How to Find Products for FBA Wholesale and Make Six-Figure Profits

How to Find Products for FBA Wholesale and Make Six-Figure Profits Speaker 1: Product research is an integral part of the process because we just showed you how to open up all these supplier accounts. And now you got, you're like, what, how am I going to find the products? Now I need to research these products and make sure that the money I'm spending on them is actually going to make me money. Is it going to be profitable for me? You know, so we're going to show you that step-by-step as well. And we're going to give you top three categories to kind of sell in and they're kind of pinted out here. So remember that list I showed you earlier, if you look at it closely, you'll see the top three categories right in this list right here. Right in this list. And Michael said, I have a few product lists, but it's so difficult searching compared to OA. I've tried TA and don't seem to find much. And we're gonna cover that. I'm literally gonna find some products with you right here on this live call. So please stick around Michael and Malik and Trung and everybody else, because we're gonna go through some products right now. And the trending products, typically we like to stick to brand name, big products with low BSRs. And we'll cover BSRs in a few minutes. Best sellers rank, which is Amazon's lingo. But top three categories, they're right on this piece of paper here. You'll see them. And it's for us, grocery and gourmet food, health and household, and beauty and personal care. Those are the top three categories. That's where you get a lot of brand name products that sell really, really well. And now I want to ask everybody one question and please put in the chat. I'll give you about 30 seconds to answer. But what do all these products have in common? Red Bull, Pampers, Nature Made Vitamins, Axe deodorant, Essie nail polish, olive oil, Campbell's soup, Tide deodorant or Tide detergent, lipstick. Please put in the chat what to all of these What do all of these brands have in common? What do all of these products on this page have in common? Do you see any familiarities with them here? All right. Because I got an answer for you, but I want to hear what everybody else has to say. And if you don't got an answer, that's okay. All right, we'll keep it moving. So the one thing they have in common is they're all replenishable products. Yep, absolutely. Mahal said it. You use them daily. You'll buy them again a hundred percent. So you guys are nailing this. You're getting the hang of it. They're all brand names and they're all products consumables. Products that people consume week after week, month after month. Like me, I'm a huge Crest Toothpaste user. I've been using Crest Toothpaste, the whitening one, for probably what, seven, eight years? I don't need to see an advertisement to buy Crest Toothpaste. Literally every probably 45 to 60 days, I go on Amazon and I buy a one pack or two pack of Crest Toothpaste. It's at my house the next day and I always buy Crest Toothpaste. It's that simple. All right, so replenishable products, you don't have to reinvent the wheel here. By focusing on these familiar and loved products, you're not only simplifying your business model, but you're also capitalizing on the loyalty that customers have for these items. You don't need to convince them to buy them. They already understand their value. Your role is to ensure a reliable supply and competitive pricing and that's what we're teaching you here on this webinar. This approach creates a win-win scenario. Customers get that they want and you get to build the successful business you've been dreaming of. There's no need. I need to reinforce this. There's no need to reinvent the wheel in this process. Absolutely no need. You know me. Yeah, strong as well. He's been using Crest toothpaste since he's a child. Me too, I don't need to see an ad for Crest. Right, so let's do some product research together. So we got two products here. These are the ones we're going to research. Gloria or Anna, can you please make my screen a little smaller? There we go, thank you so much. So we got two products we're gonna research here. Give me one second. Unknown Speaker: Let me pull up the document. I think I exited it, which is probably not good. Speaker 1: Who's enjoying themselves right now? Let me know if you're learning something from this chat. I wanna know if you're learning something. That's the name of the game for us. We want to make sure that we are educating you. That is what we've been doing for years. That is what we're going to continue to do because nothing makes me more excited than when I get to see people start from nothing and build something or start from something small and build something big. It's truly exciting for me. It's revolutionized my entire life. So I'm super excited you all showed up for this. So the first product we got here and let me share my screen real quick. Let me exit some of these tabs. All right, so let's see this. So we got the earth science. So we're going to imagine that, okay, a supplier opened an account with you and they sent you a