QUIN: Welcome, everyone to the podcast. Today we have a guest who’s a YouTuber, an Amazon seller
Luke, what’s happening?
LUKE: Hey, what’s up. You got my last name right, that’s why usually I just go by Luke W. but Wechselberger, it’s a long last name. 13 letters.
Didn’t want that one growing up too much but I’m happy to be on the podcast. It is my first ever podcast. I’m really excited to just kind of let loose some of the topics that I’ve been doing in entrepreneurship and all of the above. So, thank you.
QUIN: Perfect. So Luke is in greater Seattle area. Is that right Luke?
LUKE: Yeah, I’ve grown up in Seattle Washington most my life. Went to college out on the eastern side of the state at Washington State University. Did some Broadcast News Journalism and quickly realized I need to get in to entrepreneurship.
QUIN: Awesome. So you started early on as a woman’s shoe salesman.
So tell me about that experience.
LUKE: So that was one of my earlier jobs in between college transitional periods, you know summer job type of thing. And you know, working in Nordstrom’s a lot of people know that company.
They’re really big. They’re prestigious. And I mean I thought it was a great summer job, you know, meet a bunch of women and sell some shoes. And I knew selling things was very important in life, you know. We’re all selling 24/7, whether we realize it or not.
You know if you’re asking your mom to go out and stay out later at night or something, you’re selling her on that idea. And selling is just something that you know can come natural to a lot of people. And when you get better at it, you can really actually find a way to enjoy it. But women shoes, that was just a summer fling. A lot of ladies came and past, but it was a good time. (laughs)
QUIN: I bet. Yeah, good for you Luke. So around 2017, the summer of 2017, you started with Amazon. Tell us about that. Kind of how did you hear about Amazon and what made you jump into it?
LUKE: So I’d figured out more about entrepreneurship actually in February 2017. My birthday was January 19th. I remember the day exactly. I woke up. It was February 27, snowing outside. We don’t usually get snow in the Seattle area but I saw on ad for Tai Lopez’s social media marketing course.
Okay, he sold me on it. It was in a transitional period between me either going to the broadcast news sector of journalism and everything or me finding my own route and making my own life for myself. And I knew I wanted to do that so I signed up for that course. It was a thousand bucks. And went through everything. I mean I learned a lot and I started to help other businesses and actually be a social media marketer and having a few clients, making some decent money but I was building their brand and not necessarily my own.
So in the whole space of entrepreneurship watching YouTube videos. I came across Tanner J Fox, which a lot of people may already know. He’s one of the big up and comers on YouTube. He’s got 120,000 subscribers now. And I started following him from day one. His first video ever came out.
I followed him from the beginning. And it’s like when you model other people that are successful, you can almost just replicate what they’re doing and start getting their success. So it was so easy through YouTube to just watch these people and what they were doing and just implement those steps. So eventually, Tanner came out with an Amazon course, $500 again.
And I wanted to put my skin in the game, so putting that money on the table makes me want to get eager to make that money back. So I invested in the course. I went through a couple of products but that’s how it started. Tai Lopez’s course bled into the Amazon.
And I have even a more funny story if I could go into it. I broke my leg skateboarding and I laid in bed for two months and was able to basically finish his course and research my products. And I was, in the meantime, working at a job called Joey’s. You might have a Joey’s in Canada.
It’s a really kind of nice restaurant. I was just a server. And basically I went back to that job after I learned Amazon, and I was like, I’m out of here. Like, I already knew that my time was being wasted at this other job because my time put into learning Amazon and scaling this up, every minute counted so much. It mattered so much to me there. And when I was wasting eight hours at work I was like, this is not building anything. (laughs)
QUIN: Yeah, so do you still skateboard today or do you have barely any time to do it?
LUKE: I actually have quite a bit of time that’s why I like Amazon FBA because once you set everything up, it does take a lot of time in the beginning.
You know, 20% of your efforts, hardcore efforts in the beginning will result in 80% of your bounty, your results in the end. So it is kind of a passive business after you set it up. So I do get to skate a lot more. And as the spring and summer months are coming, I’m gonna be back on board more than ever. And on my YouTube channel, I like to incorporate good content with giving valuable information but also showing a nice scene wherever I’m at.
So I’ll incorporate some drone footage or skateboarding stuff like that, in with the videos and tie it all together about, you know, failing with skateboarding. In the beginning it takes you many years to learn these tricks and once you have it the muscle memory is there. Just like with any other business, you fail, fail, fail. Finally, you get it and it’s easy for you.
