How To Not Go Broke Selling On Amazon FBA (Watch This Before You Sell)
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How To Not Go Broke Selling On Amazon FBA (Watch This Before You Sell)


So are you afraid of losing money selling
on Amazon FBA? I am going to go over everything that you
must know so you don’t end up going broke selling on Amazon FBA. I have 2 previous YouTube videos where I talk
about all of the mistakes that I made for my very first product on Amazon FBA. Make sure you check those videos out. In today’s video, we are going to talk about
everything that you need to know and prepare for so you don’t end up going broke selling
on Amazon FBA. I get a lot of messages from sellers everyday
and I want to go over a lot of things that people do not talk about when they are just
starting their Amazon FBA business. Or maybe you are an experienced seller and
you’re watching me right now, I am sure you can find some golden nuggets in this video. The very first, most important thing is affordability. A lot of times people ask me, “Tamara, how
much money should I have prepared in my bank so I can successfully sell on Amazon FBA?” “Tamara, how much money do I need to get started
selling on Amazon FBA?” People ask these questions because they should
be aware that there are expenses and fees when it comes to selling on Amazon. Also, with any business that you guys run,
there will always be expenses and fees. To answer this question, it really comes down
to affordability. I know a lot of people saying you need a few
thousand dollars to start selling on Amazon. That is completely true. I always tell people, you should have a few
thousand dollars. If you have $5,000, that’s more than enough. But if you have $2,000, you can get started
as well. But what you really need to think about is
affordability. Can you afford selling on Amazon FBA? There’s been way too many times that people
call me and they say, “Tamara, I spent the very last amount of money in my bank account
and I cannot afford to restock my inventory.” This is after they put in the time, energy,
effort into starting up their product. Good for them for pulling the trigger and
getting started, right? But a lot of the times, they don’t have enough
money to keep on going. So the very first thing you should really
think about is, can you even afford selling on Amazon FBA? You may not have more money than someone else. Someone else may not have more money than
you. It really comes down to how comfortable are
you to invest in your business? How much are you comfortable with putting
into your Amazon FBA business to just get started? You see, a lot of the times, people don’t
actually know how much they are able to afford. They just hear all of these random numbers
online that people talk about because it makes sense to them. But it may not be suitable for you and your
personal financial situation. You really need to figure out how much money
you can afford to put into your business? So for my students, I always like to teach
low risk strategies and tactics. What that means is I always suggest to source
a product, in the beginning when you are a new seller, no more than $3 for your product
on Alibaba. Because after you send in your inventory and
after you calculate all of the fees that are associated with Amazon, for the average person,
$3 a unit is actually a lot to a lot of sellers. After everything adds up. After you have your whole round on Amazon
and know how it is like selling on Amazon, you know that $3 a unit is a very good starting
point. However, if you have a bigger budget and you
have a lot of money in the bank that you don’t mind investing, then you can source a product
for as much as you want. So in order to not go broke, you have to figure
out your numbers and know that you still have money in the bank for everything else that
is going on in your life. For rent. For lease. For your vehicle. For food. For your cat. For your dog. For your pet tarantula. There’s so many things that you still need
to pay for everyday in your life. So make sure you know your numbers and only
put the money up front with what you are comfortable with. So I hope that cleared it up for you when
it comes to the big question, “how much money do I really need for this business?” It all depends on what you’re comfortable
with and what you can afford. Not what someone else can afford. Now you’re probably thinking, “well Tamara,
I want to get started selling on Amazon but I have no money.” Okay, in order to not go broke selling on
Amazon and in order to still keep the lifestyle that you want to have, you need to figure
out a way on how to get that money. A lot of the times, people come to me and
they say, “I just don’t have the money.” And my question to you is, “do you not have
money in general? Are you homeless? Can you not feed yourself?” Or is the question, “do you not have money
for this? Do you not have money for your business? And you really just want to spend your money
on other things in your life?” Those are completely two separate things and
if you guys want to run a successful Amazon FBA business, if you want to run a successful
“any” business that will make you money and profit, sorry to say, you’re going to have
to sacrifice some expenses on the personal side of things and really use that money to
invest into your business. A lot of times when people tell me that they
are broke, I don’t believe them unless you are homeless. But you really are just not managing your
money properly and not knowing how much you should actually invest in your business. If you want to make money and you want to
be successful, you are going to have to make some serious sacrifices and get that money
to be invested and put into your Amazon business. The next big thing that you should be adapting
is penny pinching. I know a lot of us are not penny pinchers. I used to be a penny pincher when I worked