wholesale catalog. Now, these are just two products because this is an example. Right, but these are two products that I found literally this morning when I was putting this presentation together in a wholesale catalog that we just got a couple days ago. So these are two products that some of you may be able to find in the next couple days once you repeat this process. And we got Earth Science deodorant at $3.50 a unit and we got Rubbermaid Easy Fine Lid Containers 14 cup at $2.80 a unit. Let's go to amazon.com and I'm gonna share my screen here. Give me one second, right? And we're going to get these products rocking here. All right, so let's do share screen. All right, so we got this product. So first, step one in the product research process is you're gonna wanna do a UPC search. A UPC is a universal product code. It's on every single product that exists, right? Here's a UPC, for example. It's on every single product. Here's another product. Here's a UPC, right? I literally got all these products here. Here's another product. Here's a UPC. Every single product in the world has a universal product code. And if you live overseas, it may be an EIN, which is a European article number. So they're typically 12 digits long, sometimes they're 13, sometimes they're even eight. But most of them that you see will be, especially if you're in the United States, most of them will be 12 digits. If you're over in Europe, a lot of them will be 13. So we got this first UPC for this earth science. So the first step is always do a UPC search, because you're looking for any product that's connected to this UPC. So we're gonna do a quick little UPC search. All right, and we're gonna pop open some of these listings here. All right, so let's see what we got. We got this product, we got this product, we got this product and we got this product. So we're gonna pop all these open. And first thing we wanna do is check the estimated sales velocity on this product. So it is a, Let me click this real quick. This is the AMZScout calculator. So this is a tool that AMZScout provides. It's amazing. We've been using it for many years. It sits up here as a Chrome extension in the top right and you simply click it and it lets you know what the estimated monthly sales of this product are as well as the profitability. So right now, you remember what we were paying for this product? We were paying $3.50. So we're gonna do product costs, $3.50. And this product you're left with $2.56 in profit. And it's selling about 165 units a month. But something I wanna point out here is when I copy this ASIN, give me one second. I'm doing this live here, so work with me. When I copy this ASIN and something we can do is run the AMZScout product research finder and we wanna see if this ASIN is a variation, right? A variation means there's multiple listings on this page. All right, so we're gonna search this, search this ASIN here. Unknown Speaker: I don't know why it's not. Give me one second here. Speaker 1: All right, there we go. So first thing we wanna check is this listing of variation. All right, so we got this ACE in here and we got all this information. It tells you the rank of this product, which is one million, which is way too high. So we are not even going to consider looking at this product anymore. It's ranked over a million, meaning it's essentially not selling much inventory at all or not selling any inventory at all. So we're actually going to move on from this product and not even consider looking at it anymore because it's rank is too high. It means it's not selling one bit, right? And then we got this other product over here. We're going to pop open this Chrome extension here and we're going to see what the estimated sales are. It's not providing any information. So what we're going to do is we're going to copy the ASIN and we're going to use this AMZScout product finder and we're going to search this product here. And here it is, it's ranked 199,000. It has zero variations. And we are left with a profit of, let's run the calculator, we're paying 350 for it. So the product cost is 350. And we're left with a profit of 225, right? So this is a potential product as well. And then we got this third product. It's a five-pack. This was the one we were looking at before that's ranked super high. So we're not even gonna look at that. So now we got two potential products to buy. We got two one-packs that we're potentially going to buy. And now those are all the listings that populated connected to the UPC. So now what we wanna do is a title search, right? We wanna do a potential title search and see if there's any other products That we will be able to purchase that are connected or maybe not connected to the UPC but are the correct product. So let's do a quick title search here. Let's do directly from the catalog. We'll do earth science herbal scent deodorant. So let's do this search. And we're going to look for alternative pack sizes that may exist. So we got these two ASINs that we're potentially going to buy, but we're looking for more products, right? Because I always want to purchase more products than just one ASIN. You want to