How To Make Your First $5,000 Per Month PROFIT on Amazon FBA (Step By Step)

How To Make Your First $5,000 Per Month PROFIT on Amazon FBA (Step By Step)


Anybody selling on Amazon FBA can make tons
and tons in sales revenue. But what does it really take to make that
first $5,000 in profit per month consistently? So there are a few things you must know, in
advance, before you start selling on Amazon FBA if you really want to see that $5,000
in profit per month. If you guys are new to my channel, please
subscribe and please hit the notification bell if you want to see more videos from me. I’m Tamara. I started my Amazon FBA journey in 2017, started
my own YouTube channel, met all of you lovely people and I never looked back. Sales revenue does not equal profits. A lot of people get mixed up by this, I don’t
know why, when they are just starting their own online business or selling on Amazon in
general. And they never could really differentiate
what is sales revenue and what is profit. Sales revenue just means how much money you
are selling in revenue. It does not mean that you are taking home
that specific amount. So I could sell $1,000,000 this year in sales
revenue but that equal to absolutely nothing and it has no positive meaning to me if I
am not able to profit from that $1,000,000. So you always see people showing numbers that
are extremely high, or in the 6, 7 figure range, including myself, I am a 6 figure seller
in sales revenue. However, how much money are you able to take
home from that sales revenue so you can profit nicely into your pocket so you can spend or
reinvest into your business. We are going to go over the steps today to
get you guys to see what it really takes to make your first $5,000 in profit per month. I say $5,000 because personally, that’s a
realistic goal for any of you beginner sellers out there. If you guys are shooting for $20,000 in profit
right off the bat, I can tell you right now, that is a very unrealistic goal, especially
if you are just selling on Amazon. I think it took me about half a year, at least
half a year, actually no, half a year for my winning product to profit consistently
$5,000 a month. But it took close to a year after my first
failed product to really know, “okay, what steps do I have to take to make sure that
I can pocket $5,000 a month?” In my previous YouTube video, I talked about
my 2 Amazon Seller Central accounts. One account is making $30,000 in revenue and
the other account is a partnership account where we are making $93,000 in sales revenue. Profit margins range anywhere from 5% to 45%. Now that really depends on what I am trying
to do, and obviously for the partnership account, my profit is actually really, really slim
because it’s pretty passive for me. They’re doing all the leg work and I am just
providing guidance. Right now, we are going to jump inside of
my computer because I want to show you this one product research strategy that a lot of
sellers are missing that can find you those $5,000 a month in profit products. Okay, we are looking at my favourite product
of all time, the beach ball. This is something I want to show you guys
that is super important that will find you that $5,000 or $10,000 a month in profit product. This is something a lot of new sellers overlook,
I am not quite sure why but it is very important. So first thing that I am doing is pulling
up my Helium 10 Amazon product research X Ray tool right here. This is going to give me all of the sales
revenue of the beach balls on page 1 for the keyword “beach ball”. Alright, so the very first thing is we want
to sort revenue here by greatest to smallest. So notice here that this is the greatest amount
in revenue and the very bottom is the lowest amount. Also, we want to look here if these products
are indeed the beach ball. Because a lot of the times people are running
sponsored ads and all of these random products pop out. And we don’t want those products. We don’t want to look at that right now. I guess this is a beach ball, it’s an emoji
pack. But let’s just quickly go down, we want to
eliminate any product that is not a beach ball. So this is, no that’s a beach ball. This is a bouncing ball, so this does not
count, we want to eliminate that. And if we just continuously go down, this
is, I guess this is a beach ball but it doesn’t look like this beach ball. But I think you guys get the idea. What you want to do first is just eliminate
any products that are not a beach ball. Because we don’t want to include any total
revenue here that will show products that are not what you are looking for. So let’s just say I went down the entire list
and I already discarded any products that are irrelevant. So right here, it shows that out of every
single seller on page 1, the total revenue for the beach ball is $173,000. This is the total revenue. What you want to check out are your competitors
that are making at least $20,000 in sales revenue. This is very important. This is something I teach all of my students. And the reason why I say this, you shouldn’t
look for any products if your competitors are not making at least $20,000 in revenue. Because revenue is revenue, like what I talked
about earlier. It’s not profit. The very general profit margin for majority
of sellers, on average, is about 25%. This is only $18,000 in sales revenue, my
competitor right here, Kangaroo. But let’s just say that we have a few sellers
here that are making at least $20,000 in sales revenue. So if I multiply that by 25% profit, on average,
