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jasontayonline Blog

Chapter 8: Selling On Amazon 101

24/9/2014

10 Comments

 
 The no.1 question I get asked about selling on Amazon is on private labeling (PL) from people who have never sold their first product on Amazon. This is not surprising considering the Amazing Selling Machine (ASM) is one of the most aggressively promoted affiliate products (again not surprising due to the huge commissions paid to affiliates who push it). I have no doubt the course does have good PL content, but I have personally met and spoken to members some of whom have had success and others who have experienced expensive disasters.

My advice to new Amazon sellers is always to start out simple. Learn the basics before jumping into the deep end. Here are the steps I would recommend:

Update March 2018: As the market has changed since 2014, I now recommend new sellers start with Private Label straightaway, whether you have $100,000 or $1,000 in capital to start with. A couple of reasons why:
  1. Many existing retail have applied to become brand restricted on Amazon. This means unauthorized sellers are not allowed to sell the brand's products on Amazon. If you sell something branded that you bought from Walmart or elsewhere (such as by Gillette, Nike, etc.), you might not know that it is brand restricted. Unfortunately, when you try to list a product, Amazon only occasionally  informs you that it's restricted! Other times, it the system allows you to list the product, then retroactively notifies you that you are in violation and suspends your account! I know a few people personally, who have experienced that happening in just the past 3 months.
  2. It is very possible to start your own private label on Amazon even on a very modest budget. In fact, my first private label started with an $80 investment with an order of just 10 units from a manufacturer and just that 1 brand sells 6-figures every year. Private Label can be easily overcomplicated. Or it can be made to look too difficult. But it does not have to be - you can start creating and selling your own brand of products fairly simply with a small or large investment.

In conclusion, take action with simple steps. For someone starting out, I recommend you start with the Proven Amazon Course, which costs just 7% of ASM and in my opinion has far better value with an amazing supportive community or consider coaching. If you are set on learning private label, I have just started going through Proven Private Label which together with the Proven Amazon Course is more than enough to get anyone going.

The below is my view from 2014, but it is no longer applicable as explained above.

1. Find somethings around the house, thrifting or retail/online arbitrage and sell those first. Preferably including arbitrage items. This is to learn how to calculate profits after cost of goods purchased, Amazon fees and other expenses.


2. Add at least 5-10 products (which could be just to piggyback on existing listings) into their Amazon inventory and send in at least 3 shipments. This is to learn the listing and prep requirements (product labeling, shipment creation and labeling, packaging, etc.).

3. Create at least 2 brand new, unique product listings with bundles or multi-packs. This is to learn the whole product listing process which is vital to creating effective PL listings which will rank well, draw Amazon search traffic and convert to sales. You could well also encounter things like Amazon hazmat reviews, restrictions, etc. which you want to learn about first before you buy a big order of a PL or wholesale product you are not allowed to sell.

I know someone who has $40k set aside for FBA and he's going through the above first before venturing into bigger things.

Launching a PL is not that easy especially if you have no background in Amazon PPC, SEO, etc. - for example with the promo for Freedom Soap (now rebranded as PremaTouch) at #ces2dallas with Jim Cockrum's endorsement and the support of many people, we have had a grand total of 30 orders in 3 weeks, which is not huge but not bad either! But realize I have put in $5,000 to develop it (paying the ladies rescued from trafficking, capital for raw materials & labels, shipping from India to the US, customs, etc.) and revenue is a grand total of $779 so far. That would be hard to swallow for many people, but I'm in this for the long haul with a far larger vision of societal transformation.

Anyone who thinks PL is a walk in the park to making $50k/month might be in for a surprise. If you have several thousand dollars to spare then fine. But I would be genuinely concerned for anyone who wants to start out with PL especially with no prior selling, marketing experience and a limited budget they cannot afford to lose.
10 Comments
Wendy Owen link
20/12/2014 02:53:38 am

What you are saying makes total sense. I too looked at ASM but decided against it as it sounded like a lot of hype. As an ex internet marketer I can sense hype from a great distance! I purchased the PAC and coaching and couldn't be happier.

Reply
Salliman A Samereth
21/6/2017 08:54:04 pm

I clicked on the "Proven Private Label" link and it took me to an unsecure site without the https:// at the beginning. Why is this so?

Reply
Jason Tay link
13/8/2018 11:17:16 am

Hi Salliman, I don't run the Proven Private Label website, but I just checked it and the Google Chrome indicates that it is an image on the page that is insecure. Anyway I've notified the admin for that site and they should get it fixed asap.

Reply
Rita C
13/8/2018 01:17:06 am

What would you do if you had t get something started immediately
but had 300.00 to work with
Do you have any ex. of someone starting out with that amount of capital having success.

Reply
Jason Tay link
13/8/2018 11:34:38 am

Hi Rita, yes, it is possible to start with $300. I personally know several people who have started with very little and done really well. You can listen to this podcast http://bit.ly/JimCockrumPodcast to hear the interviews with some of these people.

The ones I know personally are:

Episode 2 features Brett Bartlett who started about 5 years ago with $400 and is currently selling 8 figures a year on Amazon. That's more than $10 million in 2017. This year he is doing ALOT with several product becoming the number 1 to 10 bestsellers in their category on Amazon. That probably translates to about $1 million/day in the 4th quarter near Christmas.

Episode 84 features Ian who went from being bankrupt to $100k in his first year.

Episode 115: A small budget guide to big success online.

You can also go to the My Silent Team's facebook group (http://bit.ly/MSTFacebookGroup) and ask the same question. You'll find people who have started with similar amounts and have grown a thriving business.

Reply
Omar link
7/7/2021 09:41:51 pm

In July 2021, which course would you suggest to a first-timer who has a very limited budget but is determined to learn and will do what it takes to get there?

Reply
Omar link
7/7/2021 09:43:07 pm

Forgot to ask: any idea what the price range is for coaching?

Reply
tin m
10/7/2021 02:47:06 am

I paid $5000 for asm for nothing. I want to file a lawsuit to this misleading e-commerce courses.

Reply
Marcus Robbins link
14/10/2022 04:27:12 am

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Reflect these beautiful girl clear. Past pick lead director her story. Week provide year ready.

Reply
Edward link
11/7/2024 10:08:33 am

Interestingg read

Reply



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  • About
  • Amazon FBA Guide
    • How to Register an Amazon Seller Account
    • Amazon FBA 101
    • Amazon Professional vs Individual Selling Plans
    • How to Sell On Amazon From Outside the US
    • Amazon FBA Prep Companies
    • Best Tools for Amazon Sellers
    • Code Confusion - Understanding GTIN, UPC and Amazon Barcodes
    • Amazon FBA Fees Explained
    • Amazon Coupons vs Prime Exclusive Discounts
    • How to Create Amazon Coupons
    • How to Increase Amazon Sales - Traffic, Click-throughs and Conversions
    • Optimizing FBA Inbound Shipping
    • Product Images and Photography
    • Amazon and Taxes - Income Tax, Sales Tax, and VAT
    • Amazon PPC Advertising
    • Insurance for Amazon Sellers
    • Amazon Seller FAQ
  • Reviews
    • Payoneer vs WorldFirst vs TransferWise vs OFX vs Airwallex
    • Helium 10 Review and Discount Codes
    • SKUdrop Review
    • Proven Amazon Course Review
    • Amazing Selling Machine Review
    • Amazon Advantage Review - How to Optimize Copywriting for Amazon Listings
    • Amazon FBA Reimbursement Guide Review
    • Rebate Programs
  • Training
    • Amazon Seller Live Training
  • Blog
  • Newsletters
  • Q&A
  • SSF2024