How to Start Amazon Dropshipping for Beginners (only $130 to Start)

How to Start Amazon Dropshipping for Beginners (only $130 to Start) Speaker 1: Most people think that you need $10,000 in inventory, months of previous experience, an LLC, a business bank account, and all these big fancy expensive softwares before you can actually start selling on Amazon. But the truth is, all you need is a handful of suppliers, a handful of products that you're eligible to list, and that's it. You see, I've helped over 700 people build and scale their brand new Amazon businesses. And in this video, I'm gonna show you the exact process I walk them through to help set everything up in the right way. And I'm gonna talk to you about everything you need and everything you don't need. And if you don't know who I am, my name is Shane Kanell Cohen. I've been in this space for over four and a half years. I've helped mentor over 700 people. And my goal is to really just help you leverage the world's most popular shopping platform through an Amazon business to your advantage. And you're gonna be able to do that without needing prior experience, without needing to spend money on ads or placing any sort of bulk orders. And of course, the results that I show you throughout these videos, they're not typical results, okay? So your individual results are indeed going to vary. By no means necessary am I making any sort of income claims or anything like that. These videos are strictly for educational purposes only. So let's get into it. Alright, so first let's talk about the account setup. What a lot of people think you need is they think you need this LLC, a business registered with your state and whatnot and some sort of business bank account and EIN number and ITIN number and needing thousands of dollars in inventory set aside in order for you to be able to place bulk orders. But what you actually need is simply valid issued government ID for you yourself as an individual. You need an Amazon professional account which costs about $29 a month and you need your personal banking information so that way Amazon can actually pay you. That's it. That's all you need. You don't need to register anything. You can simply sign out as what they call an individual. So when it comes to the account setup, you're going to simply go on Google, type in sign up to be an Amazon seller. It's going to bring you to this page, how to register. You're going to simply click sign up. The signup process can really take you like five minutes. It's very simple. Okay. So you're going to choose your email and password as you sign up with them. There's five simple steps that it takes to register. So you're going to provide your business information. Okay. So where you're located, the business type, and as you can see here, it says, if you don't have a business or you're not incorporated, select none, I am an individual. That's exactly what I'm explaining to you here. You're going to put your name, any sort of registration numbers. Obviously that's not going to apply for you. Registered business address is not going to apply for you. You're going to need their phone number. Amazon also asks and answer your question here. Do you need an LLC? You don't need an LLC and whatnot. Then you can provide your seller information. Okay. So this is about you specifically. This is where they're going to want to verify your identity. Of course, they want to be able to make sure that they're actually letting legitimate people sell on their platform and not just anybody. So when you go ahead here and you actually input your seller information, you're going to issue the government issued ID like passport or a driver's license. You're going to have your full name, country, citizenship. You're going to enter all this information. This is what Amazon needs to verify them, your identity to say you are exactly who you say you are. Now, the purpose of this is just to be able to make sure you're a real human being. This can take anywhere from 48 hours to 72 hours once you submit your information, so just be patient throughout that process. You're going to provide your billing information. Okay. So providing your billing information, that's essentially where you're going to get billed. All right. What specifically you need in terms of your bank accounts and whatnot, you can provide your store information. So the store information, yes, you are indeed going to create your store name at this point, and then you're going to be able to verify your identity as that last step there, as I outlined for you before. Now, as you go through this, you're going to explain that you want to be a professional seller. As you explain that you want to be a professional seller, it's going to allow you to know that you're paying $29 a month. For you to be an Amazon seller. So now the account setup is done. Now it's going to get down to the supplier approval process. Now, a lot of people think that you need wholesale suppliers and wholesale accounts with these wholesalers are going to have a minimum order quantity of a hundred, let's say, for example, then they're going to want for some sort of resale certificate or like a business license. And they're going to want to make sure that you have thousands of dollars in capital. So that way you can place bulk orders. Now, the truth is you don't actually need any of that. What you truly need is about three to five domestic based suppliers that are based in the marketplace that you want to be selling in. And how are you going to be able to come about those three to five different suppliers? You're going to essentially use my script that I have here. And this script is going to allow you to know how to identify what suppliers you could use for your Amazon business, following along with a step by step checklist and including a whole entire script for you to be able to know who's a good supplier for you to use and who's not a good supplier for you to be able to use. And a perfect example of this is having a supplier like U.S. Direct. As you can see, U.S. Direct actually explains to you how it is. So you don't necessarily entirely need to import your products, but once you make a sale, then you're going to place the order through the U.S. Direct website. Once you place the order through U.S. Direct at wholesale cost, then the supplier is going to be the one that will ship the product directly to the customer store step. For you. So U.S. Direct is just a small little example in terms of what the suppliers are like out there. Again, you won't need to import your products, but you are going to be able to have the option that when you make a sale on Amazon, you're going to place the order through U.S. Direct at wholesale costs. Then the supplier will ship that product directly to the customer's store step for you upon your behalf, all while maintaining and abiding by TOS, which in other words explains terms of services. Now, thirdly is going to come down to actually the product research process and what tools you need to be using for that product research process to maximize your costs and get the most ROI for the time that you're putting