How to sell on Amazon FBA. So welcome back.
My name is Gabe Strom. I’m here with Zach Young for a part two of the interview on how
to sell with Amazon FBA. We’re going to get right into Zach’s story. For those of
you that watch the channel, we did a part one a couple of months ago. I want to do a
follow-up and talk specific numbers with Zach. We didn’t see any content on YouTube about
specifics. Zach, you did multiple six figures in net profit. So I want to pull up your actual
stats. Zach and I were originally going to just have a call. We’re working on making
a book and a manual for our community and then, as Zach and I were talking the other
day, we said hey why don’t we just record this. Anyways, I think there’s a lot of
people on YouTube that would probably find some value in hearing really the nitty-gritty,
like behind the curtains. So Zach and I just spent about a half hour going through and
recapping some of his numbers from last year. So Zach, thanks for staying some time with
us, man. No problem. Thank you. It’s always fun to
hang out with you. And just like you stated, I mean think when people were looking at how
to sell on Amazon FBA, they’re hanging out on YouTube. If they can see somebody that
can kind of lay a blueprint out of their success and their results and some of the things they
did in order to create the results that they created, it can be really helpful in the online
selling community. So I’m more than happy to share this info. I don’t know if I’m
going to let every single thing out of the bag. I can’t share all my tricks, but I’ll
share enough. It will be enough strong, good content that I believe if people apply even
some of the things that I share today, I think they could do great with that info if they
apply it in their business and they could do really well. So, yes sir…
Well, if you’re ready man, I’m just going to ask you some questions here. So I’m going
to start off. There’s three things I want to cover on the quick haul today. Number one,
I want to talk about your Q4 case study and I want to talk about the specific numbers.
I know you did around $225,000 in net profits in 2014, so last year, I’m going to date
this video. But I want to talk specifically about Christmas. I know you had a $75,000
net profit over a 30 day span on Christmas. Did I get those numbers right?
That is correct. Just to be fair for that case study, when
I say 30 days, you didn’t make those sales all in December. Were some of those in November?
When was that 30 day window? Yeah, because you kind of have the window
of Black Friday, day after Thanksgiving, Cyber Monday. And then you kind of have that window
up to like just a few days right before Christmas, like the 22nd, 23rd. So there’s a 30 day
window in between there. I don’t have the exact dates, but I know it was after Thanksgiving,
before Christmas, in that window there. Okay, cool. So I want to dive into that, number
one. Number two, I want to go back then Zach to your numbers for, that’s Q4, I want to
go back through Q1, through Q2, Q3, leading up to Q4, because obviously you didn’t just
magically stumble across $75,000 in net profit. You created that, strategically engineered
that. I want to talk about that. And then the third piece of this call, if you stick
around, I want to talk about your faith and personal development and the mindsets that
it took to create those results because, and one thing we really want to get across is
we can teach you the how to, we can teach you the tools, Zach can show you the source
and we can lay out a simple blueprint, but if your computer software up here is running
on old programing, then nothing we say will ever matter. So stick around for that part
of the call. So if that’s fair, we’ll go ahead and dive in Zach. I want to just
cut right in. I know I interviewed you in the last interview. We’ll probably have
a link below this video about the Partner Group if someone wants to learn about that
and also back to the original if you want to hear Zach’s full story. I know you’ve
been in home business for years. You got six kids. What I love most about Zach, he’s
a regular guy. I always joke, Zach and I are partners now, I always joke that he’s like
the anti-guru. He’s a regular dude. He has created an amazing life, lives on a beautiful
piece of property in Missouri, with six kids, and has the blessing of time freedom to really
sow into their lives, which is a big part of Zach’s calling. I’ll let him talk about
that. But the point is Zach is a regular dude and if he can do this, you can do this. So
Zach, first question, high level for the year. I know you had $225,000 net profit. What were
the sales for last year that took to create that?
Yeah, it was just under $770,000 in sales. So
it was $769,822 to be exact.
So $769,822. This is in a 12 month period, so beginning of the year through the end of
last year. And this is all physical products on Amazon, right?
Yeah, and that 12 months is kind of being generous because actually I didn’t start
doing Amazon FBA until the end of January, first part of February. So that’s really
when my inventory started hitting Amazon FBA. And before then, I was doing like some merchant
fulfilled stuff with books and part-time and trying to learn how to do some drop shipping
and stuff like that when I was experimenting with what worked, what didn’t, what I liked
the best. Okay, cool. Before we get into the beginning
part of your story, let’s talk about the fun stuff. I think everybody wants to know
and, in this business, Q4 is everything and you saw your sales spike, double, triple,
quadruple in some cases. It was crazy, yeah.
So let’s talk about the fourth quarter case study first. I want to just kind of help people
see the numbers. I think a lot of people hear a lot of big numbers in this space and what
I like about, I mean Zach you’re super transparent. Nobody talks about net profit. You hear a
lot of people on the internet talk about their sales and really who cares what your sales,
I mean you sold three quarters of a million dollars in sales, it’s what you get to put
in your pocket, right? And there’s a lot of sellers who are really secretive about
how much money they make, where they get it from. So help me understand Christmas time.
I know you had $75,000 in net profit but I know you had some financing and things, so
just walk me through what those numbers look like.
Ok. So what we were looking at, let me pull it out here. So, once again, about $250,000
in sales in the 30-day window. When I broke it down, I ran about a 30% profit margin.
So for those of you who aren’t into the business numbers and stuff like that, basically
to put that simple is if I do $250,000 in sales and that’s like the retail price of
products I sell on Amazon, a 30% profit margin would be the profit you make from that sales
amount. So to keep numbers simple, $100 worth of sales, I would make $30 profit every $100
worth of sales I make. So I was at about $75,000 in profit. I had about $10,000 on top of that
in interest charges that I paid and I can get a little more into that if you want me
to Gabe, but there is about $10,000 in interest. So I made about $85,000 profit but I had to
back out that $10,000 in interest. That’s why it left me with $75,000 before paying
Uncle Sam. So to clarify, we’re talking specifically
that 30-day window. This is like Cyber Monday, the day after Christmas through…
The day after Thanksgiving, yeah. Black Friday. Through three weeks into December, or when?
Well right up until about the 22nd or 23rd. Because if you’re selling most of your stuff
on Amazon Prime, they do one day shipping, you’re still eligible for one and two day
shipping. So some people were ordering on the 23rd with one day shipping planning on
getting it on the 24th. So that’s another key thing with using Amazon Prime and Amazon
FBA as opposed to doing a lot of merchant fulfill.
Ok. And I want to encourage you guys. Zach and I both have paper. This is just a conversation
we’re having, so grab some paper if you want to take note. This will be educational
for you to learn how to reverse engineer. And these are just Zach’s numbers so there’s
a lot of factors here, what products you’re sourcing. We’re going to talk about sourcing
and some things but from a high level perspective, just so I understand, $250,000 in sales in
30 days. That’s incredible. Yeah, that’s nuts. And what people have
to realize too is like not all of your inventory sells. If you have 1,000 units, you’re not
going to sell all 1,000 in 30 days normally. If you’re like a super rock star amazing,
which I’m sure there might be people out there like that. Once again, I’m a normal
guy, so I haven’t achieved 100% turn right on all my inventory within a 30 day window.
But I did about 71% of my inventory within 30 days. So that means I had about $300,000
worth of sellable inventory listed on Amazon. So my product cost was around $135,000 over
that span for the cost now. I’ll back up and say I talked a little bit about this in
the first interview, your fourth quarter success, if you’re wanting to know how to sell on
Amazon FBA and just crush it in the fourth quarter, a lot of that is going to be made
even in the first and second quarter or like what you’re doing right now today in your
business. A lot of it came from just really I had two really key suppliers that I used
last year to fund this to my Amazon business and they supplied me with most of my inventory.
Two suppliers. Yeah. I bought other products using retail
arbitrage, online arbitrage, other methods, but the majority of my bulk wholesale deals
where I could go deep and wide on inventory and with just great profit margins, the stuff
sold really quick, that was through two main people. Now, not every product I bought from
those people was a homerun. I kind of had to test with some. Some were better than others.
But the key thing is here is I established a really good relationship I believe starting
in January or February with the supplier. And I think you want to get into sometime
during the first quarter. Like one of my first bulk purchases, I think it was for like $5-6,000.
Now we had cash put back but I decided to put this on a credit card I think just because
I sometimes have credit cards that have 0% interest for 12 months or whatever. I’m
a firm believer in if you know how to use credit, if you know what you’re doing when
you’re buying product, you’ve tested it, you know it works and putting other’s people
money or credit card or something into it. Now, I don’t believe in telling someone
who doesn’t know what they’re doing, they’re brand new, they’re wet behind the ears,
they don’t know how to analyze products properly, they’ve never tested small and
scaled up. Like I’m not going to tell some guy go out and spend $10,000 on whatever.
