Why Amazon Dropshipping is the Cheapest Way to Start Selling

Why Amazon Dropshipping is the Cheapest Way to Start Selling Speaker 1: Most people think that starting an online business requires tens of thousands of dollars upfront. Amazon FBA, well, you're going to be spending five to $10,000 on inventory that you don't know is going to sell through. Shopify dropshipping, well, you're going to be spending two, $5,000 just simply testing ads until you finally actually crack the code. So in this video, I'm going to be breaking down for you the exact cost for you to start an Amazon dropshipping business. And it's nowhere near what you might actually think. And my goal throughout these videos is to simply help you leverage the world's most popular shopping platform to your advantage Through an Amazon business, all without spending money on ads, spending money on bulk orders or needing any sort of prior experience. And just a disclaim, everything I show you inside of this video is only for educational purposes only. The results that I show you of my mentorship students right now are not typical. Your individual results may actually vary. We don't make any income claims, we don't make any earning potential claims or anything along that lines because it all varies on whether or not you put in the effort for your Amazon business and what you may or may not get out of it. So let's dive into it. So, when it comes to you being an Amazon seller, it's very straightforward. You have a couple different selling plans. With these selling plans, you have an individual selling plan that we have here and you also have a professional selling plan. Now, both do differ. Obviously, as you can see at a glance, one seems a little bit more cost effective as it's only 99 cents per item sold. And yet a professional plan has $39 per month. And again, this is also in USD currency. So if you're on a Canadian marketplace, this is going to be about $29 a month as well. So you can see that what's included with each different selling plan. Now with the individual, you have a lot more limitations on that selling plan compared to the professional that you have here. Now, the reason for this is because with an individual, these are for people that kind of like want to test the waters, I guess you can say, but, Also to that point, you can only list one product at a time. You don't have any specific ways in which you can use bulk operations, you can use a new seller guide, you can automate your pricing or you can build any sort of brand with a digital store or whatnot. So the individual selling plan is something that you're at first glance might be a little bit more It's cost effective, but in hindsight, it also limits the amount of products that you can or cannot sell on your storefront. You're only limited to about 30 or 40 products that you can sell on your storefront until it actually puts you at a certain cap limit. And as you know, with an Amazon dropshipping business, we don't want a cap limit. The volume aspect is how we're essentially going to win this game because you never have to buy products before they sell. We're never buying products in bulk. We're never spending money on the ads. So the more products we list in hindsight, The more probability we have to make a sale with our brand new Amazon business. So that's why the professional plan, although it might seem a little bit expensive, truth be told, any single particular household, you're going to be spending money on Netflix and Disney plus all your prime memberships and whatnot. $39 a month. Anybody can afford $39 a month. At the end of the day, this is just something that's going to help you potentially generate more income as you utilize it. So you can see all the advanced tools that you have for the professional selling plan. You basically have literally Everything is set up for the professional selling plan. So it's obviously the more cost effective in a long term perspective for the professional selling plan as you go about it. But there's also no restrictions. There's no limitations when it comes to using a professional selling plan. So that way it's free reign and you have full capacity on your Amazon business. Now, outside of this professional selling plan fee, that's literally it. You don't need to spend money on anything else in order for you to start your Amazon business. And this is one of the most beautiful parts about this business model in the way that we do it is we're mitigating the cost, the operational expenses for you to run the day-to-day business is quite literally just $39 a month. There's no other fee that you're gonna have to incur that's gonna have you paying on a monthly basis without you producing more income. We're gonna get a little bit more into that here shortly, but my number one priority for every single one of you here is if you think that it's too expensive for you to start selling on Amazon, think again because it's only $39 a month. And if you don't have $39 a month, then save on your Starbucks latte that you buy every single day. And lo and behold, the $40 is going to magically appear easily within the week. Now, outside of the professional selling plan fee, let's talk about the other optional, but good to have resources that you may want to invest in. As you start your Amazon business. Now the first one is going to be something called AMZScout. AMZScout is one of those tools that's basically going to give you access to sales data for you to get access to understanding what products sell, what products don't sell. They've got yearly bundles. They've also got booster add-ons as well and monthlies. All I really look for in all honesty with the AMZScout is you can just go with the AMZScout AI bundle. That's more than enough for you to be able to utilize on a monthly basis. You don't need anything more than that. And what this will be able to do for you as an Amazon seller, if we go on any particular random product, let's say we take this particular coffee machine here, what it will do, it'll give me access to this particular box, okay? So this is a particular box that not any Amazon consumer has access to, of course, this is what AMZScout does and how it caters the data. It basically takes the product rank, so it gives the product rank to me here, it says it's 2,588, and it also tells me the estimated monthly sales based on the rank is actually 9,541 in the last 30 days. So it gives me a lot of really insightful data to make it very easy for me to do my product research. Now, yes, this is a product research tool. They've got a little mini profit calculator here. I never really touched that because we have our own in-house profit calculators and part of the mentorship program. But with that being said, AMZScout is not entirely one of those things that every single person needs. And let me explain a little bit deeper. On any specific product listing you go on when you're shopping on Amazon, if you simply scroll down and As you scroll down, you can get to the product details aspect. When you get to the product details aspect, every single product has The bestseller rank available for you to review within this specific point right here. So even if you don't want to use AMZScout, you don't need it because every single product