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Make $1000 per month on Amazon FBA – a step by step guide

Do you know you can sell on Amazon FBA and can make tons and huge sales revenue? However, what does it take to make that first 1,000 dollars in profit per month consistently?
So there are a few things you must know, in advance, before you start selling on Amazon FBA if you want to see that $1,000 in profit per month.
Sales revenue does not equal profits. Many people get mixed up by this when they are just starting their own online business or selling on Amazon in general. Moreover, they never could differentiate what sales revenue is and what is profit. Sales revenue means how much money you are trading in revenue. It does not say that you are taking home that specific amount. So I could sell one million this year in sales revenue, but that equal to absolutely nothing and it has no definite meaning to me if I am not able to profit from that. So you always see people showing extremely high numbers, or in the 6, 7 figure range. However, how much money are you able to take home from that sales revenue so you can profit nicely into your pocket so you can spend or reinvest into your business.
My goal is to go over the steps today to get you to see what it takes to make your initial $1,000 in profit per month. I say one thousand because personally, that is a realistic goal for any of you beginner sellers out there. If you are darting for twenty thousand in profit right off the bat, I can tell you right now, that is a very unworkable goal, especially if you are selling on Amazon. I guess it took me around a year, my winning product to profit consistently one thousand a month. However, it caught close to a year after my first failed product to know what steps do I have to take to make sure that I can pocket dollars a month.
Profit margins range anywhere from 2% to 60%. Often when you are seeking passive income, the gain is remarkably narrow. I want to show you this one product research strategy that many sellers are missing that can find your monthly profit products. We are looking at my favorite product of all time, the beach ball. Product research is something I want to show you that it is super important that will find you that up to five thousand a month in profit product.
This idea is something many new sellers overlook, and it is critical. So the first thing that I am doing is pulling up my Helium 10 Amazon product research X-Ray tool right here. This tool is going to give me all of the sales revenue of the beach balls on page 1 for the keyword “beach ball.”
Make $1000 per month on Amazon FBA - a step by step guideAll right, so the very first thing is we want to sort revenue here by greatest to smallest. Notice here that this is the highest amount in income and the very bottom is the lowest amount. Also, we desire to look here if these products are indeed the beach ball.
Because many the time’s people are running sponsored ads and all of these random products pop out. Moreover, we do not want these products. We do not want to look at that right now. I suppose this is a beach ball, and it is an emoji pack. However, let’s instantly go down.
Moreover, if we continuously go down, this is, I guess this is a beach ball, but it does not look like this beach ball. However, I think you get the idea. What you want to do first is to eliminate any products that are not a beach ball because we do not want to include any total interest here that will show products that are not what you are searching.
So let’s say I went down the entire list and I already discarded any foreign products. So right here, it shows that out of every single seller on page 1, the total revenue for the beach ball is up to one hundred and fifty thousand. This revenue is the total revenue. What you want to check out are your competitors that are making at least twenty thousand in sales revenue. Spying competitors are critical. This monitoring is something I teach all of my students.
Moreover, the reason why I say this, you should not look for any products if your competitors are not making at least twenty thousand in revenue because revenue is revenue, like what I explained about earlier. It is not profit. The very general profit margin for the majority of sellers, on average, is about 15% to 25%, which is only about $15,000 in sales revenue. If your competitors are profiting, given that they are selling organically and there are ways to check if they are selling naturally, we are not going to get into that in this article. However, if they were selling typically and you know they are not doing a giveaway or launching their product or doing anything funny, they are just regular every day selling and making thousands in sales revenue, and they will take home approximately $1,000.
That is after PPC, that is after launching your product, and again, that is steadily selling if you are looking at products that are only making one thousand dollars a month in sales revenue.
If I multiply that by 25%, I mean, I am only taking home more than a thousand dollar a month in profit.
It is just not worth my time. So there is absolutely no reason for you to look at any products that are not making you that amount of money. Another thing is the total revenue right here. This total revenue shared amongst everybody on page 1. If this total revenue is too low, now remember, when you enter into a marketplace, you are taking a share of the total income, you are jumping in here, and you are just basically stealing some revenue from here. If this number is too low, there will be nothing for you to take. If this total revenue, for example, if the total income is $15,000 and that is amongst tons of sellers on page 1, I can almost guarantee you that majority of them are only making five hundred or a few hundred dollars in sales revenue. That is when you should stay away from the product because there is not enough market share for you. There is not enough money in the market for you to steal. It does not make sense if you are looking at any products that are super low in revenue. Again, there are so many that are under ten thousand. However, added up, the total revenue was huge, So you might require to do more investigation in times like this. However, it is critical that at least a few sellers are making at least $15000 to $20000 in revenue per month so you can have a chance to take some of their shares.
Take some of their revenue and profit than one thousand per month. The next step is that your goal is to break down all the costs that are associated with making our $1,000 profit a month. Moreover, how long does it take? Also, I am going to write down everything else that is associated with making you that $1,000 profit.
make money onlineLet’s get started. I am going to write down every single thing that you have to pay for when you are selecting your product to sell on Amazon. So of course, the very first thing is you need to pay for inventory.
The second thing you have to pay for is shipping. Moreover, I am going to explain more in depth about this in just a little bit. I am only listing out things that you have to pay for right now.