This isn’t a casino. You’re not gambling. It’s all educated minimized risk when you’re
purchasing inventory, you’re looking at several different factors to make sure you’re
going to get your money back, what you spent on your product but then plus some profit,
a return on your money. I think credit’s a whole topic that deserves
being talked about. So just to be clear, Zach and I are not condoning, nor do we suggest
you go max out your credit cards. That’s the last thing. In fact, we created out training
and our group to help set you free from debt and to create financial freedom, so definitely
don’t do that especially if you’re not a member of our group. We got specific training
on how to leverage that. We’ll talk about that.
Exactly. I agree. So this all goes back to the supplier. Because this was key for the
fourth quarter even though it was something I was doing in the first quarter, I established
a relationship with him and we built a level of trust. And that didn’t start from the
very first conversation we had. We had to get to know each other, I had to make sure
to deliver the product, I had to make sure if I had problems he would stand behind it.
He had to know I was going to pay him. All these different factors. So, over time, I
continued to buy stuff from him. Some stuff’s great, some things aren’t. But we keep working
through to establish just a great relationship. He’s a super person and I get to know him
on a personal level. I get to know about his family, his relatives are going through health
issues, health problems, where he lives, where he’s from, when he’s going on vacation.
We just get to know each other, person to person. Polite people to people business.
Now you don’t have to like go recruiting people to buy your products on Amazon, that’s
the awesome thing about Amazon. Not calling your friends and family?
No. Not begging her to buy pills off Amazon. That’s good news.
So anyway, I just can’t get that stuff out of me. It’s still there. I don’t do it
anymore, but it’s just you know. It’s ok Zach, there’s groups for that
kind of thing. Ok, anyway, so I established relationship
with the person and come fourth quarter, this person trusts me. They know I’m going to
follow through. They know that I pay when I say I’m going to pay. When they send me
offers, I’m not beating them up on every single offer saying hey man can you come down
another dollar per unit. It’s like I’m a pleasant person to deal with. And I’m
not bragging on myself, I’m just saying like when you’re dealing with suppliers,
you want to treat them the way you want to be treated. That’s how I try to treat everyone.
So just treat them good. There were times when because I treated them that way, if he
sent an offer over and I’d say it looks good, everything, but I need to be at least
a $1-2 lower per unit in order for it to make sense for my profit margins and stuff, then
he would do it. But that wasn’t every single thing he sent me. It’s because he trusted
me and he knew I wasn’t going to work him on everything I sent, like that was why he
was willing to work with me. But come fourth quarter, he was able to get terms from some
of his suppliers on the products I bought, so he offered me terms. It’s like I wasn’t
asking him hey man can you get me terms so I can get this stuff. He’s like I can get
this, I don’t know how your cash flow is for fourth quarter holiday season, but we
can work terms. When do you think you could pay for this stuff? And I’m like, wow cool.
I didn’t go hunting for it. How much was the terms in this example? $250,000
in sales. You had $85,000 in gross revenue from Amazon, $10,000 in interest payments
that you borrowed money, and then $75,000 in net profit. So how much was that $10,000
in terms or was that actual terms that he gave you?
I didn’t get charged any interest on the terms.
0% interest? Yeah, it was kind of just like a deferred…Because
I had tested this product earlier in the year and I just knew I was going to crush in the
fourth quarter. I knew it was going to sell like crazy if I could get it. And he had actually
been working with his supplier trying to get it for a lower price. We knew they were going
to be coming available later in the fourth quarter.
So he was just a wholesaler basically? Yeah, and what happened is he had a price
locked down. The distributor had given him a set price earlier in the year. We committed,
we said we’ll take 1,000 units or 1,200 or however many it was this item. And when
it got closer, the vendor saw on Amazon the price was continuing to go up so they’re
like we ain’t going to be selling it to you for that price. That’s what they told
my guy. And then my guy told me and I’m like oh man. Because at that time the price
was still pretty low on the retail side and that’s not going to work. In September-October
I just kept e-mailing him, him and me continued to have this correspondence. And then I finally
said if you can still get these I’m willing to pay up to this amount because I saw the
price had gone up some. And he said yeah I checked them with the vendor, they still have
them and they haven’t sold them to anyone. It’s highway robbery. They’re trying to
knock people’s heads off. So we ended up locking it down. And I knew just off of how
much daily volume I was doing and how much inventory I had and how much competition there
was on the listing that I’d be able to turn through this stuff before the end of the year.
So I just asked if I could pay him out after my two week Amazon payout, like if I could
pay a portion on this two-week payout and a portion on this one after Christmas. And
he’s like yeah that’s cool. I have terms for that. That’s cool. I know you’re good
for it. So he actually sent the inventory in for me I was selling through my account
before I even paid him. That’s how much trust and how strong of a relationship we
have with one another. So obviously the sourcing and relationship
with suppliers is a big income producing activity, a big cornerstone of your business. And just
to be clear, and for Christmas and the whole year, how much of the stuff, I got a couple
of questions for you Zach if you don’t mind, I’ll just wrap it for you…
I don’t mind. Go ahead. How much of your stuff were you reselling
other people’s and how much was private label? Because a lot of people have the classic
private label debate. Out of your full $225,000 in profit, how much of that was bulk vs private
label? Maybe $8-10,000 profit in private label on
that side. That’s it?
Yeah. Very little. So that’s less than 5% of your
whole revenue for last year. Yeah. It was low. I mean…
So majority bulk deals. Were you selling bulk deals and…
I don’t know if it’s cause I was lazy. I’m being honest but to me it’s attractive
to find a listing that’s already well-established on Amazon and just buy it low and just piggyback
on that listing and just let it roll. As long as you buy it right, that’s strong, there’s
a lot less legwork in it. I believe private label has a spot in this industry, I know
it’s a hot thing right now so I’m not going to like knock it down but I think something
that people failed to realize is that in order to really do private label successfully you’re
going to need at least $3-5,000 upfront for one SKU. You’re going to be doing a lot
of promos, you’re going to be given away a lot of free product trying to get legit
reviews. I don’t condone people doing false, phony reviews to get a rank. You’re going
to have to know how to do some Amazon SEO, how to get your product listing ranked. It’s
more of a long term build to me. Some people sign up for these high dollar private label
programs and they spend all their money to get in the program and then it’s like they
find out you’re going to need $3-5,000 more and they’re like I spent all my money just
to do the program. I mean private label’s awesome. I’m not knocking it. I think long
term I have friends, very good friends that I’m close to and we kind of talk back and
forth on it and they’re kind of sold out on private label and I’m kind of sold out
on bulk and they both have pros and cons to them, so once again, I’m not knocking that
at all but me personally, some of the private labels say there’s too much competition
on existing products, wholesome, bulk isn’t good, you don’t want to be there, there’s
way too much, everyone races to the bottom. Well, that happens on some listings but like
I said just now, prime example, about $215-220,000 was profit on existing products on Amazon.
$5-10,000 was private label. So you can do one or the other, you can do
both, just know what you’re getting into with private label. Zach and I, we have a
community of Amazon resellers. We focus mostly on bulk because Zach you’ve had the most
success and I think we both agree that you made multiple six figures in profit camping
out in this space without even doing a private label. So just to help a new person maybe,
there’s five key sourcing strategies and we’ve talked about this on another video
on the YouTube channel, I’ll link to that below too but, and these range, and I’ll
go through these real quick and then get back to the interview with you Zach. They range
from low capital investment to high time investment to the other end of the spectrum where it’s
relatively low time invested but high dollar, you’ve got to have pockets to invest. So
the five sourcing strategies real quick are drop shipping, where there’s very little
risk and you basically find one website online and sell another, you don’t purchase the
product until it sells on your site. Number two, retail arbitrage. So go on out to your
local Wal-Mart’s, Home Depots, these stores are changing, find this stuff on clearance,
sell it on Amazon. Number three, online arbitrage, doing the same thing, purchasing from one
site online, selling on Amazon, on another site online. Number four is bulk and wholesale.
So this is what Zach is talking about. Most of your revenue Zach came from bulk and wholesale.
Did you do hardly any online arbitrage, retail arbitrage last year?
I did everything just because I wanted to know how it worked and how those models looked
and I did all of them. So I have experience in all of them.
And then the fifth one that we already talked about is private label. So we say five is
the last. Zach has made multiple five figures. You’ve got a plan to make a million dollars
still just camping out and doing these hit and base hits. These aren’t all sexy profits.
I’m sure you’ll do some private label in the future. I currently don’t do any
private label either. It doesn’t mean it’s not good. It just means that we found a way
to make money without having to mess with all the hassles. And one thing Zach and I
are proponents of and anything in business you just want to keep the model simple. There’s
enough problems as it is finding the right products and there’s some things I want
to talk to you about. I mean it’s all about sourcing but don’t complicate it especially
if you’re getting started. And doing private label out of the gate I would say is probably
a bad move for a new person unless you’ve got some experience, go get to Zach’s level,
sell a couple of hundred thousand, sell three quarters of a million dollars and then if
you want to throw some money at it, you can do that.
