amazon fba tips – Jimmy's Internet Marketing Business Blog

I have to share this with you guys. So, like always in my articles, I do the Y house and then the additionals, so here’s the Y right – and this might be obvious to some of you – maybe some of you – it won’t be.

It is deductions. Deductions are crazy. This is how even fortune 500 companies are able to operate a loss and not have to pay taxes, sometimes even end up with refunds, which is insane you need to take advantage of that if you’re in the u.S I’m in talking to US law, it’s it’s. It’S really really cool in regards to ecommerce. What we’re doing in Amazon, it’s up to $ 5,000 startup cost. That’S so much money, guys $ 5,000! Think of the all the equipment you need.

You need an iPhone or an Android phone right. You need a smart phone. You need a computer, so all that cost can be deducted from the startup cost. Here’S the cool thing. I know if you just start it now or maybe a couple months ago, anything you’ve purchased in the year of 2017. Let’S say because you know we’re coming up on the tax season, you can deduct so that computer you bought in March. It’S now a company computer.

So if you have the invoice for it, you can deduct it. So you can add up $ 5,000 pretty quickly um. So expenses are anything from from defer. Your deductions are anything from marketing advertising travel. So, like you know, flights or mileage if you’re driving in a car the electricity bill right, everyone has an electricity bill, the internet bill. You cannot do e-commerce without internet. That’S a deduction seminars, classes, accounting costs even so much as meals.

So if you’re meeting say you and a buddy are doing the Amazon, FBA and you’re meeting them and you’re brainstorming, that’s a business meeting right! You can deduct it! Here’S another! Here’S! Another big wine paper loss right. I was mentioning that earlier, so you can actually operate at a loss and that loss of your LLC will compensate for your income tax that you have in your day job. So let’s say you made fifty thousand dollars in your day.

Job and you operate your LLC at a ten thousand dollar loss, keep in mind, we’re not in the business of losing money, but let’s say you’ve lost ten thousand dollars that ten thousand dollars in taxes. You can use the $ 10,000 that you’ve lost in your business. Can be used against your personal income, so you pay less taxes either way right. Here’S the how the boring part right, the very first thing.

Once you form you LLC, you need to put a corporate structure in place, so what that is essentially is you’re going to be paying yourself a salary. The next thing that comes – and I believe this has to be done within 75 days. It’S called an ECE. It’S an entity classification election. Now I don’t know all the details about it, but I can tell you needs to be done within 75 days and what it is is you’re letting the IRS know how you want to be taxed.

If you do not do this as an LLC, they will basically just decide to tax you at the highest rate, which is, I believe, as an individual and that’s a tax rate up to 15 percent. You don’t want that. You want the lowest possible rate. The help right this is this is really boring, we’re not in the tax business, at least I’m not. This is where you get help. I did it with 100 accountants. I would highly recommend them.

https://m.youtube.com/watch?v=iEoblMFulVw

They set things up for you, they’re very personal, and you work with a team, so you’re working with a team, so you’re always going to be working with the same people. The people will already know about your expenses. They will go through your if you’re starting now they will go through 2017 credit card statements, alongside with you, and make sure that you’re getting the solid deductions remember they’re working for you.

Their best interest is to provide you with good service, so your remain on them. On the you know, on their payroll, your remain as a customer I mean, and and basically save you money, so the cost for that is about two to three thousand dollars annually. I know that’s a lot they do. You can split that up in payment. They do let you do that and then there’s a 30 dollar retainer. Now don’t freak out guys.

I know that’s a lot of money and that might not be the first thing you want to think of doing, but consider it as you know, as a cost to starting your first. You know your first product really right. You know you’re putting in such a financial commitment you’re going to drive yourself to success. Anyways right. It’S it’s another big thing. You know having no plan B, it’s it’s it’s a big thing, sometimes just jumping with both feet in and yeah it’s and then at it’s.

Just the 30 to 30 dollar cost. The cool thing is: if you need any so articles consultation, they don’t have any hourly fees. You just set up an appointment and you just talk to them. It’S it’s no problem, so there’s no hidden cost. Here’S the crazy thing on top of that we’re talking about deductions earlier right, you can deduct that. So essentially it’s done for you for free, it’s already a tax saving.