QUIN: Very nice. How about the Tanner’s training. Tanner J. Fox. We do follow each other on social media, so I know who he is.
He’s about to unveil the new car. Maybe a Ferrari, I think, if he didn’t unveil it yet.
LUKE: Yeah, I mean. His first course that came out, it had 33 videos in it. It was just to get that basic beginner up to speed as if they’d never maybe watched YouTube videos before on Amazon FBA.
So I had watched quite a few videos. I already knew basically everything in his course, but it was good to be able to get into the student’s Facebook group, you now, to collaborate with others at the same level as me. To have that money, like I said, put on the table so that I felt committed to this process. And I had since taken multiple other courses.
Kevin David’s the Ninja Course and everything. A few modules in that, as well as the Amazing Selling Machine course. So I’ve been really well-versed.
And I think one of the best things that I’ve done for actually my learning that can be a tip for for others is just keep talking about what you’re doing.
Sometimes when you’re excited, get at the dinner table, start talking about what you love, what your passion about. I took it to the YouTube channel and that was in May 2017. The first YouTube video I made was a review on Tanner’s course. I wanted to make some affiliate commissions. You know, if someone bought the course through my link, I would make a hundred bucks.
I ended up selling 67 sales of his course and made 300 videos to this date, well, 291 videos on my YouTube since then. And I just kept just re-iterating everything I’d been learning.
Put it on a video. And it just makes you realize and know what you’re talking about so much more once you’re really repeat those things. And it’s very valuable.
So when you really like something you’re passionate about it and you keep talking about it, you’re bound to develop more knowledge about it. And in that same time, find other people that like the same things and like talking about the same things. So that’s perfect.
And I see your YouTube channel is growing. You put out a lot of videos. Great videos.
And something I noticed is your thumbnails, they’re worked on. So the technique to that, where did you learn this?
LUKE: So I pretty much make all my own thumbnails. I’ve outsourced maybe 5 thumbnails to other people who put really cool, you know, intricate artwork into these things.
But I mean, once you watched so many YouTube videos and honestly, I have just about 2,900 subscribers now with almost 300 videos.
So a lot of people that are just finding my channel are like, “You need to have way more subscribers.
I don’t know what’s going on.
Your content, the way you explain things, everything is just really, really on point.” And I just try and stay humble with everything and I don’t mind having a low subscriber count or whatever, if that’s considered low.
But I enjoy getting the value to these people that are really engaged with me because I mean you don’t need many subscribers in the space to really get a lot of feedback.
It’s not like I’m having a young kid’s cartoon show where, you know, everyone’s not engaged.
This is like real engagement that’s happening.
So a small subscriber base is great. So I’m not the best with the click-bait titles or the thumbnails, but I mean they’re pretty decent I would say. Recently since I started seeing a lot more success, you know, 30 grand a month in sales with 45% profit margins with my Amazon products putting up that I just passed 100K in sales all together.
A lot of people have now just starting been starting to find the channel. So the big thing there is putting these big, you know, numbers in your titles and stuff like that.
And then everyone’s like, “Whoa.” So that’s a little trick to that, I would say.
QUIN: so I just saw that and on LinkedIn, you shared the screenshot of your $25,000 30-day the from the Amazon seller app.
And I really like the fact that there’s a lot of people out there the share that you know the 8-figure screenshots. We all know them on Facebook. Everybody shares them.
But not everybody puts out the whole truth of the story, right? There’s a lot of things that Amazon sellers want to hide.
Other things that are just good business to not show. And when somebody asks you about, for example, your 45% profit somebody asked you about your Ad Spend, you actually showed a screenshot of your Ad Spend with 18% ACOS.
And it was really good numbers for what you had made. So for example, for twenty-five grand income, you had $700 spent on ads.
So you’re doing, I’m guessing you probably don’t want to tell us what your product is but I’m guessing this is a more expensive product, right?
LUKE: And that’s one of the big tricks.
And I’ll show you just last month’s spend, I’m not sure, you can probably see it here. So spend, I mean $384 and I made almost $4000 in sales with a 9.7% ACOS.
So I don’t really even spend much on advertising. And the reason is my product is a higher ticket item, so it does cost quite a bit to get restocked. And the truth that people are gonna hide is maybe if I get a return that’s gonna knock off like $100 out of my balance there.