I’m glad you said keeping it simple, because to simplify, people might be looking on how
to sell on Amazon FBA. In a nutshell, it’s like buy low from a different source and sell
higher on Amazon. That’s it in a nutshell. Let’s go. Thanks Zach, I appreciate your
time. Exactly. Thanks for coming. That’s all you
need to know. Obviously, there’s a couple of other little factors that you’ve got
to do in your business day in and day out but if you look at the overall spectrum, that’s
what you’re looking at. You’re just sourcing for low it and sell it for the market spring
on Amazon. So just to put a bow on this fourth quarter
case study and I want to get into your other quarters. Go ahead.
I didn’t finish an answer to your question. So you asked from my supplier what type of
terms. I’d have to go back and look but I think I might have ended up paying him somewhere
between $40-50,000 that he let fly. And that was on I think multiple SKUs. I can’t remember.
I kind of share with you because you were asking me leading up to this interview what
did you do, you kind of have a blueprint. Honestly, I had this goal and I got in the
zone and I was analyzing stuff and offers were coming through. I just get really aggressive
with purchasing. I don’t know what I did. I was hoping to make $40-50,000 profit and
I had no clue how much I spent. I was watching my budget to make sure I could keep up with
it and if something went sideways it wouldn’t shipwreck my business. I was just like in
the zone. I had a goal and I was just making it happen. But anyway, we kind of dissected
some of it to break it down to help you all as well.
So he financed some of it and then just in the ballpark, we’ll go back to the beginnings.
I know you really just took massive action, put your head down and kind of came up in
the middle of this. So there’s something to be said about taking imperfect action,
imperfect action is greater than perfect procrastination. I’ve heard that. I was going to make a video
about that today. So maybe we’ll add it to this one. So just that people know, to
orchestrate that kind of result over Christmas, if somebody is watching this now, you’ve
got a couple of months till Christmas if you’re watching this currently, how much inventory
did you have to purchase roughly to make that $75,000 in profit? How much did you have to
put into the machine? It was on that 30 day window. It was about
$135,000 approximately. Around $135,000. Ok.
Yeah, and remember, some of that, the $30-40-50,000, however much it was, I’d have to go back
and look at my records but that I didn’t even have to pay until after that 30 day window.
So you had $50,000 or so with basically 0% interest.
And then you have like cabbage, cabbage.com. Which is another slippery area but go ahead.
I’m just telling you. I mean people want to know how I did it. I use as much cash as
I can. My personal philosophy, we have enough cash back for my family, we pay off, we don’t
have consumer debt unless I can get 0% interest on something so I can use that money in my
business. We moved into this new house about a year ago and we bought some stuff from Best
Buy – a new Mac, some big screens, whatever. We got 0% interest for 12 months. So I’m
like I’m going to take that. Give me $3-4,000 at 0%, I’ll just use that in my business.
And we just paid that off two days ago. I just wrote a check, paid it off. Same with
some landscaping we had done at our house, a little water feature and stuff. They gave
us 12 months. So I took it and then I just pay it all off. I just put it into my budgeting
and projections on when to pay these things off. I’m not a crazy consumer. I only try
to put other people’s money in or credit and stuff and to assets and things that I
know will more than likely give me a return on my money. So, like I said, I’m just being
transparent. So we’ll try to have at least a 3-6 month plus pad of liquid to where if
something got shipwrecked or went crazy, we would have a safety pad there for the family.
And then I put as much cash as I can into our business as well because I don’t like
cash just sitting there, not doing anything. And then if I can get special interest offers
on credit like PayPal Capital, or something like that. I can’t remember what it’s
called but PayPal is advertising something. Crazy terms, ridiculous, and I took that money
because it was ridiculous not to. So there’s a combination and, like you said, we could
probably do a whole series on finance and all that and that’s probably more catered
to people inside of our group just for the safety because there’s got to be a lot of
guidelines and precautions. Our goal is not to get people into more financial bondage
and watch them just do horrible things with their money if they don’t know what they’re
doing. That’s not the goal. So, anyway, back to the point. So I did some kabbage,
I did some credit. I’ve talked about this. This is kind of funny, Gabe. I joke around
about this. It used to be like in some MOMs and stuff in order to buy a package you had
to have $1,000 or $2,000 or something. And sometimes you’re asking your parents or
grandma or someone to borrow money if you need to. The funny thing is on Amazon I haven’t
asked anybody, any family members to borrow any money and some of our family members noticed
how well we were doing with Amazon. So they were like can we give you some money, can
we invest in the business and get a return and stuff? So we kind of told them some of
the terms we were getting from other people and stuff. You brought us into this world,
I guess we’ll help you out. Some family members have some money in it.
Which is all a slippery area. Yeah, exactly.
I say that Zach because you seek wisdom on these topics. We just shared that because
there’s a lot of people that are watching this that have never used credit or borrowed
money from friends and family. You’ve been an entrepreneur for how many years? We’re
showing you the top of the iceberg. How many years?
14-15. So 14-15 years of experience.
5-6 years full time and, before that, part time trying to get to full time. But again,
we’re about honesty and transparency. It’s like I didn’t have just $135,000. I didn’t
win the lottery. I didn’t just have a pile of cash sitting in the bank that I used. I
got creative with the resources I have but also did other stuff. Same thing with the
family. They asked us. We didn’t ask them. And we told them, look things could get crazy,
you could lose everything, we didn’t promise anything. They’re like we know, we know.
But I agree. That can be slippery too when it comes to borrowing money. I only shared
the illustration just to be transparent with how I had that much cash put together to buy
this because some people might be thinking. I just don’t want to hear people making
excuses for themselves. I can help lay out a strategy for people wherever they’re at.
Even if you have $100 in the account or $0 in your account. I can help show them how
to get to where they want to be and snowball it and grow it up. Because some people watch
and might be going well I don’t have $100,000 so I can’t make a lot of money. You need
to see the whole picture. That’s the only reason I’m sharing some of the kind of behind
the scenes of how some of that stuff came into place.
Seeing the whole picture but if you are thinking well Zach had $135,000, I would challenge
why are you thinking so small. This is a wealth principle. This is an abundance principle.
When things come up, and there’s two types of people in the world: entrepreneurs who
say I can’t afford that and entrepreneurs that say how can I afford that. How can I
create that result? So I want to challenge you, that’s one of the things I love about
talking to you Zach, you stretch my mind. You just ooze abundance. That’s probably
one of the reasons why people that are part of you group and part of your mentoring see
success, it’s contagious. But you’ve stretched my thinking as an entrepreneur to what’s
possible. In this example you came up with $135,000 and it wasn’t all in cash. You
got creative and you found a way to do it. Let’s just scale that back. Let’s take
off a 0 for someone. This is the question. How would your life change if you made an
extra $75,000 a profit this Christmas? How would your life change if we took off a zero
and you made an extra $7,500 in profits? So are you saying if we did that Zach and if
my numbers are right it would be about $13,500 approximately they’d have to put in to get
$7,500 in profit out? This is assuming you are buying the same products you are, etc.
Just to put it in perspective. And I think a lot of people see that. And they say great
you made a lot of money but what do I need to do today to create that? So I want to go
back and through that I’m going to ask you about how you got started. You didn’t just
hop in to FBA and start taking out terms. We’re talking about the end result. So let
me back up. What were your sales like the first three quarters? Let’s go back through
that. Yeah, so let’s start in January. Like I
said, I messed around a little bit with drop shipping, like towards the end of 2013. And,
again, drop shipping is kind of like I liked it. I made $2-3,000 on Amazon doing it. So
it worked. But something that I didn’t know was I was doing it merchant fulfilled because
you’re not doing any drop shipping FBA and you have to have your setting set properly
on the estimated ship date on when you’ll ship it and then the promised day of when
the customer will receive it. And see, I didn’t know this when I was doing that. So all these
customers were getting their stuff late. And it’s like killing my Amazon metrics. And
another thing with drop shipping I’d find is sometimes I would have a lot of items listed
and tried to track them on a spreadsheet and then two months later this thing would sell
and I would be like wow where did that come from. And then I went back and I found it
on the sheet and then I go back to the site and that site didn’t have it anymore and
it’s like I have to find it from somewhere else or you hear some people have to do some
cancelled orders. And if you do too many of those on Amazon, it can axe your account.
To me, there was too much risk with drop shipping on the Amazon platform really because Amazon
is all about the customer having an ultimate experience, like just a great experience on
the back end. So if they’re coming and they’re buying something I’m drop shipping and it
doesn’t show up or it’s late or I have to cancel the order because I can’t find
it, that customer is not going to be happy. They might not shop on Amazon again. So Amazon
is like dead-set on if sellers are going to be selling on our platform they’ve got to
have it together. It’s serious stuff. So drop shipping I started out on and I kept
seeing as I was drop shipping like the buy box on Amazon. And that person is a Prime
seller. I didn’t even know what it was. What is the buy box?
The buy box on Amazon is like if I go to the little search bar on Amazon, I go in and I
type Mickey Mouse Clubhouse or something. Say I’m looking for a DVD or something.
