Amazon FBA Journey: Full Breakdown & Transcript

[00:02] FBA and sales exceeding one million riyals, I decided to share the essence of my experience and the things other sellers don't talk about regarding Amazon FBA. This way, before you risk starting this project, you'll have capital. If you lose it, your situation could be very difficult. I know you've

[00:15] millions in profits. When you ask them how, they tell you to enroll in their course. Well, in this video, I'll share a free workshop with you. You don't need to pay for those courses; you'll find everything there. Believe me, you 'll find it all in this video. Three years of experience

[00:29] in FBA, all in one video. Everything I went through, how I overcame it, what my experience was like, whether I profited or lost, what I did to increase profits and sales, how much I earned, and how to register in the business world. Everything important. And finally, I'll

[00:42] answer the most important question: Do I recommend you start an Amazon FBA project? Whether it's in 2024 or not, on top of all that, I'll be with you. I'll provide you with free consultations for any problem you face or any inquiry you have. First, let's take the main points to understand correctly what Amazon FBA is.

[00:56] Amazon FBA means fulfilling orders through Amazon. This means you take products and send them to Amazon, and they handle shipping, communicating with customers, the website, receiving payments, and everything else. They deliver the products to the customer and give you your profits. You can sell on Amazon

[01:10] Saudi Arabia, Amazon UAE, or Amazon US, which receives about 4 billion visits monthly and is considered the strongest e-commerce marketplace in the world. So, you can get them from wholesale stores or order them from China and ship them directly to Amazon US without any intervention from you

[01:23] and without you needing to receive them as an intermediary. Of course, there are fees that Amazon takes for the services they provide to you. This is what excited me about this project: three main points. The first thing is the idea of ​​creating an additional point of sale. For example, you sell in a store or a retail outlet.

[01:36] In reality, Amazon also opens doors for you. You have nothing to lose. If you have merchandise, your situation is good, everything is fine. You'll open an additional point of sale, which will hopefully lead to higher sales and profits. Secondly, it's considered a very significant form of passive online income. This means you don't need to go anywhere, not even to

[01:49] see the supplier in person, confirm the order, or arrange for it to be shipped. supplier in person, confirm the order, or arrange for it to be shipped. shipping the order from China to America, to order management, customer service, and all other aspects.

[02:02] Amazon handles all of this for you. So, it's considered a relatively small income. Once you establish it a little at the beginning, you'll find it much more comfortable later on. Thirdly, it helps you test your product If your brand succeeds on Amazon, you'll be optimistic and confident that it will

[02:15] also succeed in an online store. After that, I started to delve deeper into the fees and costs. To determine the capital needed to start this project, the first thing is the monthly subscription fee, estimated at Europe. Amazon Saudi Arabia and the UAE don't have this fee because they are new and eager markets, and they

[02:30] want to encourage merchants to join and start selling there. The second thing is the referral fee, which is 10-15% of the product price. You can consider this referral fee as Amazon's profit, since you sell on their platform. The third

[02:45] thing is the fulfillment or FPA fee, which is 5-10%. This covers the costs of delivery, packaging, shipping, customer management, order management, currency exchange, website, and everything else. Amazon doesn't consider this source of income as profit; they consider it a cost to

[02:59] cover the work I'll do for you. They consider the referral fee profit, but they consider the fulfillment fee an expense to cover the costs of the service they provide. And lastly, storage fees are approximately 3% to 5% depending on the product's size and weight. Now that

[03:13] we know the costs, we need to know the approximate profit margin per sale. What percentage of the profit will you take from each sale? After seeing the figures and costs, you'll take approximately 30% to 35% of total sales. This is an average and depends on many factors. If you

[03:27] 're a new seller, it can be significantly lower, even as low as 10%. You'll run ads, participate in promotions, offer discounts, and so on. As a new seller, your goal and plan shouldn't be to generate profits immediately. Instead, focus on earning higher ratings and increasing

[03:42] your ranking. Over time, this will lead to a significant number of free sales. You must sacrifice a little to grow your brand and start generating sales in the long run. If your Amazon store has a monthly revenue of $10,000, you'll likely earn $3,000 of that as profit after... Now that

[03:56] we know all this, let's begin our Amazon FBA project. The most important point, which I consider the secret to success in Amazon FBA that many people don't talk about, is finding a winning product. I'll explain all the techniques and technical aspects, but they don't focus on this crucial point: finding a

[04:08] profitable product. When you order it from China, you're 100% confident, God willing, that it will generate sales and profits. Of course, when you choose a product, you first need to determine your selling method, whether wholesale or private label. You can

