Selling Physical Products On Amazon - How I'm Generating $6,283/Day Doing Almost Nothing

Physical Product Profits

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While I have done my best to ensure the accuracy of the information in this report that accuracy is in no way guaranteed. You should perform your own research and analysis in consultation with appropriate licensed professionals before attempting anything in this report. No warranties express or implied are provided as to the suitability of this information for your specific purpose. This report involves you running your own business. Running a small business is deemed to entail “significant risk” according to the US FTC and as such you should be warned that you could lose some or all of any investment you make.

Finally, no warranties express or implied are being provided as to how much you can make following the information in this report. I don’t know you or how you’ll implement what this report talks about. Therefore I can not say how much you specifically might make following this advice. My results are not typical. You may not make as much as I do, you might make more than I do, I don’t know. Please understand that my results may not match the results you obtain and as stated above, you may lose some or all of any investment that you make.

Uhhh … What? (or, the surprise from my accounting team)
It was the 13th of April and I sat in a meeting room looking at a report in what could only be called a state of shock. I was meeting with my bookkeeper, audit accountant, and tax accountant to go over the taxes before filing.

“How is this possible,” I asked more to myself than to any of the people in the meeting with me.

They must have known the question wasn’t really meant for any of them and stayed silent.

“I know what you’re going to say, but you’re absolutely sure these numbers are right,” I said looking up at my bookkeeper, my audit accountant, and my tax accountant.

“There’s no question. Yes, they’re absolutely correct,” Paul, the audit accountant answered.

I looked over at my bookkeeper who also serves as a general assistant of sorts (I have a VA in the philippines named Gupta that handles “menial” tasks). “Lets go ahead and have the taxes filed. But also lets get everyone on the phone for a conference call today. Let me know what time and make sure Gupta knows this takes priority over everything else. If she needs to make a schedule change to accommodate then fine, tell her to make it. “

The Reason I Wanted My Team To Meet

I sell quite a few different things in quite a few different markets; both Information products physical products primarily sold through Amazon. Further I’ve been doing that for quite a few years now.

For quite a long time the bulk of my profits was generated from info products. After all it makes sense that this would be the case given that digital info products have very low costs. In 2012 58.9% of after tax profits came from info products.

It seems that over the course of 2013 however a dramatic shift took place.

For 2013 a whopping 71.3% of my income came from physical products I sold through Amazon.

And let me explain something. My income from info products went up in 2013 by 127%.

However, physical product revenue increased so much that it ended up blowing the doors off everything else.

Why I Had No Idea This Had Happened
When it comes to info products I’m intimately involved in every step of the process. Because of that I know what’s going on because it uses up so much of my time.

On the flip side the physical product side takes up literally ZERO of my time. I have the whole thing outsourced. And to be honest, Amazon does almost everything for me. They send an email to my bookkeeper, “running low on product X.”

She then calls the supplier and has more sent to Amazon. They take care of packaging, shipping, customer service, the CC processing … literally everything. My bookkeepers time is limited to “ship more.”

The suppliers have our account information on file and they charge us as we place orders (we’re large enough now that we could probably go onto net30 terms but there’s no need so we don’t). Amazon direct deposits all revenue earned every day (well, payments are two weeks in arrears, so the money received any given day is actually what was earned on that day two weeks previous).

Because the whole thing is so automated and takes so little time I was totally clueless that physical products had turned into a $6,283 per day business.

Now you might be wondering how I didn’t notice the rapid rise of money in my back account.

The answer to that is simple. Excess money is “swept” from my account and into high dividend earning stocks (and dividend earnings are reinvested). So there’s never much more in the account (at least not for very long) than what needs to be there to actually operate. I do this last thing so that I’m slowly but surely building up my passive income with a goal of getting to the point that I have a minimum of five million dollars in dividend income in the next 8 years.

All of that is a long way of saying that I had literally zero idea how much was being earned from physical products.

The Bottom Line
I now make nearly 7,000 per day from physical products. Further, a maximum of 5 or maybe 10 minutes per day is spent to make it.

Now if you’ve read my “couch to king” report you know that I tend to be pretty skeptical of claims of automated riches.

In fact, to make sure this wasn’t a fluke, or that the people on my team weren’t going outside my system I jumped into a new market doing everything myself
You see I just couldn’t believe that the money I was making wasn’t because I had lists and tons of other benefits.

Now to be fair, yes, that does give me a slight advantage. But it’s a much smaller advantage than you might think.

You see, probably 4 years ago now I systemized the entire physical product side and outsourced it. My VA spends a little time every day looking for good products to sell. Another VA then finds a supplier for it and sets everything up at Amazon including the actual product listing. From there my bookkeeper actually gets the order placed and has someone set up labeling if needed. Finally, once the listing actually goes live, another member of my team gets reviews for the product taken care of. After that the orders just flow in. As inventory at amazon runs low a notification is sent to my bookkeeper and she orders more and has it sent.

That’s it. The entire process. Now obviously I have things extremely well outsourced with different people handling different pieces of the puzzle. However that entire process I just ran through is super easy and doesn’t take long at all. You could easily start doing everything yourself and gradually outsource as your business grows.

Actually Selling Physical Products

The process of doing this is pretty easy.

First, you simply jump onto Amazon and look at their best seller list for a category that looks interesting to you.

Look for products that sell between $20 and $40 that are top 100 in the category that also have less than 500 reviews.

Then, jump over to Alibaba.com and find a supplier for the product. Typically an initial order will be anywhere from $200 to $500 plus shipping.

