Launching Too Many Amazon FBA Products At Once | Here’s What Happened

Launching Too Many Amazon FBA Products At Once | Here’s What Happened

December 9, 2019 13 By Luis Garrison


How was this seller able to end up with over
$30,000 in debt by starting their Amazon FBA business? Launching too many all at once, selling on
Amazon FBA is never a good idea. One seller that I was talking to for a while
now is now $30,000 in debt because they got too product friendly with sourcing way too
many products all at the same time. Now, this is a very common situation with
newer sellers, especially new sellers that are extremely excited to start selling on
Amazon. And they found their first product and now
they want to source their second, third, fourth, fifth and sixth product, I always, always
tell sellers, “SLOW DOWN”. You need to slow down because a lot of people
are under the impression that just because you have more products, you are going to make
more money. People automatically think that and it’s actually
crazy to me why people think that. In today’s video, I really want to talk about
what happened with this specific seller, how they are now in over $30,000 in debt and they
don’t know how to get out of it, and also, what you need to be doing when you are selling
on Amazon with your very first product. More products do not equal to more money. I want to make that really, really clear. Let’s talk about money. Let’s talk about startup capital. By the way, if you guys are new to my channel,
my name is Tamara Tee. I am a 6 figure per month Amazon FBA seller
and I also teach and coach other sellers how to start their business on Amazon FBA. Please do me a favour and hit the notification
bell if you want to get notified every single time I post a new video. Every time you start a new business, it requires
you to invest some money. Depending on what you are trying to sell,
what type of business you are trying to start, it requires you to dump in some money from
your own savings, right? When you are selling on Amazon and you want
to start multiple products all at the same time, you are now going to need triple, quadruple,
maybe even 5 times the investment if you want to sell more than 1 product. And the biggest, biggest misconception that
I see, that I have talked about previously, is that sellers think that, “okay, if I have
1 product that’s making me decent money, let’s source 3 more. Let’s source 6 more.” And then they go really crazy with sourcing
new products, launching new products, which will leave them in a huge debt. I honestly believe that the safest way to
start your business selling on Amazon FBA is by scaling your current product. Let’s say you already have 1 product. And let’s say that product is making you 10
or 15 sales per day. And your competitor is selling 50 units a
day, 60 units a day. And maybe someone else is selling 100 units
per day. That is enough proof to tell you that you
still have potential growth for your current product. Instead of adding in a second product or a
third product and just dumping in more and more of your savings when you don’t even have
that much savings in your bank account, why not just work with your current product and
scale that product to its fullest potential. This is the easiest, quickest way to get success
on Amazon. I always have been telling my own students
the same thing. “Hey, before you start thinking about sourcing
your second, third, fourth, fifth, sixth product”, I always ask, “is your current product selling
to its fullest potential?” Because when you are trying to scale a product
that you already have, all you really have to do is get ranked for additional keywords. You are paying for PPC advertising. You may be paying for external traffic. You may be paying for another source that
you are trying to get your product out there on social media, right? Maybe you are running Instagram ads. Okay whatever it is, you’re just paying for
advertising in general. That is a much smaller investment and smaller
fee compared to starting a brand new product, shipping that product, creating that product,
and then launching that product, ranking that product, running additional advertising towards
your new product. It’s just double the investment. Whenever you want to scale your business,
you want to scale the amount of money you are making on Amazon, you should really be
asking yourself, “did I reach my fullest potential with my current product?” 90% of the time, sellers will realize that
their current product has so much more potential to grow. If you guys are using PPC to launch your products,
you will know exactly what I mean by getting ranked for longer tail keywords and getting
ranked for as many keywords as you can, so you can maximize your full growth for your
product. What happens with this seller that is now
$30,000 in debt? They realized that having more products took
up a ton of their time. When you have more products, it’s like having
another child. You now have to watch over it. You now have to feed it. You now have to take care of it, maintain
it. And it just takes out so much more of your
time during the day to maintain and grow these other products, grow these other children
that you now have, right? With this seller, they had a normal 9 to 5
job, just like the most of you guys do. And they found it extremely challenging to
fit in all of these products throughout 24 hours a day. Having a 9 to 5 job and also taking care of
a bunch of products. Therefore, leaving their business in the way
it is and not growing at all. It was absolutely not growing. And usually when people say they don’t have
time to work on their business, sometimes I call out them and I say, “you know what,
that’s absolutely bullshit.” Because if your business was important, and
it should be, your business should always be important, right? It should be like your baby, like I said. But if you are making excuses saying that
you don’t have time, then your business will eventually just either plateau or sink to
the very bottom, right? But with specific seller, I totally understood
that when you are juggling more than 5 products and you are your own person and you have a
9 to 5 job and you have everyday life responsibilities, it’s nearly impossible for you to grow that
business. And your $30,000 that you’ve invested into
all of these products is just going to stay where it is. With this seller, they were so busy working
