All language subtitles for 6. The Amazon Opportunity

I'm going to explain to you guys now why Amazon is the best opportunity to start a business.

And just in general the best investment that you can make of your time and money.

So here's the basic concept.

Ok.

Amazon is the search engine of products at the end of the day.

So when you go on Google something.

Well I just did it right there.

When you're going to look something up on the internet you say go Google it and pretty much everybody

goes to Google.

So this is essentially what people do with Amazon.

So basically forty six point seven percent of all searches for products start at the Amazon search bar

and then on top of that thirty four point six percent go to Google.

But when you go to Google and you type something in.

Guess what the number one other than the ads.

Guess what the number one search result almost always is it's almost always an Amazon link.

So the highest ranking people go there.

Basically the main concept here is that Amazon is the search engine of products.

So you want to if you have a Web site you want to get found.

You want to be on Google.

If you have a product and you want it to be found it goes to Amazon.

Not only is it where people go but e-commerce is a megatrend.

So really take that into account.

So currently e-commerce added 500 600 million dollars last year alone and it's going to keep growing

and growing every single year.

Now it'll be up to about 5 trillion by 2021 but it may even be larger than that.

So if we take a look at this as a percentage of all of e-commerce just this is just specifically in

the United States it is growing rapidly and I see a day where this is 50 50 split where essentially

half is online and half is in a physical retail store.

But what is actually being more disruptive it might be more than that because what I've noticed lately

off I got introduced to on demand delivery apps such as in-store cart Uber eat stuff like that and I

really dread going to a retail store now.

I will pay an extra premium for people to just go pick the stuff up from the retail store for me.

But still a retail store is not the most ideal environment.

So essentially as time goes on there will be warehouses and more local areas.

And then you'll be able to get those a lot faster.

So Amazon has prime now and eventually that'll be growing up more and more so you'll be able to get

your products into people's hands within a couple of hours.

And basically something is over four hours.

I I'm like frustrated and I might not even buy it.

So not only you know it used to be seven days for shipping then Amazon Prime made to day really popular

and then now I'm finding that two days is often too long especially by on a Thursday it doesn't come

till Monday.

You know you need it right now and that's where the trend is going.

So there's nothing really stopping this at all.

Those stats are a little bit different when it comes to other countries but the United States is leading

in e-commerce in all the countries are going to follow at some point.

All right.

All right.

So there's 180 more countries or more to come.

So.

So remember when I went to Bali and I was looking to purchase products on the Internet it was very odd.

There was barely any suggestions I couldn't even find a green screen.

And when it got delivered I actually couldn't pay online.

I did pay the delivery driver on delivery very odd.

So essentially over time that's all going to change.

You know e-commerce is going to have its own revolution not only in the United States as it's continuing

but it's going to continue all around the world.

And that's a great thing about Amazon.

It really really easy to expand to the rest of the market.

So this in my opinion and just pretty fact.

This is the biggest change in commerce history of the world and everybody has a chance because Amazon

doesn't discriminate based off of who you are your connections or what not.

Amazon is a search engine for products.

So as long as you are following the rules you have an option versus you know trying to fight and pay

tens of thousands of dollars just get on a retail shelf and you know your placement is determined by

some high level executive and your relationship with them.

There is a crazy amount of prime numbers.

There's over 95 million prime members in the USA alone.

That's over 50 percent of all USA households.

And it's going to continue to grow and they're growing internationally really fast too.

So by doing this you could see essentially everybody's going to have Amazon or at least purchase on

Amazon at some point because I mean you go to Google when you want to find products you go to Amazon

when you want to find them.

Now here's the interesting thing.

If we take a look at this a non Prime member will send about 600 dollars a year and have about a 13

percent conversion rate when they go to the Web site.

But Prime that.

Fifteen hundred dollars a year they spend on average.

That's up 200 bucks from last year.

