How To Make Money Selling Amazon Physical Products


How To Make Money Selling Physical Products On Amazon

Over the last few months, I've been working on private labelling and selling my own physical product on Amazon.  I invested in the Amazing Selling Machine with Matt Clark and Jason Katzenback a few months ago (really amazing course btw) and have been going through all of the modules with my girlfriend.

The process has been really fun and enjoyable.  Everything from finding the right niche, finding the right supplier, creating my brand and labelling, to setting up my listing, etc… has been an incredible experience.  I've had a lot of people ask me how to make money selling physical products on Amazon, which is why I decided to create this video blog to give you an overview of the entire process.

A few months ago, I wouldn't have been comfortable telling people how it's done, but now that I've been through the process with the Amazing Selling Machine, I feel confident to begin guiding people to make money on Amazon.

NOTE: I wouldn't have been able to do this without the Amazing Selling Machine, so I'm grateful to have invested in such a great course.  If you want to know more about selling a physical product on Amazon, then I recommend that you go through a step-by-step training course like this.  It covers A LOT MORE than what I could possibly give you in this video blog.

Watch the video below:

(Click here to watch on YouTube)


What are the steps to selling on Amazon?  

I've put together a list of 6 primary steps for you to follow in order to begin selling physical products on Amazon.

1. Find A Profitable Niche

The first step is to find a profitable niche for you to create and sell your Amazon product in.  The best way to do this is to find what is already selling and trending on Amazon.  It's important that you find a market where there is a high enough demand for you to be successful in, but isn't too competitive.

The easiest way to see what is selling is by going to the Amazon Best Sellers List and begin to look at the products in these categories.

To give you an example, one category that I was looking in is Sports Nutrition.  As you can see, listed below are some of the top best sellers in the Sports Nutrition category.

selling on amazon

This already will give you some ideas for products that you could potentially private label and sell.

When brainstorming which niche you want to get into, there is a specific criteria that is recommended for you to follow in the Amazing Selling Machine.

For example, you want to make sure that your product is light and small (easy to ship).  For that reason, you wouldn't want to look at refrigerators or dumbbells.

You also want to look for products that are selling within a specific price range, so that you you can make enough of a profit on it.  I personally look for products that are selling between $9 and $40.  If I can sell my product for $20 and get it made for only $5, then that's a $15 profit margin for each sale (not entirely accurate, as there's some fees that Amazon takes).

Looking in the Sports Nutrition category, you can begin to get ideas for what is selling that you could potentially get into as well.

Garcinia Cambogia Extract is hot right now.  Creatine could be good.  A Shaker Bottle could work.  If you go through the list, you'll begin to compile a lot of ideas for potential products that you could private label and sell.

When you have a list of ideas, what will determine whether it's worthwhile for you to get into is based on the demand for that product and the competition.

Garcinia Cambogia is in high demand right now.  It's been promoted on Dr. Oz and you can tell by looking at all the Garcinia Cambogia products on the front page for its keyword, they are all selling (based on the Amazon Best Seller Ranking).

However, Garcinia Cambogia is also way too competitive.  There's simply way too much competitive and many of the products have way too many Amazon reviews.

You typically want to find markets that have a high demand, but the competition is somewhat weak.  There's a thorough analysis that I do (which I learned from the Amazing Selling Machine), which will tell me which niches to avoid and which ones are potentially winners.  My experience with Kindle publishing has helped me with this, as I have gained a lot of experience in finding profitable niches for Kindle books.

Selecting the right niche will also depend on the information that you gather from your supplier.  It's recommended to have a few potential ideas for niches before moving onto the next step and selecting which product you want to go with.

2. Select The Right Supplier

Once you've got some good ideas of niches and products for you to sell on Amazon, next you need to start finding suppliers.

The process that I've learned from Matt Clark and Jason Katzenback in the Amazing Selling Machine is to private label an existing product that's already out there.

Private labelling makes things very easy and fast, as you simply can find a supplier that can make your product (or already has it in stock), and then you're putting your own custom label and brand on it.

For example, if you wanted to private label a supplement, you can find tons of suppliers that already make that supplement and you can get them to put your own label on it.  It's easy and fast – you don't need to invent something yourself.

There's many ways to find suppliers.  I'll share two simple strategies here:

  • Alibaba.com
  • Google.com

By going to Alibaba.com, you can search for your product and you'll find tons of suppliers all over the world for that product.  You want to ensure that you're searching for Gold Suppliers when doing this, among other things that are important to look out for.

