Today, you get to learn from an expert what it really takes to make $10,000 per month on Amazon.
Watch the video below:
It’s no secret that Amazon is one of the best ways to earn an income online.
But it’s also no secret that the biggest struggle people have, is finding the RIGHT product.
That’s why we went out to discover how to overcome every Amazon sellers biggest challenge: Product research.
But we knew a bunch of tips just wouldn’t be enough. Which is why we took a step further and reached out to the experts.
We did an interview with Greg Mercer, founder of Jungle Scout (a product research database tool), where we asked him a few common questions we get from our subscribers here at Wholesale Ted. In this interview, he also revealed to us one of his products – Jungle Stix – which is doing over $10,000 per month on Amazon alone.
Here are the questions we asked him…
Question #1: How much is the cost of Jungle stix (per unit) and how much is shipping?
For the Jungle Stix, each unit costs $3.10 plus a dollar to ship each unit. So in total, it costs around $4.10 to send each unit to the Amazon FBA warehouse. Because Jungle Stix are particularly large and heavy, they also have an additional expense of $9.50 in FBA fees.
In its entirety – unit and shipping costs + Amazon FBA fees + advertising fees – Greg is making roughly $5 in profit per unit sold on Amazon.
Question #2: What was your step-by-step strategy when you launched Jungle Stix?
Greg used two methods to launch Jungle Stix: coupon giveaways and Amazon PPC (pay per click).
Over a 2 week period of his product launch, he ran a coupon giveaway, offering 10 coupons per day. Even though this lost him money initially, Greg knew that increasing his sales rank would help him achieve more sales organically as he climbed to the top of the search engine. It’s short term loss for long-term rewards.
He combined this strategy with Amazon PPC. This is basically when you run sponsored ads on Amazon, and the aim of this is to “artificially” increase your position in the search engine (so you have more exposure thus more sales). Greg had a pretty aggressive budget with Amazon PPC because he wanted to make it to the top of the search results and rank for all of his keywords in a short space of time.
Overall, his spending budget was about $600-$800. Quite expensive, but well worth it in the end when you look at it from the investment side of things,
For more strategies for having a firing launch on Amazon, watch the video below.
Question #3: Do people need product liability insurance? And if so, how much does it cost?
Although having product liability insurance is a requirement for Amazon sellers, very little do so (only around 5%). As for the price, product liability insurance costs vary for each seller. For some, it may cost $10,000 and for others it may only be $1,000. At the end of the day, it comes down to what company you use to get your liability insurance and what type of products you are selling.
Quesion #4: What process did you use to find Jungle Stix?
Greg used Jungle Scout to find his Jungle Stix. This is a product database research tool that shows you different live metrics about products being sold on Amazon.
As a benchmark, he is looking for products that are low in competition (20 reviews or less) but have a high demand (300+ sales per month).
When he narrows down and find a product that meets this criteria, he then goes onto analyse the market to getting a bigger picture of the opportunity. He considers products an anomaly if their metrics don’t match the majority of the other competitors in that market.
However, if he does find that the market is young and the demand is still high, he’ll consider the product as a potential opportunity to make money with.
Want to try out Jungle Scout for yourself? Click here to learn more!
Question #5: What is a realistic budget to start an Amazon business?
Greg recommends that if you don’t have at least $2000 – $4000 to invest into a private label Amazon business – you shouldn’t start yet.
Instead, you’re better off trying to save up a bit more through other ways of making money such as retail arbitrage.
If you’re in this position, finding some extra cash might be a bit of challenge for some. Check out these 8 side gigs you can do to earn money from home.
Question #6: What items on Amazon are traps and should be avoided at all cost?
Of course, choosing the wrong product is a newbies biggest nightmare. Using something like Jump Send to see what products are popular in the marketplace is a helpful tip. On Jump Send, you’ll realise there a lot of “faddish” products being sold that are only popular for a short amount of time – but hardly sustainable in the long term.
Selling on Amazon is a massive opportunity for you to leverage a way of earning income online. And if you’d like to learn more about earning money through e-commerce online, here’s a gift I’d love to offer you.
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