if the seller is making $20,000 in sales revenue, they are profiting, given that they are actually
selling organically and obviously there are ways to check if they are selling organically,
we’re not going to get into that in this video. But if they were selling organically and you
know they are not doing a giveaway or launching their product or doing anything funny, they
are just regularly everyday selling and making $20,000 in sales revenue, they will take home
approximately $5,000. That’s after PPC, that’s after launching your
product, and again, that’s just selling regularly. So if you are looking at products that are
only making $5,000 a month in sales revenue. If I multiply that by 25%. I mean, I am only taking home $1,250 a month
in profit. It’s just not worth my time. So there’s absolutely no reason for you guys
to look at any products that are not making you that amount of money. Another thing is the total revenue right here. So this total revenue is shared amongst everybody
on page 1. If this total revenue is too low, now remember,
when you enter into a marketplace, you are taking a share of the total revenue, right? You are jumping in here and you’re just basically
stealing some revenue from here. If this number is too low, there will be nothing
for you to steal. So if this total revenue, for example, if
the total revenue here is $25,000 and that’s amongst tons of sellers on page 1, I can almost
guarantee you that majority of them are only making $1,000 or a few hundred dollars in
sales revenue. That’s when you should stay away from the
product because there’s not enough market share for you. There’s not enough money in the market for
you to steal. So it doesn’t make sense if you guys are looking
at any products that are super low in revenue. Again here, there are so many that are under
$10,000. But of course, added up, the total revenue
was $173,000. So you may want to do more research in times
like this. But, it’s very important that at least a few
sellers are making at least $20,000 in revenue per month so you can have a chance to take
some of their share. Take some of their revenue and profit that
$5,000 per month. The next step is we’re going to break down
all the costs that is associated with making our $5,000 profit a month. And how long does it take? And I am going to write down everything else
that is associated with making you that $5,000 profit. Anyway, let’s get started. I am going to write down every single thing
that you have to pay for when you are selecting your product to sell on Amazon. So of course, the very first thing is you
need to pay for inventory. Alright, okay good you can see that. The second thing you have to pay for is shipping. And I am going to talk more in depth about
this in just a little bit. I am just listing out things that you have
to pay for right now. So, also, we have to do logo design, insert
cards, any poly bags that you’re using or barcode stickers. Shipping, we need to find out the landed cost. So we need to pay for your inventory. Your shipping, the landed cost, right? Because for every single unit you ship, you
need to find out how much it will cost for your supplier to ship it to the Amazon warehouse. The cost per unit. Obviously you have to do some math there but
I am sure you guys have that figured out. You have to pay for your logo, insert cards,
poly bags, stickers, or any kind of customizations that you want your supplier to include for
your product. Now, I am not going to get into too much about
how much it costs for each thing because everybody sells different products. Everybody’s products are different when they
want to customize it. So right here, I am just going to write an
average of $3,500, because that’s why I see the most. So right here, for all of this, it’s going
to cost $3,500. This is just an average, all right? And also, I am going to put miscellaneous. Miscellaneous can be hiring an inspection
service or ordering product samples. Just a lot of the other little things that
you’ll have to pay for. Again, that is just an estimate, okay you
guys? It’s not definite. But, this is the average that I see for my
students and that is why I am using as an example. Another thing that we need to consider is
our product launch. Product launches cost money, okay? Whenever you are launching your product, you
have to pay for PPC, you may pay a giveaway service, if you are still considering to use
a giveaway service. Again, that is a whole new different topic
that I won’t get into in this video. However, we need to prepare, have some money
aside to prepare for our product launch. So when it comes to launching your product,
you have to ensure that you have your product launch strategy in place before you pay your
supplier. This is very, very important. If you are paying your supplier this amount
of money already, and you don’t know how to launch your product, you shouldn’t be selling
on Amazon. Because you have to know how to sell your
product on Amazon before you sell on Amazon. So let’s talk about the costs associated with
our product launch. So right here we have PPC sponsored ads, PPC
ads. And we also have to consider the other fees
that are associated when we have our products in Amazon’s warehouse. So that’s FBA fees. If you guys don’t know what I am talking about
here. If any new sellers are watching this, I highly
suggest you to Google these terms. FBA fees, storage fees, there are a few more
small fees but I’ll let you guys do the research yourself. It’s not a significant amount of money but
