What is up ninjas! Today we’re going totalk about exactly how much money it Takes to get started on Amazon FBA andspoiler alert it’s a lot less than you Might think! What is up ninjas welcome back to thefinal episodes in the Airbnb kitchen Before I get my new place to locks onthe beach what we’re gonna be talking About today is how much money do youneed to start Amazon FBA And this is going to be an actual amountright a lot of the other people out There a lot of the other people who areteaching this right they’re telling you You can get started with $500 or $1, 000that is not realistically the case if You want to get started correctly andbuild an actual scalable business Without having to penny pinch and youknow cut corners and avoid actual nice Product photos and do it the right wayyou are not going to be able to launch a Product on Amazon FBA and create asustainable actual business with $100 Like some of these other so-called gurusare telling you or $1000 like some of These so-called gurus are telling youwe’re going to be going through what it Actually costs what you actually need toget started but before we do that guys I Just wanted to shout out to my boyPhillip who won our daily 100 dollar Giveaway that we are just now startingevery single day every single video that we released we are going to go down andpick out one of your guys’s comments and we are going to make that the winner andwe are going to immediately send you $100 I had these shout out my boy Philhe actually messaged our page might the official Kevin David Facebook page andhe sent me proof that he is subscribed that he does have notification bells onhe sent him that hundred dollars directly to his PayPal so if you guyswant to enter all you have to do is leave a comment we are going to pick ourfavorite comment shoot a message to the official Kevin David page and we’regonna send you $100 so let’s get into this guys how much money do you need toactually realistically start Amazon FBA so with my discounts guys I get a lot ofdiscounts from some of the biggest names out there like viral launch like Amazonare like jungle Scout like all of these different service that you need to startright so all of these amounts that we’re gonna show are going to be our heavilydiscounted amounts and we are going to include all of the lengths that youI need to actually start using these software at the heavily discounted priceright so the first thing that we are going to talk about is product researchsoftware so what you actually need to find these products that are going togive you results right find you these products that are the diamonds in therough the ones that are going to make you money the ones that don’t have a tonof competition and that do have a lot of profit margin for you to work with rightso the viral launch web app is $20 so if we look right here we can see that theproduct discovery with our discount and I’m not gonna show every single one ofthese guys but I just wanted to show you a couple of them right our discountbrings it all the way down to 1692 a month or if you want the sourcing expertwhich includes a few more things 28:58 a month right but as cheap as 1692 a monthand again if you want the market intelligence right this is the Chromeextension that they offer instead of their normal you know 1667 a month or$20 a month we get it for as cheap as 1167 a month right so I just wanted toaverage that out show you guys that we really do get these really amazingdiscounts for the FBA ninjas on all of the products and services that youactually need to be successful on Amazon FB Heyright so the web app and the Chrome extension cost you 34 total dollarsyou’ll never find that cheaper anywhere and these software these pieces ofsoftware guys are incredible I know the founder and owner of our launch the dudeis incredibly smart um samples right so when you are actually going to orderyour product from your manufacturer in China to get samples right to inspectthe initial quality a lot of people you know say that you can skip samples Inever personally skip samples unless it’s an unbelievably simple product butyou know in 99% of cases I do get samples so this means let’s say that Iwant to source 500 garlic presses I would want to get a sample of one ofthose garlic presses from my manufacturer sent to my house right Ihave one sample sent to me and I’ve one sample sent to my product photographerwhich we will talk about down here right to take pictures of it and get beautifulimages of it for me to use on my listing but for right now right I get a samplesent to me and I want to look at it I want to look at the packaging I want tolook at everything I want to make sure that this final sample this finalproduct exactly how I will send to Amazon is perfect right the thepackaging looks amazing the the quality looks amazing if there’sany bubble wrap or anything that you need to do to keep your products safe isthere and looks great that your barcode that Amazon actually sent us scans rightyour FN skew is there everything looks amazing it’s a final version of myproduct and it looks great the quality’s there everything is perfect right so Isend one sample to me and I said one sample to my product photographer andthat usually costs you know anywhere from 75 or 50 to up to 150 dollars Ibudgeted 150 dollars here guys because I want to be realistic again I could tellyou that you could get started on Amazon FBA and become a millionaire with $100but that’s just not realistic this is a business it requires investment it takesmoney to make money in almost all cases guys so I like always I want to becompletely transparent so if you’re going to PL or private label your actualproducts with your own logo if you can get one for as cheap as five dollarsright I’ve gotten a bunch of really awesome logos made on Fiverr comm with$5 so just go to fiverr.