So it is kind of difficult but I may only get 6 or 7 returns a month. And last month I made 200, I mean 40 or 60 sales of my product.
And every time it makes a sale, it is 100 more dollars into my account.
I buy the product for $45 with the logo shipped in Amazon, everything.
45 bucks, it sells for $120.
Amazon takes $24 out of it, I make it $50-$52 profit per sale. And if I could have a ton more inventory, yes I’d hopefully have my Ad Spend at you know, 10 grand and my sales at a 100 grand a month, you know?
I mean I just need more inventory. (laughs)
QUIN: That’s beautiful. And you know, when I saw the 45-50% profit, I was a little bit skeptical at first because a lot of sellers do not know what their real margins are.
They throw out the numbers, “Oh, I bought this for $2 and I’m selling for $4 so I’m making 100% profit.”
A lot of sellers don’t really know their full numbers. And after I checked and I saw, okay this is actually real profits 45-50% percent, which is beautiful.
Low volume but high margins. And is this a private label product?
LUKE: Yeah, so I don’t do drop shipping or anything like that. The courses I’ve all taken. And the course that I’ve actually made myself is actually based on just private labeling your own products.
I see so much more value, so much more profitability, so much more of an asset that you’re actually building.
In the beginning, when I was doing social media marketing for all these other businesses, it was me building up their business.
But now when you have your own brand, you can get four or five products in that same niche category and under your brand logo name and next thing you know you got a substantial brand.
You can sell that brand on a website called Flippa.com and people are listing their Amazon brands and saying, “I’m making $9,000 a month in profit.” And they’re selling for like $465,000.
You can just buy that brand right there with only 10 grand a month in profit.
So there’s a little algorithm to it. It’s like your annual revenue multiplied by 3 is what you can sell your Amazon brand for or something like that.
But the private label scene is really different because there are so many ways you can sell on Amazon; retail arbitrage, online arbitrage, drop shipping. Just so many different ways.
But private labeling was the one that made sense to me and building my own brand, building a real business that I’m passionate about. And I also scale out to, you know, Facebook pages, Facebook groups and Instagram for my Amazon brand. But later when I am maybe going to sell the brand I can say, “Look, I have a following here, here, here.
I’m making this much on Amazon just ask the asset value of the brand.”
QUIN: Absolutely. You talked about the different ways to sell on Amazon with retail arbitrage, private label, online arbitrage.
The one you didn’t talk about, I actually have an expert here within an hour from now which is doing about close to 20 Million per year in wholesale, which is a professional wholesaler. So I don’t want to tell the name just yet because it will air after.
But yeah, so wholesale, private label, it depends on I guess what you really like. And you know, a lot of people that started with retailer arbitrage will say the retail arbitrage is the best. Private label people would prefer private label. That’s I guess why they do the one that they’re in. I do about I would say probably 80% private label. And it’s due to the fact that doing it for so many years, because I started doing it in ’97.
Not with Amazon of course, because I don’t even know if Amazon existed in ’97.
LUKE: Not until ’99, I think.
QUIN: Yeah, even YouTube wasn’t around. But anyway so I did all the the things that didn’t have the fancy names, even. It would be buying things from the store and selling online. It wasn’t called retail arbitrage.
But now I 80% private label and I do some wholesale. And wholesale is only in Canada. I have no wholesale accounts in the US.
So let’s get into your YouTube channel. It looks to me like you have a nice quality videos and you’re a very good talker.
So you studied communications, is that right?
LUKE: Yeah I went to Washington State University like I said and got a degree in Broadcast News Journalism. I’ve always been one to want to motivate other people through many of my hobbies. I have so many different things. And I’ve always been, like I said skateboarding. I’m always there just encouraging people to go big, to do that trick, to go stick it. And then they land it. And me seeing that I actually maybe pushed them to make that decision is just a really gratifying feeling. And I know that everyone can do it if they actually just do it.
There’s just all these mental blockers that are holding them back.
So my YouTube videos a lot of people say they’re getting a lot of good motivational content. And it’s also real. Like, I’m showing behind my screen how to click buttons, the tutorials, just all that good stuff.
And just jumping off topic for half a second, I wanted to say I did start with retail arbitrage. I forgot to mention that. I tested that out and I even have some videos on retail arbitrage as well. Just going to Macy’s and buying a bunch of electric griddles. I bought 10 of them. Shipped them in to the Amazon store.
And on April 26, I made my first sale on Amazon.
