231 Amazon for Beginners – The CORRECT Business Model for Beginners
I have a very special episode today if you’re an Amazon beginner. If you’re not yet on Amazon or playing with the business model, this episode is for you.
Is it Too Late for Amazon Beginners
The question is whether or not Amazon is saturated and if it’s too late to get in. My answer comes in two parts. If your business model is research using magical tools that give you numbers, go out and buy £5000 worth of product from a Chinese supplier, then you’re on the wrong track.
This practice might have worked in 2013, but it doesn’t anymore. Back then there was a huge surge in demand because so many buyers were coming onto the platform and sellers couldn’t meet that demand. Things are quite different now and that only works if you have deep pockets. If you’re an Amazon beginner, you need to revise your strategy.
Is Entrepreneurship Right for You
You have to be willing to take some hits. You’re going to have some setbacks and if you’re too risk averse you’re not going to make it as an entrepreneur. I’m sorry to be so harsh, but better to learn it now rather than after your bank account is £10k smaller. Let’s assume you’re a good fit to be an entrepreneur. Then ask yourself if you should take that online. There a plenty of offline opportunities such as trading and real estate. That can work very well for some people.
The Next Step for an Amazon Beginner
If you have decided you want to be an entrepreneur and you’ve settled on Amazon, then you need to figure out how to do it. I’ve told you how the old business model is no longer viable. Now I want to tell you about the alternative. I’ve spent the past three years working with sellers in my mastermind groups and in my mentorship program and I’ve come up with a business model that doesn’t take you from A to Z in one leap like Superman but rather teaches you how to properly sell on Amazon.
You’re probably trying to figure out if the Amazon thing is for real and how to get started without massive risk up front. I’m all for risk reduction. Keep in mind that Amazon isn’t risk-free, and you have to be willing to take risks, but it has to be a calculated risk. You can reduce risk with proper research and testing products before going all-in. You can do that with tools like JungleScout and AZAnalyzer. AZAnalyzer is my new favourite tool created by Reed Menssa and you can find out more about it in his interviews.
Start Off Right as an Amazon Beginner
If you’ve never sold anything on Amazon, I don’t believe you should start with private label. You really have no business going to China and buying thousands of pounds worth of stuff. You need to learn the Amazon system. The best way to do that is with retail arbitrage or by selling things around your house.
Now, you could start off by yourself and figure it out on your own, but I prefer to hire someone that knows what they’re doing. This helps eliminate the learning curve and the opportunity cost is way bigger than you think. The money in your pocket is important, but it’s nothing compared to the money you’ll miss out on by wasting months or even years trying to learn how to do it. I would have wasted over $100k had I not gotten help.
The best way to get started is by seeking expert help on retail arbitrage. Not as a business model, but as a prelude to private label. It’s a way to learn the basics of Amazon. From there you would move to a bigger order, something like a wholesale order, and scale up to private label.
The Space Shuttle Model
I’m referring to it as a space shuttle model as opposed to a moonshot model. With a moonshot, you have one chance and it either works or it’s a disaster. With a space shuttle, you can go in and out of space many times. This is going to be a face-to-face training. There will be no online course. That may change down the line but I wanted to start with face-to-face. I’ve teamed up with Christian Rodwell of Escape the Rat Race blog and podcast where he has great guests and explores several types of business strategies.
We’re going to have some taster sessions as well as my full course. That will be split over three days coving the three phases: niche, source, and launch. For only £20 plus the booking fee you can join us for this course. It will be Tuesday, the 20th of April from 6:30 to 8:30 in central London; also the 10th of April from 6:30 – 8:30. If you want to check that out, just head over to amazingfba.com/taster.
If you’re seeking the reality of selling on Amazon rather than the fantasy or overly risky, you’ll want to join us.