[04:22] create your own brand for the product. For example, you can import a towel from China without any logo or label, add your logo, and sell it on Amazon as your own brand. This is the best and most important method. I've noticed many people import towels without

[04:34] adding their logo, shipping them directly to Amazon without any label. Then, when they list them on Amazon, they label them as a generic product. This will... It gives your product less credibility and won't make people like it because it's not a brand; it's just a regular product without any branding. And of course, when you work with private

[04:48] label, you have to keep in mind that you're building a brand on Amazon. You won't start on day one or week and think, "I'll make a profit!" No, you need to build a brand, a brand that gathers reviews, as we discussed earlier. If you don't want to do all that, and you just want to start selling and move on, then you'll be selling

[05:01] products from well-known international or national brands in your field that people love and trust. You buy them wholesale and sell them immediately, like Nike or Adidas. It's fine to buy Adidas t-shirts wholesale and sell them on Amazon. They already have high search volume, and people know and

[05:15] trust them. But if you want to play it long-term and build something for yourself, I highly recommend starting with private labeling and creating your own brand. So, how do we choose a winning product? For us, choosing a successful product is perhaps the most important thing you can do in your Amazon

[05:28] FB project. If you don't choose a successful product, you'll struggle a lot, your profits will be lower, you might even incur losses, and you'll get caught in a vicious cycle with no end in sight. Many people fail with their first, second, and third products, then succeed with their fourth, perhaps due to the experience they

[05:42] gain on Amazon. But the best way to ensure your product's success, God willing, is to look for an existing successful product on Amazon—one with good sales and profits—and then create a similar product with your own brand. You can make minor adjustments

[05:56] to the product. This is the secret that many people won't tell you: don't reinvent the wheel. Don't come up with a completely new idea. Don't just see a new product on Alibaba or AliExpress and think, "Okay, people will love this." You don't know if the search volume is high or low. You don't know if people

[06:10] will like it or not. So, when you see a product that people have already seen, They bought it, loved it, and it's new to you. You can start right away. You'll be confident that you'll get a product that's in demand in the market. The best tool to help you make these decisions is Jungle Scout. This tool will help you

[06:23] see profitable fields and profitable products, their daily profits, their daily sales, where they get their supplies, and how to find product details and everything else. So, what I was doing was focusing on three main things. First, the number of reviews should be low, less than 20 or

[06:38] 30, but less than 20 is even better. This way, we know that this product is new, not years old or months old, not even two or three months old. So, we can get the same product knowing that there's still demand because it's new. Next, see what the selling price is. Is it suitable

[06:52] for you? The best thing is for the selling price to be between $29 and $35. If it's too cheap, Amazon's costs will be very high for you. And the third thing is, see how much The cost of this product on Alibaba is as follows: Search for the same product on Alibaba and you'll find many suppliers.

[07:07] Check the cost price and compare it to the selling price. Is there a profit margin? Will it be good for you? Ideally, there should be a margin of at least $20 between the Alibaba price and the Amazon price to cover Amazon's costs, advertising, and all that. There's a very

[07:20] important metric in Jungle Scout: how many units are sold per day. If this product sells 10 units per day, that means 300 units per month. So, when I buy the same product from Alibaba, I need to have at least 90 to 21 days' worth of inventory. I need to buy enough stock to last me

[07:35] three to four months. Since I know this product sells 300 units per month, I'll need to buy 900 or 1200 units from the Chinese supplier. That's why it's not practical to buy 100 or 200 units and put them in the Amazon and sales were good, everything was going well. Suddenly, there were only

[07:48] 50 items left, enough for two weeks. Ordering from China and shipping it would take you two months, so the situation would be very difficult. If your stock ran out, your ranking would drop. By the time you got that merchandise, your ranking would have already dropped, and you'd be starting from scratch, just like me. You need to

[08:01] get enough stock to last you for that entire period, using the same information Jungle Scout gave you. But information Jungle Scout gave you. But

[08:31] order a sample before ordering the large quantity. You'll likely contact many suppliers on Alibaba. Make sure they're all verified so that, God forbid, there's a problem, Alibaba will protect you and be there for you. You might have three to five suppliers, or even ten. You do

[08:45] n't have a problem ordering a single sample from each one. Sometimes they give them to you for free; they do n't charge you a single riyal, just the shipping cost. Sometimes they will charge The amount you pay is very small, and if you choose this supplier, I'll deduct it later from the larger order. For example, let's say I

[08:57] choose five reliable suppliers. I'll contact each one to give me one unit of the product and give me one unit of the product and ship it to another supplier specializing in shipping. This is a very important point; it's difficult to ask all five to ship it to Saudi Arabia. That would be a

