How we were able to make 53K Selling On Amazon

By December 8, 2016amazon
how we were able to make 53k selling on amazon

Me and Stefan just recently started Private labeling products and sell them on amazon.com and I must say, that we are absolutely stoked on the results we’ve been able to achieve. In this case study I will you show you what we did to bank in $53,060.68 by selling a trending product and private labeling it. NOTE: I am NOT going to reveal the product, as we are planning on selling it next year again (it is seasonal…). I will however reveal everything else 😉

Transparency means a lot to me, so I have to tell you that not ALL of it is profit! In this comprehensive case study I am going to show you exactly how we made $25,425 in profit and how YOU can replicate the same results. I am going to show you everything from picking the product, finding if there is demand, sourcing it and ultimately selling it.

amazon earnings

Although we made $53,060.68, our product cost was $7,7 and we also spent $7 per unit for shipping. Another cost to factor in is the fact that we got about 10 products returned (7 of these were resellable), 3 were destroyed during shipping, 1 in the Amazon warehouse and we gave away 2 for reviews. So that brings us down to 11 damaged products and 2 that we gave away. The amazon FBA fees were about $9/unit. We also spent about $1000 on amazon sponsored ads.

So lets do the math:

$53,060.68 – $27,942 – $308,1 – $1000 = $24,425

That is pure PROFIT! Not to shabby if you ask me…

So lets get down to business… how the f*** did we find a product like that!? Well, it is much easier than you think.

I have to start of with a quote my mentor told me once: “Money is laying around on the floor – you just have to know how to pick it up!” Opportunities are all over the place – just be on the lookout.

What we did, to find this particular product, was to follow websites Kickstarter.com, IndieGoGo.com, Watchcount.com, Wanelo.com, UNILAD (a FB group) and some other FB groups that post cool stuff. After seeing a product on Kickstarter getting funded into the $x,xxx,xxx numbers and not being patented, we thought it was a perfect opportunity for us to jump in and get a piece of the pie from the buzz that will follow…

This wasn’t a “new” and innovative product, it is just that the guys doing the Kickstarter campaign did such a good job of promoting it, people went absolutely crazy and every one and their grandma wanted one of these babies.

What cought our attention was that one product was getting shared like crazy and posted in all these groups on facebook. It went VIRAL…

We naturally didn’t stop there. We checked the demand on sites like watchcount.com, google trends, google keyword planner… What we found was EPIC!

Here is the google KW planner data for the product. Unfortunately I cannot show you the “exact” monthly searches, because Google recently changed the way they display data for keywords and don’t show the “exact” numbers anymore… But you will have to trust me on this one. After the product going viral and all the buzz created on social media, google searches went literally from 1,000  to 800,000 over the course of 1 month. Bingo – exactly what we wanted!

monthy searches amazon case study first page elite

We checked the Google trends data which only made it clearer that we were on the right path to earning a nice paycheck for the summer!

google trends amazon case study
The last “test” was with the tool called watchcount.com to see what was happening on eBay. This tool shows you how many people are “watching” a product on eBay and how many past sales this product has made. We have found that this is a pretty good indicator on what’s hot and what’s not.
Here is an example of what a search for “flashlight” returns on watchcount.com:

using watchcount to find ecommerce demand

See how this would be a good indicator that shows you there is a TON of demand for flashlights? You can see how many people are watching the item and even better – how many sales this product has made.

It all looked good and the decision was made. We naturally went to alibaba.com and searched for suppliers…  just as we thought – pages and pages of suppliers. After narrowing it down to about 15-20, we emailed them and started negotiating.

What you should know when negotiating – never accept the first offer, always turn them down, even after 2nd, 3rd or even 4th offer. This will enable you to get rock bottom prices and laugh all the way to the bank!

We ordered a total of 4 samples from our filtered suppliers. Once the products arrived, we tested them out and assessed the build and material quality and picked the best one.

The rest was just a matter of fine tuning the details with the supplier (more on this in the Step by Step PDF).

The private labeling part – we hired a designer who made a kick-ass logo and a product insert for us and the color scheme for our brand. We then sent this information over to our suppliers and it was on.

Our order was produced in about 14 days and then it took another 7 days before we saw the inventory in our amazon account. Speed to market is absolutely crucial, especially when a product goes from nowhere to a demand that cannot be met. Believe me, we are not the only ones doing this (wink).

The inventory was ready to be sold on June 1st. We did our in-depth bulletproof keyword research and optimized the listing so it ranked on page 1 right out the gate (we reveal more in the PDF). We then got 2 initial 5 star video reviews by giving away our product to reviewers we picked and then started doing Amazon PPC for our listing.

The results we got speak for themselves… A whopping $53,060.68 in sales from one single product!

Like what you read? We break down the exact process we used to achieve this in our PDF below, with actionable steps that you can start doing to achieve the same results.

 

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