How To Make $4.5 Million Dollars Selling Physical Products On Amazon With Stephen Somers Best Education Page #Online Earning

hey everyone this is stefan from

projectlifemastery.com and in this video

i'm going to be interviewing a Steven

summers from marketplace superheroes now

Steven is a successful Amazon seller

that sold over 4.5 million dollars worth

of products physical products on Amazon

internationally not just in the United

States but all over Europe as well I'm

super excited to be interviewing Stephen

today and asking him a little bit about

the secrets and strategies that have

allowed him to build a very successful

multi-million dollar Amazon FBA business

so Stephen welcome to today's interview

and I'm super excited for this session

thank you very much Stefan and funnily

enough my name is Stephen but all my

American buddies say it's Stefan because

of my spelling sir I used to be caught

we could be Stefan Stefan in America I I

totally get it the other way around as

well floppity I'm Stephen all right oh

my go

so I'd love to hear you now how did you

get started to building online

businesses and how did you get into

selling physical products yeah great

question so just to give some context at

the time recording I'm 28 years old now

so I started in business nice in my

teens right I was trying to build

businesses all the time involved in

music and stuff like that and never

really running like a full-time business

but being quite entrepreneurial and so

fast forward to college I did two years

in that this all has a point by the way

the two years in college study business

I did marketing at nighttime diploma and

my third year and I really got into

business in college of student of the

year my second year and just really

enjoyed it when I got to my third year I

thought to myself you know like I'm not

learning how to become an entrepreneur

here I'm basically learning to become an

employee so at the time I was trying to

still make it with my band and then at

that point as it does it ended and that

was it so I was in a position where as

working in a government job at the time

I was a data processor which is the most

boring job under the song but I was in

so is in this place was like what do I

do how do I get this business running

sure I've been entrepreneurial but I've

never run a business before that's paid

me too

and pay rent and all those things we do

now right so I went there was a lot of

people do and started searching how to

make money online

unfortunately I ended up getting scammed

left right center because you know all

these products that they they promised

everything and they didn't deliver a

whole lot and I was buying the cheap

products like the twenty seven dollar

things and all the rest because at the

time I didn't really have any money so I

was buying and buying the blind and

going okay how do I started this

business how do I do it

and so after maybe three four years or

more of just constantly running around

in circles trying to get into affiliate

marketing this and that the other I just

said you know I gotta find somebody who

can help me so I did I went on another

search and after a long time I was

shorted and Stefan I met a guy called

Robert through my aunt he was a friend

of hers and he's still my business

partner to this day and marketplace

superheroes Robert Ricky and so I call

this guy and said listen I want to learn

what you do because he had a business

selling physical products on Amazon eBay

and places like that at the time in the

UK and so yeah he was really cool he

said you know come on up and you can

spend a week working with me and so I

took a bit weeks vacation spend a week

working with this guy and within a week

I just saw like a future I was like well

there's real sales here I see real

products in a warehouse moving at the

door every day this is something that

I've got to get involved in and so I

went back to work and said hey can I

take a year off to try this out they

said no so I said right I'm gonna have

to quit Wow so I quit my job moved into

my aunt's spare room I had no money

practically and worked for free with

this guy for nine months ins warehouse

at figuring out how all this stuff works

and the great thing Stefan was I could

apply my book knowledge now to a

physical business that was running and

so Robert phenomena intelligent guy

great with numbers great with products

and all output he didn't have some of

the book knowledge that I brought so we

should join forces we came up with this

whole new way of looking at running an

Amazon based business and you know six

years later now we've with the millions

in revenue uh and it just worked really

well for us that's amazing

um it's pretty inspirational I think one

common thing you mentioned items for

myself and many other people as well as

oftentimes people initially when they

want to start a business or they want to

find a way to make money online they try

to do it on their own

right sure searching on Google they're

trying to learn from blogs and forums

and you know trying to piece together

everything and I found that from your

experience as well that's so frustrating

because you know you're trying to

combine you don't have the step-by-step

structure so you're trying to combine

all these different things and there's

so many gaps along the way and it sounds

like not until you finally realize I

need to find a mentor I need to find you

know somebody that's done it someone

that's proven some that can hold my hand

