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Home > Amazing FBA > Can you still Make money on Amazon in 2019?
Podcast: Amazing FBA
Episode:

Can you still Make money on Amazon in 2019?
Category: Business
Duration: 00:42:07
Publish Date: 2019-06-20 00:00:38
Description: Kevin King - is a 7-figure Amazon seller Hosts $5000 events - $1 billion summit in Austin, Texas Not part of Helium10 but friends of them Lead mentor in Helium 10 elite - used to be Illuminati Has spoken at 30 different events Background Quick resumé/CV: A lot of people try to get away from the corporate world but Kevin has always worked for himself as an entrepreneur. Direct marketing background - got into the internet - first sale mid-1990s. Started selling via “advantage on Amazon”  in 2001 (direct to Amazon). FBA mid-2015 - several brands (Own company, wife, partners, etc. - and a new one about to kick off) Sourcing China also Korea fo r20 Is it possible to start selling on Amazon in 2019? It’s better than ever. “It’s saturated” etc. - what’s the next thing? Amazon is still the best biz app of last 100 years. You can ride coattails of multi-billion dollar company. Easy days are over - 2013, 14, 15 got lucky without knowing what they were doing - may have exited. Some of them are successful but a lot are one or two hit wonders. 90-95% of people watch youtube, podcast, course Reasons for failure Reason 1 This is a real business! If someone sold only $10K on Amazon, course sold. It’s hard. It’s not easy. It’s something that takes skillsets Sourcing Product designs Graphics Marketing online Marketing on Amazon Have them yourself or partner with the right people. People come in with the idea that they will quit their corporate job- that doesn’t happen! It’s not starting with $1000 - that’s a side hustle - If you want to make a living at this, you have to have real capital and real effort. Certain products you definitely need to stay away from. Amazon is growing so fast - tremendous opportunity. Not necessarily with big selling products. Using JS etc. - just analyzing what they should sell really wrong. Reason 2 Problem“Brand building” You should build a brand off Amazon! Kevin King disagrees. That is a whole different thing. Building a brand takes a lot of time and effort. Sell on Amazon first and let it grow. Too many people get caught up in brand building. Maximize amazon first and then figure our off amazon Reserve 3 Problem Cashflow forecasting $10k spent on inventory, PPC, software So go OOS for 2 months - back in stock- like starting over How much money do I need to sell on Amazon? 2 ½ times initially inventory Look for a product that fits the budget Base product selection on initial capital. $10K budget - $4K landed cost! The other $6K - buy 2nd round of inventory And PPC Then people say “it doesn’t work Is there a minimum viable amount for PL? Side hustle $2-5k If a real business, support the whole family $20-30K The old starting with $5k thing - there is always something behind the scenes: if they got good terms from a supplier; Rich uncle put in $50k 3 months later! It doesn’t sell courses but it’s the truth! At an event in Vancouver in March - European - had done spreadsheets to forecast “If I can get to $168K in sales, I can quit my job” Needed $40K a year to cover bills etc. - you can’t do that! 168K - Amazon will take ⅓ of that- so $55K in commission COGS will be around ⅓ including Vat etc. $55K Now $58K left - if you hit the target Ad Costs Software Storage fees accounting Say $10K $40-45K How are you going to buy inventory? Where will the money come from? A lot of people don’t understand the numbers and how to forecast it out. A lot of successful people come from a financial background eg CPAs etc. It’s a cashflow management business! The reason it’s one of the best businesses ever: There are over $1 Billion available from family offices etc. to invest in Amazon businesses! There are 3 different co’s in the USA - they will come in and buy 20-30-100 businesses, put them together, sell as a batch.
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