Why amazon sellers continue to fail

Why amazon sellers continue to fail

February 20, 2020 15 By Luis Garrison


Why Amazon
sellers continue to fail and lose everything
they got What’s going on
Amazon sellers? Or hopefully soon-to-be
Amazon sellers It’s Beau Crabill here,
back with another video Alright so,
it’s very honest You know, a lot of
Amazon sellers fail A lot of people, there’s
over a million people who signed up on
Amazon in 2019 I don’t think there’s a million
people who had success Now, do people have
success on Amazon? Yes, it’s very true, it’s very
proven that the numbers of successful
Amazon sellers The amount of revenues the amount of actual
sellers is going up But there’s very
fundamental reasons why that maybe you’re
not having success or maybe why other
Amazon sellers don’t And the first fundamental
reason is, I believe many sellers who get
into selling on Amazon are treating it as a hobby
and not a business Now let me
get this straight You know, there’s a lot of different
models for selling on Amazon But any way that you
approach selling on Amazon It doesn’t matter if you’re doing,
you know, arbitrage dropshipping, private label,
or what I do, online retail is you must treat it
as a business People, when they don’t
treat it as a business they make it
very emotional I just actually,
at my house, had a business broker here
the other day who had over 150 million dollars
of deals coming through And he treats everything
as he do as a business So he’s setting up
businesses for his daughter to go sell it off
in the future But I see many people who
start selling on Amazon They’re like, oh, I don’t wanna
spend $20 here for some tools Or I’m gonna start
the business on debt I mean, if you have not had
a successful business before and you’ve never had
some sort of success or to have cash
flow coming in and you start your
business on a credit card that you don’t have that
money for, that’s not very good If you’re gonna be really
cheap and see everything as the price you
get into it or you don’t wanna
invest into education or don’t wanna invest into learning
from other people’s mistakes or thinking that someone
else can solve your issues it’s not gonna
help you, alright? So that’s gonna be
the first thing you know, not taking it
as a business Also with that, is when you
actually get logged into Amazon in your Seller Central most people don’t even know
how to operate their Seller Central They get a little notification
from Amazon saying, hey you got a
performance notification Two weeks later,
they’re suspended because they have no
idea what they’re doing Like, ask yourself
a question right now do you know what the command + Z
button does on your computer? Now, if your job was using
a computer every single day you probably
should know that So if you’re gonna
sell on Amazon you should probably
understand how everything works in
your Amazon business The second really
important reason which, I think, is the main
reason why most people fail is because of the business
model that they’re in So, I know I sell name brand
products on Amazon So let’s say I wanna go sell, I have
a Monopoly product over here Let’s say I wanna
go sell this little Harry Potter chess set,
or these Monopoly products I have a couple of choices,
I could do dropshipping where, let’s say,
they have it at walmart.com or target.com,
specifically any .com site for let’s say,
I don’t know, $30 Now let’s say it sells
on Amazon for $40 You know, I could list it on
Amazon and sell it for $40 Then when someone buys it,
I ship it from that .com site to my customer That’s completely against
the Terms of Service I see a lot of Amazon
sellers get suspended I see people invest into
Amazon automation programs They shell out $30,000, and then
they have a suspended store And also, the issues
with dropshipping if you do have success,
it’s short-term, it’s not a business it’s against the rules,
you are not getting a better cost So what I do when I’m
selling name brand products is I’m actually working
with distributors I’m working with
wholesalers who were focused on
driving the cost down Being able to buy it
lower than anyone else So when you see GameStop,
Best Buy, Target, and Macy’s sell their products,
I’m buying at their price And sometimes actually
lower than their price ’cause I’m not
going on net terms Another business model
is like, arbitrage You can definitely
do well with arbitrage and I’ve seen people
have successful hobbies not necessarily businesses
as arbitrage I’ve seen people, you know,
outsource, have employees But arbitrage is like Literally, you’re running
around with your head cut off going to retail stores It’s the most
idiotic thing Like, you’ll go
drive to Walmart you sell a product
on eBay or Amazon you make $8 profit,
and you spent $9 on gas And then shipping, and other
miscellaneous expenses The other business model
that’s out there is private label You know, private label,
people can definitely do well with and that’s for sure A lot of people definitely,
I would say, go down strategies I’m not an expert
in private label but what I’ve seen is people
definitely do strategies that you know, have already
been saturated or they don’t start to learn
about marketing and advertising and getting