And I pull up Mickey Mouse Clubhouse. You see I have kids, right? So Mickey Mouse Clubhouse
pulls up and I click on the link for the DVD I want. It pulls up a list of 10-20 DVDs that
lined up with Mickey Mouse Clubhouse DVD. I click on it and it’s the one I want. What’s
going to show is a picture of the DVD and then over to the right it will say just add
to cart, available for this amount, add to cart and it’s like all big and that’s
what most people do, especially if you’re a Prime seller and you see it’s Prime eligible
and you can get it in a couple of days. Ok, I’ll just click. Now what some people don’t
see, there’s a little link on that page that says available from ten other sellers.
And not everyone clicks on that when they’re shopping but some do. When you click on that,
that takes you to the other listings that are available and some people might be selling
it for less, some for more, some are Primes, some are not.
I just wanted to ask for someone that’s brand new.
Exactly. So the buy box is like the real estate gold in a sense for Amazon. That’s like
where every seller wants to be because it’s kind of like a light switch gets flipped on.
You can tell. When you’re winning the buy box it’s like the sales volume is coming
in and then I noticed I’m pricing some of my items. It sells whatever slows down. I
knew this thing would sell 10 per day. And then it cut back at like 5 a day. It’s like
what’s going on here. And I look and somebody outpriced me and they’re winning the buy
box more, so I’d have to adjust my pricing if I wanted to keep the same sales volume
going. So that’s how that works. But I saw that these people kept winning the buy box.
And at the time I think in order to win the buy box you had to be like, I can’t remember
what the name was, you had to be like a certain seller. They don’t have that restriction
anymore. Like it used to be new sellers cannot win the buy box. But they removed that. They
changed their settings and algorithms and all that. So now new people, which is good,
if you aren’t selling on Amazon and never have, it really levels the playing field for
you. But you used to have to be like an experienced seller, you would have so many sales, your
metrics had to be in line, all this criteria in order to win the buy box as a merchant
fulfilled person. And one of the things that helps people win the buy box, which I didn’t
know at the time, it was that if you were an FBA seller, like an FBA seller sometimes
can be 3,4,5, even on some media items, depending on the items. You’ll see it might be selling
for $90 Prime and then you go in and you click on it and you see like a merchant fulfilled
person selling the same thing for $60 with $5 shipping. And it’s like holy moly. How
is this person selling it for $90, getting more sales than the person selling it for
$65? Well, there’s a lot of factors that go in there. They’re Prime eligible. Some
people that are Prime members, they pay their $99 a year to be a Prime member so they can
get one day shipping, two day shipping, audio streaming, all the benefits the Prime members
get. They keep their shopping settings just on Prime to where they don’t even see any
of that merchant fulfilled stuff. That’s all they’re seeing. They just want stuff
they can get in a day or two. So you were drop shipping, you noticed the
buy box, and when did you get your first FBA shipments?
So I had to research this Prime stuff and I couldn’t find anyone that was training
on FBA or Prime when I was searching. I found some info online, just from Google and stuff,
and I just started applying little things I learned. And then I learned a lot from just
my own experience of trial and error. So I ended up starting with arbitrage. Just going
into Coles, Target, Wal-Mart, places like that, I would buy items on clearance, take
them home, learn how to box them up. I had to figure out how to do all that stuff on
my own, send them into Amazon. So the first stuff went in towards the end of January,
first part of February. How much were you purchasing like that?
Honestly, I think I did a little bit of online arbitrage too. I was trying to do some bulk
, trying to find some discount suppliers and stuff. And I didn’t know anything. I didn’t
know anything about rank. I bought horrible products. Some stuff I was losing money on.
So this is a valuable part of your story. This goes back to the five sourcing strategies.
You hit drop shipping low risk, retail arbitrage low risk, online arbitrage low risk before
you got into bulk. I think this is key because probably a lot of it and maybe you can comment
on this, what happened is you got really good in those first three stages. You probably
weren’t making a lot of money yet, but you got really good at analyzing product, and
that’s a really important skill. Analyzing product and sourcing. Two critical skills
for this business. I mean you probably had a lot of different products. Was that pretty
close? Yeah, and you say low risk on drop shipping
but the more I’m seeing it, low risk is in capital. You aren’t tying your money
up. You spend a ton of hours.
In my mind, your account is in high risk when you’re drop shipping on Amazon. I’m just
being honest. From what I’ve experienced and seeing what’s happened to some people’s
accounts by drop shipping using the Amazon platform, that’s what I’ve seen. Stores
like Target and others, they’re starting to do away with online arbitrage, resellers.
I saw that recently in the news. So that’s something you’ve got to watch
out in using those methods, especially if you’re drop shipping. Because I’ve talked
to some sellers that were drop shipping on eBay and they were sourcing through Target
and they had like I think 10-20 orders come through and they were all sourced through
Target, well they had to go in and either source all those items or cancel all those
items. And if you were doing that on Amazon and cancelled like 10 or 20, say you were
selling something that you could only exclusively sell through Target, and Target didn’t want
to sell it to you anymore. Then if you can’t go out to stores and round open a product,
you’re going to have to cancel all those product orders, consumer’s orders and Amazon
could immediately if you do 10 in a row or that many, they’re going to shut you down.
There is risk in that and the other downside to doing retail arb or online arb is you oftentimes
can’t go very deep in an item. So I’ve noticed that, we’re in a bunch of different
groups and we have a group and a sourcing system but if you’re buying 10 items from
Wal-Mart. I had an item, some Disney princess dresses I found in an online arbitrage deal,
those suckers sold out like. I listed them Zach and they went live on a Friday and I
didn’t check my account Saturday or Sunday. Sunday afternoon I signed in, I get all these
e-mails, I sold like 8 out of the 10 of them over the weekend and there was like 20 other
sellers. But then I went back to the source and the price had already gone up. Maybe I
made a couple of bucks but there’s no continuity to that. Money is one thing. I think time
is more valuable. That’s what happened with arbitrage. I was
scoring some awesome things. Because sometimes you can make really high profit margins doing
arbitrage but it’s like what you said. After that deal is gone, you got to go do it again,
especially if you’re out doing clearance items and stuff.
Got to go pound the pavement. Yeah, and I got tired of that after two or
three trips. And I think my wife did too. I think everybody goes through that. You go
do it a couple of times, it’s fun, it’s good learning, it’s a great way to start.
It’s an adrenaline rush. You’re in there scanning stuff. People are looking at you.
It’s like you’re 007 or Mission Impossible. They don’t think you’re going to steal
something or anything. People would be watching you, you’re like scanning it secretly.
I got to admit. It is awkward. So this is normal. I think every seller goes through
this. There’s probably sellers watching this just shaking their heads being oh my
gosh that’s me. And I’m like frustrated. They’re in the middle of it. So when did
you turn the corner to the bulk stuff? How did you get your toe in that world?
I knew getting worn out, going to all these stores, and my income goals. I spent 4 or
5 hours out shopping and another 3 prepping it and sending it in. That was like an 8 hour
day. This might make me $500 or something. But if I want to get to my multiple six figures
doing this, that’s crazy. Because we’ve said this time and time again. It’s not
only about money. We want time freedom. We want the lifestyle. I’m not going to be
out hustling 8-12 hours a day hitting up stores. It’s not the model. Again, if you’re a
seller and you like that, power to you, rock and roll. Zach and I, we’re both believers
in why are you on Amazon in the first place. That’s a question you’ve got to ask Zach,
you’ve got six kids. I know freedom is part of why we do this in the first place. I know
family is a big part of yours. So you had these realizations. How did you get to bulk?
So I think it might have been February. I just kept searching, kept looking, got connected
with suppliers, analyzed a deal of 100-200 units deep. And I was nervous, I was stressed.
It’s like $5-6,000. It’s like oh my gosh, what if it doesn’t sell? What if I lose
money? There’s a lot of competition on this. I analyzed it and I thought it was good. The
rank was great. Profit margins, I wish they would have been better but the thing was ranked
so high I knew it was going to turn quick. And I bought it right to where I knew I at
least I had enough padding. I don’t think I even knew then how to search price history
Gabe. At this point, I didn’t know about the tools like camelcamelcamel, keepit.com.
I don’t think I learned about keepit until 5 or 6 months ago.
Primitive analyzing. Exactly, like rank. I think at that time I
was trying to buy anything in rank that was $5,000 or less. But when I was doing arbitrage
in stores, I knew that if it didn’t sell, it was low risk because I hardly had any money
in it or I possibly could return it. It wasn’t that big a deal in rank when out shopping
in stores and only going like one or two items at a time. But I knew that if I’m going
to buy 50, 100, 200, 500 items at a time, the rank better be good and there better not
be a lot of competition. So I bought it and sold through them. And then I just continued
to increase my profit. And principle would come back out and I would find new inventory
to buy. And then I ended up connecting with some other suppliers and I was able to replenish.
A lovely word once you become an Amazon seller. Like water to your soul, replenish.
Exactly. Just try saying it. It’s fun. Replenish.
Replenish, yeah. And replenishing for those of you who don’t know, it’s like if you
have 50 items you bought, you’re selling them like through 5 a day, you know in 10
days you’re going to be out. So probably in one or two days you need to buy 50-100
more, however many. I try to stay stocked up at least for like a month, a month and
a half worth of inventory. So once it started getting low and I knew I was usually a couple
of weeks out from being out of inventory, I just contacted the supplier. Hey, I need
more and send me an invoice, I’ll send you some money. They send me the product, I send
it to Amazon, it’s just like a well-oiled machine.
