This circle represents how much money amazon generated last year, 232 billion dollars. This circle shows how much money was generated by people like you, selling on amazon, 53.7 billion dollars. This little dot represents the share of the profit. You would need to claim in order to become a millionaire when you zoom out it looks like a drop in the ocean, but is it actually that easy? Well, if you believe the majority of the online gurus, then you would think yes, they like to sell you.

The dream of escaping your nine to five and living on a beach watching the money roll in all by starting something called amazon fba. I want to get to the bottom of this. Is it a legitimate way to make money, or are these gurus making money? Just by teaching it now, it's no secret that over 40 000 people generate over 1 million dollars per year on the platform, but are they making any profit more to the question? Is this something anyone can do and your golden ticket to millionaire status, or is it all just a pipe dream? That's exactly what i'm going to be uncovering in the first episode of the secret world of passive income millionaires hi, guys it's mark. So recently i can't escape the phrase: amazon fba, i'm a massive fan of youtube.

As you all know, and on nearly every video i watch and everett pops up saying it's the key to becoming a millionaire and fast. So, of course i was intrigued, as i made my millions through running traditional businesses. The way i've always done it is to have warehouse in and i buy, the stocking in containers bring it in from china or america or europe, and we stack it out and we're pretty much sold out of the mail. We're waiting for containers to come.

The way amazon fba works is a little different. Fba stands for fulfilled by amazon, meaning instead of having warehouses like me, you can just ship all the items off to amazon and they deal with all the storage, the packaging and the sending out of all your items. So, on the surface it sounds pretty great yeah i mean less worries lots of customers what's not to like. Maybe it's something you could do as a side hustle and maybe make a little bit of money, but is it a long-term business? I'm just not convinced if you're doing amazon fba successfully, then i want to hear from you.

I want you to persuade me that this is more than a side hustle mark i'll. Take you up on that offer i'll, show you how these online businesses are taken over and how they can be so sustainable, as you can see, we don't play around with stuff. Here. Are my concerns? Imagine them as bowling pins in order for me to change my mind, they're all going to have to be knocked down number one is the startup costs? Can anyone really start this business or do you need a huge amount of cash to buy in products and then test them out? Number two is over saturation and competition? Can it really be profitable in 2020? On one hand, the marketplace is massive, but also millions of people are selling similar products on amazon number three is actually finding a winning product that sells well with lots of other people searching for the next best thing.

It must be incredibly hard to actually strike gold and find that one product that makes you millions number four is the amount of money amazon takes as they're sending out all the orders for you. I imagine they take a pretty big slice of the profits. I don't have this expense, so i'm really interested to know. If this is a problem, number five is picking bad products.

My worst nightmare would be storing lots of products in amazon's warehouse and not being able to sell the stock. As time goes on. I imagine the fees are going to really add up number six now. This really is the big one lack of control.

I've always been in control of everything, from manufacturing all the way through to shipping the product to my customer's door, but as amazon take all the control of the selling and shipping. I would be concerned about losing all the information about my customers. I wouldn't want amazon to shut me down and have to build up all those customers all over again from scratch all right. So now all the bowling pins have been set jack.

I'm on my way, jack is an obs young entrepreneur who has amassed nearly a hundred thousand followers on his tick, tock account and eight thousand on instagram, where he gives straight to the point. Business advice as well as recently even carving his quote: stay loyal to your goals and they'll stay loyal to you into his porsche, so quite a character, so you've had it all repaired. Now then yeah he's in there now, four by four in a minute jack. What's your age and um, what do you do so? Uh, i'm 19 years old or 19 years young and i do amazon fba.

It's it's a business that you can get into at a very entry level. You can you know it's. You don't need too much money for it, and you know the numbers you can build up with a lot of effort and determination are very impressive. So what inspired someone of your age to get into this and be an entrepreneur? I tried out full-time work personally, i didn't think it was for me a lot of people, you know are better at it um for me.

I don't fit the norm. People thoroughly thoroughly believe that the way to get rich is to work. Work work put money into a pension and when you're 60 you've got a million pounds, i personally don't want that and that's that's, not the road i'm taking. If that's what people want? That's fine yeah, but that's not the path i'm taking.

I want it sooner. So i'll get it sooner. If that makes sense, you know it's possible. So if i can be a bit cheeky, what are your numbers so first year we did and forty hundred fifty thousand pounds uh this year, the last twelve months here pushing on nine on two hundred thousand pounds.

