How He Became a Millionaire in 4 Months Selling on Amazon

this is Dan a top 1% Amazon reseller who did $12 million in sales last year and is on track to double that this year it all started with a YouTube video a little bored of my job looking for other ways to make money so I just typed in Hustle ideas into YouTube and now 6 years later Dan has gone from being a normal real estate agent to a multi-millionaire but did he just get lucky pandemic happened me and my friend we each you know we each netted probably 100 to $150,000 a month those 3 or 4 months in a row this video I'm going to find out this secret behind his multi-million dollar amazon business uh last year we did about 12 to 13 million in sales and this year um we're on Pace to exceed 20 million in sales so how does this business actually work great question so it's very simple so we're buying wholesale from Brands directly or Distributors of those Brands we're buying at wholesale or distribution tier pricing in essence it's buying low selling High we're listing on Amazon Amazon takes their cut then we make the difference which is our profit so this is like the main uction area basically I have an overall warehouse manager and then I have probably five six seven Warehouse Associates what they'll do typically is unbox the stuff label the stuff Rebox it rep palletize it and then the stuff goes out the door we will then uh wrap the pallets with this pallet wrapper machine how much did this cost I'm curious uh that was 177,000 or so wow the real savings is time so like if every pallet we make saves a few minutes of time um that time starts adding up and I think the ROI on something like this will be like 1 to two years so here's the outbound section so all this stuff is waiting for um our freight carriers to come pick up and then bring to Amazon uh warehouses how many how many packages out found to day on averages I would say we're probably producing like 6 to eight pallets of stuff on average these are like only I don't know 100 products per pallet but okay other times the product is like really small and it's 10 ,000 units on a pallet so so you said you you reinvest everything back into the business do you pay yourself at all I do pay myself a salary I just started that 2 or 3 years ago and uh that's pretty much what I used to live on like I just pay myself enough to take care of all my monthly bills but um everything else I'm just leaving in the business and not taking it out yeah so in terms of what I pay myself you have to come up with a reasonable number for the IRS as there are ways to manipulate that pay yourself not enough or pay yourself too much so I just chose like a nice healthy number 100K a year like felt felt right I get a Payday and a paycheck just like everyone else that works here which is is nice um but then that's immediately taken out for uh my mortgage and and credit card bills and all that stuff I really don't use much of my money for clothing or luxury goods at all um I don't see any Gucci or yeah yeah I I uh I shop sales I get really excited by a clearance sale um which I guess makes me a good Amazon Seller I love a good deal on anything so these shoes I think I bought them for like 30 or 40 bucks you know the whole get up is uh 100 bucks probably so um but it's nice to know I could buy some designer stuff if I want to this is where those shipments come in and out of we have two loading docks so throughout the day trucks are backing in unloading products and then other trucks come in to pick up our finished products so and then over here we have this is kind of like the inbound queue of products so it comes in it it sits in this holding area um ready to get processed when the time comes how quick are checking times it's particularly busy right now so this stuff might be backed up a week before it actually hits like the production tables but typically it's just a day or two or even same day a lot of the stuff we buy we don't send it all to Amazon immediately we will store some of it sometimes to get the best pricing on products we have to buy like 6 months or a year of stuff in those cases we'll hold most of it here and then feed it in like a month at a time of stock so with this one Amazon business Dan was able to fund his other businesses and Investments I have kind of a related Amazon business uh I have a prep Center so I actually prep other uh Amazon sellers products so they'll send me stuff to my other Warehouse I will label and prep the items to Amazon standards um charge a per unit fee for that and then forward it onto Amazon for them so and how much revenue to that business generate so last year was our first year of operation I think we did about 3 or 400,000 of Revenue and then profit was um I don't know maybe 20% of that um on top of that I uh had some real estate invest Investments I I bought most of the properties with Amazon money actually my warehouse um I bought for 1.57 5 million and um I'm actually about to lease that out for a really nice number I'm probably going to net 10,000 a month uh passively which is pretty awesome then they have an option to purchase it at 2.3 so I'm going