Not only will they do your personal business, you you Peart, they will do your business tax and they will do your personal tax. So if you’re already paying someone for your personal tax, you can scratch that right off you’re going to get that done with them anyways. So awesome, that’s the information I wanted to share with you guys. Let me know down in the comments below if I misspoke on something, if there’s something you guys want me to look into and share with you even further put a like hit subscribe thanks for reading

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The Hilton just keep going just keep rolling it. Yeah 45 zero. So I do totally sell products on Amazon, William here somebody else just showed up. It’S just starting any minute. Now stay late, just talking a little bit about what everybody does he’s, selling used books he’s doing away. We do private label he’s getting started. What about yourself wholesale nice? Do we do yeah nine ninety percent? Eighty five to ninety percent of our sales are wholesale private label yeah, so we do about two million a year and private label and the margins are much healthier yeah, even with all the or even with all the products we’ve created, even with that yeah like altogether.

It’S healthier seven years ago, so Sebastian, who I’m sure you guys have seen on Instagram as well. Sebastian started selling products in his basement about seven years ago, and then I joined on about five years ago, and it’s just been ever since then. It’S just been taken off yeah like everybody’s. How do I get started? How do I get started? Get started, that’s how you get started. You know because if you so many people like yourself, I’m sure you probably like you said you spent what two months researching products, but you still haven’t sold anything you could already been to five Marshalls and at least bought some nike socks or or maybe not Nike.

You’Ve, probably gated, but you know some some polo shirts or something to sell. You know just something: to get the hang of shipping and reimbursements and refunds and and referral fees and pick and pack fees and something it’ll teach you a lot yeah putting in a shipment. You know creating a SKU reading, keep a charts like all that stuff. If you don’t get started, you’re, never going to figure that out.

So it’s going to make your first product when you buy that product, even more challenging to be successful in because you’ll have no Amazon experience. I think the first employee you need is an in-house employee, really yeah. You need someone to take care of your inventory. You should be stickering products. You said you did what, over over six figures. Last year, yeah you shouldn’t be sticking yeah freestyling, you did tool, you did quarter mil freestyling, you shouldn’t be snickering products, man, it shouldn’t be sticker products.

That’S a tough question. You know, because, honestly, from my own experience, I wouldn’t change a thing you know, because if everything I did got me like right here sitting with you know nine resellers in the middle of Houston so like I did something right right, but what I would say, like My best advice is to be you know, don’t let fear you know take over because, like fear, the fear of financial and security fear of success, fear of failure – you know, fear of not being enough that stuff will eat you up inside, like enough to where you Can’T even sleep at night, fear of getting your Amazon account shut down.

Do not let that fear take over. That fear will keep you so many steps back instead of moving forward. You know and the best way for me to get rid of that fears. I thought, like you know a morning ritual I’m real centered in like in spirituality and meditation, but that’s not the only way that I use. I use it by talking about it with other people. You know like if I’m fearful about something like hey Sebastian man.

I can’t stop thinking about this. Like I talked to someone about it, you know and all the sudden that fears cut in half you know I forget to saying, but like it’s like sadness, shared is uh, I’m going to it up. I don’t even I don’t know like a joy share, it is doubled and and and sadness, share or fear. Shared is cut in half something along those lines, but it makes perfect sense. Right leaves, you share joy with someone, it’s double because now they’re happy you’re happy you share a fear or sadness with someone it alleviates some of that sadness.

So it’s cut in half, but for our own products we think Amazon advertising is bang first buck. We spend 10,000 dollars a month on advertising. It generates over $ 120,000 in sales. So it gives you all the statistics on you, yeah yeah. It gives you breakdown of graphs and charts and Excel files of keywords, and then you move those keywords from the automatic campaign to the manual campaign and then there’s even additional services.

You could pay for to actually manage those campaigns for a couple hundred dollars a month. So it’s a game engine for you, yeah yeah, but we also do. We also do twenty two million dollars in sales. So it’s a ratio, so we sell a hundred and ten thousand orders a month. So 17 is really not that many. You know, even though it’s close, I’m sure if they have a limit, it’s it’s close to what that limit is yeah, 19 percent.

Actually, we got a little concern to drop to 15 for, like three or four days the other day I couldn’t figure out why, whenever change big, like that happens on our Amazon account, I want to know like if by percentage drops to 15 percent, I want to Know why? Yes? Yes, I look at I look at our excess inventory or non-competitive inventory wirele skews not moving, you know and then I’ll go through literally our price or sorts it by excess and non-competitive and I’ll look at all 300 products in each category and literally spend the entire Day, looking at every single product fixing pricing adjusting pricing dropping floor price raising ceiling price.