into it so that we can find good products. Now, you don't need to be spending thousands of dollars on these really expensive Amazon softwares. They're going to give you all this different fancy data. You're going to be analyzing graphs and go through extensive product research dashboards. You don't need to do that, okay? So what you truly need is a few set of key product research methods for you to be able to follow along with to identify hot selling products. Now, yes, you could use ChatGPT and AI to be able to come about these. You could use many different manual processes, but that could be in a different video. And I've talked about that numerous different times here on my channel. So if you haven't checked out those videos yet, please go ahead and make sure that you do. So the tool I use for the product research is going to be AMZScout. AMZScout is very simple, very straightforward, and it's cost effective as well. It doesn't give me access to all these different data points that I don't need because I'm not doing Amazon FBA. It's giving me only the right information that I'm looking for for me to be able to make an informed listing decision. And I'll show you what exactly AMZScout does just so you can get a little bit of a better understanding. So let's take any random product that we have. Let's say we have this Oral-B brush here. As I scroll down, again, what AMZScout provides me with is only the information I really need. So there's two parts that I'm looking for. First, I need the ASIN. Okay, so this is a unique product identifier code. And then I need the product rank. Now, the product rank is basically allowing me to know what product sells more than another. And the lower the product rank, which is otherwise known as the bestseller rank or the BSR, then that means the more frequently that that product sells on a 30-day basis. I can see that this product here is 236 BSR in the major category health and household. So what AMZScout does, and it basically allows you to interpret based on the BSR within the product category that it's within, the estimated monthly sales for this is about 75,000 units sold over the last 30 days. And that's it. That's all I need. I'm not looking at charts. I'm not using the calculator that they have here. I'm making it very simple and very straightforward for me to be able to get access to the right information within a short period of time. And the beautiful part about this is that this is a $99 one-time fee. That's it. There's no other costs that are going to come with it. And it's allowing you to be in a position where you only have access to the right information, but you're in a position where you can also make sure you're not overwhelming yourself with unnecessary data. So look, a lot of people think you need months of research and planning and experience in order for this to be able to work. People believe that you need to find the best product or the most perfect product before you go ahead and actually list it. And that oftentimes derails a lot of progress people can make. And people might think you need the whole business infrastructure set up. You need to make sure that you're 100% protected by all means necessary for the worst case scenario and it's just unrealistic for those specific things to actually be in place in order for you to be able to start selling on Amazon. So what starting actually looks like is ensuring that you have the account set up in the right way. Once you have your account set up in the right way, then you need to find a domestic based supplier that has fast shipping. Once you have a domestic based supplier that has fast shipping, then you need to identify what products are selling and what products are not selling. In other words, You gotta be able to find a price discrepancy between what price your supplier has a product at and what price is that same exact product selling on Amazon for. If there's a gap then you can make money off of that. So let's take this bun product here for example that's actually a warmer for coffee and you can see here on Amazon that that same exact product is selling actually for $241.97. So, if I go here to my profit calculator that I utilize for every single one of my students, I can see that if I input my product cost of $132.99, it's going to tell me what my breakeven price is. So, based on that, if I want to list this product at $199.99, I'll make about $26 in profit from this item alone if it does actually sell. Now, what that allows me to do, it allows me to undercut this guy, but the goal is with this business is I can list it Without ever purchasing it beforehand. And that gives me the opportunity to say, if it does sell, great, I know I've made money. But even if it doesn't sell, I lose no money because I'm never purchasing products before they actually sell with this business. Only until someone has paid me $199, I'm going to go to my supplier and I'm going to pay $132. The product is going to be sent directly to the customer's doorstep and I collect what the difference is between those prices. Now, once you found a great product, then the listing process takes about 30 seconds. It's a very straightforward step-by-step process that literally anybody can do. All you got to be able to make sure of is you have all those other things set up in place in order for you to be able to get to that point. So for you to be able to do this for your first month, it will cost you about $130, let's say, for example, because AMZScout is a $99 one-time fee and your Amazon seller account is $29 a month. But after your first month, it goes down to $29 a month for you to be able to start selling on Amazon in the way in which I just showed you here. So as we end this video, look at exactly what you thought you needed versus what you actually need. You don't need an LLC. You don't need a business bank account. You don't need thousands of dollars for inventory costs. You don't need an expensive software or to be placing bulk orders from foreign based suppliers. What you truthfully need is just A seller account, a supplier that's based in your domestic marketplace that has fast shipping times and the ability to find products that people want to buy so that way you can list them on Amazon. I've been doing this for over four and a half years and I've worked with over 700 people. The students that succeed best at these games are the ones that don't overcomplicate the process and they're the ones that don't allow them to be perfect with it. The ones that are kind of a little bit messier are the ones that actually make the most progress, especially in the beginning. The ones that are trying to find the best of the best and make everything perfect and fine and dandy, those are the ones that oftentimes take longer to scale. And look, success in this game lumps speed. So after you watch this video, you can do one of two things. You can just go ahead and let this be another YouTube video that you do nothing with, or you can actually go out there, take action, register your Amazon business and start to see progress that you can be able to make towards whatever your goal may actually be.