purchase multiple products at a time. So here we got a pack of four. So we're going to open this up. Here it looks like we got a pack of two. So we're going to open this up and this is the product we or this is the product that we looked at before because it's selling at $9.87. That's the one we just researched. And someone asked in the chat, what's a good margin? So typically we buy for our business. We like to see, you know, around $3 in profit per ASIN. $3 in profit for ASIN. That's the name of the game for us. It's about $3 in profit. Now, you could go higher, you can go lower. It really depends on your cash flow. If you're just getting started, I think $3 is a reasonable number to start with. And the goal is you want to always add as many products as possible to your order. So we got this Earth Science. We just popped open two listings. Right, so the first thing we're gonna do is run this calculator and we're gonna see, remember what we're paying for, $3.50. So $3.50, it's a four-pack, so $3.50 times four, anybody do the math there in the chat? $3.50 times four, three times four would be $12, 50 cents times four is $2, so $14. So when we plug in the cost here of $14, this AMZScout calculator tells us we're making $6.62 on this product. Right, $6.62. That meets my margin requirements. This is an amazing product that I potentially may want to purchase. But first, you got to do a little more research. You got to see, is it a variation listing? And if it's a variation listing, you'll see this on the Amazon site. You'll see this, there'll be multiple offers on one listing. So you have to figure out, okay, there's multiple offers for this product on one listing. I saw that it's profitable. We just ran the numbers here. AMZScout's telling me it's selling about 166 units a day. I mean a month, 166 units a month. So now I got to figure out what amount of units is this specific variation selling, right? And there's a simple way to do that. On this calculator or on this AMZScout dropdown, we'll do a search of this ASIN and we'll see what populates here. So give it a second, and we'll start eliminating all those other products. And it's AMZScout telling us this is a hot product. And you'll see over here, it's got three variations. All right, its rank is about 80,000. Typically, we like to shop for products that are 200,000 or less. And yeah, we can take that into account. We'll do that on this example. That's a great point. We'll do that on this example. So there's a lot of softwares out there, but in this webinar, we're covering AMZScout. It's a great software to help you grow and we're covering on this specific webinar, AMZScout. So it's got three variations. So let's learn a little bit about those variations. We said it was selling about 165 units a month. So when we click the product variations, we should be able to see actually estimated sales for each variation on this listing. So let's see if it populates here. And here we go. So it gives you the ratings for that specific variation. It gives you the review count for that specific variation. It gives you the estimated monthly revenue for that specific variation. And then here it gives you the estimated sales of that specific variation. So here, the pack of four, out of those 165 total orders in monthly sales for the entire variation on this listing, This specific four-pack is selling about 60 units a month. No, no, 100% buy variation products. We're researching one right now. This is a great one. It's making $6.62. It's selling about 60 units a month, right? And now the last thing we need to do is take a look at the competitive sellers and figure out where'd that listing go? It's right here. Now we're gonna take a look at how many sellers are on there and figure out how many we wanna buy, right? So over here, We want to look at competitive sellers, right? Competitive sellers. So this information is also provided in AMZScout, but sometimes I like to pop it open on the side and visually look at competitive sellers. So this guy's got 31 in stock. This guy's competitive. He's within 5% or a couple percent of the buy box price. Which the buy box price is the first seller who has it, 30.95 or 30.05. So this one's at 29.99, this one's at 30.05, this one's at 30.05, this one's at 30.05. And then this seller's not competitive. He's at 39.99, he's at 34, this guy's at 47. Those aren't even competitive sellers. I'm not even including them in my calculation. So, just based on this, I see one competitive seller, because this guy has 31 in stock. I see two competitive sellers, because this guy has 12 in stock. Although this person is competitively priced, I wouldn't consider them a competitive seller, because they only have one unit left. They're going to sell out in probably a couple hours, if not by the end of the day. So that's still two competitive sellers. This one has three units left. I'm not gonna consider them a competitive seller. And this one has four units left. So I'm even not gonna consider them a competitive seller. Because by the time a day or two goes by, those three sellers will sell out their inventory. So essentially on this listing, there's