And then June 1st, I made my first sale, my first private label product and yeah so that’s when it all started. But the YouTube channel is really great communication platform for me because I’m a hyped up guy a lot of times. I want to get out there, I want to talk to people. I want to get people excited because there’s so many opportunities in this world. And when I’m here at my home town like I am now, people are just stuck it feels like.
I wanna help so many people. It’s crazy. (laughs)
QUIN: Yeah you know what, you just touched on a great point that it was what made me want to go into podcasting and be able to help a lot of people that are stuck. They are stuck. And they don’t even know that certain things exist.
So how easy it could be to start, for example, when you started how much money did you invest into your Amazon business?
LUKE: So for my private label product because the retail arbitrage thing was like, it was $100 that I put in for the retail arbitrage for 10 griddles. And they were selling for $50 on Amazon and I bought them for 10 bucks each and about 10 of them. So it was cool to see those sales coming in immediately on my Amazon seller app.
That’s when I got straight hooked on that thing. And then I’ve paid $500 for my first order of a 100 units, a small ticket item. It was, so $500, $5 a unit it was selling for about $13.99 to $15. I mean I even talk about what the product is on my YouTube channel but I’ve blurred out my brand name and everything because I don’t sell it anymore. But I mean it was a certain type of the magnet actually.
So really low start up costs. And I recommend anyone looking to get into it, maybe go look for a low start up cost just to get it in there see how everything works. Because nothing comes according to plan.
There’s all these anomalies that will come up, hoops you got to jump through, reviews you have to pass to get maybe certain products be able to be sold on Amazon. If they’re electronics for instance.
And that’s why I like having a course is actually beneficial. A lot of people don’t do the mentorship, actually talk to their students. But I actually still do the the Skype calls and help people solidify and make that move with their first product.
Because when I got started, I was like sending this guy or Tanner Fox all these product ideas and he just didn’t really have enough time because he had, now he’s got like 5,000 students okay, so very, very big.
But if you guys are looking to get started, find the people that have low subscribers, that are still in the grindstone game and not necessarily sold out just yet. And they’re in the trenches trying to help out.
QUIN: Did you have any product that failed miserably?
LUKE: So I had maybe 3 products that I tested that were all small ticket items before I got into my larger ticket item, which I’m still doing today. So it took me till my fourth product to really hit the home run kind of thing with this. So I mean the first product like I just mentioned, those magnets.
Nothing really lost money necessarily because I mean I was buying the products for such a low cost that even if I lowered down to break even, I was still you know, I was under cutting my competition by so much money that I could just sell out quick and at least break even.
There was one product that was a seasonal item that I did actually have to ship home like 200 units of it. Luckily, the product was only $2 each. I bought 500 units. That was a mistake. I now recommend everyone just start with 100 units to test out. Something like that.
Because I bought 500 and I mean the season was over basically and I was left with inventory. So I had to ship those home for $0.50. I’m sure as you know already like $0.50 unit to send back to my house. But I was able to actually sell those out on the street at garage sales and putting up little signs. I even have some videos of just being a hustler out on the street with signs selling my what could’ve been Amazon product. But that was the worst it got for me failing kind of thing.
QUIN: Yeah, you know I had a seasonal product. That it was a $13 sourcing price, so it would cost $13 to source. This is before shipping and anything from China. So bigger product, I could still fly it. It was right at the limit where I should stop flying it and get it in the seacan. And because it starts selling so quick in such big quantities, that I had to place a container order.
So it wasn’t a full seacan, but it was one of those that is going to take longer to arrive. And that happened, you know. One day the tap turned off and it would not sell. It will not sell. And we’re talking about you know, 20-30 units per day to one, nothing. You know, one, two nothing.
The issue is Amazon doesn’t cross the borders with seller’s items. So for example, I can not tell them to send them to me for $0.50 being in Canada. So they would have to send it to a warehouse that I told them to, for example, in the States third party warehouse where I would have still have to pay for the handling fees.
And anyway these products ended up costing me a ton of money. And they would sell out even at a cost when out of season. Okay this is kind of product that if it is out of season, nobody will will ever touch. And you don’t want to wait 12 months for it or you know 10 months at least for it to go back into season.
It’s one of those 3-month season kind of deals. So yeah I didn’t make a ton of money with it during the season but that’s the risk you take, right?
You never know when the demand will really hit this.