And when they go to the Web site and they type something in there's a 74 percent chance that they're

actually buying a product when they go to Amazon and search.

That's unheard of.

So.

Well now it's not 74 percent every time they land on a page or your product page but they're going there

by.

So people are going to Amazon at the end of the lifecycle of researching.

So there's you first become aware of something that you need and then you research and that's typically

where people go to Google.

And then you've got Amazon to buy it.

So we're able to find pre qualified people who say I want a product right now and they're going to choose

pretty much 74 percent chance get it.

And my guess is those 26 percent that come back later to buy it or that you know they just didn't find

what they were looking for.

Because not everything is on Amazon yet.

So I want to show you guys a reference.

The top 500 e-commerce merchants have a conversion rate of how much we get three point three two percent

and then compared to that 74 percent of Amazon.

That's you know it's it's crazy OK.

So up to this point we've determined Amazon's the search engine of products but it's a lot more than

that too.

All right.

So we go down here.

Amazon is leverage.

So not only are they going to provide you with 100 million plus customers instantly and start driving

traffic your way if you have the right product for what people are looking for but you also get to leverage

the authority and trust of Amazon.

I know a lot of times I myself personally I go to a Web site or see an ad for something that I really

don't know if I could trust that.

But at least I know that if Amazon it's on Amazon.com I get that returns.

It's going to come fast.

And if there's a problem Amazon is going to make it right now.

That's not your case with every other web site.

You know you're like oh God you know I have to call them to get on some get on a phone with someone

from a foreign country it's going be a long process.

I might not get my money back.

You don't have to worry about any of that with Amazon.

You get their authority and trust.

But also you get their warehousing the logistics inventory management so all of this stuff right here.

OK.

This is Amazon FBA so it's Amazon FBA.

They actually store all of the inventory for you.

All right.

They're gonna give you a nice little dashboard so you get a software program that is essentially showing

you all of your products and makes it really easy to to edit and update everything they drive customers

your way they house your products and then when it's bought they manage the shipping label they do that

all they ship it all out for you.

They ship it all out for you.

Then on top of that they get it there in two days sometimes even overnight if they want to pay that

extra but it doesn't cost you anything extra.

So the Amazon FBA program just allows you to scale at the end of that day.

All right you don't have to manage your inventory organization which as you start to get a lot of products

and you start remembering like all what what condition is this in and where is it all and then you know

you'd also don't have to go and buy warehouse space.

All right.

So what happens if you start to grow really fast and you want to add more products and then it's all

weight and then you have to get staff to manage all of that.

All you have to do that with Amazon FBA either somebody wants overnight shipping and you know or a question

can you ship it here.

Amazon takes care of that.

All right.

And then you know what's great.

Guess how much all of this costs was such a great value proposition it must cost a lot of money.

Well it actually doesn't.

So for example I bought these alpaca shorts so these alpaca swim shorts.

And this is a great example of why Amazon is great.

Now these are unique.

They're the only ones in the world nobody else is making a parka swim shorts.

I paid 40 dollars for these and I need it now pack it outfit for a music festival.

I was going to it was in three days so I went on to Amazon and bought this and it had prime shipping

and I knew it was going to be good quality.

The guy there was only a couple of reviews on it but it was what I wanted.

It would get there on time so I bought it anyways.

Now these cost a couple dollars to make.

But I was willing to do it because of Amazon FBA.

So the person who did this maybe these cost about three dollars to make three to five you know it's

just swimsuits.

Shorts.

You know you see some at Walmart for five dollars.

So we just talked about the platform.

We just talked about all those benefits of Amazon FBA.

But you know you think it would cost a lot of money but really it doesn't.

So at the time that I bought this it to get it overnighted to me which is what I ended up paying for

it cause that seller how much

it only cost that seller two dollars and 44 cents.

All right.