That's a working business and that's good. So for someone watching this video, what do they need to invest into this to to really get going uh? I always recommend fifteen hundred pounds um, which, as you know, is a very entry-level amount of money to start a business, especially a retail business. What that'll get you is good software that you need for amazon selling um. It will pay for your first amounts of stock.

You don't need a certain amount of money for stock. You can start with a hundred pound and you can make your money on that. You can start with a thousand pound. It is just a case of ratios, you know and and scaling it up.

Just please think of it as an investment in yourself. Yeah don't expect that money to come back very soon. It's not going to start paying you soon. You know it's a long term game um, but for long term gain and at what point you um work out that you can quit your site, you quit it as a side hustle and make it your main business.

Where do you think that breakover point is i'd, say three solid months? That's what i i was so you know. I speaking i remember speaking to my dad and i said dad. I would quit i'm gon na quit. I had one good day one good day.

I think we did like 800 pounds in profit, i'm going i'm leaving i'm leaving. No, he said you need to speak if he said. If you want to do that, and he said you need to make sure your business is going to support you um. So i waited three months for three good good months of sales and where it was, you know doing two three, four, five six times what i've done at a job and then i was like okay, that's now that's time, it's definitely something not something that should be Rushed into so i've always seen drop shipping and fba really is just a stepping stone, just a starter type business.

Can you persuade me otherwise i see massive longevity, not with what i'm doing now. What i find is this is the cash cow. So it's building up the cash for what i want to do, which is private label, you're, building a story you're providing top quality products where you can control the quality of the product, the packaging, the branding, the customer relation. You know with nice cards and appreciation stuff like that which is huge, because what you've then got if you've got an established brand on amazon you're, not just getting money from sales.

Your brand is being featured on the most visited website on the planet by google, which they'd find it on anyway. Private label you're creating a sellable asset, a long-term business that is going to tip one keep ticking over. If you, you know, if you boost it to the first page and you keep ads on it, that product is going to make you money for three four five six years, however long and keep it there for and how do you go about finding your products because A lot of people will write to me and they say you know: how can i find that niche product and how long does it take you as well could take me 20 minutes. It could take me 15 minutes.

20 minutes, that's impressive yeah or it could take me two three four months. It is totally a case of sitting down there, how my mentality is going towards it um. I think you know finding that that that key product is tough. However, they all have an expiration date for sure for sure it's not you never ride off just one product.

You need to keep on pushing and keep on finding more um. But for me it is a case of sitting down in my zone and i will not get off my desk until i find one i'll be picking up the phone. Quite a lot um dealing with a lot of rejection. You know how are you i'm 19.

You know how old your business well just over a year, you know the second, it's a no or the second, it's showing that it's not happening just phone down onto the next. You know really detach emotions from it. Yes, it's the constant contact speaking to people and the networking as well the networking's huge like meeting people who know other people or companies just getting in touch with them. You know going around there's so many roundabouts, you know, but it is about going over them and going around them and not being scared to do so um, but it is hard work.

So obviously, amazon take quite a cut out of this from you. So is that a set percentage on every item you sell? Is that a variable percentage? It varies a lot on uh size and weight as well, so something, for example, uh, a pen they're not going to charge you very high fees on that's, probably about the lowest band of fees um, so it depends on the weight and size and how much it's Going to cost them to ship it and move it around say: you've sent a lot of product to amazon and it's not selling. How do you handle that situation? I've had two types of products, two products that have just been a loss. I've had to accept that they're just doing nothing.

That was t-shirts, and there were these. Also, these uh, they were called juicy lucy picture frames. Basically, they didn't go well at all. They were not as anticipated and it was a bit of a kick.

You know it's a lot of money to to expect to lose. That's how that's my instant, oh, it's not working, damn it. What i did was i put ads on them, which i don't usually do, which i kind of stay away from, because then, when you start doing ads, it cuts your margins and that would have been my profit. So i'd work out that actually i'm doing that and i'm making no profit, but then i sat back.

I thought that's amazing. How wonderful was that, because i was beating myself up while i do that? How did i get the product wrong then? I'm, like hang on. I tried it out, it didn't work. Did i lose it? No.

Did i get my money back yes and learn a lesson and learn and learn a lesson and took lessons from that. So i think to myself for me going forward. I don't see much going wrong for me, but you know if i find something that's not going to sell, i have the ability to get rid of it, whether it be tempe loss per unit. It's not drastic.

It's not going to kill my business. You know, which was a very amazing eye-opener, so to think to myself. Actually that didn't work, but i still got rid of it at breakeven and i got my money back. Okay, so you're afraid of the fact that amazon can find the same products as you.