LUKE: I was gonna say, how many are units did you get stuck with at that point? Like in the warehouse. And then you did you end up just having them liquidate them?
QUIN: Yes so I had about 600 that got stuck. And so it’s not accumulating a lot because like I said, it was about $13 to source each.
The shipping cost for for that amount of units was around lets say probably two grand. And then warehousing fees at this facility and what happened was nobody wanted to liquidate them off season as well. So when it got close, when I started getting some offers, now we’re about in the 6-month range where it’s going to become in season again, at that point I decided I’ll just float them myself and just keep them.
So I ended up selling out and not sourcing that product anymore. It wasn’t really private label.
It was like a white label. You know I would just buy the product as is. Big quantities in China and sell it. So I had no issue. I don’t fall in love with the products anymore. If it doesn’t bring money home, I’ll abandon it and that’s it.
LUKE: Yeah that’s kind of a scary part about Amazon. Once you really start getting your your product set, there so many opportunities with products and you can almost get caught up in your own little world with your product for little too long without branching out and seeing what’s there. But in my case, I really am trying to build up a brand with, you know I’m having my third or fourth main product in this brand and I’m sourcing it for $60 and it sells for $180 to $200.
So about $103 is what the Amazon fee calculator or profitability calculator’s telling me. Over $100 a unit. So the only thing that I’m scared about is how many units do I need to buy? Like we just passed Christmas time not too long ago and it was like, “Do I need to order a ton more units or is the sales going to slow down now that Christmas is over?” But they actually started increasing sales which was surprising to me. So I ran out of stock a couple times.
Had to expedite some shipments, some air shipments in. But that’s my biggest struggle right now, just having the right amount of inventory and stock without maybe being stuck with too much inventory. I don’t think the faucet’s gonna turn off for this market anytime soon. It’s kind of the newer market that’s yet to even peak out yet.
I just got to you know, get the courage to man up to bigger quantities of these things. As my cash flow starts getting bigger, I have more money to throw in the way of products, at these products.
But it’s just scary because maybe, you know, also your review ratings on Amazon, what if you get bad reviews? Next thing you know, your products are doing half the sales as they should be. So reviews are important.
I like to get quite a few reviews so that at least I know my ranking. My reviews aren’t gonna just drop substantially you know overnight. If you have 10 reviews and you get two one-star reviews, you won’t be from all 5 stars to 3.5 stars.
QUIN: Absolutely. You know one of the things I used to think is that all the cash flow problems are going to disappear once you reach the 7-figure per year. And when in reality, the only thing that happens is your cash flow problems increase with the amount of sales that you get because now you have a bigger demand of products to buy and to ship from wherever it is you’re shipping them from. So your cash flow problems are gonna exist, just at a bigger level.
Percentage-wise, they’ll stay the same but the dollar amount will increase with the amount of sales. So it’s not good news. It’s not bad news either, right? I guess it’s a good problem to have.
And I see or I think it looks like you’re not sourcing things the way that more sellers are taught to source.
You got to source something that’s very affordable, that fits inside a shoe box. It doesn’t break, it cannot have… preferably don’t get into electronics, all that stuff. So, it looks like you went normally the thing that costs $200 is over sized, so I’m guessing that’s your case as well. So you decided to source the non sexy products that weren’t going to have less demand, but you’re gonna be the big dog there when it comes to the competition.
LUKE: Yeah, you know, my market was, and there’s many techniques in product research to find products. My first 3 like I said, which were kind of mediocre products for me. I found using the Jungle Scout web app.
So you can put in filters. And you know when I was going by that everyday criteria that everyone’s taught to do, I was finding the same products that everyone else was and not necessarily differentiating a ton. So by the time I got it in there, it was super saturated and that’s why I wasn’t getting the sales velocity I needed with those low-ticket items to actually make a lot of money.
Because the sales weren’t coming in as I had planned because so many people had the same offer as me basically.
So I used another method that I kind of came up with. And I have some videos on it on my channel. I call it like the negative keyword search. As you may know, you can type in a minus and then a bunch of random letters. It’ll pull up every product in Amazon’s catalog.
You go to a category you want to search into and then you sort by the price, high to low. And then you can actually go in the URL and skip, you have to be on page 2 at least to do this, but it’ll show on the URL, “page=2”.
You can change that “page=2” to maybe “page=200” and then you’re gonna sift through page 200 where all the products are maybe in the $50 price range, because you’ve sorted by the price high to low in the beginning and now you’re looking at every product in the category.