Now that's amazing because considering this when I go buy the cheapest possible postage from the post

office it cost me about two dollars and 10 cents alone and then so for 34 extra cents they you know

they manage they organize they shipped it out on time did the customer service and all that extra stuff

and also brought me the customer.

Now you do pay a 15 percent fee for the Amazon.

But here's the thing that for them.

So this is where a lot of people get stuck up on is the fees and stuff.

This 15 percent that they pay to Amazon is a fee.

It doesn't matter because I paid forty dollars for these.

It's such a high.

So here's the main point.

People like we talked about earlier.

Well let me let me find that up here

people convert well Amazon Prime members and they spend a lot of money because they're looking for something

and they're what you know they are.

People are going to convert in pay premium prices.

The average Amazon Prime customer has over 70000 dollars in income every year.

So they're willing in coming to Amazon for the premium price.

And there's a lot more factors in the buying decision than just price.

And it's all those things that we talk about reliability trust ability to return ease shipping speed.

So those that's what you get with Amazon.

So the fee being on Amazon more than pays for itself because the whole logistical side they do for cheaper

than what you can buy the postage and the packaging for.

So it's a no brainer in my opinion.

And we will go in a little bit.

I'll tell you about why it's a really good opportunity for a more of a fundamental analysis.

But now I want to talk to you guys about the financial analysis.

If you were to compare this as an investment instead of building a business I'll show you guys why this

is way better than stocks are real.

Which is where most people think that you make a lot of money.

Let's compare starting the e-commerce business and leveraging Amazon to stock market returns.

So we take a look at good old apple here.

This is the world's largest company.

All right.

It's worth nine hundred eighty six billion dollars right now.

Now let's say you you would have invested in Apple right when it became public and you held it.

All right.

So it took 38 years until today.

That's it went public in 1980 and the return on that it was worth about one point 7 seven eight billion

when it IPO.

And then today it's worth nine hundred eighty six billion dollars.

All right.

This ended up being a five hundred and fifty four x return.

And then but that took 38 years assuming you held and did everything that you got a five hundred fifty

four x return.

And this doesn't even account for inflation.

That's the best investment of all time in stock market there may have been higher our allies.

But you know that's the biggest company in the world that exists today.

And if you would invest in the beginning to now 554 X after inflation maybe about a hundred two hundred

X roughly.

However if we take a look at the historical average of stocks over time it's about a seven to 10 percent

return which is you know it's not bad it's passive but that's that's about what you can expect to get.

However if we take a look at Amazon FBA on the flip side it's not unusual and very actually common to

get 100 percent or 500 percent a year on your initial investment of a product.

Now there also is the opportunity there also is the possibility though that it goes to 0 percent.

But once you get started going on products and you learn how it works it's very rare that people fail.

I know friends who have you know they've launched 45 products and they failed one and they got all their

money back on that one.

So I'll just show you quickly what my results were.

So on mine I failed a couple.

I failed actually my first eight products.

OK but I did them in a way that I lost about three to five thousand dollars.

OK.

Well on the next product then I invested about seventy five hundred dollars.

All right.

Now in the next six months I parlayed this investment and turn that into three point two million dollars

profit so if we take a look at that that is effectively a that's effectively a four hundred and forty

two times of your investment.

So forty four thousand two hundred percent in six months.

So when we're comparing it to Apple here fifty five thousand four hundred percent over 38 years.

Right there.

All right but after inflation about a record of fifteen thousand percent return over 38 years or forty

two thousand six hundred over six months it's pretty clear my mind.

Now granted Apple would be passive but there is a lot of mental thought that actually goes into holding

a company for 38 years.

So I'd rather put in the six months and get these kind of returns now.

Now my results aren't typical and I have a very interesting story which you guys will get to hear it

throughout this course and on my YouTube and my Instagram so make sure to check that out.

But it's very common I've heard many stories and you'll see on the Internet and I know many people that

have gone from about ten thousand dollar investment and turn it into a million dollar business in one

year.