No, we don’t have an app, but we built our repressor that has like restocking options in it and we were just talking about it earlier something we’re going to be dropping as a system as a service, so it will be available for a yeah yeah. So this will have a full-fledged ERP system, which essentially that’s that’s what that is. It’S managing your finances. Basically, your item cost. It also has reordering metrics and it has real pricing capabilities.

It’S all algorithmic based as well yeah. No, I I’m sure, I’m a firm believer. I I think inventory lab created a beautiful software. That’S helped a lot of people sell on Amazon, but I disagree with the the system as a service because it takes people off of Amazon. A lot of people don’t even know how to navigate Amazon, how to create a listing on Amazon because they’re just so used to using inventory lab.

You know it’s like alright. Now, let’s create this listing on Amazon it’s like, but I don’t know how it’s like. Well, you mean you, don’t know how I’ve been using inventory lab for for the past nine months. You know two years it takes the Amazon out of FBA, so we don’t use inventory lab so like the first rung in the value ladder. It’S like all of the free stuff. We provide right, like all the free information we give away on Instagram YouTube Facebook, LinkedIn tick-tock, like all that free information, that’s the first rung in the value ladder and then included in that first rung or like these meetups that we do right.

Nobody pays anything. It’S just all like: let’s hang out, let’s talk, let’s get to know each other. Let’S talk about what you do for business. Let’S talk about what you do, let’s learn from each other, let’s gain knowledge and continue to grow right and then usually for most people. The second rung is, like close friends, has anybody here been in close friends? No, so okay? So none of you have been in close friends right, but some of you pass that first rung and jumped right into the second rung, which is like a personalized one-on-one mentoring session.

Right, like will – and I did one yesterday – we sat down for an hour and a half and just talked to Amazon, two and a half two and a half. So two and a half hours right and we just talked Amazon and then like the next rung. In that value, ladder would be like a four week or an eight week, mentoring session, which right now Corinne, and I were what two sessions in and we’re going heavy and, like you know in it, and it’s like value-driven.

You know we spend the time and then like another rung would be like the tradeshow walkthrough or another run would be like a warehouse, optimization visit where we actually fly out to your warehouse, organize it the way to streamline your efficiencies. So essentially, it looks like a Ford production line where we’re lining everything up and setting up a warehouse, because we’ve set up many warehouses and we know what to do and what not to do you know and then that top tier of the rung is like our Mastermind right, where it’s like a yearly fee and we meet in a different country once a year we have a meeting at our warehouse.

We show you how we operate right and, like so people come in at different rungs, but like this first rung for me, it’s the most important rung. You know because it lets you know like this is what we do for a living. You know I sell on Amazon for a living and I help people sell on Amazon as a side business. You know, and I do it because it helps me put my head on the pillow rest easier, a little a little bit at night.

Knowing that, like, I helped you solve a problem today or I help you increase your profits or I helped you grow your revenue. You know what makes me happy knowing that you’re able to provide for your families and, like rest, your head easier at night, with the value that we give you. You know so like that’s. Why we host these free meetups and that’s why it frustrates me when I hear stories like the one you’re telling me where people aren’t providing that value, you know people aren’t providing that content because it’s like I’m a value driven integrity, driven man.

You know it’s like my mission in life is to help as many people as possible grow successful businesses, and I don’t care what I got to do to do it. You know if someone pays for an hour and a half session like this guy will and we sit there for two and a half hours and talk like then that’s what I’m going to do. You know and it’s like it’s important to me. You know all levels. All levels I’ve worked with people who’ve, never sold a product on Amazon like this guy he’s, never sold a product on Amazon, but he’s interested in what we do.

You know, and then I’ve worked with people who do you know close to two million dollars a month. Today I mean you said you had a guy who is doing a quarter million. Now he’s sown five hundred a month: yeah Ryan Ryan. Oh, you got Ryan six months ago, used to one a quarter million a month, and now, since we started working with only hire five employees he’s pumping out by a half million dollars a month we doubled his business and for a year that’s a wrap.

Houston meetup see in the next day

A great product to sell in your Amazon storefront!

With a five star rating and the number of return customers. You can go wrong! Check them out on Amazon.com and watch the video below to learn about the guys behind Spunkstore LLC.