to have a nice gain on that and then I'm going to take that money and parlay it into an even bigger property and just keep that train rolling um then I've got you know my primary residence I live in I've got an investment condo I used to live in and I have a five family property in New Jersey you want to introduce us to the team kind of what's going on in the office yeah this is my front office team so I've got Tyler here Tyler is a buyer for me he will restock the products that need restocking from my existing suppliers will also be forming new relationships with new suppliers um contacting those trying to get wholesale accounts with Distributors and Brands and then he's also monitoring the stock levels we have in our warehouse if we're running low on our Amazon stock he will create a shipment to replenish stuff we have here to feed into Amazon to to remain in stock so uh Nick has the same role he is a buyer as well Nick is U still in college he's going to be going into his senior year so he started in my warehouse uh just packing products and told me he was um kind of bored of that and thinks he could do more so I gave him a shot um reaching out to some suppliers and um yeah he's done amazingly well so that goes to show you you know age definitely shouldn't um be a roadblock for anyone trying to do this he's making like you know adult money in college still so you know and then we've got Noah um Noah runs basically everything off Amazon a lot of the products I sell they can sell on other channels too so Brands will ask where do you sell and we say Amazon but we also have the ability to say eBay and Walmart we also sell in Amazon Canada Shopify even and um that helps us win more accounts how much are you spending to run an operation like so the overhead at this point is pretty real as you can imagine we've got this um office SL Warehouse hybrid uh this is about 15,000 a month and my total payroll cost is about $50 to $60,000 a month so we're looking at almost a million just for rent and payroll you know I've got insurance for this Warehouse I've got utilities I've got software there's there's a whole slew of things but I'd say overall my overheads probably about a million a year so there was definitely a leap I had to make in terms of being able to support that mentally not being stressed about it all the time you get accustomed to anything so you just keep going up one step at a time and then your comfort zone expands and then you just take that next leap and then yeah so you're gonna do $20 million right around in sales this year obviously that didn't happen overnight can you walk me through the whole Amazon journey I started in 2018 I was basically arbitraging from stores like Target or Modell Sporting Goods like stuff like that and then I moved to online Arbitrage which I thought was way easier than just hunting stuff in stores I was shopping Sales Online part of the products I was was selling were were sneakers I'd go on websites looking for discounts and then applying discounts codes and cash back and stuff like that um so I was buying and reselling shoes on on Amazon um and even stockx as well yeah then the next year I I've sted in transition to wholesale and then uh the pandemic happened and uh there's one really game-changing stage explosive growth where I went from 1 million in sales to 4 million in sales and really like grew up into like a more legit wholesale business so this product early in the pandemic just went absolutely insane so um and and this is another example why I don't believe in competition of this business so so a good friend of mine he sells alongside me we were sharing a lot of the same product leads selling a lot of the same products and he noticed one day on the computer he stumbled upon this product and he said uh Dan I think this is a mistake but like the keepa chart which is a software to show you know how fast something's selling he's like this is the number one product in the entire category he's like it's probably a glitch we investigated further connected the dots and determined like yeah maybe these are selling out everywhere and like people want these as like an emergency supply due to the early stages of the pandemic when no one knew what the heck was going on you know we were looking all over the place where we could get this stuff and we found like a local restaurant depot and fortunately they had like a whole pallet of the stuff and there were a few different you know variations of this product that were all just going crazy so we decided to buy a pallet just to test out whole pallet of like 2,000 units across all the SKS sold out within like 30 minutes to an hour um K yeah it was you're kidding it 2,000 units in 30 minutes yeah yeah so the margin on it was insane we were buying this product for between $2 and $3 I think about 250 on average and we were selling it for $ 20 to $30 um Jes each yeah and uh yeah so we were making like $10 to $15 a unit and we just could not sell it fast enough we couldn't get our hands on enough of it so the next logical step we looked at every Restaurant Depot in the entire like Northeast region like