On Alibaba, you can find a lot of suppliers from China, which is an excellent place to source your product from.  Sourcing your product from China will be A LOT cheaper than getting it from the U.S.

how to sell on amazon

However, if you're doing a supplement or beauty product, it's recommended to get it sourced from the U.S. to ensure it's FDA registered, GMP inspected, is safe and high quality.

Another simple way to find suppliers is just by doing a Google search.  This is how I found my supplier for my product.  You simply do a search that looks like this:

(niche keyword) + supplier

You'll typically find a good number of suppliers and companies that you can work with just by doing that (most will be in the U.S.).

When contacting suppliers, it's important to come across very professional and like you know what you're doing.  There's a method to this, as you want to be able to negotiate with them in some way and for them to know that you're planning on going big.

Some of the questions that are important to ask suppliers are:

  • Do they have the product that you're looking for?
  • What are the prices (quote) for unit?
  • What is the minimum order quantity (MOQ)?
  • What are the pricing tiers for 1,000 units, 2,500 units, 5,000 units, etc…?
  • What is the turnaround time?
  • What makes your product different from the others out there?
  • Are there any certificates or testing this product has?

These are some of the most important questions to ask, among some others when you're going back and fourth in your communication.

You can contact your suppliers by phone (recommended), or through e-mail.  It's important to develop a good relationship with your suppliers.

When contacting suppliers, you'll begin to get a lot of different information.  You can also request to get samples sent to you to test out the product first (highly recommended).

Based on the information you receive, you'll want to decide on who is the best for you to go ahead with and get set up with.

You'll be required to make a minimum order with the supplier (can be negotiated) and that order will be sent to an Amazon Fulfillment Centre in the U.S.

3. Creating Your Label And Packaging

Once you've decided on a supplier, the next step is to create your label and packaging.

Based on the supplier you choose, they will give you options for labelling and packaging.  They will let you know the requirements and the design specs.

Many suppliers have in-house designers that can do the labelling and packaging for you.  Some will do them for free, others charge a fee for this.  By working with the supplier, it can make things much easier, but I typically recommend to get the labels done on your own.

You can find a lot of great graphics designers on oDesk or Elance that can do this type of stuff for you.  Investing in a quality label is extremely important, as this is what will make your product stand out.  The packaging has to be very high quality and look good to the consumer.

Depending on the product and how much is involved with the packaging, typically you'll have to pay the supplier an additional fee to add on the label/package to the product as well.  Sometimes it's included in the price the supplier gave you (another important thing to find out).

4. Set Up Your Amazon Listing

While you're waiting for your product to be manufactured with the packaging and shipped to the Amazon Fulfillment Centre, it's a good idea to begin setting up your Amazon listing.

When setting up your Amazon listing, it's important to keyword optimize your title so that it will show up in the search results for when people are searching for it.  There's a method for this, which I also apply to my own Kindle books, as the way that Amazon ranks products on their website is based on relevancy to specific keyword phrases.

Optimizing your listing for keywords is important, as well as providing benefits and making your listing stand out from the competitors.

There's a lot of cool stuff that you can do to stand out from other Amazon listings, which is the primary benefit that you have over all the other brands out there (even the big brands).  You can include bonuses with your Amazon product, can offer a 100% money back guarantee, can have really cool product images, can offer discounts for larger quantities, can have really amazing sales copy that really sells the product.

These are just a few examples, but you can get a lot of ideas from the top selling products that are already out there.  The Amazing Selling Machine has a lot to say on this and I've personally learned a lot from the members in the program by checking out their products.

5. Launching Your Amazon Product

When everything is ready, it's then time to launch your product.

Launching your product the right way is extremely important.  You only get one shot at this, so it has to be done properly.

The goal when launching your product is to get it listed at the top for it's keyword on Amazon.  To accomplish this, you need a few things to happen:

  • A properly keyword optimized title and listing.
  • A ton of sales for your product (high Amazon Best Seller Rank)
  • A ton of verified Amazon reviews.

I already mentioned about the keyword optimized title and listing, which is set up while listing your product.

Getting a ton of sales for your product and reviews is where your focus needs to be right out of the gate.

One of the easiest and simplest ways to launch your product is by GIVING IT AWAY.

With Amazon, you can offer coupon codes for people that want your product and give it away for only $1.  By giving away your product for only $1, it will count as a sale (boosting your ranking and Amazon Best Seller Rank), as well as be a way for you to follow up with those customers and get a verified Amazon review.

amazon reviews

The customer will have to pay the $1 for it, as well as any shipping costs.