If you're doing really well with them and go, you know what we're going to re-label those as ours and sell them and stop you selling them is that is that a fear with it or do you think you can ride through that? For me? Yes, that can happen. I've heard it happening, but personally hasn't happened to me by one product actually recently um. But for me it's part of the game. It's part of the business.

It's it's a stepping stone. You need to get over. Yes, you know they'll throw blockades in there, but again you work harder. You find another product, you keep pushing it um and keep working on the profits.

That's all. Is there ever a problem if you're out of stock, do amazon put the pressure on you to keep that stock flowing? Will they cut you off if you're not supplying? What was the arrangement there in regards to that amazon have like a a a process where they'll say to you: they'll recommend a certain amount of stock. You should be sending in so yeah. They are kind of they prefer it.

When you have constant levels of stock, they will favor you as a seller yeah and for sure for sure. If it's too sporadic they'll just be like, obviously they want, they would encourage you to get more stock in they'll, put widgets on your screen saying source. This get this product in you know we need more of this in your customer base. Is amazon's customer base? How do you um? How do you make contact with those customers? How do you retain that information? I'm not allowed to take information from amazon and email them.

It's not that's not what they signed up for you know. People don't want that when buying on amazon they just want to buy on amazon, get the products, and that's it that's their journey. It is part and parcel of it. So in regards to you know, retention of customers and keeping the information amazon.

Take that that's fine, but then amazon will pay me and sell my products for me and send them to the customers and do all the customer service. That's fine. They can have that side of the business. You know they can give me my profits.

They can give me my profits, that's how i see it it has. It has got its pros and cons, it has um. You know in regards to keeping them on an email list and stuff like that. But again, amazon's impulse buys people just go on there and buy you.

You don't with the size of the customer base. You don't need returning customers. So did you learn from a course or did you learn from experience? I learned from experience and a few losses um school of hard. Knocks, though yeah? That's it really so um yeah my first shipments.

It was quite a lot. It was huge, um was basically a whole loss um. It was. You know my money out my personal savings.

You know two thousand three thousand pounds gone um, so it was pretty brutal. But again i was paying for those lessons. You know i could have bought a course for 500 pound, which probably would have saved me that two and a half thousand pounds or three thousand whatever it may be um so yeah i mean i know personally, i didn't take a course. I just went in head.

First, i just went head first, and that was that's one of my biggest strengths and my biggest weaknesses, because i just get it done. I go for it and i learn quickly, but, as you can see, obviously you know you can slip up and make a few mistakes which you learn from so you're starting to persuade me here. So what's the future for jack, it's very funny. I i've got huge goals, massive, so obviously i'm 19.

Now by 21 i would like 10 businesses doing 10 000 pounds a month in net profit, each which i think would be unbelievable. Um. I think amazon fba will carry most of that maybe 20. 30.

40. 50. 60 of it i want to retire by the time i'm 30.. Now when i say retire physically, i don't have an obligation to get up and make more money to to work and go forward.

The catches are quite a lot of hard work. A lot of uh. You know research long days, um down days, a lot of rejection. You know amazon fba.

It really is, you know putting in the work first but you're doing that for long-term cash long-term money, which is what everyone goes into business for anyway. No one's in it for fun, so overnight. Success is a good few months of work. It's a good few months of work before you start seeing profit.

I don't see that as a success. If you see success as making 100 next, 100. 200. 300 pound a month.

Absolutely success for me is big numbers and big numbers do not come for a little while yeah. I i don't even believe my numbers are big yet i want, i would say millions. I want to see seven figures on the board. That's that's success to me and that doesn't come for imagine two three years so so did jack change.

My opinion is what i think i have no doubt that jack is going to be a multi-millionaire. In fact, i see a bit of me and him when i was at his age. I really liked it when he talked about building his own brand through private labeling. This wasn't something that i'd initially thought of, and it definitely seems like a great way to build a saleable long-term business.

So he's really done a good job at persuading me, but my only bowling pin left standing is the heavy reliance on amazon. Now jack doesn't see this as being a problem, but maybe this is because of his age and amazon, of course, has always been around for him. So my view on amazon fba is that if you're selling other people's branded products, then it can be a great side. Hustle, however, don't bank on it lasting forever.

So i'm going to leave this next video for you right here, but don't click on it just yet. If you want to grow your wealth, then consider subscribing to the channel ring that old bell and smash that like button and leave a comment below on what you want to see on the next passive income. Millionaires i'll see you over there.