the biggest costs associated with your launch is going to be ads, FBA fees, storage fees,
and oh, of course, right here, we’ll put giveaway service. That is if you want to still use a giveaway
service. A lot of people are starting to lean off this,
this year. In fact, a lot of my students are only launching
using PPC. There’s a lot of new PPC features this year
and PPC has been a super hot topic which we’ll not get into in this video. But if you look at my other videos, I talk
a lot about PPC and launching with PPC as well. Okay, so the average product launch, you know
again, it really depends on how hard you are doing your launch. But on average, expect to spend anywhere from
$1,000 to $2,000. So right here, I am going to put, I am just
going to put $1,500 because this includes PPC sponsored ads. When you are running PPC ads, you’re going
to have to put money in to get ranked for certain keywords before you start seeing any
organic sales or results. Organic sales meaning from page 1. It takes time to rank to page 1. I am sure you guys already know that. But you need money to do that, right? So that’s right here. Okay, so all together, on average, to get
your product up and running, it’s going to be at least $5,000. Now, you don’t pay $5,000 all up front, right? This all happens within time. So obviously, if you guys have a job to feed
your FBA business in the beginning, then put some money aside into savings so you have
money to feed this. If you don’t know how to do this, you should
not be doing this. It does not make sense to source a product
and not know how to launch it. And if your launch, your launch right here,
if you don’t know how to do your launch, you’re going to be wasting all of this. Alright, onto the next step. Let’s talk about time line. It takes 1 to 2 months for this to happen. Depending if you want to ship by air or by
sea. If you ship by air, it’s a lot quicker. If you ship by sea, it’s a lot slower but
a lot cheaper. But usually for your supplier to make everything
and for you to get everything ranked and shipped, it’ll take at least 2 months. I think at least 2 months. Right here, if you are launching using PPC,
and also you have to get reviews. Reviews, I don’t suggest paying for them anymore
unless they are family and friends but you should not be paying people that you don’t
know for reviews. Anyway, that’s a very little amount of money
that we need to put aside so I’ll put miscellaneous here as well. So back to my launch, this takes another month. I would say it would take a month to just
gather reviews, just to get your launch up and running. So in total, it takes 3 to 4 months just to
get this going. Now, remember, if you want to profit, the
whole conclusion here, is that you want to profit $5,000 a month. After you do these 2 things, after you do
these 2 things, depending on how many units you sold, depending on how many units you
gave away or how much money you put into advertising, it really depends when you start seeing your
first $5,000 profit. But in order to see $5,000 profit per month,
this is where it’s going to, these 2 things have to work out. They must, they must, they must work out. If you don’t know how to do any of these,
then please get the help you need. It doesn’t have to be from me. It could be from anybody. But if these 2 don’t work out, you’re going
to lose a lot of money here. And in order to see that $5,000 profit, you
can actually start seeing $5,000 profit after your launch. If your launch is successful and you are on
page 1 for a lot of keywords, especially the higher volume searched keywords, you can start
seeing $5,000 in profit, I would say within the sixth month mark. Because this whole thing takes a few months. This whole thing takes about 4 months, right? Usually, 5 to 6 months. I know it was for me. My winning product actually took 6 months
to start seeing that $5,000 in profit a month. That’s a realistic timeline for you. Given that you are consistently working on
your PPC ads, you are selling steadily. When you are making consistent sales, steadily,
if you’re selling at least 20 units a day for 1 product, and depending on what the product
is, what your profit margins are, that’s a really good start. I do have 1 student that started making close
to $30,000 a month in profit after 6 months and that’s because she nailed this. She nailed her launch. I did a success story with her. And I think right now, she’s sitting at $75,000
in profit a month from 2 products. I believe it’s 2 products. And 1 product is taking the lead. I’ll do another follow up success story with
her. But that just shows you how much opportunity
there is on Amazon for you to profit that amount of money. The best part about selling on Amazon FBA
is that you can make unlimited amounts of money if you know the proper steps to take. And realistically, it only takes at least
half a year. Most businesses don’t even profit money until
2 years, 2, 3 years. They could be in debt for many, many years. If you’re starting a brick and mortar store
or anything that is a physical location, it’s going to cost literally 20 times more. But leave me a comment below, tell me how
long it took you to start seeing your profit when you are selling on Amazon FBA. It is different for everybody but 6 months
is the general timeline which I see that is very common to start seeing that few thousand
dollar profits consistently per month. If you guys liked this video, please give
it a thumbs up. Please subscribe to my channel and I’ll see
you guys in the next video.