So, basically you'll approach people that you know (or don't know) and say to them, “Hey, I just released a new product on X and would love for you to try it out and let me know what you think.  Here's a coupon code for it, you just have to pay $1 plus shipping.  Are you willing to try it out and then share an honest review of it on Amazon?”

You'll typically have a lot of people take you up on this, as they are receiving the product for practically free.  It's a good deal for them, especially if they are in your demographic and could benefit from your product.

There's many ways you can give your product away in this way and get a ton of sales and reviews, all of which I won't be able to mention here.  Some of it involves using Facebook ads, as well as finding groups/communities where your market is hanging out.  Even using the Amazing Selling Machine community (there is a message board and Facebook group of thousands of members), it makes it very easy to do this process.

There's also many other strategies for launching and marketing your product, such as using Amazon Sponsored Ads (you can pay Amazon to promote and advertise your product on their website).  Press releases is also a powerful strategy.  Creating YouTube videos and tutorials of your product.  Contacting the bloggers out there, giving away your product to them for free, then having them review it on their blog.

There's SO MUCH you can do.

If you do things correctly, your Amazon product will shoot to the top of its ranking for its keyword.  This means that when someone searches for your product, yours will be one of the top products that show up, with a ton of amazing reviews.

Once it's ranked high for its rankings, then you're now cashing in off the thousands of people searching for your product everyday on Amazon.  The volume that Amazon can do for you is remarkable.

I have friends making $50,000 to $100,000 per month on Amazon for only ONE product, which is mind-blowing to me. Many people in the Amazing Selling Machine course are making 5 or 6 figures per month, as shown on the Leaderboard.  They give many examples and have interviews of people that are doing this type of volume, which is very inspiring.

Of course, for you to be successful on Amazon, your product has to be high quality and help people.  That is key to being successful long-term with anything.

6. Build Your Brand, Rinse And Repeat

Once you have one product that is successfully selling on Amazon, the next step is to continue building your brand.

You want to think about expanding your product line.  If you're selling supplements, you'd want to create and sell more supplements in that market.  If you're selling kitchen stuff, you'd want to make more of that, so you can sell your customers on MORE of your products.

Building out the backend is key, developing a good relationship with your customers, so that you can continuously sell them MORE products.  You want them coming back for more, so customer experience is very important.

The great thing is, things become so much easier after you've done it the first time.  You've already been through the process, are getting a result, so all you have to do is rinse and repeat it.

My Recommendation To Get Started

As you can see, there's quite a few logistics involved in selling on Amazon.

It's similar to the Kindle publishing process that I teach in many ways, but a lot more complicated and requires more of an investment.  However, the return is significantly higher as there's potential to be making 5 or 6 figures per month from one product.

If you are interested in getting into selling Amazon physical products, my recommendation is to invest in a high quality course like the Amazing Selling Machine.

Do not… I repeat… DO NOT try to do this on your own.

If you attempt to do this without a high quality course such as the Amazing Selling Machine, you're risking massive failure.  There's a lot more risk involved in this process, as you are going to have to invest money into an inventory.  You don't want to do things without a course or someone guiding you, as if your product doesn't sell, you're left with a large inventory that isn't selling.

I've been doing internet marketing for years and have been successful selling on Amazon with Kindle books, and even for myself, there is NO WAY I would be where I am today with Amazon if it wasn't for this course.

The Amazing Selling Machine will streamline the entire process for you.  It will increase your chances of success with it, as all you have to do is follow the program (as long as you follow the program, you will be successful).  If you get lost or need help (you'll have lots of questions along the way), then there are Mentors in the Amazing Selling Machine that volunteer their time to help members.  There's also thousands of members in the community forum and Facebook group that are all helping each other out.

Yes, the Amazing Selling Machine is an expensive course (a couple thousand of dollars), but it's worth it.  I can honestly say that this is the best course I've ever invested in.  You also get to attend their live event, which is worth it as well.  It typically costs thousands of dollars any to attend any high level internet marketing event, so you're getting a lot for the price.  The fact that it's expensive is a good thing also, as there's a higher barrier of entry and less competition for those that are doing it.

If you want to learn more about the Amazing Selling Machine, click here.

NOTE: The Amazing Selling Machine is ONLY available twice per year.  They are opening their doors fairly soon (October 2014), so if you're interested, there's only a small window of time for you to join.