walk me through the steps so that's

pretty amazing

so I guess my next question is have you

kind of already shared a little bit but

what kind of success and results have

you been able to accomplish from selling

physical products and what's what's the

primary business model is it selling on

Amazon or yeah I understand you guys

sell internationally as well yeah sure I

love that answer that so in terms of

results now I'm doing this six years my

sixth year at the moment we've done

actually at this point be closer on six

million dollars now in revenue at this

point we actually sell on Amazon in

seven countries so we so in the US

Canada which is only a small market

unfortunately and UK Germany France

Italy and Spain and we started selling

in Europe really early on in my career

maybe a year year and a half into my

experience to actually being online so

we're selling in Europe a long long time

now and you know our European account is

so old we actually had to set up an

account in every country which you know

nowadays with Amazon we'll talk about it

more in this presentation our

presentation is interview we'll talk

about the EF and thing called the

European fulfillment network which makes

it so easy to sell in Europe now so

doing about six years but six million

dollars run multiple companies now I've

got two seven-figure businesses you know

things like like marketplace superheroes

which we'll touch on later we run

warehousing services and all

kind of stuff so lots of businesses now

a lots of experiences now in six years

just uh you know yourself Stefan your

life can change very quickly once you

find the right people the right

strategies but I think the big thing

which I'm sure you resonate with is

actually the mindset how we think of the

things because I know from the time I

started to know my brain is completely

completely different that's awesome and

you live in Ireland is that right yeah I

live in Ireland and yeah but I travel

I'm in the US all like this year alone

I've been there like six or seven times

already we speak at events all over

there so I still live in I remember yes

okay great no the reason why I ask a lot

of people I guess when they get started

selling on Amazon most of the general

philosophies you want to start on

amazon.com the US market that's the

Juris market but I have a lot of people

I live in Canada and Amazon's not as big

there and there's a lot of people on the

YouTube channel people on the podcast

that when you're listening to live in

Europe and you know oftentimes people

thankfull can I start in the UK can I

start somewhere in Europe instead so

what are your thoughts on that you need

to start in the US or could you just

start you know based on where you live

or does that really matter

yeah it's a great question and I think

there's a few different school of

thought I think the reality is though

overall it doesn't really matter but

that said you know the US and there was

a great market place still we still have

a great business there and a lot of

people started their book as you can

sure you know Stefan you know the u.s.

become more and more competitive now

despite the fact are still plenty of

opportunity I mean you know a 10% of all

retail sales are only made online in the

US so there's 90% still made offline

which says there's still a lot of room

for growth but of the growth that's

currently available certainly at the

u.s. is more competitive no question

about it

still a massive opportunity but when it

comes to Europe this is the thing I'm I

want to get across early on here is that

we have two things we've got what's

called the efn on the unified European

Amazon account so all that means is

unified account has five countries that

sit in one account so kind of like in

the u.s. now with the North American

unified account which has the u.s. as

Canada has Mexico

one account in Europe we've got five

countries in one I'm the really powerful

thing about this is you can actually

send all your stock to one centralized

location in Europe one of those

countries and Amazon will actually allow

you to translate your listings get them

onto each of those different countries

and then they will send your products

individually to your customers from one

location really powerful

so when you say like should I start in

Europe or should they start in the US we

would say start in both because that's

what we teach people to do but if you're

like say it's your first business you're

like well I don't wanna you know

necessarily put everything in or

whatever mental framework you might have

around that I would say if you live in

Europe start in Europe you live in US

sure start in US but the beautiful thing

is and it's a great book actually called

the entrepreneur revolution by Daniel

Priestley he talks about something that

called the GSB I always get that wrong

it's called a global small business and

this is the what we have the opportunity

to do now is as you know Stefan we both

run global businesses now at be it in

our Amazon I run a global business there

and I'm sure you're moving that way and

you run a global business for project

life mastery you know I've got global

businesses we teach people stuff all

over the world and so that's what we

want to take advantage of now we don't

have to confine ourselves to one country

because it's so possible now to do this

globally and that's what I think is so

exciting it's awesome so that's pretty

amazing so if you want to sell the u.s.