ranked in SEO Which, with that, is much harder
to do, it’s a lot more skills What I do, where I’ve seen
a lot of success with Which, I’ve tried all
these business models Is selling name brand
products on Amazon through the online
retail business model With that, you know,
I’m selling name brands sourcing it
from distributors And the benefits with that is,
the reason why it works is because I’m able to go
buy at wholesale price Many Amazon sellers
don’t focus on buying low You know, I always,
my phrase if you read any
one of my e-mails at the end it says,
buy low, sell high The reason
why I say that even if you’re creating up
your own brand or if you’re selling
name brands on Amazon is you need to
focus on buying low Here’s a good example So, I actually had to
get a bunch of furniture at my house We actually see, blue chairs
came from some company I have another
couch down there Had to buy a bunch
of expensive furniture And it’s from a place
called Roche Bobois I’m definitely
pronouncing it wrong Anyways, a luxury
furniture place and I didn’t wanna
spend the money on to it But it was dumb,
I had to So I research the company and see their revenues
that they’re doing They do like
50 million dollars a year which is not a
small chunk of change But Ashley Furniture,
which is a more lower cost everyday type of
person furniture they do 4.2 billion
dollars a year Now if you’re
watching this video if you can do
the math on that If you can tell me how much
Ashley furniture does more than Roche Bobois,
let me know Actually, I’ll send you
my book for free Which actually, if you
wanna do get my book you can go to
beaucrabill.com/book to you know, learn everything
about selling on Amazon for free Well, you can pay for
shipping as well, but anyway So, that’s the first thing And focus on buying low,
being in the right business model And the last point
is being able to adapt Amazon, you know, overall,
the principles of it stays the same But if you’re not If you try to do something
and if it works once you know, you should
be paranoid, right? You should be like,
okay, great, it’s working Let me milk it out,
let me do it I ran to this issue, that I was
selling some Apple products doing very well
off of ’em I was making $10,000 a day
off just two different Apple SKUs And then later what happened
is a bunch of these sellers who were definitely
selling counterfeits I was not making a big
profit margin on to them but I was selling so much
volume that it was, you know pretty good Is a lot of counterfeit
sellers got in there and it got the
listing taken down So we got a new listing,
same thing happened again We would sell, we would sell,
everything was fine Good reviews, great Then counterfeits
sellers get into it And I was so, so focused
on those two products when I was doing
very well on that Which, you know,
it makes sense Sometimes you wanna
go down on your strengths But then,
once practically an agreement came out
with Apple on Amazon and they’re shutting down
on all the listings and we couldn’t even
get back on there So with that, I was like,
oh my gosh The business went down by like,
70% just for that month I mean,
things were really up so overall, we were
still up for the year and still doing
better than last year But from there, I should’ve
spent time on adapting That’s one example,
but you know, many people who are stuck with trying to do
arbitrage or dropshipping now or we wanna try
to make it work But you realize,
you gotta adapt Amazon gets more
stricter every single year Amazon suspended more sellers
last year than any year before They’re a little
more lenient now but it’s because
people don’t adapt So that’s the
really last thing Ways you can adapt
is stay up to news You know, subscribe to
my YouTube channel You know, check out my podcast,
join Facebook groups Learn from all the
other trades coming out Literally watch some
of Amazon’s videos I will say, Amazon kinda
makes content that’s not always the best depending
on the business model you’re in But stay up to date Amazon now collects and
remits sales tax for 37 people I know a bunch
of people who I was saying it
a year and a half ago don’t listen
do TaxJar’s BS They’re just trying to sell
you a bunch of BS stuff to scare you on, like getting
351 different resale permits and, or you’re
gonna go to jail Like literally, that was like,
practically their marketing And I just tell people,
guys, I’m gonna be very Like, I think this is
gonna happen That what probably is
gonna happen is Amazon’s gonna collect to remit
for everybody else And that’s what they’re
trying to do right now That’s a very small thing, but
that’s also a good thing as well Also, make sure
to kind of vet out the information
you’re listening to If someone’s trying
to sell you some junk that don’t actually give any value,
that could definitely be harmful Anyway, that’s about it Make sure to like, and subscribe,
and have a great day If you have any questions at all,
comment it down below And if you do want to get my book
in regards to selling on Amazon Depending what time
you’re watching it depending on the
price you can go The Secrets to
Selling on Amazon I cover everything you know
about my business model online retail,
A to Z Have a great day