Please leave a comment below or let me know any questions you have.  I'd love to hear what you think!

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How To Make Money Selling Amazon Physical Products
3.7 (73.33%) 9 votes
  • Al


    I agree with Stefan that selling on Amazon is a great business model and much can be learned on the subject. But, I would do some searching around. There is tons of free as well as a lot less expensive information regarding Selling on Amazon other than Amazing Selling Machine. I am not saying that AMS is not worth the money, all I am saying is look into the free material available first to make sure this is something you want to do. AMS is a big investment


    • If you want to sell products on Amazon but can’t afford a training program like ASM, then I would say DO NOT get into trying to sell on Amazon until you’re ready to afford and invest in it fully. If money is an issue for you, then start with Kindle publishing are something much cheaper to get into. But I disagree with you Al, I think the worst advice for anyone is to try to compile together the “free information” and do it on your own. Unfortunately, I know so many people that have attempted to do that to make money online (myself included for years), until I finally realized that it’s MUCH easier and cheaper to just invest in a high quality course and follow it. That’s the secret to success and what I recommend in this video blog on the best advice I could ever give you: http://projectlifemastery.com/the-best-advice-i-could-ever-give-you/

      • Brian

        I resonate with this. It may sound like you can “save” money since the information is out there, but it’s the exact same reason people have always bought books to learn about something as opposed to asking all their friends. Books and products are ways for experts to document valuable information. If the book or product did not deliver, it would simply die out. It ultimately comes down to how much you value your time and how safe you want to play it. Are you willing to spend 100 hours compiling all the sources that you “think” are reliable for this venture OR pay money upfront to nearly guarantee a 100% ROI or more?(Assuming you put in the work)

  • Kevin

    Do you know when they open? I went to the website, but don’t see much except a couple videos.

    • I believe on October 16th. Right now they are releasing a free 4 part video series. I recommend watching them all fully – even if you don’t want to buy the program, you will learn SO MUCH just from watching these videos they are putting out.

  • Stefan’s CS Team

    Stefan certainly makes affiliate commissions from many of his recommendations. However, he has always practiced a strict policy of only recommending products he personally works with or has personally reviewed and believes may help people in his audience.

    As always, it is entirely your choice to determine if any product is appropriate for you in your own business goals. If you do not feel this product is right for you, then by all means, do not include it in your knowledge arsenal. Whether or not Stefan makes a commission should have no bearing on that decision. Hope that helps clarify!

  • Jacob

    I’ve just been getting started with your kindle program this past weekend and am so far impressed with the quality of the information. I’m also interested in ASM should/when it opens up again in the springtime. I did have some questions about it, though: Beyond the cost of the course, how much of an investment will it require to launch the first product? Beyond the cost of the inventory, what is to be expected about importing products? Is Customs an issue, what about shipping from China? I’ve seen a lot about ASM online, and they make the process seem so simple. Maybe it is in theory, but what about the legalities of the whole process? Is that covered in the course, as well? Thanks.

  • Don

    Thanks Stefan for this post, but I have a confused factor about selling on amazon. Becasue I’m a person neither in USA ,CANADA, AUSTRALIA, UK nor from OTHER WELL DEVELOPED country. I’m an Asian. So how can I sell on amazon?

    • It doesn’t matter what country you live, you can sell on Amazon. There’s lots of people in Asia selling on Amazon.

  • Hey Stefan, great post. I have a question regarding what happens when a customer returns your product? Does Amazon charge you for it since it was opened and returned or do they absorb partial cost?
    I’m looking forward to the next open slot of ASM as unfortunately i missed the time frame this go around.

    • You still get charged for them handling the fulfillment of your products (to store in the warehouse, ship it, etc…) regardless of a refund.

  • Nguyen Thanh Tra

    Thanks Stefan for such wonderful blogs, videos and advices. I am also students and will graduate next year. After watching your videos and follow step-by-step instructions (extremely clear, thank you a lot for that), I decided my future path to confront with the fear of being fired from a lifetime job. Anyway, thanks a million for useful and valuable videos and blogs. Keep your work and I subscribed your videos on Youtube and wait for upcoming videos.

    However, may I ask you a question about Amazing Selling Machine because I also personally think that it is much better and time-saving if I followed a right track at the beginning? When the course starts in 2016 (you said the course only open twice per year) and how can I register for the course? For life event, can I join it by online or I have to flight to the US or any place to attend the event?

    Hope to receive your reply and Thanks in advanced,