How To Start An Amazon FBA Business With $1,000 Or Less

Hey everybody, I'm Ryan Daniel Moran from capitalism.com and today we're going to talk about how to get started selling on Amazon FBA with $1,000 or less. If you had more money, if you had a few thousand dollars to start the business, then you would do a big inventory order or at least a bigger inventory order. You might build a website, you might run some ads, but when you're starting with $1,000 or less, you don't have that luxury. Help me, I'm poor. No. Now this can be a really great advantage because many entrepreneurs work way too hard before they take a sale. But when you are bootstrapping and you've got just a few hundred or a few thousand dollars, it means you, number one, can only focus on taking sales. That means this. Do the smallest inventory order possible and then just start taking sales. Get back in there at once. And.

I think the stuff that Gary Vee talks about, about putting stuff on Instagram and following people on and sending messages and DMS and responding to every comment is so important for you to do at the beginning stages. If you are bootstrapping this. So you, you have to put all of your energy into getting those that first inventory order and getting those first customers and following up with every customer, making sure they're happy, asking them for reviews. You've got to get really comfor, remove the dirt of getting into the grind of it all and be talking about your product to people who will listen, doing podcast interviews. If people will ask you to be on the show doing everything you can to throw attention at that first hundred customers or so. You don't need a website, you don't need to run ads, you don't need a bunch of fancy packaging. You need sales. That's what you need when you're starting with under $1,000. So place the inventory order of your first product and just start taking sales. That's all that matters. All of the complicated stuff comes after you make sales. Number two, focus on high profit margin products. This flies in the face of most people's advice, which is sell what everybody else is selling, but do it better or more. Look, if you are scraping together a few thousand dollars or less, you've got to go after high margin products. Now I recently did a video that will link below about criteria to choose your first product and I'm going to give you one of those right now because it's the secret to having high margin products and that is to differentiate your product. I'm different. Yeah, I'm different now that doesn't mean you need to invent something from scratch. It just means that your product needs to be enough from all of the other options for you to charge a few bucks more. So even something like this is a journal. I paid like 40 bucks for this journal. Why? Because it looks like a $40 journal. People ask me if I'm reading my Bible and I say, well, it is my word.

So if you can't differentiate the product, then you're not going to be able to charge a premium price for it. Again, that doesn't mean that you need to invent something from scratch. Differentiation can come in the form of branding. It can come in the form of who you target. And there's a lot of different ways for you to get your product to stand out from everybody else. But if you are just selling spatulas and it's the same spatula as everybody else, you cannot be successful with Amazon FBA and only have a few thousand dollars to start. It's just not going to be possible. People have too much Runway on you. They're too ahead of you for you to be able compete. So the secret is to go after markets where you can bring some differentiation to the marketplace. This is really easy to do in pets, it's really easy to do in food, in supplements, in beauty, in some household items, in a lot of consumables, in anything bathroom related. Stinky. One of my first products on Amazon was a was a yoga mat. And we came into the market way higher than everybody else. We had like, I think we sold it for $45. Eventually we ended up bringing it down to 29.99 because we got more customers that way. But at the beginning we had like 500 units. We had to make as much money as possible at the beginning. So you can start high and lower later, but you got to come out of the gate. The high profit margin. Product number three. If I could give you one tip on getting sales quickly, then there's one advertising source that's free that brings in a lot of sales and it's partnering with audiences. If you can make a connection with someone who runs a Facebook group or an Instagram page, a LinkedIn group, anyone who has an audience of people who might want to buy the product that you are bringing to Amazon, that is the best source of free attention in the world today. I run a portfolio of physical products, brands, and I don't start anything until there's already an audience that I'm going to partner with. Because it's just fuel. You just can throw a product to an audience and you get sales from day one and then you optimize from there. So the best free advertising in the world is other people's audiences. And that can come in a variety of different forms. So if that's all you focus on because you're doing things free, then that's the one advertising source that you must consider. So one thing for you to consider, and I just want you to sit on this as a thought experiment, you don't have to start with just a few hundred or a few thousand dollars. There's a lot of money in physical products brands. There are companies selling for tens of millions of dollars. I've advised a lot of them. And since there's so much money in these brands, there are investors who are more than willing to put up the first $10,000 that you need in order to do this. Well, I run a training called Million Dollar Brands which helps entrepreneurs ensure that their product is a good idea. And we help them identify those three to five products they can get, selling at least 25 units a day and at least a $30 price point. And that's a million dollar business. If you know those three to five products that you're going to release and you know how you're going to bring them to the marketplace and you bring that business plan, if you even want to call it that, to a potential investor and you just ask their advice, watch how fast they offer you money. That training is $297, but it's free if you complete it. Which means if you just create the business plan at the end by answering a couple questions, you have the option to get all of your money back. I hope you enjoyed this video. My name is Ryan Daniel Moran. I'm the founder of capitalism.com we invest in and help entrepreneurs like you build businesses and invest the profits. If you enjoyed this, please subscribe to the channel. And also I run a podcast, it's capitalism.com with Ryan Daniel Moran. We've helped thousands of Amazon sellers and new entrepreneurs build successful businesses and I would love to invite you to be one of them. You can listen to that on Spotify or Apple Podcasts and I look forward to chatting with you soon. Thanks for watching.