A couple of questions are coming up. Number one, were you taking profits out of the business
in the early stages or were you investing everything back in like a snowball to reinvest?
I try to invest everything I can into our business. Just like I said, I try to keep
a safety pad or at least have resources or equity or something in case we had some sort
of financial disaster. I want to have some sort of liquid or capital or equity I can
get to quick. But apart from that, I’m not a firm believer in just letting money sit
there not doing anything. The money that’s available, it gives us peace of mind if something
went wrong. That’s good. But above that, it drives me insane to see money just sitting
there not making money. So any time I get profit, I’m trying to roll it back into
new inventory, purchase. I’m asking these questions about the early
part because this is so important for a new seller. And obviously if you can get results
your first 30 days, 60 days, 90 days, you start getting into the second phase of the
business and the momentum. And then you start getting excited and things start happening
but I feel like all that kind of happens nationally. The first right at the beginnings where your
course correction is. So you got results. Your first inventory was around $5,000.
Yeah, in bulk I think I spent around $5,000. I think I made maybe $1-2,000 profit on that
or something in 3 to 4 weeks. It just kept snowballing. So walk me through
it. I’m watching the time here. We’re 44 minutes and I want to get into the last
section for about 10 minutes or so. Just walk us through on a high level your sales for
each quarter maybe so we can get an idea of what was going on.
I’m glad you brought that up. And then remind me before we end. Last year was my first fourth
quarter with FBA. So I just want people, people who haven’t done it, I got this little calendar
here from last year, the cut off calendar. Just so people can be prepared. Because really
I have some friends that are sellers and they’re like when’s the best time to stock up for
the fourth quarter? They’re like December 26th, the day after Christmas. Yeah, right
now. Right now.
One of the items that I probably made $40-50,000 plus on profit last year in that 30 day window,
I was able to lock down I think between 1,200-1,500 more. And it’s earlier than I wanted to
buy but I know this item is going to be discontinued, can’t get it from the main factor anymore.
There isn’t going to be any more supply on the market. So I was like I don’t want
to tie that much money for that long. But it’s worth it because I know how well it’s
going to do. So I just sunk a lot of money into inventory. But it’s good because I
know it’s going to return a lot. So, anyway, we’ll talk about being prepared for the
fourth quarter. But gradually, so like the first quarter, again, I primarily sold in
February and March, so I did about $74,785 in the first quarter.
Ok, these are sales, right? Yeah, in sales.
So $74,000 if you had a 30% profit margin. You’re just reinvesting that money, but
just rough math, times point three, so that’s about $22,000 in profit then.
Yeah, over the first quarter. You could say three months but it was really two months.
So that’s about 10% of my annual sales was done in the first quarter. So a lot of that,
again, that was learning, that was retail arb, online arb. There might have been one
or two drop shipping items in that. I kind of got out of that after I saw it was messing
up my account. So second quarter, I did $120,653. Ok, in sales.
Yes. And that was approximately 16% of total yearly sales. And then third quarter, so right
at the end of second quarter Gabe and the beginning of the third quarter, remember that,
that’s last year, I spent like a three months span. We were moving halfway across the country
from the Carolinas to the Midwest. I was working like 15 minutes a day for like 3 months straight
and I don’t work on weekends. So you basically took off 3 months to move.
Pretty much. Now thankfully, again, I’d already made relationships with suppliers.
I already had the inventory, so when I started getting low, I could just say hey can I get
more of this? I’d buy it, I’d send it in. Then we’d keep moving across country
or getting settled into our new home or just doing summer stuff with kids. But even in
spite of that in the third quarter, I still did $169,239 in sales. And that was about
22% of my sales volume. So I still had growth. I encourage people too if you’re new. Sometimes
we get lazy. You connect with a couple of good suppliers and your products are going
awesome and you just sit back and let it roll. Well sometimes eventually those suppliers
can lose products or you lose supply from that person altogether. So many things can
happen. So I encourage people to always be building those new relationships. Get your
rolodex if people even use those anymore. I guess now it’s your smartphone or a spreadsheet
or something. What’s a rolodex? But anyway, you always want to be sourcing new product
and you always want to be connecting with new suppliers. The wider you can go, the better.
You don’t want to throw your eggs in one basket with just one supplier. But yeah, I
was not getting aggressive at all during that time Gabe. I invested more in product like
the same product, went deeper, maybe brought on a few more SKUs, but it wasn’t a time
in my life where I was spending a lot of time building new relationships or buying new SKUs
in my inventory. And it’s funny because, again, this is my first fourth quarter last
year. And all these people are telling me everything is going to sell, it’s amazing,
you’d better be prepared, it’s going to be awesome, you should have already been buying
stuff. And my head’s kind of spinning. And that might be you, depending on what time
you’re watching this video. But I was like ok. I was trying to get planned. And I had
a goal to do between $40-50,000 in profit within a 30 day window. I could go back because
I actually have video documentation of it in one of our trainings inside of our group.
I told people three months prior this is what I want to do in the 90 days and it was almost
9 days to the T. I hit that goal. It was the exact profit I wanted, the exact sales. It
was ridiculous. If I went and put it on video, people wouldn’t believe me. Anyway, so fourth
quarter, I did $405,145 in the fourth quarter alone.
$400,000 in sales. Yeah. So the fourth quarter made up for almost
53% of my annual sales last year. It was done in the fourth quarter. So part of it was the
selling season. I mean there was a lot of factors. Part was the selling season. Part
was I got crazy aggressive with purchasing. Obviously, mathematically it has to make sense.
If you’re going to make more money, you have to put more money into it. It’s not
possible to make $100,000 if you only have $10,000 in inventory. It’s just not going
to happen. So yeah, like I said, I just got really aggressive. Amazon started sending
stuff out, like this little calendar. So you’ll get one this year if you’re a new seller.
They’ll have a 2015 calendar for holidays selling. It will tell you the dates. Like
last year it said receiving inventory for Cyber Monday was on Monday the 17th.
Monday, the 17th of November? Yeah, that’s when they wanted it in. And
then December 1st was Cyber Monday. So you had to have your inventory into Amazon to
have it live and ready by the first. So you had to have it in two weeks early. And, usually,
if you’re using their partnered shipping like UPS, depending to where you’re shipping
to and from, it could take 3-5 days to get to Amazon.
Is this last year’s calendar or this year’s calendar?
This is last year’s calendar. They haven’t released this year’s yet.
Ok, so if you go off last year, November 17th really means you need to be shipping in your
inventory around the first or second week of November.
Well a lot of people were telling me like when I talked to Amazon support by the end
of October at the latest is when you want to have all your stuff in for the fourth quarter.
And depending on your suppliers, you’re getting them from, currently inside of our
group we have some amazing items that have high profit margins like 40% profit margins
selling great, but they’re taking us 4 weeks to get. And then you have to ship them to
Amazon, so there’s some prep time. So if people want to do that, you’re going to
need to be buying that stuff in September and that’s only a couple of months away.
As far as inventory though, I know you asked this before our interview, just like what
type of products, what categories, and honestly there’s some that are kind of more trendy
and seasonal than others that would do really well. Toys, kids stuff, things like that.
But I honestly didn’t do super hot with toys. I bought some from a supplier and it
kind of tanked out. Competition came in. I knew this would happen Zach. Where are you?
That’s what happens. Just a second. I want to pause and talk real
quickly about the Partner Group. But before that, I can hear someone asking this. What
kind of products were you selling? So what was your big category and anything specific?
I know this is your business, but I got to ask. What are the hot products?
On the inside of the group, people saw my exact SKUs. On this, I can’t give specifics
but I’ll tell you categories. So I had DVDs, were huge. Amazon, last November, you had
to send in your invoices. You had to prove to Amazon. It became a gated category. So
you had to prove to them you’re authentic. So that’s gated. Gated categories are good
because there’s less competition in them and I was able to get approved in that category.
So there was less competition because of the new restrictions. So I was one of the only
sellers selling a lot of these items and media. Just ones that I thought would do really well
for gift sets. There were some box-set DVDs. I had several different titles, maybe some
seasonal TV series. Are they movies or are they TV series?
Both. I had both. TV series, movies, stuff like that. My beauty products. I really like
beauty because it’s just they’re consumable. People reorder over and over. I’ve shared
this before so I really like the beauty category. That stuff sold awesome like it always does.
So what’s like a beauty product? Like serums, facial lotions, hand creams,
skin care type stuff. Things like that. There it is. That’s UPS.
I’ll keep talking. If you can just talk about the Partner Group
real quick. I got to get this package for my wife. I’ll just let you talk for a second.