New York City area all the way up to Massachusetts we took my Jeep and we filled it up like store after store after store and tried to get it there was actually a bakery across the street and uh we partnered with this crazy old guy um that was really tough to deal with and do business with but um he's like yeah I can get you uh I can get you pallets of this stuff he's like I want cash only though so we're we were going to the bank withdrawing cash we'd have like 20 $330,000 in cash handing it to the guy and then we we'd be dragging pallets of yeast across like the road into our warehouse and uh we sold um probably like 10 to 20,000 per month of those uh for like three or 4 months um and we could have sold you know 20 times the amount we sold we we were just limited how much we can get but we we got creative as possible like every possible Avenue to get as much of this as we could me and my friend we each you know we each netted probably hundred to $150,000 a month those three or 4 months in a row and that took us from making you know10 to 20,000 doing like a pretty nice business and Arbitrage to really skyrocketing and that was the moment for me where I was like this is truly insane and I saw the power of a of a fast-selling product like that this was Phase 2 we call it like the yeast Rush um cuz it really did feel like a gold rush you know yeast Rush funny yeah and those were actually like the funnest memories I have of this whole journey like you know we were we were just blasting music in the warehouse laying out like thousands of these bricks of yeast and like almost dancing labing like it was it was crazy however Dan's Journey wasn't always this smooth in 2021 a tragedy almost ended his entire business I was probably about a year into selling picking up some momentum and I had a few of these intellectual property complaints and I didn't even know what they were and as a new seller I didn't really understand the importance of addressing any you know account Health violations so I just let two or three of them pile up and uh what that is is a brand is saying that you're violating their trademark or selling counterfeit products you aren't really but that's their their tool to kick you off the listing if they don't want you selling it uh next thing you know my my entire account goes down my funds are frozen and then I start the appeal process and I I hired three or four different Consultants at a cost of nearly $10,000 to try and get the account back I used one after the other after the other uh my account was down for 3 or 4 months and uh it was a very stressful time um for me as you can imagine and um not only did I not get the account back in 3 months they they sent me all of my inventory that I had at Amazon back to my warehouse um because if you don't resolve it within um 30 days they'll send you the your own inventory back and um so I had a very small warehouse at the time but it was piled up to the ceiling with boxes of all my stuff and Amazon had broken half the stuff cuz they're putting a bunch of glass or you know fragile stuff packing it very halfhazard so I took a loss there in terms of like my own inventory um you have to pay removal order fees to Amazon just for for them to send your own stuff back this was when I had you know a much smaller amount of capital and I was even worried about you know pay paying paying my my bills and like what am I going to do here so um that was a hard lesson learned for me and uh I think at the time it was like 30 to 40,000 um that was frozen and then I had probably another 40 to 50,000 in inventory that wasn't selling it was sitting there and like I said it was sent back to me so uh oh yeah it was just waiting day after day after day and you would finally see a response in your email and click it and like just like be praying that it it was good news and I think I went four or five times of waiting you know almost 2 weeks where them to say we don't have enough information to reactivate your account at this time and I would just be pulling my hair out looking up at the sky why I still remember when I finally got the email I was actually on a trip in in Mexico with a couple friends and um we were just on a hike and then at the end I I uh I got this email as when I got reception and um it said my account had been reactivated and uh I like dropped to my knees I'm I'm pretty sure I cried yeah I definitely cried like it was it was that emotional so um when I got back uh my Amazon account I vowed to never be in that position again and really vigil vigilantly address accountant health issues and uh that's something you know uh I'll stress for everyone and and be able to teach how to um manage all that stuff and and be on top of it but um that is a real risk um you're relying on one platform to sell all your products and Amazon ultimately has control at the end of the day there are other brand branded products they're not your own Brands and it's a and it's a a selling Channel that's not your own selling channel so um with that com some additional risk but I I believe the reward uh greatly outweighs the risk there's nothing I can think of with