How To Start An Amazon FBA Business With $1,000 Or Less

Updated : Jan 11, 2020 in Articles

How To Start An Amazon FBA Business With $1,000 Or Less


– Hey everybody, I’m Ryan Daniel
Moran from Capitalism.com. And today we’re gonna talk about how to get started selling on Amazon FBA with $1,000 or less. If you had more money, if you had a few thousand
dollars to start the business, then you would do a big inventory order, or at least a bigger inventory order, you might build a website,
you might run some ads, but when you’re starting
with $1,000 or less, you don’t have that luxury. – Help me I’m poor.
– No. – Now this can be a really great advantage because many entrepreneurs
work way too hard before they take a sale. But when you are
bootstrapping and you’ve got just a few hundred or
a few thousand dollars, it means you, number one, can
only focus on taking sales. That means this. Do the smallest inventory order possible and then just start taking sales. – Get back in there at
once and sell, sell. – And the stuff that Gary Vee talks about about putting stuff on
Instagram and following people and sending messages and DMs
and responding to every comment is so important for you to do at the beginning stages if
you are bootstrapping this. So you have to put all of your energy into getting that first inventory order and getting those first customers and following up with every customer, making sure they’re happy,
asking them for reviews. You’ve gotta get really
comfortable with the dirt of getting into the grind of it all. And be talking about your product
to people who will listen, doing podcast interviews if people will ask you to be on the show, doing everything you
can to throw attention at that first hundred customers or so. You don’t need a website. You don’t need to run ads. You don’t need a bunch of fancy packaging. You need sales. That’s what you need when you’re
starting with under $1,000. So place the inventory
order of your first product and just start taking sales. That’s all that matters. All of the complicated stuff
comes after you make sales. Number two, focus on high
profit margin products. This flies in the face
of most people’s advice, which is sell what
everybody else is selling, but do it better or more. Look, if you are scraping together a few thousand dollars or less you’ve gotta go after
high margin products. Now I recently did a video
that we’ll link below about criteria to choose
your first product. And I’m gonna give you
one of those right now because it’s the secret to
having high margin products, and that is to differentiate your product. ♪ I’m different yeah I’m different ♪ Now that doesn’t mean you need to invent something from scratch. It just means that your product
needs to be different enough from all of the other options for you to charge a few bucks more. So even something like this is a journal, I paid like 40 bucks for this journal. Why? ‘Cause it looks like a $40 journal. People ask me if I’m reading my Bible, and I say well it is my word. ♪ Aaaahhhhhh ♪ So if you can’t differentiate the product then you’re not gonna be able to charge a premium price for it. Again, that doesn’t mean that you need to invent something from scratch. Differentiation can come
in the form of branding. It can come in the form of who you target. And there’s a lot of different ways for you to get your product to stand out from everybody else. But if you are just selling spatulas and it’s the same spatula
as everybody else, you cannot be successful with Amazon FBA and only have a few
thousand dollars to start. It’s just not gonna be possible. People have too much runway on you. They’re too ahead of you for
you to be able to compete. So the secret is to go after markets where you can bring some
differentiation to the marketplace. This is really easy to do in pets. It’s really easy to do
in food, in supplements, in beauty, in some household items, and a lot of consumables and
anything bathroom related. – Stinky. – One of my first products
on Amazon was a yoga mat, and we came into the market
way higher than everybody else. We had, I think we sold it for $45. Eventually we ended up
bringing it down to 29.99 because we got more customers that way. But at the beginning
we had like 500 units. We had to make as much money
as possible at the beginning. So you can start high and lower later. But you gotta come out of the gate with a high profit margin product. Number three, if I could give you one tip on getting sales quickly then
there’s one advertising source that’s free that brings in a lot of sales. And it’s partnering with audiences. If you can make a connection with someone who runs a Facebook group or an Instagram page, a LinkedIn group, anyone who has an audience of people who might wanna buy the product that you are bringing to Amazon, that is the best source of
free attention in the world. Today I run a portfolio of
physical products brands, and I don’t start anything until
there’s already an audience that I’m going to partner with because it’s just fuel. You just can throw a
product to an audience and you get sales from day one, and then you optimize from there. So the best free advertising in the world is other people’s audiences. And that can come in a
variety of different forms. So if that’s all you focus on, ’cause you’re doing things free, then that’s the one advertising source that you must consider. So, one thing for you to consider, and I just want you to sit on
this as a thought experiment, you don’t have to start
with just a few hundred or a few thousand dollars. There’s a lot of money in
physical products brands. There are companies selling
for 10s of millions of dollars. I’ve advised a lot of them. And since there’s so much
money in these brands, there are investors who are
more than willing to put up the first $10,000 that you
need in order to do this well. I run a training called
Million Dollar Brands, which helps entrepreneurs ensure that their product is a good idea, and we help them identify
those three to five products they can get selling
at least 25 units a day and at least a $30 price point, and that’s a million dollar business. If you know those three to five products that you’re going to release and you know how you’re gonna bring
them to the marketplace, and you bring that business plan, if you even wanna call it that, to a potential investor and
you just ask their advice, watch how fast they offer you money. That training is $297 but
it’s free if you complete it. Which means if you just create
the business plan at the end by answering a couple questions, you have the option to get
all of your money back. I hope you enjoyed this video. May name is Michael Daniel Moran. I’m the founder of Capitalism.com. We invest in and help
entrepreneurs like you build businesses and invest the profits. If you enjoyed this, please
subscribe to the channel. And also, I run a podcast, it’s Capitalism.com
With Ryan Daniel Moran. We’ve helped thousands of Amazon sellers and new entrepreneurs build
successful businesses, and I would love to invite
you to be one of them. You can listen to that on
Spotify or Apple Podcasts. And I look forward to
chattin’ with you soon. Thanks for watchin’. (light music)

2 Comments

  • Hey Ryan,
    Is it a must to have a "passion" for your products?.

    When it comes to product selection i really don't have a passion.

    Thank You for your content

  • Hey Ryan !! To be honest.. Starting at $1000 (or a very very small budget) with a PL brand is even more difficult. I meant the points you mentioned are absolutely good points and does apply.. but it would kill the spirit of a beginner who is a non-hustler kind.. just a thought I had as I watched this.. most people starting out are very very noob to building and following all the necessary steps. I am trying to change that on my part with some true information as much as I can.

    PS: I would love to get you a coffee over Skype and have a chat !

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