[09:09] huge problem, and you'd lose a lot of money. So, all five I contacted will ship it to the supplier specializing in shipping. The cost of shipping within China is almost negligible. Then, this shipping supplier will charge

[09:23] all five products, believe me, you'll see things you didn't see on the laptop or mobile site. Some of the materials will be of good quality, some will look smaller than you expected, and some will give you ideas like, "Okay, if I put a

[09:36] zipper here, it would look really nice." If you used clear nylon here, for example, it would look much better. This feedback is very important so that when you sell on Amazon later, you don't receive complaints or negative reviews that could ruin your entire product. After choosing a good supplier from among these five suppliers,

[09:50] I told him all the notes I needed and the modifications I wanted to make to the product. I told him I wanted him to make me an additional sample with the modifications I requested, including the color, size, everything. I also wanted him to add my logo to the product—whether he would stick it on,

[10:04] use a sticker, or anything else. We asked him for this because later on, when we register a trademark on Amazon, they will ask us to photograph our product and see the logo on it. In other words, don't just give me a brand name and a

[10:17] product name and say, "I want to sell this brand; where is your product?" So, I asked you to photograph the product in more than one way, such as on the product itself. Once, a table might be used, and someone might be carrying something like that. So, if the supplier sends you a picture of it, you go to Amazon and submit a

[10:30] request to register a trademark. They'll give you the link. You'll add some key details like the brand name, your name, and a picture of the product. If everything is okay and you submit the request, and they approve it, then proceed with the entire order. If, God forbid, they tell you that the brand is already taken or

[10:43] someone else has taken it, then you change it and contact the supplier to have them re-apply the sticker. You only need to pay a small fee; it's all for the sake of getting approval from all these things on Amazon FB, so as soon as you tell them everything, they'll understand and do it for

[10:56] you immediately. After getting approval for my brand from Amazon, I contacted the supplier and said, "Thank God, everything is fine. I want a certain quantity, for example, 1000 pieces, and I want you to give me the..." 1000 pieces—that's the number of cartons you'll need to put them

[11:08] in. After he gave me the carton dimensions, I went to Amazon and created a shipping plan or a shipping schedule. I specified all the dimensions, weight, size, number of cartons, quantity, and everything else. I made sure everything was fine and that no problems arose. Then, in the end,

[11:23] Amazon will give you the carton specifications. In this case, everything is fine; your product is approved, and there are no issues. You can proceed with the large order from the supplier. This is a very important point because there are some products— not many, but rare—that you might

[11:37] not be allowed to sell, especially if you're a new seller. For example, children's toys, especially those that are somewhat dangerous, like guns with bullets. If you create a shipping plan for these, Amazon might stop you, saying you're a new seller and not

[11:50] look for another product. So, before you place the order... You get involved with the supplier. I can't guarantee that you 've created a shipping plan and it's successful. Once Amazon delivers the goods, you go to the supplier and pay 30% of the agreed-upon price as a down payment.

[12:04] After the product is finished, and before paying the second installment, you need to hire an inspection company or a reputable auditing firm from within Alibaba. Tell them to go to the factory and inspect the goods, checking the following: product weight, fabric quality, and everything else. This requires a

[12:18] reliable company that will be on your side. It will cost you around $150 once, but you'll have peace of mind knowing you're buying goods you're 100% sure are successful. Sometimes, single product moving or something similar, the supplier might

[12:33] compensate you with a discount or something like that. After you receive the report from the inspection company, everything will be fine. Everything is fine and everything is going well. You can complete the second and final payment (70%) to the supplier and ask him to ship it to Amazon's warehouses. Give him the same shipping address Amazon gave you, and he'll already

[12:46] know the address. Another idea, which is sometimes better, is to not have the supplier ship the order directly to Amazon US. Instead, use a specialized shipping company. They often have competitive and good rates and have established relationships and cooperation with shipping companies. For example, a

[12:59] Chinese supplier might quote $500, but you could get $400. You can simply ask the supplier to ship it within China to this shipping company. This will cost around $30-$40, giving you a profit margin and making things easier, God willing. Another important point is

[13:12] that Jungle Scout doesn't work 100% on Amazon Saudi Arabia and the UAE. In some markets, like Saudi Arabia and the UAE, it only works partially (around 50%). However, I still recommend it because... It prevents you from getting accurate data to help you make the most important decision you can make on Amazon. Let's

[13:26] say after you chose the right product, placed the order, and shipped it directly to Amazon, at the time of shipping, you added the product, its title, description, images, Wallet Points, and other important details. To be honest, I didn't add them with any care; I just added them as a formality. I wanted to

[13:40] add the product, but I just wanted it to appear on Amazon. I was fine with that, so I put in a normal title and a description I didn't put much effort into. I got some designs from Canva and some from a supplier, and so on. But after the products arrived on Amazon, that's when the shock and the big challenge came: there were no sales. Day

[13:55] after day passed with no sales or even many clicks. There weren't many people even looking at my product. So, the challenge was how to generate sales. Many people think that as soon as you ship your goods to Amazon, you'll start seeing the order counter on your phone the next day.