9 to 5. A penny pincher is someone who tries to save
as much money as they can on literally everything that is costing them money. For example, if I am going to Starbucks and
a coffee costs $2 where a bottle of water costs $1, I may just go for the bottle of
water so I save myself $1. When you are just starting your Amazon FBA
business, especially if you are a newbie, if you are a new seller, you have to penny
pinch. Now, I don’t believe in penny pinching for
the rest of your life. I don’t believe in penny pinching when you
start to scale your business. That’s a whole new, different story. It’s a different topic. But when you are just starting out your very
first or second product, you need to penny pinch because there are so many things associated
with Amazon FBA that you will need to be paying for especially when you launch your products. When you launch your product on Amazon, you
need to be running PPC sponsored ads. You need to be running advertising ads and
think of all of these other things that you can do to really get some rank on your product,
right? The higher you rank, the more visibility and
the more people will buy your product. And obviously, advertising costs money. If you guys are thinking of selling on Amazon
or if you already do sell on Amazon, you have to really penny pinch. Now, I don’t mean penny pinching so you can
lower the quality of your product. I mean penny pinching meaning you may have
to sacrifice the every morning cup of coffee at Starbucks just so that you can start paying
for your Amazon PPC sponsored ads. There’s a lot of things that you can do in
your life to start saving a little bit of money and putting it towards your business. If you guys want another video on that, leave
me a comment below. I may just teach you how I saved up all of
my money to start my businesses today. Which leads me to my next thing that I want
to talk about, is focusing on one thing. So when I saying focusing on one thing is
that you should only be focusing on Amazon FBA, if you want to start an Amazon FBA business. There’s way too many people who get shiny
object syndrome. And what that means is that you see all of
these things happening on YouTube, on the internet. Maybe it’s Shopify dropshipping. Maybe it’s opening up your own hotdog stand. I don’t know. You see all of these other business opportunities
that kind of lure you into thinking that, “oh, you should do it too because so-and-so,
this other person is making a lot of money.” If you really want to get good at something
then you need to stick to one thing at a time. If you want to stick to Amazon FBA then you
stick to Amazon FBA until you really scale it up and you are ready to launch a different
type of business. If you are constantly looking at other things
and getting distracted by other businesses, you are never going to put your fullest potential
and effort into your current business which is Amazon FBA. In order to not go broke, please try to not
have shiny object syndrome. Choose one type of business, stick to it until
you start making real profits. This is similar to launching your next product
after you have scaled your initial products. If you have one product, you should not be
launching your second one until you see success in the first one. Or if that first product is a total flop,
then yes, of course you launch a second product, right? But, you should not be launching 10 products
all at the same time because that is a really, really high risk and that involves a lot of
startup capital where it can leave you broke. And who wants to go broke, right? If your product ends up to be a huge hit and
you are getting a lot of sales every single day that are steady, now is the only time
you should be launching a new product. Do not launch a bunch of products upfront
without knowing what you’re doing. It’s kind of like, would you open another
coffee shop if the first coffee shop is still in debt and you don’t know what you are doing? It just does not make sense, right? In business, that is never a wise decision
to open up something else, to start something new when you are not even getting the current
day’s success. Of course there may be an exception to that
rule but generally speaking, when we are selling on Amazon FBA, it is not smart to launch a
bunch of products, especially if you don’t know what you’re doing and especially when
you have found zero success with your first or second product. Do not go with 10 other products and throw
it up online. And finally, the very last thing I want to
talk about to help you not go broke in your Amazon FBA business is consistency. I talked a little bit about this previously
on my channel. You guys have to be consistent with this business. Actually, when you have any business, you
need to be consistent with it. For all the mistakes, trials, and errors that
you are making along in your journey, you have to be consistent and learn what exactly
is going right, what is going wrong. If you are not keeping up to speed with this,
you are going to end up losing your money. You have to know what you are doing right,
what you are doing wrong. Eliminate what you are doing wrong and keep
increasing what you are doing right. Obviously this knowledge comes with time,
it comes with experience, it comes with training, if you guys have any training. It all takes a bit of time but just make sure
that you guys are on top of the game every single day. Be one step ahead of people and you will find
more success and not go broke with your business. Okay guys, I hope this video has helped you. I know a lot of it has to do with financials
and really knowing a bit about yourself too and your business. There’s some things that you are going to
have to change and figure out in order to not go broke in this business. Please give me a big thumbs up if you enjoyed
this video. Subscribe to my channel and stay tuned for
my next video.