you're talking about the accounts to

Amazon seller central accounts is that

right yes that's exactly yeah so in the

u.s. you set up your Amazon seller

central from that account you can sell

in Mexico as well I believe and they do

all the fulfillment for you but you're

saying a sell in Europe that there's one

primary I guess the filming center that

you can set up with another with your

other seller central account and then

yes you can basically sell in the UK

Germany they're going to ship to all in

other countries in Europe yeah so

exactly right so you set up a European

account and then what happens is you

send all your stock to one country and

what happens then is that as someone

from Germany buys and let's just say

your stock sitting and take a random one

it's all sitting in Spain right for

whatever reason so then

customer buys they get it from your

Spanish inventory ship in the Germany

France ship it to France and so on so

forth and now there are a few things you

got to be aware of we cover a lot of

this in our trainings but one of them

being and we won't get too far into it

today Stefan's it's a long conversation

but one big tip I give for people today

is don't go into Europe with an LLC I've

been a limited liability corporation in

the US or any non EU entity and the

reason we don't do that it's a taxation

reason so whenever you sell in Europe

and Canada is called a GST so GST

marie-anne Celestia yeah and us we have

sales tax yeah so in Europe we have v80

and so if you come in as a non EU

company problem is you're gonna have to

charge that sales tax straight away it's

generally twenty percent but the problem

is is that if you come in and you sell

to a Spanish customer you actually have

to register for Spanish dat then

immediately French customer of France

Austria Germany so there is another way

to do it which we do train it takes a

while to get through it all but there's

a way around that is what I want to tell

people so fear not but Dad that's a big

tip I know a lot of people who've come

into Europe with an LLC don't do it

don't do it on through okay that's

awesome um and also to be clear is your

business model is it primarily private

labeling products yeah ice focus on a

teach absolutely yeah we've done

everything you know we've done buying in

bulk from guys who have branded items

and selling them online we've done by

Aliexpress and see what happens but we

import our products primarily from China

and we brand all our own items ourselves

and the reason Stefan behind that is is

just that's where the margins are to

make real money in this business as some

people do things like retail arbitrage

where the Walmart may find something and

then they buy lower sell higher in

Amazon and you know they're those

business models work you can make money

doing that but the problem is is that we

have a very simple philosophy I'm going

to share with you and this is where the

fortune this one-sentence going to give

it to you and you're going to probably

go this is a simple sentence in the

world statement but I'll give it to you

and that is we want to sell simple

products over and over again

an ever-decreasing costs with what we

call a network effect explain what I

mean by that so simply it means simple

products we don't want to sell like

really sexy items that are like you know

flying off the shelves and they're ultra

competitive we don't to do that simple

then we want to sell them over and over

again so on some of the multiple

customers in multiple countries which we

can do they're pretty simply we want to

do that so simple product into over and

over again ever decreasing costs meaning

that as we start to import more products

right we come in via C shipments not air

freight all the time there's a lot of

people do they fly things in over the

air we want to bring it over see

shipment over time and that allows us to

decrease our cost per unit which means

we make more and more and more money and

then with the network effect we want to

protect their product in some way we do

that by branding our products and

there's lots more of that but that's the

simple way we look at it that one

sentence in any business actually will

make you a lot of money that's awesome

and by the way for those that are

watching this right now Stevens agreed

to do a webinar where he's going to go

into more specifics as well sharing some

of this actual model and strategies and

we're going to share more of that a

little bit later on this call but for

now I will mention there'll be a link in

the description you guys can go there

and sign up for the webinar or you can

go to prop marketplace superheros comm

slash project life mastery so we're

listening to this on a podcast in a

market place superheros comm slash

project life mastery give me a lot more

information there for you guys

awesome so oftentimes a lot of people I

guess one period barrier they have is

they think okay how do i how do I get

started and how do I find a potential

product to sell um and I know you guys

as you mention you focus on the more

narrow niche products rather than the

more competitive ones tips on finding

potential products that they can private

label and sell yeah I do I'm going to

give you the the way to think about it

actually we're not going to get too

specific but if I give you the way to

think about it you'll understand when

you understand you can make things

happen that's how I always have learned

so we've for stage process we go through

my apply superheroes to find these kinds

of products and the first stage is is

a forest product gauntlet by the way

because there's four asses alright so

the first s is what we call search so