[14:09] No, there are several things you need to work on for any new product. Don't think you'll get sales from day one. You won't get sales, but you have to work hard on this product until it reaches a certain level. After that, you can really just sleep and it will consider the second trade secret that other sellers don't tell you, is

[14:24] how to achieve sales on Amazon. It's two very simple things. To achieve sales for any product you have on Amazon, focus on just two very simple things. First, get people to click on your product. If it's displayed on the first, second, third, or tenth page, get people to

[14:39] click on your product as much as you can. This is called the click-through rate (CTR). Increase your product's CTR as much as you can. Second, after they click on your product, get them to buy. You might say it's very simple, that I'm not saying anything new, that this is well-known, that this is my basic principle.

[14:54] But let me tell you the secret because each of these has different strategies to succeed, and in the end, you will get sales. First, the CTR is the click-through rate. How can I increase the click-through rate? How can I... I want people to click on my product

[15:08] and see it more. The first thing is the reviews. The higher the reviews, the more people will click on your product. The most important thing is to go from having no reviews to having one. I don't want you to do anything difficult or complicate things. Just get one review, and I'll tell you how I got

[15:22] mine. When you see a product with no reviews, no stars, nothing, it looks so basic. It doesn't motivate people to click on the product. But after you get your first five-star review, you feel like you're doing

[15:35] great. So how do we get reviews? We'll create ads, we'll make offers, and we'll send messages or emails through Jungle Scout asking customers to review our product. This is a service available within Jungle Scout that you can do; you can't do it directly

[15:48] from the platform itself because you don't have the email address of the customer who bought from you. But Jungle Scout is linked to... Amazon will be able to send these emails directly. Secondly, you need to sell, sell, sell! Don't focus too much on profitability. Sell to increase your rank or

[16:01] classification, or what Amazon calls the Best Seller Rank (BSR). The better your rank, the more prominently it will appear on the first pages.

[16:16] 4, and hopefully, it will reach the first page. Another factor that affects your CTR (Click-Through Rate) is the product title and main image. This is very important. The product title must be a beautiful, attractive description that

[16:31] makes people click on the product and includes all the details a person might search for. If you're selling, for example, an iPhone, write in the title: iPhone 64GB or 128GB, color, manufacturing location (e.g., Middle East). Write all of this in the title because this is the first impression.

[16:45] main image that will be on the product page also needs to be attractive and large, meaning it should cover the entire image frame. Don't put, for example, a large square image of your product in the middle but only 60% of the image area. No, make it 99% of the image area because the larger it is, the more it will

[17:02] more. As we said, ads are very important and absolutely necessary to increase your ranking. You will sell paid ads, and you might not make a huge profit at first, but little by little you will improve your ranking and get better, and you will also generate sales for free. Even if you stop your ads or keep your

[17:18] first page. Then you can participate in special offers and discounts from Amazon, for example, Prime, or for National Day, Ramadan offers, etc. I didn't feel that these were as useful as ads, but they are usually helpful during peak seasons. So, we have improved the

[17:32] CTR or click-through rate. The problem is that when people click on our product, they don't buy it, meaning the conversion rate is very low, 2% or 3%. The normal conversion rate on Amazon is 10%. Ten percent of people who see your product should buy it. If it's less than that, it means there's a problem with your

[17:47] product page. So how do we improve the conversion rate of the product page? It's simple: you need to optimize your product page.

