Young Sun (full name: Youngjun Sun) is going to offer you another Amazon FBA online training course. But this time, he claims that his strategy is very much different from other Amazon FBA gurus out there. Yes, we’ve heard that same claim before from the others. But he insists that this one’s really different from the rest. Because unlike the others that talk about building your own brand via private labelling, Youngjun likes to sell name brand products that are already selling well on Amazon. I admit that it’s a drastically different FBA strategy from the others, but how effective is this strategy? Let’s find out in this Amazon FBA Mastermind review.
As you can already tell, Young Sun is a full-time online marketer and Amazon seller. He says that, instead of creating your own brand when starting your Amazon FBA business, you should create partnerships with suppliers who are licensed to distribute products with recognizable brand names. Examples are Nike, Adidas, Apple, Samsung, and so on. Of course, to pull it off, you’re going to need prior approval from Amazon itself. Otherwise, you’ll face the banhammer (account ban), which is a real pain. But if you can pull it off properly, it’s basically an unfair advantage because branded products like these can sell like wildfire, and you may have little competition over them.
There are also other advantages to this business approach. Since you’re going for suppliers of branded products, it’s certain that you’ll be dealing with vendors in the U.S. This means cheaper shipping costs and a drastic reduction in delivery times. Furthermore, you don’t even need to run any extensive ad campaign consisting of paid ads (whether Amazon PPC or something else) to be able to make your listings known because the brand name will advertise itself. People are already aware of these brand names, and will surely prioritize buying them over the non-branded ones. This means you can potentially save a lot of money using this method.
Of course, part of setting up your Amazon FBA business is determining what products you should sell. And preferably, the ones you’ll sell are those with the highest demand. That’s why Youngjun suggests that you use a software tool for your product research. He recommends Amazon Sales Estimator by Jungle Scout, which is helpful, especially in figuring out how many products you can possibly sell in a given month. Once you have a number, you can determine whether or not you want to run with that product or not.
Of course, what you want to sell are products that are brand-new, since secondhand products simply won’t cut it at all. You’d always prefer a brand-new product over a secondhand one regardless of the price difference, right? That being said, you also want to make sure that the products you’re offering are at a good price and are well-stocked. It’s also a good idea to provide Free and Prime shipping along with customer support. Additionally, you should also make sure that you familiarize yourself with a key term that will help you succeed in your Amazon FBA business.
It’s called M.A.P., and it stands for “Minimum Advertised Pricing”. In layman’s terms, minimum advertised pricing (M.A.P.) is the price below which a manufacturer will not allow a reseller to market their items. It’s required by the federal government and is always established by the manufacturer. It does not, however, require that it be sold at that low a price, only that it be marketed at that price. Don’t confuse this with M.S.R.P., or the “Manufacturer’s Suggested Retail Price.” While M.A.P. acts as the lower limit for a product’s pricing, M.S.R.P. acts as the upper limit. Knowing this is crucial to running a successful Amazon Marketplace business.
Here’s an example of how Youngjun’s preferred business strategy works. Imagine you came across a Nike shoe you’d like to sell, bearing all of this in mind. You conduct your investigation and discover that 4,000 units are sold per month. Currently, the Buy Box is being won by four approved Nike merchants.
So, if you walk in and share the Buy Box with them, you can anticipate $4,000 divided by 5, or about $800 per month. Of course, this assumes that both the supplier and Amazon itself authorizes you to do so.. After that, you can estimate profitability by working backwards.
So let’s imagine that there are 5 authorized sellers who are offering sneakers for around $75 and you can purchase a couple from the vendor for $50, you’ll have $25 to play with. Now, Amazon is gonna want their share of your sales, so you’ll have to budget for that as well, but you’ll have plenty leftover to put in your own pocket. It’s also a big help if you use a pricing tracking tool. Youngjun suggests Honey, Keepa or CamelCamelCamel. For reference, a price tracker is a software or a program that monitors product price variations and sends out alerts when there is a decrease or increase in price. Furthermore, they assist you in evaluating the pricing of various products so that you get the best value for your money.
Overall, there’s plenty of promise for Young’s Amazon FBA strategy. It’s admittedly rather unique, and can potentially be a game-changer if properly set up. But that’s also what Youngjun is here for. By joining his Amazon FBA Mastermind, you can learn to do this right and enjoy similar success as he did. There’s no mention of how much joining Amazon FBA Mastermind cost, but expect that it’s going to cost you several thousands of dollars. But then again, Amazon FBA is still a terrible business idea today due to the saturation of the market, thereby greatly reducing your chances of getting consistent sales. Plus, with this strategy, we’re still not sure how hard it is to get approved by these exclusive suppliers.