we're going into the Amazon Marketplace

we go into say shop by Department on the

amazon.com homepage and we go down we

find categories we can sell in so let's

just say for example we're in patio lawn

guard just as an arbitrary example so we

go in there and we say ok let's first

look at the top 100 now we're never

generally gonna find a product we can

sell there but it gives us an idea of

what the market is doing what's going on

ok so we go in there we start looking

down and we say ok can I actually sell

these items meaning is it hazardous is

it glass is it delicate as it got sharp

edges and we have a whole big checklist

we go through first and that just tells

us can we actually sell it so once we

see yeah we can we start building the

list up of all these different products

in the top 100 and beyond the top 100

that we find so then we go into the next

stage will be call shortlist so we go

into products we say how many reviews

that they got how they got like

thousands reviews how many listings are

available out there just tons and tons

of listings that all look the exact same

with no difference whatsoever we look at

things like the reviews and we start to

say okay can I find opportunities in the

reviews for making a different kind of

product or something that's better than

what everybody else is doing

the third stage when we start narrowing

down from there and we have software we

use for all this kind of stuff then the

third stage we call short we call it now

so we got shortlist I've got a select my

brain is really bad today it's a leg

stage we start to say okay so we know we

can sell them we've got rid of lots of

items in the second stage where I'll

cater to many reviews too many listings

the this is too big a brand which can

compete and we kind of are narrowing

down we say right let's start looking

for some suppliers now let's go to

places like Alibaba

let's find people we can speak to and

get an idea of what we call 'evil

because it's the free onboard cost the

raw cost of your supplier so we get a

feel for that we start to figure out a

profitability we look at the dimensions

of the product how heavy is the product

and we start to figure out okay how

profitable this is going to be based on

what's already selling in the market so

we get a feel for that and again we have

calculations we run we build a software

for because

was leased up spreadsheet after

spreadsheet did there all this stuff so

in the last stage then we do really

what's called a source stage where we

know we can sell it we know what makes

sense we know it's really profitable now

how can we afford it because we're gonna

have lots of different products we can

sell at that point and we're going to

generally have a couple of suppliers

purpura and that's really what we do and

we go into more detail whenever we do

our trainings and stuff but if you that

what it does is it D risk to yourself as

you go through a pro step because most

people what to do is they say if it's

sub hundred vs our best seller rank in a

category if it's got at thirty listings

or whatever I can sell it because

everybody what they do is they have this

mental framework of I'm gonna drive tons

of traffic to my product through

Facebook through whatever we don't do

that Stefan it's hard to believe but

we've never driven a social add to any

of our Amazon products we only use

Amazon's PPC pay-per-click system

nothing else and if you look at

companies like Google right multi

multi-billion dollar company their

hiring process is a bit like our product

research process what they say is we

spend all our time in the hiring stage

because most companies spend their time

in the training stage because they don't

get their hiring correct so we spend all

our time getting those front end

products correct and then that allows us

to not necessarily even have to buy any

traffic etc Amazon so that's that's how

we do it so basically you guys spend

extra amount of time and all the

research and I think that's that's

really the most important case because

yes you take a product that's not in

demand there's no potential for no it's

buying doesn't matter what marketing

that you do you know no one's going to

buy it

so that's a key right that that's

awesome um what kind of get akut margins

do you typically aim for with products

that are going to sell yeah so what we

look to do is we to calculations but

they're the same thing they they're the

same result so we think we call profit

on investment which is kind of like

return on investment but it's not

exactly the same and we have them what

we call profit on return so profile

investment what that means is it is the

the profit we're making on our original

percentage so we look for a hundred

percent so if we buy something for five

books we want to have $10 back net

profit after everything is paid all the

Amazon fees etc etc etc so we want to

double our money basically at least now

some people they can do more than double

their money some people talk about crazy

profit percentages but that's what we

look to do if somebody tells you they're

doing a profit on investment of like 30

to 40 percent wrong million miles away

from it because the effort is not worth

it because you've got to bring it in

from trying to do all this work you got

to be a little beast doubling your money

the second thing is then it's going to

get you the same result basically it's

called profit on return it's basically

the profit figure expressed as a

percentage of the sales price so I'll

give you an example you sell something

for 20 bucks

we want a 30% pío our profit on return

which means that the twenty dollars

turns into six dollars net profit that's