So, also, we have to do logo design, insert cards, any poly bags that you are using or barcode stickers. Shipping, we need to find out the landed cost. So we need to pay for your inventory. Your shipping, the landed cost, Because for every single unit you ship, you need to find out how much it will cost for your supplier to ship it to the Amazon warehouse. The cost per unit. You have to do some math there, but I am sure you have that figured out. You have to pay for your logo, insert cards, poly bags, stickers, or any customizations that you want your supplier to include for your product.
Now, I am not going to get into too much about how much it costs for each thing because everybody sells different products. Everybody’s products are different when they want to customize it. So right here, I am just going to write an average of five thousand dollars, because that is why I see the most. I am going to put miscellaneous. Miscellaneous can be hiring an inspection service or ordering product samples. Just many the other little things that you will have to pay. That is just an appraisal, and it is not definite. However, this is the standard that I see for my followers, and that is why I am using as an example.
Another thing that we need to consider is our product launch. Product launches cost money, and Whenever you are launching your product, you have to pay for PPC, you May pay a giveaway service if you are still considering to use a giveaway service. Again, that is a whole new, different topic that I won’t get into in this article. However, we need to prepare, have some money aside to make for our product launch. When it comes to launching your product, you have to ensure that you have your product launch strategy in place before you pay your supplier.
This task is very, critical. If you are paying your supplier this amount of money already, and you do not know how to launch your product, you should not be selling on Amazon because you have to know how to sell your product on Amazon before you sell on Amazon. So let’s explain the costs associated with our product launch.
So right here we have PPC sponsored ads, PPC ads. Moreover, we also have to consider the other fees that are associated when we have our products in Amazon’s warehouse. So that is FBA fees. If you do not know what I am explaining about or If any new sellers are reading this, I highly suggest you to Google these terms.FBA fees, storage fees, there are a few more small fees, but I will let you do the research yourself. It is not a significant amount of money, but the biggest costs associated with your launch is going to be ads, FBA fees, storage fees, and we will put giveaway service. That is if you want to use a giveaway service still. Many people are starting to lean off this, this year. Many of my followers are only launching using PPC. There are many new PPC features this year, and PPC has been a super hot topic which we will not get into in this article. However, if you look at our other materials, I explain a lot about PPC and launching with PPC as well. So the average product launch, you know again, it depends on how hard you are doing your start. However, on average, anticipate paying anywhere from one to two thousand. When you are running PPC ads, you are going to have to put money in to get ranked for specific keywords before you start seeing any organic sales or results. Organic sales mean page one. It takes time to rank to page 1. I am sure you already know that. However, you need money to do that, So that is right here. So all together, on average, to get your product up and running, it is going to be minimum $1000. If you have a job to feed your FBA business in the beginning, then put some money aside into savings, so you have money to feed this. If you do not know how to do this, you should not be doing this. It does not make sense to source a product and not know how to launch it. Also, if your launch, your launch right here, if you do not know how to do your launch, you are going to be wasting all of this. All right, toward the next step. Let’s explain the timeline. It takes 1 to 2 months for this to happen. It depends if you want to ship by air or by sea. If you ship by air, it is a lot quicker. If you ship by sea, it is a lot slower but a lot cheaper. However, usually for your supplier to make everything and for you to get everything ranked and shipped, it will take at least two months. I think at least two months. Right here, if you are launching using PPC, and also you have to get reviews. Reviews, I do not suggest paying for them anymore unless they are family and friends, but you should not be paying people that you do not know for reviews.
That is a minimal amount of money that we need to put aside so I will put miscellaneous here as well. So back to my launch, this takes another month. I would say it would take a month to gather reviews, to get your launch up and running. So in total, it takes approximately four months to get this going. Now, remember, if you want to profit, the whole conclusion here, is that you want to profit one thousand a month. After you do these two things, after you do these two things, depending on how many units you sold, depending on how many groups you gave away or how much money you put into advertising, it depends when you start seeing your first profit. However, to see a benefit per month, this is where it is going to; these two things have to work out. They must, and they must, they must work out. If you do not know how to do any of these, then please get the help you need. It does not have to be from me. It could be from anybody. However, if these two do not work out, you are going to lose any money here.
Moreover, to see that profit, you can start seeing way more benefit after your launch. If your launch is successful and you are on page 1 for many keywords, especially the higher volume searched keywords, you can start seeing even more than three to five thousand in profit, I would say within the sixth-month mark because this whole thing takes a few months.
This whole thing takes about four months. Normally, up to six months. I know it was for me. My winning product took six months to start seeing that six thousand in profit a month. That is a realistic timeline for you.
Given that you are consistently working on your PPC ads, you are selling steadily. When you are making consistent sales, regularly, if you are selling at least 10 to 30 units a day for 1 product, and depending on what the product is, what your profit margins are, that is an excellent start.
dropshippingMoreover, 1 product is taking the lead. I will do another follow-up success story. However, that shows you how much opportunity there is on Amazon for you to profit that amount of money. The best part about selling on Amazon FBA is that you can make unlimited amounts of money if you know the proper steps to take.
Moreover, realistically, it only takes at least half a year. Most businesses do not even profit money until two years, 2, three years. They could be in debt for many, many years. If you are starting a brick and mortar store or anything that is a physical location, it is going to cost more. However, leave me a comment below, tell me how long it took you to start seeing your profit when you are selling on Amazon FBA. It is different for everybody but six months is the general timeline which I understand that is very common to start seeing that a few thousand dollar profits consistently per month. If you liked this article, please subscribe to our mailing list.