The S&P 500 has returned, on average, about 11% over the past 30 years.
Bonds have averaged approximately 8% during the same time.
The average salary increase is just over 3%.
In 2014, I earned 26,566% after starting my Amazon FBA business with $75 at the end of April! (that’s a little over $22,000 for those of you still following along).
Ok…I’ll admit that statement may have sounded like a sleazy online sales guy (or gal).
So let me clarify: This isn’t a post about how I invested $75 and collected a crazy amount of passive income.
You’ll learn how I started my Amazon FBA business, worked really hard, and still have a full-time job (with a family & 3 kids).
Let’s get started….
What is Amazon FBA?
Amazon FBA (Fulfillment by Amazon) is very similar to Ebay, but on steroids. Through the FBA program you only have a few jobs:
1) Find products to Sell
2) Send the products to Amazon
3) Price & reprice items
Amazon handles the following (all for a small fee)
1) Finds customers for you (access to their 200 million + customers)
2) Collects payments
3) Ships the items to the customers
4) Handles most of the customer service and returns
5) Sends the money to you
This program frees up a lot of your time so you can focus on getting products.
If you want to learn more then sign up for my free Amazon Mini-Course below.
Here is what I used to get started with my Amazon Business: Amazon Seller Pro Account (I pay $40/month)
- Amazon Seller Pro Account (I pay $40/month)
- Profit Bandit – This is an app you can download on your iPhone or Android that helps determine what sells well on Amazon ($9.99/month)
- $150 earmarked to start the business (I started with $75)
- Extra time
What Should You Buy?
Almost everything I sell on Amazon, I find in retail stores. The items I buy are typically on clearance and can be sold on Amazon for much higher prices.
If you want to see some of the things I sell then feel free to check out my Amazon store at www.amazon.com/shops/stuffparentslike.
You can also learn about the items Amazon allows you to sell by clicking here.
How Do You Know What to Sell?
Personally, I use the Profit Bandit app (however I just switched to the Scoutify App). This app allows me to scan an item’s bar code and then the app finds it on Amazon.
I also receive information about how popular the item is in a particular category, how much it is currently being sold for, and how much profit I would make (after fees) depending on how much I pay for the product.
How Did I Turn $75 into over $20,000+?
All of my success in my Amazon business I owe to my children.
When I first started, I had scanned items for weeks with absolutely no luck. There was a point when I thought about giving up. Then my children drug me into a toy store going out of business.
While they were looking at toys, I decided to scan items. I found a game called Mind Flex Duel. It was $15, but it was selling for well over $50 on Amazon.
There were dozens of the games, but I was nervous to pull the trigger on all of them as it was my first purchase. So I purchased 5 for $75!
I went home figured out how to properly package up the items and sent them off to Amazon. A few days later, I got an email from Amazon letting me know I sold an item.
Then a 1/2 hour later, I received the same message. I sold out of all the games in a few hours.
I immediately called the toy store to see if there were any games left. Luckily, they had 26 and I purchased them all.
Once I collected all of the money from my first sales, I reinvested in more inventory and training.
By the end of 2014, my original $75 investment turned into over $20,000 in profits.
Amazon FBA Today
Typically, I spend about 10-15 hours a week on my Amazon business. Instead of watching tons of television, I put that time into my business.
2015 was even better, as I sold over $175,000 in products.
My goal this year is to exceed $225,000 in sales.
This business has really changed my life. Although I love my day job, I also love building my own business on the side.
Obviously, this business isn’t for everyone, but if you want to learn more about selling on Amazon then check out my free Amazon Mini-Course below.