on launching over 5 products all at the same time that their head was literally spinning. And when you have more products, it takes
up more time. When you don’t have the time, you have to
hire people. But now that you are $30,000 in debt, how
do you afford to hire anybody? You just can’t, right? And then you have to take time to train them. You have to train a team. And believe me, training a team is hard work
and it takes time. I know this because I have outsourced many
things in my business now and it’s growing pains. I call this growing pains. It’s so painful to train people and get them
to really know how your business operates, how to launch your products. It’s a whole full time job and it’s on its
own. That’s why you guys should really work on
scaling your current product and not dumping in more money, especially if you guys have
not sold a product that has become successful yet on Amazon. Your job as a business owner and the CEO of
your own company for your products on Amazon is to innovate. You have to find the time to really innovate
and find other areas in your business that needs improvement. And when you have so many products going on,
it’s taking your time away from innovation. It’s taking your time away from really analyzing
which area in my business needs help. What do I need to outsource? What do I need to work on in order to get
some profits, right? This kind of leads me to my next thing I wanted
to talk about was profits. If you have one product that’s selling really
well, you can see a much quicker amount of money coming back to you in terms of profit. But another big misconception is that profits
do not equal income. Profits do not equal income. If your product is making you, let’s say $10,000
per month in profit, that does not mean that you are paying yourself, personally, $10,000. Profits are profits for your business. But when you are paying yourself personally,
that may be a much smaller amount from that $10,000 that you made. Because some of that money is going back into
reinvesting to the business. Maybe you are doing more advertising. Maybe you want to launch a second product. All of that money that you are getting paid
monthly that is profits does not mean that your pay check is $10,000. Whenever people ask silly questions online
like, “hey, how much profits are you making or how much are you paying yourself?” You guys, those are 2 separate things. They are complete separate things. But in order for you to even pay yourself
to live and to buy food and to put a roof over your head, of course you need profits,
right? But I am trying to say is profits do not equal
personal income at all. By the way, I did seek approval to talk about
this story on my channel or else I’d be in big trouble from this specific seller. Now this seller is working on trying to build
a team to take care of these current products because after analyzing these products, they
are pretty good potential products. I do see potential in them. But now you have to find the time, find the
right people, build the team, train them and it’s just crazy. You’re going to have to find the time to fit
that into your daily life schedule. And then you have to pay more money to train
these people. I really don’t want to see any of you guys
be stuck in a situation where it’s like this one, where you are so far deep down in your
business that you can’t simply just give up on it. You have so much more money. You have so much money that you put in and
now you want to find a way to make profit out of it. But then now you need to hire people and everything
is just crazy, right? This is why it’s never a good idea to source
10,000 products all at the same time. Just don’t do it. Please, please do not do it. Having one product that is selling extremely
well will beat having 10 products that are not really selling and you are now left in
debt. Now you may be wondering, “alright Tamara,
it’s great that you’re telling me not source many products all at the same time, when do
I know to source a new product?” Well that’s pretty simple. You guys should start sourcing a new product
based on two factors. One, you have enough money in the bank and
money’s not an issue to you. Or two, you are already making profits with
your first product and now you can afford to source a second product. Which goes back to what I promised to tell
you earlier, what is the easiest, quickest way to multiply your sales on Amazon? That’s simply by taking your very first product
that is already selling really well and creating a variation. Customers are already loving your current
product. They’re buying, it’s flying off the shelves,
you are making decent money. Now all you have to got to do is double, multiply,
or quadruple that. Did I say that right? Anyways, you know what I mean. How it’s all up to you to just source a variation
that is pretty identical to your winning product but now you are just changing the colour,
maybe the size, maybe slightly the design, whatever it is. You’re taking what is working and you’re just
changing a little to it so your customers have some sort of variety. Letting go of a product is really hard. I’ve seen sellers try to let go of a product
they can no longer afford, they absolutely have no time for it because they got too product
friendly with sourcing. And it sucks to let go of a product because
you have some sort of emotional connection towards it. It’s like having a little baby. You have an emotional connection towards your
baby or your pet, or maybe a real child that you have in your life, right? I don’t want to see you guys in this situation
where you are getting stuck like this specific seller and you just don’t know what to do
because now you have all of these things to take care of and you don’t have enough money
to keep reinvesting and to grow your business. You don’t have enough money to put on the
table for your little baby anymore. Do not get yourself into this mess. I hope this video has helped you today to
really open your eyes in really asking yourself, “has my current product grown to the fullest
potential?” Really ask yourself that before you jump inside,
before you jump into a new product. If you have any comments, please drop me a
comment below. I love hearing from all of you. And of course, again, be sure to subscribe
and smash that like button. I’ll see you guys in my next video.