com fiv er are calm and look up logo design or graphicartists and you can get a logo made for literally five or ten dollars and itlooks incredible right the next thing we need to talk about is barcodes and youcan get barcodes for as little as $5 and what I mean by barcodes guys is you needwhat it’s called a UPC write or a universal product code which youbasically assign to your product listing when you do create a new product listingon Amazon and you need that unique code to do that and so now that it is 2018right there’s been some rumors that you need what’s called a gs1 barcode whichare significantly more expensive than five dollars again I’m just trying to befully transparent with you guys but as of right now you do not need gs1barcodes to actually create new product listings and so until that moment comeswhere Amazon forces you to use gs1 specific barcodes which are you knowsome some can be as expensive as 700 year I’m not going to do that becauseit’s a ridiculously cheap you can’t go to ebay and type in UPC codes and youcan get them you know 10, 000 for for $4.
99 and we see a lot of these sellright and so barcodes can be super cheap you do need them to create new productsso let’s get to the expensive stuff the units obviously I can’t tell you howmuch per unit cost be-because you could sell something likeyou know a fidget spinner that cost 10 cents to make or you can sell somethinglike a ping pong table that costs $100 to make so I’m going to just use a kindof average that I’ve seen for many of my products which is $3.
00 per unit andthis includes glossy white packaging with your logo printed on the front ofyour package and a sticker barcode on the back guy so this is a fully ready tosell product that you then actually shipped to Amazon FBA I never generallyrecommend buying less than around 500 units because you need enough units toactually launch successfully and that means you need to give away units moreunits than the people on page 1 are currently selling to actually outrankthem and get past them and move up on page 1 to actually kind of start to getthat visibility from Amazon buyers and sustain that rank and get those organicsales which is what the profit from Amazon FBA it really comes from right soa lot of people will buy a hundred units or 200 units they’ll get at Amazon FBAand they’ll realize that the people on page 1 are selling 10 units a day andfor them to actually get to page 1 also they need to sell 11 units a day and sothey’re giving away 11 units for you know between 3 and 7 days the amount oftime that it takes to get to page 1 and then all of a sudden you know half theirinventory has gone just from giveaways to get to page 1 and you know by thetime that they’re getting all these organic sales they’re already out ofstock right so a lot of people and a lot of you know so-called gurus out therewill say you know order 100 units order 200 units and then they’ll heal and thenyou’ll do that and you’ll realize that to get any organic sales you have tolaunch correctly and to launch correctly you have to give away units and by thetime you give away those units you don’t have enough to actually sell and makeprofit right and so the least time that I generally like to recommend or theleast amount of units I’d recommend buy is about 500 that gives you enough kindof leeway to do a launch correctly to get to page 1 and then still have enoughunits to make your money back and then make significant profit on top of thatumm adding labels guys I just wanted to include this really quickly because alot of times manufacturers will tell you that it costs you know 10 cents 25 centsfor them to actually add labels or the little barcode stickers on the back ofyour box that each product is inside of and that’s want to be really clear guysso there’s a little box like this there’s a garlic press inside there’syour logo you had designed printed on the outsideof this white glossy box and on the back of your box there’s a little UPC stickerwhich is a barcode that actually you create from your UPC that you boughtyou know from ebay for example on this on this example right so they usuallywill say okay well it cost 10 cents or 25 cents for us to assign these stickersand you tell them absolutely not that should be free that should be includedin it because they literally 99.