under the item details tab has a bestseller rank associated with it. Now, in a different perspective, if there is no bestseller rank, when you want a product listing, what that essentially means is, you know, our goal is the lower the BSR, the better that that product's going to actually sell through. But in this perspective, If there's no BSR in this particular product listing, we can accurately assume that the BSR is actually a million, which means that it's non-existent and hasn't sold over the last 30 days, which may or may not be a product that I want to be able to list. So AMZScout is really kind of like an optional thing. You know, it's great for you to get an understanding in terms of the product rank. It shows it very easily here. It also gives you access to price charts as well if you want to use the feature. But in all honesty, because we're selling on Amazon in the way that we do it, we don't need to be conducting so many technical analysis, you know, ceiling prices, floor prices and all that stuff because we're not buying the products before. So you really don't need to be so analytical with the research process before you go ahead and list the products simply because if you list a product and it doesn't sell, you lose nothing as an Amazon seller in the way that we do it. So our priority is you don't really need specific things like these or other ones that could be very expensive, like Keepa, SellerAmp and whatnot. But is something that is a little bit more convenient that people do like to have. So again, AMZScout is about $59 a month. It's not entirely something you need 100%. You can just simply scroll down on every product listing, item details, and you will have the best seller rank available here for you to be able to take a look at. But to be clear, you're going to be able to do all of this, sell on Amazon, sell products to Amazon consumers without needing any sort of inventory. So you're never going to have to purchase products before someone buys something. You only pay once the customer has bought something from you first. And in that point, that also means that you're never going to have to have any warehouses. You're never going to have to pay for a storage, a prep center. You're never going to have to send products into an Amazon FBA warehouse because the products are going from your supplier directly to the end consumer that way. And you're also gonna be able to ensure that you don't have any advertisement budgets needed for something like this. So that's amazing because you're in this position where ads is still a 50-50 gamble unless you're a PPC expert or you're an advertisement expert when it comes to selling on Amazon. It's a very tough gamble and you're not entirely sure you're gonna want to put your hard-earned dollars towards an ad campaign that you don't know 110% is gonna actually generate a positive ROAS for you. And then to that point, you won't need any sort of website. You won't need to host your website or anything like GoDaddy or Squarespace or anything like that. And you're also not going to need any sort of LLC or any business bank account or business registration in order for you to start this. So this is truthfully one of the most cost effective ways for you to get into the selling on Amazon space without fronting tens of thousands of dollars up front, but also without risking a lot of your money up front. So in brief, if you were to compare Amazon dropshipping with all the other business models, let's say you have Amazon FBA, where your startup costs are anywhere between $5,000 to $10,000 just on the business model alone, okay? So that's the inventory, the shipping, the storage, the additional fees, the ad budget and all that different types of stuff. Then you look at something like Shopify dropshipping. Same concept applies where you're only in a position where you're spending $2,500, maybe $5,000 on the business model itself in order for it to work. Now, if you look at other traditional business models like real estate, well, that's where you're talking about $20,000, $50,000, $100,000 in upfront costs because you got the down payments, you got the closing costs and all that different types of stuff. And any other traditional business model usually will require that same amount of money from $50,000 all the way up upwards of $100,000 for rent, inventory, employees and all these operational costs that go associated So from a cost perspective, you have all these business models that require so much upfront in order for you to get the ball rolling. But if you're a brand new beginner looking to start an Amazon business, just alongside your day to day job, even if you have kids, even if you work 40 hours a week and you want to mitigate the amount of money that you're putting up front in order for you to start this, well, that's where Amazon dropshipping allows you to be able to do so. Like I said, it's $39 for you to start an Amazon business, for you to start selling. We don't need to spend money on ads, we don't buy products in bulk, and we don't need to create any sort of crazy website or register a business in order for us to be able to do this. But even outside of the cost perspective, you're mitigating risk virtually down to zero because you're in a position where you're only ever spending money once you know you've made money. Because this business model has such low overhead expenses associated with it, you're really never in a position where you're going to be able to lose anything by you actually starting the process of you selling on Amazon. And lastly, let's also talk about how long it takes for these other business models to actually start get rolling comparatively to what Amazon dropshipping does. All these other things will take 30, 60, 90 days for you to see any sort of positive momentum with it, for you to be able to get the ball rolling. Comparatively with Amazon dropshipping, especially in our mentorship students, these are the specific individuals that see results within their first couple of weeks and results meaning their first couple of sales. And once you make your first sale, it's kind of like a snowball effect where you roll it down a hill. It gets bigger and bigger and bigger. So you don't got to wait months. You're going to wait years for this to actually pay off. This is something that you can actually get started with and start making sales with potentially within the first coming weeks of you actually starting something brand new like this. So by you simply investing $39 a month for you to be an Amazon seller, that means that you get access to over 300 million active customers shopping on the Amazon platform credit card ready in hand for you to be able to sell products to. Amazon already has a system. They already have the whole entire thing mapped out. They make it very easy because you're going where the customers are already shopping. You're just simply the intermediary in this process. And generally speaking, within the first 48 hours of you reaching an Amazon business, your account gets verified. Then you can get the ball rolling. You can start looking for products. You can start looking for suppliers. And the first sales hopefully come in within the first weeks of you starting your Amazon business.