find already successful Brands and already Su successful products from those Brands well-known household items and we are simply looking to see if other sellers are selling them if they are we're going to research those items and see is it possible for us to potentially take a slice of the sales and profits of these items on Amazon and let's start out by going to amazon. com right I like to put in a address here of being in the US if you're in the US you can put in your own ZIP code I just put in 90210 just cuz I do and that means Amazon is saying you're looking for items you're living in America so we're going to show it to you as if you're living in the states which is important for the research we're going to do now what I like to do is go over here to the hamburger menu and click that button and this is going to give you lots of different options the best sellers new releases all of that we just want to scroll down to this shop by Department area this is going to give us the categories in Amazon these are called categories right here and we can click see all and it's going to show us even more categories that are available on Amazon now if we click into let's just say the toys kid and baby kids and baby this is going to Now show us what we call subcategory

and then we have sub subcategories as well because Amazon's job is to try and categorize everything as best as possible so that it's easy to find in this huge catalog but if we just click toys and games we are now going to go into the toys and games category on amazon. com and on the left hand side this is going to show you even more sub categories you can go into we're not going to go into those just for now we're simply going to scroll down below and we're going to change this say we want average customer reviews of four stars and up because we don't want to sell stuff that's not well reviewed we want stuff that's going to be easy to sell and it's going to work for us it's not going to get returns and stuff like that ideally now the next thing we want to do is change the price here we want to move this price to a minimum of about $10 and then we want to move it to a maximum of I would just say about $70 $80 is fine that range is totally cool and you can move it down like less expensive if you want why is that important because the items we're going to end up buying from Wholesale Distributors these are companies located domestically that will have these items in stock we would just want to make sure we're not selling stuff that's got a high cost price now if it does that can be okay but if we're selling something that say a $300 item it's going to be quite expensive to buy that so if we go in this range of $10 to $80 we're going to see items that are mostly not going to be that expensive to buy and remember I'm just showing you the basics today we will have a bigger training coming for you we're going to go into even more detail we have now recategorized this whole area based upon four stars and up and in that $10 to $80 price range now here's the next thing we're going to do there's a tool here called DS Amazon quick view I'm just showing it to here on Google Chrome that is something you're going to want to install it's totally free to do it we have another tool that we use called hero Launchpad this is our tool I'm not going to cover it in detail today but you will see it but for now don't worry too much about that just get DS Amazon quick view and you can install that totally for free why are we doing that it's going to give us this information here where we can see what's called the best seller rank that means uh how well this item is selling in this category so this is number one in toys and games so it is the number one bestselling item in the toys and games category and just to show you this item sold 70,000 Plus in the last month which is unreal I'm going to actually just open that up just for a bit of fun uh that's an incredible amount of items sold and anyway you're going to see 6,121 that's the 6,121 best selling item in the toys and games category the closer you get to number one the more sales it makes and obviously if you get beyond that it's going to make less sales we're going to go up to about 50,000 in the category at a bit a Max that's what we would want to see if something was beyond that it's probably just not making enough sales but let's just actually go into this Mr Sketch item just for a sec number one for a bit fun but number two to show you some important stuff so when you go in here this will not be there what you're going to see is the different options that you can buy and actually it looks like it's out of stock at the moment looks like it is according to this um but what we can do is we can use hero Launchpad you don't need to install this right now I just want to show you what it can do but this will actually give us the amount of sales an item is making so if we click the scanner function here it's just going to load up and it's going to tell us the monthly revenue and how many units are sold so this is doing $914,000 a monthly revenue and there's 76,000 units sold so that's incredible so that's what here a Launchpad can do we we're going to go come back to that in a few minutes time because this is quite important for when we're doing our research but anyway what you're going to see is this on screen there's going to be nothing else here uh usually I'll go into another listing in a second we're going to see a buy box here but uh that's not available right now because it looks like this is probably at a stock cuz it's just selling like absolutely crazy right now so I'll jump out of this because it's not a great example we'll go into a slightly better one what we want to see here by the way with Ds Amazon quick view is BSR is important but what's even more important is this area here where we can see two FBA sellers if we see more than one seller that's going to give us a clue this could be an item we may be able to buy at wholesale from a distributor located domestically and we might be able to sell that exact same item I'm going to go into a listing and just explain more that more about that look at this item here right it's a Lego item it's got eight plus FBA Sellers and it's the number 12 in toys and games let's click into that and look at the buy box and a few other key things that are really important on Amazon okay so first things first you can see the price point is 2925 and you can see this area down here ships from Amazon that's where it's being shipped out of sold by hco global so hco Global are a seller just like you and me third Pary seller and they're the