9 percent of the time will do that forfree you just have to know that it should be free so I just wanted toinclude that just so you guys can kind of see and see that and not fall victimto paying an extra you know cost per unit because at the end of the day everycent counts for increasing your profit umpackage design so I included this one because package design actually ispretty important what I like to do with Amazon FBA and the reason that I’veactually been able to get some success is that I always go after the premiumoption right you never want to compete on price with people who are alreadyselling in the niche that you want to enter you always want to be the premiumoption you always want to demand a higher price because you know you have abetter package or because your product has additional items with it that you’rebundling or you’re adding value in some way right and so enough so somethingthat I like to include is having a nicely designed package so don’t skipout on that right you can have anybody from fiber or upwork or whatever youknow actually create your package design for you if you want to spend a littlebit more and make a very beautiful packaging I recommend a company calledoutline Matic and I actually will include a link down below with our youknow Amazon FBA ninja discount code of course every link in this descriptionguys will be a heavily discounted link I want to save you guys as much money as Ipossibly can because I know that getting started on Amazon FBA is hard right itcost money and I want to make the most realistic estimate that I can possiblygive you guys you know and in doing so give you all of the discounts that I canpossibly offer you guys to get started in the right way and do this so you canactually create a real income from it and a real you know career from it andleave your 9 to 5 grand behind alright so the next cost if you want to consideris the inspection cost and anyone who tells you that you can skip aninspection slap them directly in their face one-time inspections are incrediblyimportant and you should never ever ignore inspection what inspectionsactually mean is before you ever release the 70% final payment to yourmanufacturer your goods need to pass inspection this means that they need toyou need to hire a third party company that has nothing to do with yourmanufacturer to come in take a sampling of all of units that you had created andgive you a report saying you know these products either are very high qualityeverything that you wanted is good to go or you know they look like complete crapand you should not pay the 70% deposit until they are fixed right so never everever ever ever ignore the inspection it is so incredibly important and a lot ofpeople ask me Kevin do you continue to get inspections over and over again asyou reorder from the same supplier the answer is absolutely yes I get aninspection every single time I can’t even tell you how many times we’vegotten inspections for companies that we’ve used for years and you know theyhad a different sales manager come in or they had their Quality Assurance teamreplaced or you know he was you know sick and they had somebody else in andyou know just all of these situations happen that you are very outside yourcontrol and the only way to catch and make sure that you have the highestquality product so you’re Amazon customers aren’t returning them and youdon’t have issues down the line is by getting an inspection so this is thebest possible money that you could spend for the entire process of Amazon FBAfrom start to finish never ignore it you can get an entiremandate of someone’s time in China $4.
99 USD and which is an incredible dealright and so the next thing that we have to talk about is shipping so for $1, 500you can get three you can get five hundred units at three dollars per unitand you know shipping is gonna vary incredibly based on the product that youbuy right and so before you actually go to invest what I suggest is reaching outto your freight forwarder if you’re a part of the Amazon FBA ninja familyright if you’re part of the Black Belts group you can use my freight forwardersand you can just reach out to them with a quick email or a message right we haveall their Skype information and everything and say hey I’m thinkingabout ordering 500 bowling balls how much is it gonna cost for me to ship viaair and via C and they can give you that number right it’s very difficult to getthis number it’s probably the biggest kind of variable that’s most difficultto get to come up with the final profitability analysis of investing in anew product right because shipping 500 of bowling balls versus for shipping 500feathers it has a huge difference in actual cost right from a weightperspective and from a volume perspectivewhich are the two metrics that actually determine shipping costs right and thenthe biggest other thing is whether you’re shipping it by sea which takesbetween two and three months from start to finish to actually arrive in theAmazon FBA warehouse but is cheaper versus shipping by air which can takeyou know anywhere from three to seven or ten days even which is obviously muchmore expensive but can sometimes be better if you need to get back in stockand things like that so the next gossip you want to consider is productphotography and guys I put do not ignore here because it’s so incrediblyimportant to not be cheap about your product