And that's no B.S. and that's at about a 20 percent margin.

So that ends up being about two hundred thousand dollars in profit in one year.

So that's a 20 x return on your investment.

And then guess what now this this is set up in relatively automated.

There's still work that's going on but that you know that's just in year one.

So if you take this and go I know many millionaires that have been made and I can honestly say this

I don't know any industry that's building more millionaires and successful businesses than Amazon right

now.

E-commerce in general so now this is not specifically Amazon.

This is talking about e-commerce in general because it is a mega trend like we talked about earlier

but as we talked about earlier also all the traffic and people are going to buy an Amazon and it's the

best way to scale out and start your brand.

Eventually you can go and have your own platform after but to get started this is the best way that

I know of currently at this point in time as of November 2018.

As of this recording.

But I don't see that going anywhere else in the next couple of years.

And if it does happen and there is a better opportunity I will let you guys know and update this video.

But I'm very confident in saying this.

Oh yeah.

And if just in case you were wondering about stocks again let's say oh but what about active traders

not passive traders even the world record for the highest are why from an active trader was twenty nine

thousand percent in one year and up.

That's that.

I know people and myself who have done better than that than you know so they're actively trading stocks

all year.

It's kind of like trading physical products in but you creating an actual company and value that has

long term instead of kind of extracting value from other people you're providing something to the world

instead of trading pieces of paper.

Another reason why Amazon is such an amazing opportunity is because we cut out the middlemen so here's

a quick concept of the retail markup.

So when you go and buy one hundred dollar product at the store like let's call it some Bose headphones.

Now granted no Bose headphones are 100 dollars really.

None of the good ones.

But let's just pretend that they were so essentially that retailer bought it for fifty dollars when

you paid one hundred.

Well because he has to make money has his own store employees what not.

You know of course they have take out loans or whatnot anyways but then he actually bought it from a

wholesaler.

So who paid thirty five dollars because you know they have to do it.

And essentially this brand or the manufacturer then actually made it for about 18 dollars and now they

assemble it and make the product designs and stuff.

But you know they had to get all the raw materials from somewhere.

So it ends up being about nine dollars by doing Amazon private label is starting your own brand and

distributing direct to consumer you are able to offer a hundred dollar product you know in the past

450 dollars or less even at the thirty five dollars depending on how many people you cut out because

there's just there's so much cost savings and less people that need to make money in this process.

So we just take a look at it visually here.

There's all these people here.

You know we just use the materials in the factory and then essentially we're able to cut then essentially

we're able to cut out that store cut out the wholesaler and we become the brand.

And then we become happy and we offer a better product for a lot better price.

In summary Amazon is the search engine of products.

Amazon is the place that everybody's going.

E-commerce is a megatrend and it's taking over the world.

So you can go in and get on the world's largest platform for free.

Like there's what's 40 bucks a month to use Amazon FBA but there's never been a better time where there's

more opportunity for anybody to start a business than Amazon FBA and you can leverage the authority

and the reputation of the Amazon FBA brand.

And what does this do at the end of the day this allows you to go from an idea to profit the fastest

you can go and find manufacturers who are making things just like what you want and then ask them to

change it a little bit.

You go in the world's largest platform.

You can have them ship it over to Amazon Amazon ships it they bring you the customers and you get the

trust and authority Amazon brand and it's the best way to just go from idea to building a business.

All the barriers are basically being removed and there's no excuse now.

And it's the best investment opportunity.

And it's just starting and it's really taken over in America but it's not saturated yet.

There's plenty of opportunity.

It's the biggest change in commerce history and the best investment opportunity or opportunity build

a business opportunity to whatever you want.

Amazon is changing the world.

And you could be a part of it.

And now we're going to go over all the steps that are involved so you can get and build that mental

framework so that you can start filling in all the pieces and you can get to start to take some action

and take advantage of the best business opportunity in 2018 2019 2020 and beyond.