And I went and sifted through the categories and found my product this way. And it was such a random method that I use that you know, who else is actually gonna skip to page 162 and like look in this weird sub category to find this thing? So that’s how I found it.
And I’d recommend you know, you gotta be tricky by the way you find your product and then you have to think of the barriers to entry. And having a high ticket item, not many people are willing to fork over you know, $16,000 or $10,000 for their first order of products and actually know what they’re doing to beat out the competitors. To know what to bundle with, look at the frequently bought together, read the customer negative reviews. Do all that stuff. Look at your competitor images. Just see what you can do to beat these guys out. And when you’re looking at these higher ticket items, there’s usually lower competition out there. So you don’t need a lot of sales either to make a lot of money.
I mean 200 sales a month made me eleven grand or something last month on Amazon profit alone.
And then yeah, that was for the month alone but you know when I showed like a $30,000 screenshot, that’s from the last 30 days.
So that was kind of you know some days in January, maybe where I had some big days added up. But in February alone, it was was a great month. And you just got to look at the barriers to entry and see what you can do to do what’s different than everyone else, kind of thing.
QUIN: Yeah, barriers to entry. In my excel sheets when I’m sourcing products are a positive point. So for example I use Jungle Scout’s Chrome extension as well, like everybody else. But there’s certain things that people consider negative that I give, when sourcing products I award them points. So if it fits this, it’s a point. If it fits this, it gets a point. And if there’s barriers to entry, it gets awarded points. For example if it’s over-sized, it gets points. And I was talking to somebody the other day showing them how I do it and they’re like, “Well you just gave them positive points for being too big.
” I’m like, yes, because I’d rather have less competition and less demand but be the best seller at that product. And so that’s something great to hear that you’re doing, Luke. And it’s still working apparently, right?
LUKE: Yeah, I mean my product is actually not too heavy. It’s maybe 3.5 pounds so it’s not even that big but it is electronic and it is a high ticket item. It is something for I mean like, skin so it’s not anything, I would still not recommend ordering anything in China if it is a topical cream or anything like that. You don’t want to mess with any of that stuff. You wanna source that maybe domestically.
But mine had a lot of weird barriers to entry. I was following every stage of the game when I was looking to order the product I was looking.
No new competitor showed up at all. And I’m at spot number 1 and 2 right now. I have two listings. One has the listing with just the regular product and then one has the listing with the bundled item with it. So I have 2 little variations.
Instead of actually putting the variations in one listing, I just spaced them out into listings to take up more real estate on Amazon on the first page. Which actually is a really good thing.
I’ve talked to other people who said Amazon may give you higher ranking if your product does have actual variations within your listing. And I have noticed when I search on Amazon with Jungle Scout, it seems like everyone with variations like maybe multiple colors of a certain product within that same listing, they’re always seeming to be at the top.
So I’m not sure which method actually works best, having variations within your listing to help maybe rank in Amazon’s algorithm or actually just having two separate listings that can stand out to customers more.
QUIN: Yeah well there’s pros and cons from what I’d tested. For example the the reviews will be divided into both listings if they are separate. While if you have them together, you know the blue will get a 5-star, so will the yellow. And the thing is I believe the parent ASIN will get all the sales velocity. So if you sold one yellow and five blue and three brown they get all the sales velocity to the parent ASIN, while at the yellow level, you’re just getting one per sale. But you get, like you said, you cover twice the… you get 2 positions if you get the first place there’s 2 in the first place yeah.
So we talked about your failed products, you’re successful, you are doing now 6 figures per year. High 6-figures per month which is great. And what I really like is that your profit margins, your 45-50%. And you said you have 3 products and you’re working on your fourth?
LUKE: Yeah, my fourth one’s going to be the biggest, one of the biggest money maker I suppose because there’s two other people selling this.
Basically, the exact product and they’re all doing, according to Jungle Scout’s numbers, around 200 sales a month. And I mean 200 sales times 100 bucks profit, I mean what is that 20 grand a month kind of thing in profit.
So I mean that’s just astounding to consider one product. And I do like the fact that you don’t need too much inventory. You don’t have to worry about ordering 2,000 units to make a lot of money. Maybe just 200 units. Ten times less.
You’re doing the same amount of work.
Why not just put up more money and get that more expensive product that’s gonna make you more money? At the end of the day, Amazon is shipping it out.
It’s no extra work for you. It’s just more money in the beginning kind of thing.