photography and we included alink here with viral launches product photography service which is the bestright and they gave us an incredible discount guys we’re saving literallyhundreds of dollars with the discount that we’re giving you guys forcompletely for free just for watching this video and they do very very goodwork from a product photography perspective if you’re buying a productthat requires lifestyle photos write pictures of the cute little babies or abeautiful woman wearing you know a dress or on like a beach towel or somethinglike that then you’ll have to get the more expensive version but still theyhave the best deals I’ve seen anywhere with this discount they’ve given us anincredible discount viral launch you know in KC or good friends of mine andthey do very very good work do not be cheap guys if you’re listening toanything I’m saying during this entire video don’t be cheap with productphotography it makes or breaks out this can be the difference one picture can bethe difference between being successful on Amazon FBA and leaving yournine-to-five corporate job behind you forever and living on a beach inThailand and being in a cubicle for the next 50 years so don’t be cheap when itcomes to products ography I know that sounds extreme but that’s as importantas product photography is I’m just trying to portray it as best I canthrough this YouTube screen right the next cost is the Amazon seller accountfee this is a thirty nine ninety nine dollar fee so you pay it once a monththey generally when you open your Amazon seller account they’ll start chargingyou from that date but Amazon all you to do is let’s say that I started onJanuary 1st but my products didn’t arrive until you know March 1st so theycharged me twice but I wasn’t actually using it just submit a chat right opento chat with Amazon seller support and say hey can I get a refund for the twomonths that I did my inventory wasn’t actually here and they’llalways refund you if they say they won’t then just open a new chat window andthat guarantee you that we’re fund you immediately it’s super quick super easyand that’s a little ninja tactic for you guys right there and so that brings ourtotal guys to two thousand eight hundred and eighty seven dollars and ninety ninecents and if you added this up yourself you’ll say Kevin wait but it’s not yourhundred fifty dollars higher well the reason for that guys is the one hundredand fifty dollar sample cost if you know what you’re doing you can get thatactually deducted from your first order so you’ll pay the 150 for yourhandy-dandy you know sample garlic press sample toyourself and one to your product photographer but they will refund youthat one hundred fifty dollars when you pay your 70 percent final payment afteryou’ve passed your inspection right so you can actually get that hundred fiftydollars back when you pay the final 70 percent and so that brings us to youknow about a little bit less than twenty nine hundred dollars guys and this is arealistic estimate this is a real estimate anyone else who’s out therewho’s telling you you know you can get started on Amazon FBA for $300 no youcan’t just to be perfectly frank right I don’t want to establish unrealisticexpectations for you guys I want you to actually be prepared for what isinvolved with this business is Amazon FBA amazing can it change your lifeabsolutely I’m the perfect example of Amazon FBA completely changing someone’slife but can you do it with a hundred dollars to start or a thousand dollarsto start you know it’s possible with a thousand dollars but it’s not possibleto do it right right two thousand dollars is a little closer comfortablyif you want to start this business the right way from the start to finish doingthings right getting beautiful pictures right getting your inspection gettingnice packaging getting you know quality units doing things correctly from aproduct photography standpoint this is the amount that you realistically needguys and the last thing that I want to include in this specific video is thecost of the mistakes I made and this is not I promise you this is not me sayingyou know go out there and buy the Amazon FBA course if you like somebody else’scourse if you like somebody else’s knowledge better if you think thatthey’re you know smarter and know what they’re talking about more than me thengo ahead and do that I seriously I mean it but I just wanted to highlight thecost of the mistakes I made by trying to stubbornly do this all by myself ratherthan finding a mentor and finding somebody who actually has done this beenthrough these things before made these mistakes beforeand COO who could have saved me so much more money than their course would havecost and so I just want to go through a few examples so I didn’t know what I wasdoing for a freight forwarder so I went with FBA forward I believe is who it wasand they had terrible customer service right they charge me so much more thanthe exact same service would have charged me like if I if I went with afreight forwarder that was based outside the USA so I’ve actually gotten quoteslater on and after I’ve been doing this for a few years with FBA forward andwith some of the USA companies who advertised heavily and with the freightporters that my students and I currently use and they were literally five timesmore expensive than for the exact same thing using the freight forwarder thatmy students that I used