Now because of how automated this process is, I typically look to make just 3% to 5% per order. So make sure that your “per unit” cost, including shipping, allows you to charge enough for that and still be approximately the same price (within 20 to 50 cents) as someone else selling close to the same thing. If I can undercut other sellers and still get 5% (which happens almost always) then so much the better.

Now, some suppliers are “private label” which means you need to have a label done up. For that almost always someone from 99designs.com is used and typically the cost is maybe $20.

Once the label is done the supplier can give you a couple images of the product both packaged and not. From there you’ll want to go back to 99designs, spend another $20, and have them make “product usage” images. They’re just images showing the product in use. If I were going to sell auto ramps then I would have a couple images showing some cars up on the ramps. These are digitally created, not actual shot photos.

Now almost no one does “product usage” photos in their listing. Amazon allows you to have 9 different photos of your product. I’ve found that having product usage photos improves sales by two or three times.

Now you create the product listing on Amazon as a seller, upload the images, and have your supplier send the products to the location Amazon tells you.

The Listing
How you create the product listing is extremely important. Most sellers make the mistake of just putting the product name in the listing. As an example they might say, “Body Solid Dip Station.” That’s a horrible product title. (I don’t sell this product, what I’m about to show you is an example)

A better one might be, “Dip Station by Body Solid - Strength training equipment - body weight exercise from home - FREE workout program with purchase - Lifetime guaranttee”

I’m putting the primary keyword that I want people to find as the very first thing in the title, then loading up a few other key phrases, including a free offer for people to buy my dip station over someone elses and stating up front that I give a lifetime guaranttee where it won’t be missed.

Next, in the product description I actually sell the product. I don’t just describe it. There’s 9 million sales letter writing formats you can follow out there but the one I like the most is this:
Problem, agitate, desire, not your fault, solve, logic, act.

In other words I state a problem, then I agitate the problem (“and to make matters worse …”), then I state some kind of desire that the product fulfills, say that not having the problems solved previously isn’t the potential customers fault and give a reason why, say how the product solves the problem, then I give at least 5 stats that support purchase of the product, and finally I finish by saying “click the add to cart button right now to purchase.”

I almost never see that in an Amazon product description but it adds anywhere from 30% to 50% more sales (depending on market, product price and so on) just from putting in that one sentence.

From Here ...
Wait for Amazon to say they have received your products, push the listing live … and now you do the important part.

Go to every friend, family member, and so on that you can think of and ask them to give the product a 5 star review and leave a review comment. You want a minimum of 10 reviews (and 20 is significantly better) within the crucial first 7 days the product is live.

The only other thing you want to do is use the Amazon system to send out an email to someone 3 days after they purchased to follow up, make sure they like the product and ask for them to give a review. Put a link to the product in the email to make it easy for them to do it.

Pretty much that’s it.

As amazon runs low on inventory they’ll tell you. You just tell your supplier to send more. That’s it.

Now if you’re making 5% in profit on a product that does $200 to $500 in sales per day (which is pretty average) then you’re looking at $10 in sales per day on the low end for that one product.

That’s $70 per week or $3,640 per year. Not exactly awe-inspiring income is it.

However that’s a single product. Like I said, once it’s setup and running you might have 2 minutes of “work” per week limited to seeing an email from amazon that says they need more, then calling your supplier to actually do it.

So you just start adding more products. At 10 products you have a 36k per year income. At 100 you have a 360k per year income. At 1,000 you have a 3.6 million per year income.

And again, the “management” of the whole thing takes nearly zero time. You could quite easily create three to five new product listings per day without even trying hard or working all that long (two or three hours at most).

How much you want to make is totally up to you and you don’t even have to work hard.

Simply have good product listings that make it easy for people who want your product to find it, give something for free to people who buy your product, and put a lifetime guarantee right in the product title. Have good product pictures, and actually use the product description to sell the product.

Once the listing is setup and Amazon has your product that’s pretty much it. Just add more products.

For The Big Earning Products
Some products you can have profit margins above 30% and still have prices at approximately the same as everyone else. For those I will often do things like guest blogging and link to the product in the body of the article to drive more sales.

In fact in a couple of markets I have “product suites” (a group of related products) which I then would link to all of the products separately. I’ll have some super awesome 7,000 word highly intensive article that is just really good that I can get a top blog to run pretty easily. The article will link out to 3 products in the body, and often that generates some pretty good interest.

It isn’t even terribly uncommon for my product to end up top ranked on Google for a search thanks to the link from the article.

If I do three articles at three different blogs I can pretty much guarantee that I’ll get a top rank and for my better sellers that’s what I’ll do.

Honestly however, I get so many more sales from the article than I do from the google ranking that guest blogging is much more about traffic than it is about the google rank.

Now, because I’m doing more of this I have to be honest that at this point I’m going to start looking a little more to the 30% products. Again, a product that does $200 in sales a day I get to make $60 per day instead of just $10. I’m also doing a lot more “consumables” … things that people buy, get used up, and then they need to buy more of it.

Getting This Done Yourself Even Faster

I’m running a program where I’ll work with you directly on every step of this process. I’ll help you find the best products (in fact I have several already found). I’ll help you with product labeling, help you with your product listing, and everything else.

I’ll work with you directly and individually to help make sure that you kick this off successfully and gain success in the shortest time possible. If you’re interested in hearing the details for how you get into the program send an email to stanhyeck@gmail.com and let me know you want into the amazon coaching program and we’ll talk.