So recommend selling some smaller ticket items, learn what Amazon is all about, find a market where you can find higher ticket items with low competition.
And usually, that’s what you can find. Make sure your suppliers have all the correct verification, certifications, maybe they’re the patent holders of the product whatever.
Make sure all that information is checked off because Amazon, you know it’s getting more stringent on accepting different products to be able to be sold.
And you really got to know what you’re doing when selling on Amazon as opposed to eBay or some other places where it’s easier to sell.
QUIN: Absolutely. And when you have a low competition numbers, for example if I’m looking at a product that has very low competitors, there’s a couple of things that I have to be very sure is one is that there’s no patents on certain products.
That could be the reason why there’s little competition. And the other thing is the history, which I’m sure you look at the history of the product, all along they’ve been having those 200 sales for using Keepa or Helium 10 which I also have.
I guess actually replaced my Keepa because Keepa is no longer free. It was free up until recently. And this April 2019. So up until recently, it was free. And I don’t know if it’s going to be again in the future.
That’s why I say this because a lot of people may listen to the podcast 2-3 months from now and things have changed. So yeah Helium 10 has a free tool as well that does the same thing and tracks history. Because when somebody launches a product, they could do giveaways.
And there’s a way where you can actually kind of manipulate your own BSR. So you can have a very low BSR even though there’s no units being shipped out of your account, right. And I know I did that a while while back and I don’t know if it still works but it was using the Amazon giveaways, you can do giveaways inside Amazon. And even a third party, even a buyer for example can open your listing and there’s an option in there to do a giveaway of your product.
So I can do giveaways of products that are not mine if I want to build let’s say a list of some sort of… but anyway I was doing it with my own products. And what you do is while doing those giveaways, you put a higher month number.
For example, I want to give away one unit for every thousand people that enter this this giveaway. Then you make it private so nobody knows about that give away. Amazon will not announce it. What you do is instead of one unit, you’re giving away 50 units. So one for every 5,000.
Put the maximum number and don’t make it visible. So what happens is worst case scenario you’ll give away one unit but your BSR will count as 50 were sold.
So your BSR will jump close to the top. And if anybody was tracking my products at that time or anybody else’s products to do that, it will look like okay according to this BSR, this is selling thousands of units. And in reality it wasn’t. It wasn’t even selling yet.
LUKE: Wow! I have actually never heard of that tactic but that just goes to show there’s so many things to learn.
You can never learn enough and that’s the best part about entrepreneurship is that there’s endless possibilities.
It’s not like you’re going to the same routine everyday at a job or whatever. You have free will, free creativity to do whatever you want. And there’s no ceasing your progression and self development. It’s not just about business, it’s you got to put in your health, your family relationships, spirituality.
All these things are important to people. And you know you just got to set yourself free with financial freedom first, I think, and then you can really invest in yourself in the other ways. But I mean this is a no-brainer. You just got to do it.
QUIN: Absolutely. All right. Luke, we’re coming up here on time. And before we go, I wanna let you let people know where they can know more about you, where to find your YouTube channel and all that.
LUKE: Yeah, so like I said my name’s Luke Wechselberger . On Instagram Luke_Wechselberger. Facebook. I mean everywhere. LinkedIn. But mainly I would really appreciate if you guys came to follow me on YouTube by just typing in Luke W. Luke <space> W.
Some people just type it in as one word but it is Luke W with a space in between there. And I have tons of content for you guys. And I’m one of these people, you know that’s really just you know passionate about actually helping other people as well. You know I get actual fulfillment from seeing people take the tactics that I can teach and really benefit from them and then come back and say, “Wow, Luke you actually helped me.” You know that’s the biggest thing.
That’s more important to me than actually making my own sales.
Maybe I want to sell my brand and just go into helping other businesses and people and just watch their faces light up.
So please come subscribe to me at Luke W on YouTube and so I hope to see you guys there. Drop a comment on a video and let’s help the subscriber count, guys. It’s still small.
QUIN: Perfect. I subscribed, Luke. So I’m there and in it. And I’ll have all the links to everything on the show notes.
So check out the show notes for this episode and you’ll have all Luke’s links in there. Okay, Luke thank you very much.
We’ll stay in touch and I really appreciate you spending your time with us here today.
LUKE: Yeah, thank you all for watching. And thank you for hosting. See you guys next time!Quin Amorim, Host of Amazon FBA Selling Online Podcast