I Tried Amazon FBA – The Honest Results

I Tried Amazon FBA – The Honest Results, I made over $20 million selling online. We’re going to share with you exactly what Rhett sells on Amazon and step by step how he created this $20 million brand, including every single cost he had to start this business, his revenue, his profit, and everything. Try clicking the Like button as we’ll show you step-by-step how to build your own internet-based business. Be sure to keep watching the rest of this video as Red walks you through the three biggest mistakes he consistently makes, one of which cost him over $10,000. So make sure you stay on track to avoid making the same mistakes.

How Did Ret Started His Business

Start your business. Yeah, I started out in the corporate world but quit that to start my first business. But, it was something I wasn’t really passionate about. It was around the same time that my mom had breast cancer, and I spent a lot of time thinking about natural remedies for her and about connecting with nature for myself. So, I really wanted to start a business in that industry. We’re going to reveal what Rhett’s product is in just a second. But, if you’re new to the post, my name is Travis and on this channel, I teach you how to start your own online business. Specifically, how to sell products on Amazon. I do have a program that’ll show you how to sell things on Amazon. What do you sell on Amazon? What do you sell online? Yeah, well.

Rest’s Product

We sell natural remedies. We create natural alternatives to pharmaceuticals and sell them on our website online as well as on Amazon. Specifically, on Amazon, we sell our magnesium super blend called Mello. It’s packed with three different types of magnesium, plus Gaba and Elaine, to help with stress, anxiety, and better sleep. We’ll walk you through the best ways to start your own Amazon business and explain how we built it. Our central purpose is to help people feel better and live better through the power of the ordinary world. Our whole team is full of energy and that’s why we do what we do. The first cost I had.

Rest’s Costs

I was going out and finding the farmer that was going to be our source for our first line of products, which were CBD-focused. So finding the best farmer in Colorado was the first task that we had. I spent the whole summer driving all over, meeting with farmers all over Colorado. Now, depending on the type of items you sell on Amazon, you no longer have to drive around looking for ranchers. If you want to sell something on the Internet, you can usually visit a website like alibaba.com to contact foreign manufacturers, or thomasnet.com to find a U.S. manufacturer. This way, you find a rancher willing to provide you with the item. How did you actually turn it into something that you could sell? Well, then we took it to the best extraction facility in Colorado. They would do the extraction, and then they would do the bottling and packaging. How many units did you order approximately for your first run? 2500. How much did that total cost for your first round of manufacturing? I want to say it was around $18,000. So now you have these products, what was the next step for you? The next step was building the website, which my business partner Adrien did with the help of a couple of guys in Pakistan on Fiverr for around $1,500. At this point, you have a website, but one of the hard things when you’re selling products online is actually getting people to come to your website and buy products. How did you get people to come to your website and buy the products? In the first few months, we weren’t advertising, and we were just relying on friends and family. How much money did you make in your first month ever? The first month was less than $4,000. Did it kind of grow from there or because obviously you’ve done $20 million now, how did you get to where you’re at? It was pretty flat for the first 6 months. Until we made our first advertising investment and then that, we went from 8,000 in August 2018 to 30,000, to 60,000, to 90,120 all within four months.

What was that advertising investment, and how can people at home do the same thing? Yeah, so we were limited to CBD. We weren’t allowed to advertise on Facebook, Instagram, or Google. I’ve always been a big listener of podcasts and thought that would be a good avenue for us, especially because podcasts can tell the story over 30 seconds to 3 minutes, as opposed to just a static ad. So, we invested in our first podcast in September 2018, and that was where we saw our first hockey stick. How do you know which podcast that you should advertise on? Well, I reached out to a podcast that I loved and thought would be a good place for us. I talked with the programming manager, and three weeks later, he came back to us with an idea for a podcast that would eventually turn out to be our best podcast and, to this day, our best podcast partner. How much did you spend on that first advertisement? $6,500 and we had a total of $7,000 in the bank, and it very much felt like putting all the chips in, but we were willing to do it. We rolled the dice, and thank God we did. We got sales right away, I mean, right away. Within the first several days, we saw huge pops in revenue, and we went from doing $4,000 a couple of months before to $4,000 in a day. So the first month after, about how much did you make, and from that $6,500, how much did you make? Well, in the first month, we went from $8,000 in August to $30,000 in September, and in total, in your first year ever selling a product online, you did over.

Revenue Numbers

$250,000. But the next year you went all the way up to $1.3 million. How did you grow from $256,000 to $1.3 million? Yeah, well, we at that point had advertising, dialed and mostly on podcasts and newsletters and, Uh, we had multiple podcasts running at any given time, so that was a big part of it. But we also really leaned into subscription. Then at that point and then from year 2 to year three you went from 1.3 to $3.2 million, how did you do that jump was it just the same old thing. Yeah uh. leaning in on what was working and kicking out what wasn’t. But uh really focusing on that recurring revenue and. the improved advertising it was also in that year that we were able to finally begin to advertise on Facebook Instagram and Google, and we were ready day one that same afternoon we had launched our campaigns and then the next year you went to 4 million next year was 5 million, and it was around this year that you decided to finally start selling on Amazon, why did you make the change? We had always been holding off on selling on Amazon. Um, we were thinking through the brand Equity story, but we realized that there was a whole segment of shoppers that we weren’t capturing, and they just weren’t coming to our site,, so for instance, if their doctor or their friend told them about a product, uh magnesium for instance, they were either going to go Google it or they were going to go search it on Amazon, and we were not capturing the ladder, and we decided that that was an important Market to work with right now about 50% of all sales that happen online happen on Amazon last year Amazon did over $600 billion doll in sales on their website and two-thirds of all the sales that Happening on Amazon is from third party customers, that are people like you, me, and Rhett selling our products on Amazon has like over 100 million Prime customers, just in the United States. A lot of people, including myself, if I buy something online, I almost always buy it from Amazon, so if you sell products online, selling products on Amazon is a no-brainer. That is where most of the money is being spent in the United States, walk us through the process of actually getting a product on Amazon because you’ve already had this