two competitive sellers plus me, right? So let's bust out a little calculator. And we're going to do, let me bring it over to the screen so y'all can see it. So now we're going to take that 60 units a month, right? We're going to take that 60 units a month, 60, and we're going to divide it by 3. So for this specific listing, I would buy about 24 packs, right? So 20 times four, and you wanna make sure it's divisible by 12, because these come in cases of 12, which 80 is not gonna be divisible by four. So I'd probably round up to 24, 12 packs, right? Because whenever you're buying inventory, it's typically shipped in cases. Give me one of those boxes. No, one of those, this box right here. This box, yeah. So typically when you get products shipped to you, they're gonna come in cases like this. And they'll typically be cases of six, cases of 12. Now I just historically know from experience that this product is shipped in cases of 12. So when you order it, you're gonna wanna order in numbers that are divisible by 12. All right, so for this one, we'd get instead of 20, we'd get 24 four packs. So for this one, we would buy 24 times four, we would get 96 individual units for this times 350 in cost. It's about this order for this specific four-pack would cost us about $344. And now someone brought up before, are you going to calculate shipping in this? Absolutely, you can calculate shipping and we can run one with some quick shipping. So let's just say your prep fee is $1 and your ship to Amazon cost is $1. You add that cost right here, $2, $1 plus $1, and you're still making $4.62 on this product. That's pretty exciting if you ask me. I'm not complaining about $4.62, right? Because now you're gonna take that $4.62 and we'll just do some math here to kind of see the profitability. All right, but we're gonna take that 462, multiply it by the 24 orders we're getting. And so we're gonna profit about $110 on this four-pack. And we spent about 336 to purchase it. So this product has about a 33% ROI. I'll take that all day because this is just one of many products that you're going to be purchasing. Just one of many, right? Because right here on the same variation, you could see There's a two-pack on the same variation. There's literally a two-pack right here. So we're gonna pop open this two-pack and now we're gonna analyze this one the same way we analyzed the four-pack. So cost of goods, once again, get the calculator out. What was the cost of goods? $3.50, so the total item cost is $7 for this product. For the two-pack, we're left with $7.54. To Nick's point before, we'll even add the cost of shipping in there, $2. And on this listing, we're making $5.54. I'm excited about that. Now we're not only buying the 24 four-packs for the product we just researched, but also we're going to buy potentially on this two-pack as well. All right, so yeah, absolutely. Who said that? Yeah, so far we're buying the four-pack. We're probably about to buy the two-pack. And based on buying the four-pack and the two-pack, I'm probably gonna get a few units for the one-pack and the other one-pack that we researched before. Because although they're margins, they're profits for like two to 250, we're already buying the inventory. So I want to kind of capitalize on as much inventory as possible to kind of collect the opportunities. So I'm going to get the four-pack, I'm going to get the two-pack and I'm probably going to get those two single packs as well. So let's figure out now how much inventory we're going to buy for this two-pack. So we'll bust open the AMZScout and we'll check out the variation again. We could have checked it before, but I missed the two-pack before. So now we're going to do a quick little search here. It's going to eliminate all the options. We're going to kind of break it down. You with me? Yeah, we're in the U.S. market right now. We're in the U.S. market. But this process is the same no matter what market you're in. And this is the same listing, so it's $80,000 in rank, price is $21.69. Once again, you got this calculator here, so we can run those numbers real quick again. It was $7 unit cost, $2 shipping. We're left with 554, that's after prep fees. So after prep fees, after ship fees, you're still making five bucks on this product. Now we just wanna pop open the variation checker and kinda see how many units is this two-pack moving. The four-pack was selling about 60 units a month out of the 165. So now we're gonna check to see how many of the two-packs selling. And the two-packs estimated sales is about 70 units a month. So now let's get the two-pack as well. We just found the four-pack, let's get the two-pack. So let's pop open the two-pack, let's do the same thing. We'll check the competitive sellers real quick, see what's going on there. Now, AMZScout, they offer that option where you can actually see those competitive sellers, but I don't know if we can see pricing of those competitive sellers. I'm sure we could if we click into them, but it's right there on the Amazon page as well. So you can see number of reviews, And you can see number of sellers, two sellers, right? And typically two sellers