hey guys so my name is Palmer I'm here to discuss with you in this video how
much I think you need to allocate for your first product on your Amazon FBA
business this video is strictly based off my own experience with my own Amazon
journey as well so whether or not you choose to follow it it's really up to
you I'm not here to tell you which path or route you need to go with it's your
decision at the end of the day I just want to share with you what my
experience has been so you have a better understanding a better grasp as to
whether or not you want to get into it I need to be really honest with you too
this is a business I'm sure you've watched a lot of YouTube
videos as well out there right now that makes it seem like it's super easy to do
all you gotta do is find a really profitable product put it onto Amazon's
platform and then you'll start making sales after you get it onto the first page
there's honestly there's a lot more to that than what they make it seem like
and I really want to make sure that you have a better understanding as to what
getting yourself into you so you're not gonna become one of those people that
fail because I almost did the first two times and I'll be honest with
you I almost gave up myself it was really tough it was really stressful it
was really painful to go through but I stuck with it I believed that I can get
myself going this was actually one of the best decisions I've made in my
entire life and I really hope that you understand this could be yours as well
if you really believed in it so don't stop just need to consider that there
are more information out there than what they show you so be aware watch as many
videos as you can there is great content like I said but they're not showing the
entire piece of the puzzle and I really want to provide that as much as I can to
you okay so in terms of your first product like I said you'll probably see
a lot of people with different opinions and different versions as to how much you
need to spend or how much you need to allocate for me personally I think a
really good amount for your first order would be $5,000
you can totally disagree with me there it's totally okay I'm not here to tell you
that you're wrong I'm not here to tell you that you're right I'm not here to
tell you that my final answer is that I'm just literally basing my entire
experience off of what I've done with my own business okay so why did I choose
$5,000 I know it's a little steep but you need to consider there's a lot of
things like go into that this is basically dependent
on what the product is itself I don't know what you're gonna get yourself into
I don't know which product you're considering so this is based off your own product
research it takes time it's not something that happens overnight
you will learn a lot of lessons you're gonna lose a lot of money but consider
those as educational expenses I did I spent I've lost a lot of money as well
so I didn't take that as a loss it was felt like a failure at the time but
in retrospect I actually considered it more as like as an educational expense
like going to high school or going to college stuff like that so you need to
consider that you need to take that into account as well so don't be
don't give up so that's all I really want to tell you so whether or not you
believe it or not there's a lot of people also on YouTube right now
telling you that there's a lot of things you need to do before you can actually
start making money and a lot of those are actually true I just want to share
with you the fact that there's a lot more to it okay so what you need to take
into account with your first order is the fact is they want to tell you to use
giveaways you can do that I've done that myself it's worked it got me to the
first page but once you get to the first page there's more things that come in to
come into play to help you make more sales so whether or not you follow what
they've told you to do like use merchant words figure out which search
term had the highest search volume and rank for that yes it does work to some
extent but it will not give you the amount of sales that each of those
sellers are making on that page so why did I use $5,000 as my initial
investment so I know that's really high for a lot of people I'm not here to
burst any bubbles or ruin anyone's dreams that's not my intention but I just want
to show you what my experience is what I think the reality of this business is
all about is the fact is you need to start off with little bit higher a
big chunk a big part of that goes towards marketing like PPC ad campaigns
like marketing on Amazon's platform running Facebook ads or Instagram
influencers if it makes sense your business please use it it will eat into
your profit margin I'm not here to tell you that it's not because a big chunk of
any business is actually marketing so you need to take that into
consideration before you you get into it before you even order
your first product you need to set a lot of that aside and make sure you have a
capital and enough capital to keep yourself sustained for as long as
possible another part to that is the fact is when I first when I ordered my first
batch my first order I tend to go for at least 500 units so it's dependent on
your product it depends on your budget it's very much dependent on your product
actually so let's stick with that the reason why I go would five hundred is
the fact is I sent half of that by air and the other half by sea saves me a
little bit of money in shipping I'm not gonna get into that any further I
hope this makes that should be common sense to you so my first half
that arrives by air that arrives at the Amazon warehouse I will start ranking
for it for multiple medium search volume keywords so I use a tool called seller
tools there's lots of tools available to you right now too it uses real Amazon's
data I don't recommend merchant words because it's not very it's a little bit
obsolete right now in 2018 so whether or not you want to use it totally up to you
I'm here to tell you what I use what my experience is and how I've made it work
for me is using tools that use Amazon's data okay so I basically go for any
and as many medium search volume keywords as possible so like I said I
find those tools I find those search terms and I try to rank for it any
which way I can by running PPC ads by using giveaways I'll try to get myself
into the front page of as many of those medium search terms or medium search
volume keywords as possible bring me more visibility because every time I get
like a PPC sale or an organic sale from those search terms I get a little bit of
what they call like "ranking juice" for my highest search volume keyword so it's a
long game you really need to consider that you don't want to aim for the
highest one first you can if you want but I don't personally recommend it so
my mentality is for my first order I actually run at a loss if I break even
I'm super happy I would consider myself really lucky actually um but basically
my first batch alone I used strictly just for ranking for multiple keywords
so I run at a loss most of the time and if that's something that you want
you don't want to do that's totally fine you can try other methods but like I
this is just what I've gone through so my first batch purely for ranking I'm
running a loss but I will start making money in my second order third order
anything after that because I'm ranked for as many different search volume
keywords as possible so dependent on how well your product is selling on Amazon
at this point in time I would really need to consider whether or not I need
to restock because I do not you should never run out of stock because Amazon
punishes your listing it's really bad if you do so you really need to adjust and
calculate for it so figure out what the lead time is to manufacture your product
from your manufacturer or your supplier tack on a few more days just in case
there could be issues where the customs or shipping or inspection or even
manufacturing itself so take those all into account just don't let yourself run
out of stock with the second batch like I said is doing well ship all that by
air right away get it there as soon as possible and you should find yourself
having a lot easier time selling anything after that if you've done
everything properly you've ranked yourself for as many keywords as
possible selling it would be a lot easier in the best case scenario but
maybe you'll need to spend a bit more time rank for other keywords or search
phrases but either way that's basically the whole process behind it and that's
why I spend about five thousand for our first product launch okay so you do that
over and over it's just literally rinse and repeat okay alright guys so
that basically wraps it up for me in this video here today so I hope that
made sense to you that's basically how I consider running my business with my
first product launch or even anything after that I spent a little bit more
because a big chunk of that goes towards marketing and ranking for keywords as
many of them as possible so if that didn't make sense to you let me know in
the comments below I'd love to hear from you either way if you have any questions
please let me know let me know how much you even spent on your first product launch
if it's less if it's more love hear from you I have also put in the description a
link to my facebook group join it there's a ton of experienced sellers in
there there's me there's my girlfriend we're all doing very well we're all
there to share as much experience and as much information as possible so be there
we're there to help each other out we're all there to succeed we all want to see
each other grow so be part of that journey with us
also if you have not yet please hit that subscribe button right down there hit
that like button and comment down below let you know like I said I would love to
hear what your journey has been with your first product tell me how much you
spent love to hear from you but until then I'll catch you next time
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