I’ll be right back, Zach. I wonder if it came from Amazon. We’ll have
to ask him. Ok, anyway. So our Partner Group. Our Partner Group is something, again, we
believe in providing value and content to all the seller community whether you’re
in our group or not. So hopefully you’ve learnt some things just from watching this
video. But if you want some advanced training, if you want to see the exact blueprint of
what I did, the suppliers I found, the products I sell, stuff like that, we’ve put together
like an FBA fast start guide if you’re brand new. We have some other things in the works
on the horizon. Super exciting. It’s kind of confidential. I can’t share it, but Gabe
and I, it’s what we talked about earlier with just some of the contacts we have in
the Amazon community and stuff. Real cool stuff.
Very, very cool. So fast start guide, if you’re brand new selling on FBA. We teach you how
to set up your account, start to finish, how to create your first shipment. We have product
offers available on the group that you can take place in. We do weekly webinars, live
training, we have a Q&A thread in the group. We have a support person on staff and we’re
constantly all day every day we’re providing new product offers in one of our groups. So
inside of our group you get community, a lot of other sellers working together. We have
an awesome chemistry inside of our group. We have brand new people. We have people doing
seven figure sales on Amazon. Old people, young people, women, men, families. People
from all different walks of life are in our group. And then we have a leaderboard where
we’re able to celebrate one another. It’s really awesome seeing people go from their
first sell which I believe is their most important sell. We celebrate everyone for that. They
go up to the 5K club, the 10K club. We kind of have increments all the way up to the million
dollar plus club. So we celebrate one another with that. It’s really cool. So you have
community, you have training. This is available inside the group and we do it weekly. And
then you have bills and they’re the same bills that I’m purchasing and other successful
Amazon sellers inside the group are purchasing. So yeah, I would encourage you to click the
link below if you want more details on that. It’s awesome. We have a lot of fun. A lot
of people are succeeding inside the group and you can get some more of the secrets,
more of the details inside of the group. I wanted to mention that real quick before
we turn the corner. We’ve covered a lot of stuff. Obviously, Zach and I appreciate
you being transparent. There’s not a lot of people who would just open up their playbook.
I know inside the group you literally show screenshots, you open up your Amazon account.
You talked about some of the product categories, you show the actual products. There’s an
NDA you’ve got to sign, a digital NDA before you’re allowed in the groups. So you have
to apply for it. And the reason we do that is just A we don’t want anybody in the group
so we want to make it a little bit harder for people to join just that we can have a
really great group of people. But number two, Zach shows you the actual stuff he’s selling
so you can’t be sharing stuff inside the group outside. So just to summarize three
pieces then we’ll move on to education. We’ve got some great tutorials in there
to show you what Zach did. The community, which really is invaluable and then the deals.
And the deals is an ongoing process. I don’t know anybody else in the industry Zach that’s
providing deals like you’re providing, like we’ve got for our members. I know the big
challenge and if you’re watching this interview, obviously the big hurdle is you’ve got to
come up with some cash to get your inventory started. And a lot of times, if you work with
suppliers, there’s a minimum order quantity. And you got to buy however many it is. So
what we’ve done is made it really easy. We’ve lowered the barrier otoentry. We take
the actual products, the actual categories. I don’t know if we can share the categories.
We got three categories currently for members and we’re expanding on that but we take
the actual deals, Zach breaks them down into many lots and this is an industry game changer.
We’re not going to say anything more about that. That’s reserved for when you join
the community because that’s all top secret under wraps. But the point is we’re making
it easy. We basically hand you this business on as much of a turnkey system as we can.
Obviously there’s a learning curve and you’re going to have to go through the same learning
curve that Zach went through but we wanted to help you overcome some of those obstacles
with the group. So a lot of awesome stuff on the horizon. The point is, if you feel
that, if you resonate with Zach and myself, like an ongoing mentorship and education,
community, the deals, just hit the link below this video for the FBA Partner Group and I
think that’s everything Zach. Did we miss anything on group stuff?
I just feel compelled to share some more secrets. Can I just share some tips that helped me
in the fourth quarter? Can we go over? I know we’re trying to wrap it up here. Like we’re
going on an hour. Some people might know this, but some people will be like the light goes
off and they’re like yeah cool good idea. Preparing for the fourth quarter, even if
you don’t get stuff in before Black Friday and stuff, what a lot of sellers did inside
of our group, or at least some, everyone should have been doing it. I don’t know how many
did it. We would look at like the Wal-Mart fliers, Target fliers, stuff like that, the
doorbusters, the specials they had going. I personally had a guy go out and I just pay
him $1-2 per unit or however much depending on how much profit was in the unit. Like he’d
just go out, I’d send the money and he’d go buy the stuff, send it in for me, and I’d
pay him to do it. But what you can do is you can look at the fliers and everything and
you can be prepared and have a little list together and you can research the products
ahead of time on how they’re doing on Amazon, what they’re selling for and what the cost
is you can get them for. And then you can be prepared to go out on Black Friday if you
want to. I personally won’t, but you can do it if you want. And what you can do is
you can stock up on a ton of inventory and this is the only time some people do merchant
fulfilled. If you don’t think you can get it into Amazon before the holiday selling
season’s over. Even January is strong because a lot of people have gift cards they get for
Amazon and they do returns and exchanges and have credits on Amazon. So January will be
really strong too. Because that was one thing Gabe. You kept hearing people say when do
I stop sending it into FBA? When should I stop sending in to Amazon? I just kept sending
it in. I think like even the second or third week in December I still kept sending stuff
into Amazon. You’re prepared, but you didn’t stop.
It’s not like you hit a deadline. I just kept going. Now what some people would
do if they don’t mind putting in a little bit of elbow grease, that’s when they’ll
do merchant fulfilled just because they know that the stuff will sell if they qualify for
it, they can get it in. I got to show this because this is really important. So this
is an e-mail. You will get it from Amazon. So it says hello from Amazon services. So
for those of you who are wanting to be able to sell games and toys to the holiday type
items during the fourth quarter, your first sell on Amazon must be prior to September
18th 2014. So that probably this year will be sometime around September. You’ve at
least needed to make a sell. So by mid September of 2015, you need to start selling before
then depending on when you’re watching this in order to be eligible for that. And then
you must have processed and shipped at least 25 orders between September 1 and October
31st. They have some other things on here. Your short term order defect rate must be
no greater than 1%. In our group, we go into how we take care of your account health. Make
sure that you’re keeping everything in line how Amazon wants you to. Pre-fulfillment cancel
rate, we talked about that earlier. That’s really a big no-no with Amazon, that it can’t
be greater than 1.75% between October 1 and October 31. And then your late shipment rate
must be no greater than 4% between October 1 and October 31. So you will get e-mails
like this from Amazon before the selling season but in case you’re trying to get prepared
and you’re not now, it’s just good to try to get these requirements out of the way
and make sure you’re keeping those things in line. The best way to do it, selling on
Amazon on FBA, because just the volume’s nuts and crazy and ridiculous on it. So if
you think you’ll miss out the cut off on this calendar and you don’t mind doing merchant
fulfilled stuff and you’ve had these requirements and they’ll allow you to send stuff in,
then some people just do merchant fulfilled up to the 20th or whatever because they’re
like no way I can get it into Amazon and it can ship before Christmas, so I’ll just
keep these 100-200 items at my house and I’ll just fulfill them as they sell. So that’s
something people do to help add to their bottom line during the holiday selling season. So
I just had to show that man. Cool. Well we’ll have to put that together
in a little Christmas dock for the community then, kind of a check-list when the new dates
come out. I guess we can maybe organize that off camera a little bit. Those were the main
questions I had. What products we have. We’ve covered a lot of ground. I really just wanted
to dive deep today into what it takes to be successful. Let me ask you Zach because one
thing, and maybe we can kind of use this as a last segment, there’s something that’s
unmistakable in this whole equation we haven’t talked about. And that’s your spirituality
and you’ve got a unique faith. We can’t ignore that. There was not an accident that
you fell into this space. So one of the things I’ve noticed about you and it’s not just
from the Amazon business but from other businesses, God’s completely blessed you with this abundant
mindset. You’re able to see opportunities where other people haven’t. And you and
I were talking the other day about how the personal development industry is broken and
how all the self-help systems that are all about what you do. I got to control my thoughts.
I got to say affirmations or whatever. None of that stuff’s worked for me. I know it
hasn’t worked for you. And when I look back at the times when I’ve been the most successful,
it’s been blessings that I can’t even explain. I feel it’s been blessed and I
can’t put my finger. I know we’re doing certain things but tell me about your faith.
What’s your belief? You’ve got a unique belief about money and how that fits into
the kingdom, which I think a lot of, just to frame it, a lot of maybe even believers,
Christians, I’ll use the quotes, think money is the root of all evil and they kind of push
it out of their life and think it’s holy to be poor. I don’t know. What are your
thoughts on that? Well, first of all, I want to say we positioned
ourselves to where we don’t come out preaching at people. So if you’re watching this and
you’re not Christian, it’s not just a Christian group. We love everybody. Everyone’s
welcome here. We have all faiths, all religions, everything inside the group, okay? So we accept
you as you are. We love you You’re welcome here. But we also have the freedom of speech,
freedom of religion. Again, we don’t push it on people but we do share because Gabe
you’re right. I think that’s the most important part of my success honestly.