How Did Ret Get His Product on Amazon

Product created, but tell us what some of your costs were and some of the steps necessary to get your product sold on Amazon. One of the first things was creating the listing. Yep, creating the listing, but really before that, we vetted and searched for an Amazon partner that we could work with. So, you were working with an agency, someone that was going to help you to sell on Amazon. That’s right. How did you find a good agency? Asking friends. I have a number of friends in space, and they were able to make some recommendations and referrals. And for you out there watching, you don’t need to hire an agency in order to sell on Amazon. It’s actually a pretty easy process. I have a free 8-hour step-by-step video I’m going to give to you at the end of this video, so make sure you stay for that. So, you finally launched on Amazon, and in your first month selling on Amazon, how much money did you make? We made about.

1st Month

5,800, and that’s revenue, not profit. Right, that’s revenue, not profit. So let’s break down some of those costs. The first cost that you have to keep in mind when selling a product at all is manufacturing the product. So, around $8 per unit out of the $5,000, that was a total of almost $1,000 in product costs. The next fee that you have to think about when selling on Amazon specifically is the Amazon selling fee. When you sell a product on Amazon, you have to pay Amazon 15% whatever the price of the product is. How much was your Amazon selling fee for this first month selling online? It was around $900. Another fee you have to consider is the Amazon FBA pick and pack fee. When you’re selling on Amazon, you want to use the FBA program. FBA stands for Fulfilled by Amazon. This is where you send the products that you’re selling on Amazon into their warehouse, and when you get a sale on Amazon’s website, Amazon will pick, pack, and ship that product out to the customer. Now, they do charge you a fee for this. I know you spent around $48 per unit in your first month. How much did you spend on that Amazon FBA pick and pack fee? So, just about $500. And in total, in your first month ever on Amazon, what was your total profit? The total profit would have been about $3,500. However, we were also paying that agency I mentioned $4,000. That’s why I recommend, if you’re an individual or a smaller business, don’t hire an agency. Obviously, Rhett already had a ton of success selling his products online in other places, so it made sense for him to hire an agency. But you don’t need an agency, all you need is this your website . In the next month, your sales actually almost doubled. How much in revenue did you get in month number two?

2nd Month

Just over $10,000 was your total profit. How much was that profit? It was around $6,100, and Rett’s numbers continued increasing month after month. The next month was around $122,000 in revenue, around $7,000 in profit. The month after that, it was almost $119,000 in revenue, $111,000 in profit, and so far R has done over $250,000 on Amazon, over $150,000 in profit. But he did make three huge mistakes. Make sure you pay attention – we’re going to share all the mistakes he made, so you can avoid them at home. The first mistake is that.

3 Big Mistakes

Rhett was hiring an agency to run his Amazon. Yeah, that’s right. They helped us get started, but we definitely could have done it ourselves. I’m going to show you step by step how you can sell on Amazon yourself. I have a free Amazon FBA course I’m going to give to you in just a minute.
The second mistake you made with this business was hiring a PR Company. How much did you spend on the PR Company, and what did they promise? Did it work out? Yeah, sure. So, we spent over $100,000 on PR back a couple of years ago, and it did not work out. The ROI on that was not even close to making it work.
Well, they promised to put us in front of the editors of national publications and get us all the eyeballs we could want. But it didn’t work out. When you have a business, a lot of times you’re going to get a ton of emails from people saying, “Hey, I’m going to get you in this magazine, I’m going to get you in this newspaper,” and nine times out of 10, they’re not going to produce real results. Even if you get in a magazine or a newspaper, a lot of times, that doesn’t convert into money.
You think that because you’re in some newspaper, you’re going to make a bunch of money. It’s usually not true. So, you spent around $100,000. How much do you think you made from that? We could track the ROI and see the code usage, etc. If you spend $110,000, you better be getting $102,000-$140,000 in sales. Otherwise, you’re just wasting money.
The truth is, the best PR is often free. I actually have a section in my Amazon FBA program showing you how, as the business owner, you can get in front of newspapers, influencers, different magazines, and things like that. There’s a link to that down below in the description.
But now, let’s get into the third mistake. This is maybe one of the biggest mistakes you made with your business. What was that third mistake? It was really getting out over our skis and thinking that we were going to grow faster than we actually did. So, we hired up, we staffed up, and at a certain point, we realized that we were spending way too much money. Selling products on Amazon is one of the biggest opportunities to make money online.

Similar Posts

2 Comments

Leave a Reply

Your email address will not be published. Required fields are marked *