would be a red flag, but you can check the offer count and see if there's been more than two sellers. And we just looked at the four-pack and on the four-pack, there was eight sellers. So that's a good indication that this product, you won't get any complaints from Amazon because there's eight sellers on the other listing and the one-pack had five sellers and this listing has two sellers, right? So based on this, we'll pop open the ASIN. And we'll see where to go here. Let's pop this open in a new tab. I'm always, I'm a pop open in a new tab type of guy. And now we're gonna look at these two sellers. Don't forget this listing selling about 70 units a month. And so we got this guy at 2169. So he's really only the competitive seller. And also I'd like to point this out that he's not only on the listing in the buy box, but he is a FBM seller because here it says shipped from iBuyDirect, sold by iBuyDirect. And he's only got 12 units in stock. So once again, if we bust open that calculator, let's just consider two competitive sellers. We'll divide this by two. You're left with 35 two-packs that you could purchase. And just based on experience, I'd probably go a little more aggressive on here, only because this seller's only got about 12 units left. So I personally, and 35 times two is gonna be 70, which is not divisible by 12. So I would probably get, I'd say probably 42. ASINs of this, 42 two-packs. So 42 times 2 would be 84 units. It's divisible by 12, right? So on the other listing, we're getting 96 units. On this listing, we're getting 84 units. And then the one-packs we looked at before, I'm not going to go through the whole product research process. But we would probably get 12 to 18 units each for that as well. So now we're buying under one UPC that we just looked at. We're buying four different products under that one UPC. And we're going to potentially purchase, I'd say probably, let's say another 60 between the two one-packs. So about 240 units, right? With an average profit of $4 to $5 per sale, which is pretty impressive. And then divided by 12. So this product, you're going to get about 12 or 20 cases up. 20 cases of one product. Let that take us a few minutes. For product BSR, we typically like to do 200,000 or less. And the reason why, Janine, two sellers or less would be a red flag if it was only historically two sellers or less. The reason why that would be a red flag for us is because It could be the brand on the listing managing it or they could have one exclusive seller on the listing and it could be complicated. You can get intellectual property complaints. So typically what you're looking out for, you're looking out for sellers that have or listings that have multiple offers. Typically three or more is really the sweet spot, three or more. Alright, so that's really the fundamentals of product research. We literally just took one UPC in a catalog and we found four different ASINs using AMZScout as a software to analyze the profitability, look at the variations on the listing and check the competition and the pricing and the BSR and make those educated buying decisions to crush. So you guys get the point here. I'm not even gonna do the Rubbermaid. I think that kind of gives the fundamentals of how to do product research. And once again, this is just for the basic infrastructure, right? Like I said, you're not gonna build a million dollar business from this webinar, but the goal is to give you the guidelines and the infrastructure to be capable of doing it after this webinar. So let's go back to this webinar here and keep it moving. We literally just took one product right here, this product on the left, the Earth Science. And we found four different listings that we could buy it under, right? And I'd imagine this Rubbermaid on the right, we'd probably find another two to four listings that we could sell it under. So you figure four listings, we're getting about, ASIN-wise, maybe 80 units times five, that's about $400 in profit off the Earth Science. And then the Rubbermaid, if we did that research as well, you'd figure we'd make another three to $400 off that product. Pretty cool. And then negotiating discounts, right? Because we didn't even negotiate discounts on that product. And 280 in the catalog, $3.50 a unit. We didn't even request a discount from the vendor. Imagine we got it for $3 a unit from the vendor. And now we're making an additional dollar in profit on the two-pack and an additional $2 in profit on the four-pack. That's a game changer. It's absolutely a game changer. Now your profit goes from $5 To $9, right, or $5 to $7 on the four pack. And $5 to $6 on the two-pack. It's an absolute game changer. Does your supplier package it to one, two, four packs, or does that happen in your warehouse or prep center? It can happen in all those places, Justin. You can find a supplier that will offer those prep services for an additional fee, or you could send it to a prep center to do that, or you could ship it to your house to prep that product, or you could send it to, well, Amazon doesn't offer bundling, so you could not send that to Amazon without it being prepped first.