Let’s call it what it is, right? Yeah, but sometimes people get the perception
of you’re trying to sell God or sell Christian so you can mark it and you can make more money
off me. That’s not what we do. We let our actions speak for themselves. We share stuff
sometimes but we aren’t going to use God to market our business and make money on it.
That’s not what we’re doing. I didn’t realize we were already getting into this,
but I’d love to share it because this is still kind of evolving. But you said the self-help
industry, even the small percent that are having success with it, it’s still causing
them problems. And I’ll share what I shared with you. Only 97% of the people fell into
the home business industry and even in the self-help industry. And the broken part is,
like you said, we’re trying to do a lot of it on ourself even if you’re a Christian
or not. This is some training that I’ve trained on. And the reason I’ve trained
on it is because it worked for me to an extent. And what I mean by that is like I would visualize
my $40-50,000 in 30 days. Or I’d get my why. Why I wanted to do it. We’d write out
we want a new vehicle or we want a vacation. It was all in an external circumstance. We
want this big, 8,000 sq. ft. mansion on 20 acres with a river. We have that, right?
Which is another story, but yeah. Yeah, we want to be millionaires, which we
have net worth million. So you have all these external circumstances that you’re going
after and you’re setting these goals and you’re visualizing. And 97% of the people
don’t obtain them, right? But of the 3% that do, something that I didn’t realize
that happened inside of my body Gabe is it put a significant amount of internal stress
in me. And that’s what happens when you set a goal. Your conscious mind and your willpower
is like trying to make it happen. You’re trying to make it happen. But if your internal
programing, kind of like what you talked about earlier. If you have some wires loose or internal
programing of the environment we grew up in, the conditioning we had. Like you said earlier,
if you were taught that money was the root of evil, it’s holy to be poor, that’s
fighting against your conscious mind. I want to create wealth and then on the inside it’s
like wealth is bad. There’s just this crazy internal stress happening in your body and
to the point where there’s stuff lying inside of me that I don’t know why it stressed
me out but I made these goals happen and these things happen and we’re thankful for these
things and we believe they’re blessings from God. But it really created an internal
stress on me which created some physical problems in me even though we have the stuff. We have
this external stuff like the homes and the goals and everything, but it didn’t come
without a lot of stress. And then what happened is once you achieve those goals, your adrenalin
is pumping for a week or two. You’re pumped, you’re excited, you’re thrilled. But then
after two weeks, sometimes you come down even harder or it’s like ok what’s next? It’s
because you thought that external circumstance what would fill that void. You thought that
would bring you the peace, the joy, the love, the happiness that you were looking for. You
thought that external circumstance and your goal, once you achieved it, what would accomplish
that? But you find out that it didn’t. And, like I said, I’m still walking through this
process before I can train more on it. I shared with you some resources I’ve been studying.
And my eyes have kind of been open to some of this stuff. That’s something more to
help people within the group too. So I’m not saying that money isn’t important because
that’s like the currency of Earth. We can’t go to Target and buy stuff with love. You
can’t just give them a high five or a handshake. So money is just a tool. It exemplifies more
of who you are. I mean if you’re a good person, you like giving to orphanages, ministries,
to causes. You want to provide for your family, for relatives, for those in need. That’s
awesome. And then, at the same time, if you’re evil. You might throw it into bad stuff. The
Mafia, who knows? I don’t know. Anyway, yeah, Gabe, really some of my focus is shifting
more on how I can walk more and love and joy, peace and really always do what’s right.
Because from a young age, we’re brought up with internal programing, the pain and
pleasure programing that I spoke with you on. So it’s like if a kid touches a stove
and it’s hot, he’s going to pull his hand away immediately. And so your mind correlates
pain is bad. So a lot of us never grow out of that stage. Even as adults we act like
5 year olds. So if there’s anything unpleasant we have to go through, we correlate that with
being bad and we try to avoid it at all cost. When that’s not healthy, it’s like you
need to do what’s right even if it’s painful because it’s the truth and it’s the right
thing to do. I try to daily, I’m not perfect, I have issues. I sometimes yell at my kids
if I get upset, my hair is falling out here. You see, I used to have hair. Six kids. I’m
not a perfect parent. I wish I would spend more time with my wife. Even though we have
a lot of money and have achieved great, awesome success on Amazon, we know it’s all from
God and I’m trying to focus more on the internal things Gabe, just like the love,
the joy, the peace, treating others the way I want to be treated. Part of our whole core
reasoning behind our group, the underlying current is we want to help set people free
financially and even physically and spiritually. We want to tell people in every area of their
life. So I really feel like God’s taken me through some of this stuff and there’s
some truths with goal setting. I’m not saying goal setting is bad and stuff, but I personally
have experienced the negative stress it can put on your body. And in 97% of disease, you
can research this scientifically, it has been proven that it’s stress related. So yeah,
it is crazy like any relationship problems you’re having. If you think about it, you
can probably put your finger on fear and stress can be the underlying root of any issues you’re
facing with your finances, relationships, business, anything. I believe every good and
perfect gift is from above, Gabe. I believe that God’s blessed us to be a blessing.
If you read throughout Scripture, he calls us to be the head, not the tail. I believe
the more money we have, the more good we can do with it. But it’s just a tool that we
use. We are owned by money. I don’t think money is evil but money is not my end goal.
It’s a tool we use to do stuff with. I believe there’s more than enough to go around. It’s
kind of funny. I posted recently in our group. Look at the Forbes 500, if anyone researches
the Forbes 500 list, it’s like almost everyone on there is billionaires now. It used to be
millionaires and now it’s billionaires. And there’s just like people on there. I
believe that people that aren’t Christians or godly, they can be successful too. In the
world’s eyes, they can make billions and tons of money. So I’m not saying that people
who aren’t Christians can’t apply certain principles and be blessed too. Some of the
people on there, they’re getting all their wealth from casinos. How in the world will
you ever have peace and joy from doing that? I don’t know your take on casinos and I’m
not going to slam you if you go to them, but if you ever research casinos, the majority
of the time everyone knows the saying the house wins. It’s like a very small percentage
of people win. And a lot of people get addicted to gambling and throwing money away. They
have this false hope that they’re going to win and they don’t. And it can really
shipwreck and ruin lives. People are making billions off of it that run those things and
I’m just like man if they can do that, why can’t we help millions of people sell on
Amazon and be financially free and spiritually free and do good things and make money with
it. Kind of what we’re doing here, so…
Yeah, exactly. There’s a lot in this, Zach. This is such
a rich topic. I know it’s been on both your and my hearts recently so I just want to,
gosh, there’s so much in this about your belief systems because that really is and
you’ve probably heard this if you watch self-help, your belief subconscious is like
the rudder that’s steering your ship. And maybe you’ve tried this. It’s almost impossible
to consciously try and do something. You’re going to hit, that’s the whole broken personal
element. It’s all about you. So that’s the freedom in Christ that you don’t have
to be like Jesus. You can surrender and let go. And I’ve noticed, at least through my
success, and I know ours are different Zach, but it’s been the times of my life when
I’ve been able to let go of control. And I’ll use this word surrender. I’ll do
another video on this. I can speak well about the struggle, let’s put it that way. I know
the struggle well. Years of going through struggle and the times when I’ve let go.
Ok God, I don’t know what I’m doing here, I’m going to stop trying to pretend like
I do, can you just kind of guide. That release has opened up the biggest shifts I’ve had.
I mean it’s happened multiple times. I’m sure your story is a little bit different.
But I got to ask you did your parents have money when you were growing up Zach? I don’t
mean to put you on the spot. But did you grow up wealthy?
Parts of my family did and parts didn’t. My dad was a blue-collar worker, loving, strong,
great provider. And he tells me now that the system is flawed but then it was go to school,
get a good job, get a good education, work in the system for 40 years, retire, the government
will take care of you, retirement, pension, 41K will take care of you.
So you didn’t have a silver spoon in your mouth. Your parents weren’t millionaires.
We were on a double-wide on a farm. Like a 23 acre farm.
So you probably had some beliefs when you were kid about money. How did you shift those
beliefs or how did God shift your beliefs from the mindset your parents passed down?
Because we all get that from the age of whatever it is, 0-5, you basically believe. You tell
a 2 year old, they basically believe anything that’s around them. They’re like soaking
up the world. It’s the childlike faith.
How did you shift those beliefs about money? Because it all goes back into that. And I
know this is a loaded question, but I’ve got to ask you.
You hit it right. My parents, and I love them, but I’m sure this stuff was programed into
them. But I remember my dad used to make comments like if someone had a lot of money or something
he’s like they’re probably a doctor or lawyer or some BS like that. What’s wrong
with that, you know? But it’s like anyone who had money had to be a doctor or an attorney
or some high profile person. It was just BS, you know. It wasn’t the true hardworking
blue-collar. Yeah, there was a lot of pride in that. I
get it. I don’t know.