that's what we look for the six dollars

it'll be the exact same as the PIO I

figure it just you know it's the same

thing so that's what we want to do when

a double aramony is probably the best

way to look at it Stefan awesome one

question that I get all the time for

people is how much money do I need to

get sorry is that the people has

conception that they've got to have this

big inventory to get started and it you

know they've got to spend thousands and

thousands of dollars yeah great question

I'm going to give you a two answers if

that's okay the first one I'm going to

give you is something we call a rule of

five and it's the rule of five it shows

you you don't need tens upon thousands

of products to make money at this and

what we say you need is five products

selling in five countries now we do

international but you know don't get

freaked out it's simpler than you think

and we do five units sold per product

per day per country an average net

profit of five dollars no it's it's like

if you're making six books is it no

course not

we want to sell it's not like it has to

be five dollars and that's just giving

you a mental framework again a structure

in your brain and how you can think

about it but if you did that you'd five

products sign in five countries saying

five units a day per profit per country

you're making five books a unit over 30

days Stephan that net profit would

actually equate to eighteen thousand

seven hundred and fifty dollars right

over a year that's two hundred and

twenty-five thousand dollars net profit

now that's not like oh I have to pay

more

that's actual money into your hands with

five products because it gives us what

we call this multiplication that's

something we only teach for the only

people out there doing it and it's this

multiplication effect from multiple

countries that's what we get and that's

why you know we don't have to spend all

our time you know driving traffic to our

stuff because we just launched it on

multiple countries and with Europe now

it's just a huge opportunity because

it's more near as competitive as us now

that's your other that's one part of it

the second part then in terms of how

much money you need I would suggest that

first of all some people might say you

can get started on like a hundred books

I'd say you can't you just can't write

because if you think about it let's say

something cost you five dollars let's

just say keep our mathematics real

simple it's delivered in all five books

well if you have $100 there you can only

bring in 20 units assuming our delivery

and I was included in that right so

that's never happened but let's just say

it did well if we 20 units of something

and we sell two units one day we don't

sell anything for three days we sell

five units another day sell nothing for

two days one unit some laughing two

units or whatever what does that really

tell us like it doesn't tell us very

much so we need more units to be able to

actually put into the market to see you

know is this going to fly can I get a

feel for what we would call a run rate

so how many units can I sell in a

two-week period and we do two-week

periods because that's how much Amazon

picks anyway I'm getting bogged down the

point is I think if you can start with

between one to three thousand dollars

somewhere in there to get started that's

a good figure to be at because you're

gonna be able to bring in one maybe two

or more products you're gonna be able to

bring in a significant number of units

so that it'll actually tell you what the

potential of the product is like and you

know some people might then say like the

next question is okay well as if I'm

stuck with and units I'm going to give

you two more answers to that so the

first one is this right if you are

doubling your money as we would do in

our products for making a hundred

percent profit well the chances of us

being stuck with something after all the

research we do is limited okay now the

worst case scenario we always tell our

sellers is that you have to bomb the

thing out and eBay or whatever

a cost price just to get rid of the

thing you're not going to make any money

but you're not going to lose any money

at the same time and when you have a

structured research process like what we

have along with the fact you've done

your mathematics correctly you're not in

a position where you're going to lose

money as such at the same time this is

another thing and I'm sure Stefan you

really can resonate with this because I

certainly if whenever I was figuring it

out

when I first invested in a product I was

terrified beyond belief like oh my god I

just spent spent $2,000 or whatever

right it's gone

I never coming back ever again but

here's the thing you got to move from

are now it's becoming somebody who

invests and you're used to spending all

your life on close on fuel on food and

these are the purchases or survival

right whereas we're moving into a

situation where we're able to double our

more or our original investment and

reality is when you're doing that you're

going to get back a multiple of what you

put in you're not gonna lose money

you're gaining money when you do your

work correctly so that's just another

thing I want you to think about that's

awesome so basically if you order a

thousand units of something and get

whatever reason you know you need to

clear your inventory you're saying that

you can just sell it off at you know

break even on your costs so that way at

least mitigates the risk

yeah worst case scenario you just break

even but you know with the amount of

research that we put our people through

generally speaking they don't get wrong

