BROADCASTS.com

Today we break down Keith’s unsuccessful Amazon private label business, and explain what he should have done to generate a greater profit. We break down the costs of sourcing and selling a product through Amazon, including fulfillment by Amazon fees (FBA) and Pay-Per-Click (PPC). We explain how to get your product to rank against keywords, including doing giveaways through 3rd party services. We also talk about Keith’s product and what he has to do to get it to his 5X requirement. We talk about some of the disadvantages of building a business on Amazon, including the lack of end-buyer interaction and customer feedback, inhibiting the expansion of your product lineup. We advise that you need unique and niche ideas to make it on Amazon.

-Costs, Amazon Fees (FBA, PPC)1:39
-More About Sourcing and Pricing; FBM; Using Facebook 11:38
-Making Money vs. Building a Business; Disadvantages of Amazon 15:02

“If you’re going to sell something on Amazon, make sure you can source it for 20 percent of your cost. Or, said differently, make sure that you can charge 5X of what you’re going to buy the product for. Not including shipping, just for what you can get it for in China, or U.S., or Mexico, or wherever you’re gonna have it made. Because that’s what it’s gonna take to actually make a decent margin -- I’m talking about maybe a 20 percent net margin -- by the time you pay for all these fees.” 3:31