better risk adjusted Returns on your money if you view your investment in inventory as like an investment and compare that with the stock market or real estate you know you just simply can't get returns with this low risk um this consistently um anywhere else to go into more detail about um you know how exactly I put that new found yeast money to work um so it's like drug M so it gave me a lot more buying power and a lot more leverage with a larger bank roll we started pushing towards larger suppliers where we either had the accounts but we couldn't afford like the top price tier so we started entering that game we can buy a whole truckload of product or or or we can buy 10,000 units of the skew what's the best price you can give me and often that price is lower than we were able to do before so so was wielding that money like like a weapon you know the cool thing is once you get into like another level of income that money compounds and then it's it's kind of just go like exponential um I guess I'll give you like an anecdote about that like going from 0 to 1 million like the the ROI on your $ Z is essentially infinite like you need you you almost need to like work for your first million but then going from one to 2 million you could invest that million and get 100% Roi and then you have two but now go from 2 to 3 million you invest that two you only need a 50% return on your money to get to 3 million then you invest that 3 million you only need a 33% uh return on your money to get four and that percentage goes down and down and down and down and down so like that's why truly it is the first million is the hardest and then getting from 10 million to 11 is very easy it's very easy to make a million dollars when you already have 10 cuz you just need a 10% return on your money there's a million ways to do that imagine you have 100 million to make a a million is a joke at that point um so it's kind of the same with inventory it's like you're stacking inventory um and then you need a lower and lower amount of return on that on that on your bank roll to make substantial amounts of money or or you can keep those numbers high and really make multi-millions a year which is you know what what I'm trying to do ask the question so for someone who wants to get into wholesale what do they need could anyone just get started or what are the requirements yeah pretty much anyone can get started need an Amazon professional selling account 40 bucks a month um and then you need well you don't even need to form an LLC actually um you could just do it under your personal name to start um but if you want to do it properly and see yourself doing this as real business form an LLC get a business bank account and once you have your LLC and your selling account you're Off to the Races uh they're there're a few softwares you'd be in for a few hundred bucks a month that the whole software stack you need and then the last piece of it is just um you know your own money or even borrowed money uh from friends or family um I'd say at at a minimum a few thousand um that will get you in the door for some smaller Brands and wholesalers uh to put in your first uh purchase order and start selling products on Amazon and yeah you you can certainly start with more that's that's always going to help I want to be realistic here because um there are a lot of people that aren't that say you know with a hundred bucks you can you know replace your job and uh it's it's just simply not true so on average um you're going to make you know anywhere from 10 to 20% % margin on the products you sell so as an example let's say you start with $5,000 you buy everything for $5 sell it for $10 um so let's say you have $10,000 of sales on that 5,000 of that 10,000 of sales you're looking at 1 to 2,000 in profit and it's probably going to take you about 60 to 90 days for everything to sell through your first time so with a bankroll 5,000 1 to 2,000 of profit every few months the fastest way to create a significant income is to take every penny of that profit that you can reinvest it into more inventory so let's say your 5,000 turns into 7,000 then you do a bigger order with your 7,000 and then that seven becomes 10 so I'd say anything below like 50 to 100 your goal is ramping up as fast as possible or or taking money from your job or or another side hustle and like shoveling whatever you make from that into like just growing your bankroll as fast as possible if you made it this far in the video first of all thank you I got something for you though we' partnered up with Dan and are having him open up five spots for people to work one onone with him and learn all of the secrets behind his $15 million business so if you think you'd be a good fit you're interested in hearing more what I've done is I've dropped a link in the description of this video for you do schedule a time with our team totally free just to see if it's a good fit so again go into the description click the first link and pick a time that works well for you and I'll see you on there thanks again for watching I'll talk to you

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