to just make sure that you’re finding the rightfreight forwarders because it can save you so much money and that extra fivegrand or two grand or whatever it is just immediately goes in your pocket asprofit because you’re getting the exact same thing I didn’t understand customsright so I didn’t understand you had to have made in China printed on the boxand on your cartons and things like that and so I had to ship them back real ableand put them back to the Chinese port which cost me an extra thousand dollarsso that’s already you know three grand that I lost just for being an idiot Ibought too few units so I only bought three hundred units for one of myproducts just didn’t realize how many units you actually had to give away toget to page one and get those huge organic sales from having the visibilityof being on page one that you wouldn’t otherwise have if you weren’t givingaway those units so I didn’t understand how many units that I needed to get topage one and get those huge amounts of eyes of Amazon customers onto my productthat is required to actually become super profitable and not have to youknow spend endless money on PPC and giveaways and things like that so Ibought two few units I was stalked out and I lost a ton of money and then I hadto launch another you know launch campaign once I finally stopped back inand that easily cost me another two thousand dollars that if I had knownwhat I was doing and how to launch a product for brekkie and how to actuallyinventory forecast and how to know exactly how many units to buy in thefirst place that I wouldn’t have wasted that two thousand dollars I didn’tunderstand PPC and I wasted money learning how to do campaigns correctlyso I really didn’t understand what I was doing from like a PPC perspective youknow I was wasting a ton of money on an automatic campaignI didn’t understand you know when I was supposed to start manual how to usebroad match versus how to use phrase match how to use or exact match I didn’tunderstand what the search term report was I didn’t understand how to interpretthe search term report I didn’t understand how to scale ad campaigns tobecome hugely profitable I didn’t understand how to use negative exactmatch words to you know kill off the words that were wasting my budget butweren’t getting me to conversions I didn’t understand how to use low bidcampaigns I didn’t understand anything about PPC and I wasted you know this isa very conservative estimate of what I wasted on PPC at three thousand dollarsthat could easily be ten or twenty or even fifty thousand dollars over thecourse of my time with Amazon FBA just learning how to use PPC correctly and Iteach exactly how to do that in my course so you can save you know thatthree to fifty grand that I lost and any other course you know it doesn’t have tobe mine any other course up to someone that you trust and someone that you youknow have you seen proven with their actual sales on Amazon proven with theirknowledge and things like that they can save you so much more than their coursecosts just with Amazon PPC alone especially if you’re gonna make thisinto you know a full-time type business guy so that’s a very conservative eightthousand dollars that I lost what and you know cut the cost of a course rightyou have the cheap courses for 497 a lot of which are you know pretty general anddon’t include like a lot of the really in-depth PPC knowledge and some of themore advanced topics you have the courses that are for 997 generally fromyou know myself and some of the other guys who kind of been around longer andreally go very in-depth and advanced and all this stuff and then you have thecourses that are like three to five thousand dollars just for suckers whoyou know they’re spending a million dollars a year on advertising just toput it in your face so often until you like freak out and pay you know fivegrand for a course so that is a very conservative sunk cost lost cause ofseven thousand dollars if I could do it again and if I found somebody that Iliked and respected who was being transparent and gave me the real numbersand wasn’t trying to lie to me just to get money from me that would have beenthe most brain-dead most easiest decision of my life to buy a courseinstead of waste eight grand which easily could have actually been like 50grand if I give realistic PPC numbers you know completely just lighting thatmoney on fire versus buying a course and learningsomebody who’s already made all those mistakes guys so I hope you enjoyed thisvideo I hope that you understand that I’m really trying to be very honest andvery transparent I don’t want to you know give out the example and give upmake it seem like anybody in the world can get started on Amazon FBA and thoserainbows and unicorns and everyone’s gonna be happy and live happily everafter right that’s just simply not necessarily how business always worksAmazon FBA it does require money to get started it does take some initialcapital to get started so if you guys enjoyed this video make sure that youactually join the ninja family smash the subscribe button directly in its facejoin the family turn on those notifications bells and we will see youon the next one because we’re gonna continue putting out the absolute bestknowledge on Amazon on Shopify on facebook ads on every single topic youcould possibly imagine on the internet making money leaving the 9 to 5 grindbehind you forever.