[18:01] professional designer who specializes in Amazon. You can find them on freelance platforms like Fiverr and similar sites. They should be Amazon specialists who know how to present products attractively. Try to have six complete images, and ideally, one video. This video is what got me my first rating. As you

[18:16] know, videos are very important. Videos let you see the product in a different way than just the image. I saw a model on a freelance platform like Fiverr and Fiverr, and I partnered with a model who specializes in creating product videos for Amazon. This is their area of ​​expertise; they know how to showcase the product's features. A

[18:30] beautiful and engaging video that you agree with and get them to buy your product. You give them the product's price, then transfer it via PayPal or the freelance platform itself. After they receive the product, you give them, for example, the script highlighting the features you want to emphasize. They record a video and send it to you, and you

[18:42] feature it on Amazon. Then I contacted the same model who bought my product and gave her the price. I then asked her to review my product. Of course, I didn't ask for five stars. You can't ask for five stars on Amazon. If you ask someone for a

[18:55] five-star review, whether on Facebook or any other site, Amazon knows that the product might be shut down and your entire store could be banned. But asking for a review without bias—neither positive nor negative, neither five nor four stars—is fine. So I asked her for a review, and she didn't disappoint. She gave me five

[19:10] stars, a very good description in the review, and a really nice comment. So, I got through the critical stage. To assess the initial results, things have improved significantly, with much stronger sales than before. As I mentioned, we need to improve the images, add a video (which is very important), and add an attractive title, as we discussed.

[19:23] The description and bullet points (key points) are also crucial. It's best to hire a specialized content writer to create an engaging description to increase your conversion rate. You'll only make these investments once on a product you've already invested thousands of riyals in, and you'll be paying

[19:37] substantial amounts. So don't skimp on these things, as they are what determines your success. Another crucial factor that greatly benefited me was monitoring competitors. For example, if a competitor I saw earlier and tried to emulate their work, I would observe their progress, how they achieved it, and what they were doing.

[19:51] For instance, if they made a video with a model, I'd think, "Okay, great, I have to do the same." Or, if they implemented a design idea that highlighted a feature I hadn't, I would do the same, adjusting and refining it. This is where continuous improvement begins. The most important thing in the beginning is to never let... Your goal shouldn't be

[20:04] profits, but rather sales. Make it your goal to sell more and improve your business. Believe me, if you sell, things will open up for you significantly. Tomorrow, the product cost to the supplier will decrease dramatically. If you initially ordered 500 units, and you're now likely to order 1000 or 1500, the cost will drop

[20:18] considerably. Shipping costs will also decrease significantly, compensating for the expenses of filming, video editing, content creation, and all that. Your reviews will improve, your ranking will increase, and you'll get paid sales through advertising, as well as free sales. This will cover the costs, and you'll feel like you're

[20:32] doing very well. There are several ways to get that first review, which is crucial. Don't expect to make sales if you haven't already gathered that first review. You can do this by contacting someone who has bought your product if you know them, or you can even participate in programs offered by Amazon where you can present

[20:47] your product for free to an Amazon influencer. This influencer will then review your product spontaneously and honestly, without any favoritism or bias. It's not guaranteed to give you five stars at all. It depends on your product; it will give you a suitable rating. Some sellers use this

[21:00] metric, sometimes accumulating ratings for a single click, resulting in a final rating of 4. A 4.6 is considered good, and profits will gradually follow. The most important thing is to build the foundation correctly. Focus on CTR (Click-Through Rate) and conversion rate. Each has its own causes and

[21:15] solutions. If you have a problem with people not seeing your product, as we discussed, work on it. People see your product and click on it but don't buy, then you have a problem with the conversion rate or the product page. So, to summarize all of this, is it worth starting with Amazon FBA or not? The

[21:28] worth starting with Amazon FBA or not? The answer is yes, absolutely yes. You're talking about one of the strongest online marketplaces in the world. Amazon US alone has 4 billion visits per month, meaning many people open Amazon US more than once a

[21:41] day. And the same goes for Amazon Saudi Arabia and the UAE, because they are new markets eager for new merchants to enter. It has incredible support, and believe me, if you start today, after a while you'll be like Amazon US and will capture the largest market share. Another great thing about Amazon Saudi Arabia

[21:54] and the UAE is that you don't necessarily need to run paid ads like the US version, for example, because there isn't much competition yet. Your visibility will be high in the beginning, God willing, because there isn't that level of competition like Amazon US. And Amazon is a force to be reckoned with. You'll see these stores become some of the

[22:06] near future. I've seen both sides, the big losses and the big profits, and I've spoken with many merchants. But the most important thing to focus on is building a digital asset that you can be patient with. Don't start in the first month or two; give it at least three months. Be consistent for at least three months,

[22:19] like a small child you nurture, spend money on, and care for. Then it grows, gives back, cares for you, spends money on you, and helps you succeed. Before we conclude, I recommend you watch this video; it has a practical, step- by-step explanation of Amazon FB Saudi Arabia or the US version. And if you have any Please write your question in the comments section below. We would be

[22:32] very happy if you supported us with a like and subscribed to the channel. Thank you, thank you, thank you for watching, and I hope to see you in the next video.