and I would say our hit rate for

ourselves is probably about seven out of

ten and we three that didn't do so well

one of them was like net sell of it's

slow but it'll sell out it's just a bit

slow and the other two maybe they're

just look they're okay well we'll make

some money and one maybe we break even

or something right but generally

speaking we don't blow things out and

eBay remember the last time we did that

because here's the thing as well if

you're doubling your original investment

right some people get greedy and the one

I like 10 extra investment on all this

and that's possible over time whenever

you get a sales velocity going in

multiple countries because the what's

called a flip time the time it takes to

sell something out the more you can

reduce that down the more money you make

right and that's made possible by

multiple countries and you

get the products I know multiple

countries but the thing I would say to

you is that if you can just double your

money on a product you can turn a

thousand dollars into two thousand

dollars in 12 months

there's not many investments you can

double your money in 12 months in that I

can think of offhand really like I mean

the stock market may be Botha's you know

you can't control anything here we

control more of the variables so I would

prefer for a bit more in control awesome

and do you guys have a certain process

go through the launch or products like a

lot of people for example video yeah

ways you know to help you know a bit

about moonstone Amazon you guys do

anything like that you we actually don't

and you know it's so funny we're

involved in a lot of masterminds pretty

high-level masterminds of Amazon sellers

and they're just there's like what are

you guys doing and we always tell them

we spend a lot of time in research we

don't do giveaways we've never done it

before we've never done a social ad in

our lives before and you know and the

reason we don't do it is not that it's

like all we just wouldn't do that but

one some of those things are becoming a

little bit iffy with the Amazon Terms of

Service for in artificially inflating

sales ranks and stuff like that that's

one thing but another thing is like if

you give something away right 70 percent

off or whatever you're gonna make its

profitless exercise for a start your

hope is is that at the end of giving it

all away you're gonna have build such

sales velocity that you're now going to

start making profit but all you've

really proven at 70% off is you can give

something away for 30% and so it's easy

easy easy to give stuff away yeah but

what's more challenging is to sell

something at a profit so for us like we

don't like to give away a strategy

because again if you're investing money

out and then you're giving it away

you're making no money it's very much a

barrier to entry to actually make any

money doing that so we spend more time

in research I'm certainly not saying

wrong if that's working for you

excellent but the way we do it the way

we teach our students we don't use

giveaways or anything like that we do

use the Amazon PPC that's really cheap

clicks it's great and it makes us quite

a lot of money it's not gonna change

anybody's life but it's certainly worth

doing right and from what I understand

you also don't do much to get reviews

either right now

nothing every seller on Amazon they

always want to know how do I get more

reviews yeah they're you know primarily

focused on that so yeah sure like I look

I know a lot of different guys when we

speak all over the place now and spoken

a lot of companies who would say you

know look be honest after the first 25

reviews its marginal the increase but

here's what I would say certain

categories like the Beauty category and

places like that

I think reviews are important and the

reason I think they're important there

is because a lot of times the products

are the exact same there's not very many

key differentiating factors so then

people look at it and go okay well if

these are also saying the same thing the

benefits are all the same what do I go

on well I gotta go on reviews here

because that's gonna tell me what's

better in the eyes of social proof but

in the products we sell stuff em we

don't have a the requirement for reviews

they're very functional

you're very storage orientated and so

we're not like that

concerned about that particular

particular thing and also a be honest

like we've got products that have like

300 organic reviews now and really I two

things one there's no way I can't I add

more reviews there to increase sales

because it could have just happened over

time it got more history I can't see

what was the variable and people will

say well I mean you do a seller poll I'm

sorry if I pull by errs we'll say 90

percent of buyers will say reviews help

me make a purchase like Wahb buyer is

gonna say reviews don't help me make a

purchase like nobody but I don't think

there is important those people make it

out to be I think it's great if you get

a lot of reviews but I mean at the end

of the day do they they change our

business I mean we have Morgana Klee I

would say products don't sell marginally

that much more so maybe it's just the

kind of approach we sell an hour an hour

people we train so but I just haven't

seen it so we just don't do it it's

awesome

so it sounds like the core of what makes

you guys different what you guys focus

on as you said is the research just

picking the right products because yeah

by spending the extra amount of time

there you're just going to have a much

smoother seamless faster path whereas

somebody that might pick a product and

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