Did someone sow it into you? I think so. I think my wife and I, as we studied
Scripture, because we were struggling financially. When we first got married, I brought a lot
of debt into our marriage. I think at one point in time our credit was good but we were
poor. We were just maxing it out. The more money we made, the more we spent. So I think
we got to this point where we were like $30,000 in debt and we’re just like something has
to change. So we started studying Scriptures on finances. On tithing. On whatever man reaps,
that’s what he sows. Who sows bountifully, reaps bountifully. Who sows grudgingly, reaps
grudgingly. And God cannot be mocked. You can’t trick him. Sow a little and hope to
get a lot back. And all these different Scriptures. I think we just started applying our belief,
our faith in those Scriptures and I think within a 1-2 year span we faithfully obeyed
and applied what we learned from that. We were debt-free. We paid off like $30,000.
And my job at the time, I think I was only making $35-40,000 a year. It was miraculous
to me that we paid it off. And then I think within that following year we just had unexpected
blessings to where we had $20-30,000 positive in our account. And then, since that time,
we kind of went back and forth, but now we’re ahead of it. Honestly Gabe though, I still
think the Bible says we’re to be transformed by the reunion of our mind, not be conformed
to the world. So I think a lot of it came from that mentally and somehow God just changed
it in my heart or subconsciously I just knew it was the truth and I received that as truth
and started walking by that. But I honestly still think I have some programing in me.
There would be times when I don’t really need to be working, but I feel like I need
to be working. It’s not enough. I’ve got to create more.
What is that? I don’t know. I mean it’s just why. I
mean I have a big family and it’s like I want to provide for my family. It seems that
sometimes when I focus on my family more or God more or when we were moving, and I was
focusing on other priorities, it’s like our business was flourishing. You don’t
work 15 minutes a day and make a six figure income. It’s just not normal.
It’s crazy. It doesn’t make sense. It doesn’t follow the logical you’ve got
to work hard and all this stuff. There’s something obviously blessed about what you
were doing. I did a lot of study and I really do believe
that some of the self-help stuff helped me, but I know that it doesn’t help a lot of
people. I think I grabbed hold of some truths there and took it. And I believed God and
I had faith in it and it was kind of a mixture. And God just blessed it and it happened. But
I think I was still strongly involved in it with my willpower somehow. Because like I’ve
said, I’ve had some health problems and stuff, just issues I’ve had to deal with.
So I still think there’s things in there that I need fixed on. I need some different
programing. We could make hours on how broken we are.
That’s not the point. I credit it all to God. It’s just his hand.
It’s his blessing. I truly believe we’re steward to what he’s given us. We’re content.
We’ve had a lot of money, been blessed. It’s an awesome place to be but we’ve
also been beyond broke, deep in debt, and we’ve been content sometimes in that circumstance.
Probably broke or a little bit of money more content than like owing people money and being
deep in debt. That was kind of rough. We’re thankful. If we lost all of our material possessions
today, we know we could go on. It might not be easy, but we would still love God, love
people, we’d still be together as a family. It would be fine. So I’m thankful for what
we have. I guess what I’m trying to say is I’m not attached to all of our material
possessions. It’s not like this is mine, I’m going to take it with me when I die.
I’m not like a hoarder and stuff. It’s just stuff. I’m thankful for it or blessed,
but it’s stuff. There’s a whole another level of riches
that’s available. Zach, I know you’ve started to experience this. I’ve heard this
from people before too. Jim Carrey says I hope everyone gets rich and famous so they
can realize how empty and meaningless it is. Maybe God’s got a funny way. Falling on
my face is the only way that I learn things. So I’ve heard that kind of stuff before,
but there’s a level of joy and peace. The peace that passes understanding that’s available
when you follow Christ, when you can surrender and let go of things. And again, that’s
why I say this at the end of the call. I’m just sharing with you what’s been effective
in our life. But when you can let go of stuff, it’s a freeing experience, and that’s
a big part of why Zach and I came together to build this group and to build this community.
We believe that Amazon is just a conduit, just a vehicle. Maybe you’re watching this
interview and maybe this has nothing to do with Amazon for you and that’s exactly what
you’re supposed to get. There’s a shift internal. The question I want to leave you
with watching this and we’re going to wrap up. Obviously, you can get more information
about the Partner Group below. Zach, I’ve got our developer been pinging me. They’re
ahead of us in the time zone. I want to make sure we have time to talk to them. The question
I have for you is what do you believe is possible? If you take anything away from this interview
today, you hear the results that Zach got, our intention was to expand your awareness
for what’s possible in the universe of Amazon entrepreneurship and the question I have for
you is what do you think is possible? And the powerful part about that is whatever story
you’re telling yourself, that’s what it is. If you’re telling yourself that you’re
worth $100,000 a month and you want to do that for your family, so it be. If you’re
telling yourself this all sounds too good to be true, it’s too hard, it probably won’t
work for you, that’s probably the case for you as well. So Zach and I have a heart to
help you grow and provide a platform, kind of like a pot if you would, where your best
talents can come out and you can flourish with our community. That’s the purpose of
the education, the community and the deals. The hard work part, that’s up to you. The
clue I want to give you is it has nothing to do with the suppliers. It doesn’t have
to do with the products you buy. It all has to do with the mindset and what you believe
is possible for you. So I just want to invite you to open up the possibility to new results
and chances are the reason you’re not getting the results you want in life it’s because
there’s some kind of thinking that’s still holding you back. So Zach if you want to summarize
on a high level. What are a couple of key takeaways someone can take from your story?
If you look back, what are the couple nuggets of gold, the things that matter? Of all the
stuff that someone does on the Amazon FBA space. If we’re maybe going to take a couple
of minutes here and put a point on this, what matters in all this stuff?
Yeah, I also believe a worker’s worth its keep, right? So I don’t believe you sit
back and you’re lazy and you just think God’s going to do everything. I think you’ve
got to work with him too. So yeah, you’ve got to go to work. You need to get clear with
intentions, goals, why you’re doing it and then you just got to take action. So I believe
if people can learn from a mentor or from training, from people that have gone before
them and they’ve kind of paved the way and have a blueprint laid out of different things
you can do and you have a support person that can be there if you have questions or need
help, I think that’s just huge and that’s key. So that’s the first part. But even
more importantly is what you’re going to do with that information. When you have that
information, are you going to apply it, are you going to take action, how aggressive are
you going to be in doing it. And ultimately Gabe I think a big part, what I’m learning
too, is being balanced. There comes seasons in your life when you can just bust it and
get after it, like the past six months building this group Gabe up to what we have now. I’ve
just been sprinting man like crazy. And like I said, it really isn’t needed. I know there’s
other things I can do to be making millions, but I choose to do this because I feel like
it’s part of my calling. Love working with people, love helping people. But at times,
I’ve neglected my body, haven’t eaten right sometimes, even though I eat all organic
and natural and all that, there’s some things that I should have in my diet with what my
practitioner told me yesterday that I don’t, it’s made me low on stuff, it’s causing
all these problems in my body. I’ve got this pain. I’ve got do stretching. I’ve
got to do working out now. I’ve neglected those. Just family time sometimes, relationship
times. You can only focus on business for so long. That’s not all there is. There’s
a time when you’ve got to focus on that to get to where you want to be, but just like
don’t neglect everything else in the meantime. Especially if you’re in a family, you’re
doing this for the ones you love and provide for them or be with them or provide the life
that you all desire. But if you leave them behind in the whole process, that’s not
good. So try to have a good balance in your spiritual life, physical, business. And I
found that if people can have all that together. And we’re not perfect but if you try to
balance it the best you can, I think you’ll have a lot more joy in your process of creating
wealth on Amazon and using this vehicle as opposed to just focusing on Amazon and throwing
everything else out the door. Apply what you learn, get aggressive with it, but don’t
forget about the important things in life too because that’s the whole reason you’re
doing this for. on your saying Zach and for you watching that’s
all accessible to you now. You don’t have to be a millionaire. You don’t have to be
successful on Amazon. You’re already more than enough and maybe you’re watching this
interview because you just need to be jamming that in your mind today. Appreciate you for
watching. Appreciate you for sharing time with us. 1h 27 minutes. Zach, appreciate you
for sharing time with us. Time flies when you’re sharing love.
We can go on and on. I see a part 3 coming up, Gabe. There’s so much I want to say,
but we can’t go on forever. So we’re going to have to continue it.
We’ll continue man. There’s always more. There’s an abundance of content. We’ve
got a lot more planned. So if you haven’t run the Partner Group yet and you want to
get all the details and be a part of that, it’s still open, you can click the link
below. Check that out. I appreciate you being with us. Zach, thanks for all the wisdom man.
I appreciate you just peeling back the curtain and sharing what works and what doesn’t.
That’s the real stuff on Amazon for people learning how to sell on Amazon FBA. Do you
have something to wrap up? Were you going to add how to sell on Amazon
FBA part 1 under your 2 in case people wanted to go back to that video?
Yes. I would link the part 1 to how to sell on Amazon FBA. I’ll put a link to that below
if someone wants to see the full story, your back story and all the other parts on selling
on Amazon. Absolutely. Part 1, part 2, and then coming at you part
3 on how to sell on Amazon FBA.