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About the Author: Oren Garnes

27 Comments

  1. Need help with starting on Amazon FBA? Watch my FREE Amazon FBA Training: http://bit.ly/fbawinnerswebinar-yt 🌟

  2. I finally started making a profit after 8 months cuz I was following the wrong advice. It only started working cuz of you. Thanks for all the great content! Keep it going! Love the honesty.

  3. Amazon FBA! Good job T! Explaining the whole business model in a few minutes! Looking forward to that $5K profit and above soon.

  4. Tons of people are under the assumption that running a business is easy. Thank you for being transparent.

  5. Good one Tamara, my issue is every time I look for a product and calculate the profit margin considering the shipping it comes down to 10-15%, I'm not sure how many of you find products with 25-40% profit margin.

  6. Love it! I think the 3 haters are the ones that just don't understand the part about working hard for your business. They possibly can just those lazy people that expect the world to come to them. Keep up the great content. Thank you for everything! Love the course!!

  7. Girl, you're the real deal! Awesome video. Thank you! Tamara, I wish you the very best of birthdays….. Happy Birthday! ♥♥♥♥

  8. Great content as always. I think you should try to make a video about how much money you would need to start Amazon. People always think that oh I got 5k to start but they have nothing left to order the 2nd shipment.

  9. Thanks Tamara for this rich content you're providing us with, i'm so much interested .

    In fact , I would like to know if i can do amazon fba while targeting USA or EUROPE market place so far from Africa where i am physically staying .

    Thanks for reacting soon 👍.

  10. Saw you on Adam Fischer. I just started and set up retail Arbitrage BUT I know my own product will set me free. So I am learning. Thanks for your videos!

  11. Hi Tamara, how long after launch shld we expect the sales to be around 20/day? We launched 2 weeks ago and have been on page 1 since day 3. Selling average 7-10 a day.

  12. Mine, I don’t want to make my expectation so high. I’m projecting 5k profit per month after a year launching my 2nd product (my first product failed). I’ll invest joining your course and be my mentor, for now I can afford 1-1 coaching call.

  13. Since I don’t have helium yet what are ways and key points to look at to find a good selling product that will bring in profit ?

  14. Hey Tamara, such a great and valuable video, you are awesome. How to contact you if I need help with sales of my products, already launched in Amazon FBA. Thanks

  15. Hi Tamara! I live in Toronto and I want to start FBA. I have no idea when I should set it up as a business (from the beginning or after some profit) and the details about FBA for Canadians (because all of the tutorials I watched are for US residents). Do your trainings provide details for Canadians who want to start FBA?
    Thank you

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