one right now at the time of recording this that has access to this area here called the buy box people that are in the buy box and currently hco glober because it says sold by them if somebody wants to buy this Lego item Ash's Cottage when they come in here and they click buy now hco global are going to be credited with that sale because they're in the buy box now there are other sellers down here you can click this and it'll show you there are other people trying to sell this exact same item at the same time so these are new and you can filter these we'll just go by uh Prime at the moment just to see that basically will suggest that people are using FBA because if the prime badge is there it means either Amazon are shipping it out or a third party salary shipping it out right so you can see J jph products they're selling it and ship from Amazon and it's brand new in condition same thing goes here flipping the pages LLC right Amazon is ship it's been shipped from Amazon sold by them and you can see their prices are different right see that 29. 95 25 2796 Etc why is that important well because on Amazon there's only one this is what we call a listing there's only one listing of this Ash's College on Amazon and why that's critical is because as the day goes on the person who is selling this and who is in the buy box is going to change and why will it change well if you're competitively priced 2925 and you're using Amazon shipping service Amazon will just switch this as the day goes on different people will be the seller it'll take a little while sometimes we'll try to just refresh it and see there's a change but it probably won't yeah no it hasn't changed in the time that we're here but as the day goes on it will change why will it change because other people will try to sell this exact item at a similar price and if they're doing that and they're using FBA they will get a SL SCE of the sales and profits of this item now if we want to know how much revenue this item is producing you can't see that as standard on Amazon so you'll need to use it to like hero Launchpad DS Amazon quick viiew is not designed for that by the way but hero Launchpad is this is a tool that we operate you don't need to buy it today we'll talk about you know how you can get access to it another time but you can click the scanner function and it's going to do what we showed you just a few minutes ago where it's going to scan and tell you the approximate revenue and how many units is sold of this item per month so it's nearly a half a million dollars and 16,000 units why is that important well there's another really cool thing that hero Launchpad does with our wholesale research tools and it just loads this up on the screen and the reason it's important is a well many reasons number one if we scroll down here right we're going to see all the different sellers who are trying to sell this exact same item we're going to see what they're using are they using FBA are they shipping it themselves so see fbm that means fulfillment by Merchants so Sunshine Shopper are shipping this out themselves whereas this company here flipping the pages who we saw a minute ago they're using Amazon shipping service right it'll tell you the price that they're looking to sell at and it'll tell you the stock that they have this company jph products are selling for 2750 and they have three units left in stock right the current seller is the hco global right selling for 292 and they've got one in stock so this will rotate as the day goes on because these two companies here are selling for slightly less than hco Global now the goal with this model by the way is not just to keep undercutting people that's a bad practice the better practi is to do it these companies have don't look they're just matching that same price and they know throughout the day they're going to pick up sales as the day goes on now you might be wondering well why are jph products not just in the buy box number one they may well be as the day goes on but number two they have 94 ratings whereas H Global have a th000 ratings so a thousand different customers have bought something from hco Global probably shipped by Amazon and then people have got the items and then they've given feedback to say I got the item is in great condition everything was great and it will be in great condition because Amazon are the one shipping it out when you're using their fulfillment services so that's the model really the goal for us is to go and get products like this from a distributor get access to it and then simply match the buy box price and use fulfillment by Amazon when we do that we will pick up a share of the sales and profits of these kinds of items now this item that we're looking at this is a massive seller I mean it's doing a half a million dollar a month that is a considerable amount of money obviously and so you would have to look at this then and say well how many sales of this could I possibly make so the way we do that actually is we use the wholesale research tools again we come down here just to show you we scroll down we see

all these different people what are we looking to do we're looking to see who's competitively priced so at 2925 we come right down so this is the difference right I would say right down to about here shop trendy these top 10 these are all competitively priced cuz they're in and around that 2925 now these are selling for 2750 which is obviously competitive cuz it's less than 2925 but we come all the way down here when we get here we're kind of getting away we're getting slightly away but you could say the top 10 top 11 if you want are competitive however they're not all using FBA so 1 2 three are not using FBA therefore we take 11 take away three we're at eight so there's eight strong competitors you might say there's a bit more CU actually to be fair these are there so eight let's call it nine because they're their fbm as well nine competitors are trying to sell this item as we saw the monthly revenue of this item was 468,000 so here's what we want to do right we want to take our 468,000 2 three we want to divide that now we said nine competitive sellers I think it was with us if we were getting access to this we would be 10 right so we divide that by 10 and that would be if everybody got an equal share of that buy box if you had I suppose infinite stock that's how much you could do in monthly Revenue with that one item which is crazy because when you think about it it's selling for let's just call it $29 just for easy calculation you might need like 1,600 units just to sell a month's worth of stock for something like that which is obviously massive and that's why often times when we're launching with our wholesale business some of these items can be great but also they can be a problem because they're just doing too much revenue but at its core that's what we're looking to do we're not looking to dominate we're just looking to get a slice of the sales and profits of this item on Amazon very simple now you might be wondering well how can I calculate how much money I might make that's another great question again we use the wholesale research tool in order to calculate that so inside the research tools we have the profit calculator we know it's selling for 2925 currently that's what the buy box what that's was winning in the buy box I'm just going to throw in a madeup number here I'm not saying you could buy it for this but let's say $8 i' just picking a random I actually put it to 12 so let's say we were a to buy this for $12 and get it delivered for $12 what the tool will do is it'll take the sales price it'll take away the cost of good sold so that's how much it's going to cost us to buy it and get it delivered and then we have the Amazon fee of $10. 20 if you hover over this you can see why got FBA fees of $ 5. 