24 Comments

  • Never Gives up

    Nice video Tam, you are absolutely correct that you need all those things. Even tho my first product is a success, I'm not launching another till 5 months later. Only you know your business well and don't follow someone else's footstep or else you will be broke.

  • Marie Manaog

    My advice to new sellers or sellers who will start a new product after the last one failed is to enroll on your Amazon FBA Winner course. As for me it will be one of the best investment. My bad that I already re-order my second product before I talked to you. I can use that money to enroll to your course 🙁

  • Djoel Tav Sasune

    Tamara, I can listen to you read a box of cereal, so please do a video on how you saved cash for your business. Thx for video

  • Dave McDaverson

    For the time being, I'm using Shopify. I hate Amazon as a consumer so as a seller I can't imagine the headaches. Hoping to not go close to being broke cause going back to a regular job takes so much time. 😨🤞

  • Jonathan Greenwall

    Business is tough! It requires a lot of work but the ones that keep pushing and learning from their mistakes are the ones that succeed. It's good to see that you fall into that category! Keep up the awesome videos!

  • S

    Well, I think to the vast majority for people, it's harder to not spend (waste) money on stupid things than it is to make money. A lot of these people make more than enough to start a business on amazon but they just have no concept of SAVING money. Nada. To each dollar they make, they spend 2. Then they complain about "not having money" !!

    Here's a couple of advices for these people ; 1) stop buying coffee at starbucks 5 times a day, or at all. 2) NO. You don't need a stupid iphone every year. So, don't buy one every year. I can almost guarantee you you'll have an extra $2500 in the bank at the end of the year.

  • dgilvani

    I think the best thing anyone should do before getting started is read the book The Lean Startup by Eric Ries. It will save you from make 1000’s if not 10,000s of dollars in mistake. It’s a must read!! Thanks Tamara

  • Martin C

    Shiny objects syndrome that stuck with me thanks so much. Recently left a six figure job after 20 years to try something new. So many guru’s so many different online opportunities but Amazon FBA is the one that stuck out the most and your videos are top on my list great job. I’m Canadian and still deciding what’s better .ca or . com I here so many different opinions. Will be launching my first product soon so I have a lot more of your videos to watch thanks again keep up the inspirational work👍

  • Elizabeth Pierce

    Hi Tamara! I will send to Amazon Fba 4 different colors 96 pcs glove. Chinese manufactures will put 12 pcs 1 box ,& for same color 24 pcs will be in 2 boxes and he will put 8 boxes to one main big box. I completed shipping process and on the end Amazon ask to me box information what i need to choose ? everything in one box ? ( just one sticker ) or one sku in per box ? ( 8 sticker but what i will stick to main box ? ) if help me i will be happy

  • Raneem AlZaben

    Literally best mentor ever to anyone watching this. She genuinely wants to help people and see people succeed. That is so rare.

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