77 that is fees associated with shipping out the item referral fee of $4 39 that's Amazon's commission for selling the item then we have our storage and you can see different times of the year how much the storage is going to be per unit so not very much money at all right and that's per month and that's kind of tricky cuz like you're going to sell out of inventory it's going to move around all the time so storage is not something to spend too much time thinking about really it's not that big of a deal uh but that's just to give you a feel for what that might look like so anyway when we do our calculations it would tell us throughout January to September if we bought this for $12 and we sold it for $29. 25 after all of our fees we would make a net profit of $6. 97 it's a margin of 24% and an Roi of 58% now I don't know if we can buy it for that much let's just make it even let's just say we could buy it for $16 actually let go 14 just kind of change it up a little bit so that would be a $5 profit if we bought it for 14 now the ROI is the thing I like to look at because that's telling us our return on our original investment so on our $14 we're going to grow that by 35% every time we make a sale that's great and we ideally want to be making an Roi in wholesale of anywhere from 20% but I suppose at lower end 15 to 30% or more that's where we like to be you know it's up to you because some items might be really expensive and so even though the ROI might be a little bit lower the cash what you put in your pocket in cash might be like 10 bucks a sale or something you might quite like that so it all depends what you want and what your risk levels and tolerance levels look like and we'll talk about risk in just a second by the way because it's very low but really what we're seeing here is okay well we would grow our money by 35% if we bought this for $14 to me that's great it's exactly in line with what we would want and we would try to find the supplier and to do that there's many different ways and I'm just showing you one way we find Opportunities by the way today we have many more but you can go to Google and you could simply type in uh Lego

Wholesale Distributor uh USA you could do that we search this and we're going to see a lot Lego official which you know that's not going to be for us and so anyway look here's just an example right look at this toy house LC I am not saying you should go and buy from this company I'm just showing you look Lego exclusive wholesale partner US and Canada that sounds like someone we should consider so you can look at the products that they carry I'll just open it up here in a new tab and uh you can see it's all Lego stuff so that is like a direct matching thing this would be a company we definitely would want to speak to we would want to try and open an account with and they may not us right but this would be a good example they got authentic products you can order online so that's great so how do you do it well you apply to become a customer US and Canada let's just click here and then it's going to give us a big form we've got to fill in this information and answer all of these different questions obviously there's a lot here that they're asking and so this company here we may not be successful and I'm just like imagin and I've never heard of this company before I have but just to say that's what we would do so here's other ones here uh minifigure Madness so we could open them up fun Express we could look at them but we're kind of looking for more of this type of thing RDG wholesale and distributor these are the kinds of words that really do suggest they could be good and I kind of like as well when I see a website like this that's doesn't look like the best website in the world you know they sometimes so even their look a wholesale and distributor sold merchandise for over 15 years to customers so like lots of good direct matching keywords there they've got a place in the US and in Canada they look interesting we can also see the brands that they're holding so look at this right they're holding lots of different brands not just Lego they got Star Wars they got loads so why this would be a good company is because they have a lot of different brands that they represent so what has happened is we've started at Lego we found something it's working we validated very quickly that it's a brand that we should look at we would know that going in but it's good to validate it the way we have with this uh online search method and then we came back here and we found this company based upon the fact we look at Wholesale Distributor USA we would look to open up an account with a company like this which is totally free to do so and then we would look to see well what Lego products do they have but the thing is they're going to have lots of other stuff and we can then use some of our research to go and see are these good opport opportunities but for the purpose of today's video it was really just to give you that overview of how we're going to go about it make money how we're going to get access to buy box what do we have to do obviously there's more to it that we can move into but I don't want to go too much further today like I just said so a massive thank you to Stan for having us on the channel here we love making content like this and I hope you learned a lot I cannot wait to be back I know there's a lot of exciting things that we have planned for you that we're hopefully going to get to do together in the very near future so yeah thanks I hope you enjoyed this one and I'll see you in the next video all right thank you so much Stephen for that training and those examples hopefully those of you that watched it uh got a good understanding and some good value from this to get an idea of how this model works and whether or not it's something that resonates with you I know you probably have more questions you want to know more about it and so Stephen uh offered to do a webinar training that's going to go more in depth into this method he does have a program and a training that he does offer people as well so that is available if you do uh choose to want to work with Stephen and go deeper with him uh but I'll put a link below in the description to that webinar it's only available for a limited time or you can go to www. projectlifemastery. com MPS and uh you can register grab your spot there so that will allow you to go more in depth and then stay tuned for the interview that I did with Stephen where we go even more in depth answering a lot of the typical questions that you might have such as how much time is involved in this you know who can do this who is this for who is this not for um you know if you live in this part of the world you know is this an opportunity that you can take advantage of how much money is involved in getting started with this uh to just more typical questions that I think someone brand new to this would want to know and so there'll be a lot answered in the webinar training that Steven's providing as well as Q& A during that as well if you want to ask him your questions but uh I'm going to throw up here on YouTube another interview that does go more in depth uh for those that want to learn more so uh make sure that you register stay tuned for that if you enjoyed this give it a thumbs up and subscribe and I look forward to seeing you again soon take care