Beau Crabill is a popular Amazon Teacher and long-time Amazon Seller.
In this post, you'll get an in-depth summary of Beau's book "The Secrets to Selling on Amazon."
The best part?
You'll learn if Beau Crabill is the real deal or a just a guru looking to strike it rich via course sales.
Before we dive into everything Crabill
A lil about me
(so you know who's behind the scenes)
In 2014, I joined a lead generation coaching program that freed me from my 9-5 in 7 months by building and ranking simple websites that generate leads for local businesses (like the tree care site next to me).
So what qualifies me to review Beau Crabill?
After grew my lead gen biz to 7 figures, I branched out to experiment with Amazon FBA (tons of hype around it in 2016)
Long story short, from 2016 to 2019, I (and my team of va's) built 3 brands to doing 6 figures apiece.
One of my best months below
Because I've sold on online, I know what it takes to succeed.
Learn more about the business model that enabled me to leave my 9-5 below
Let's get into Beau's Selling on Amazon Book
Beau Crabill - Secrets to Selling on Amazon
Beau's Story
Beau has been an entrepreneur his whole life.
He started off selling socks on his school and pulling several thousand per month.
After the principal told him he couldn't market to his fellow students anymore, he was stuck until he brought his problem to his dad.
Beau's dad pointed him to Ebay, and Beau took it from there.
He started buying white Nike socks from discounted retailers like Ross Dress for Less, dyeing them and then listing them on Ebay. (That was when he was 11).
At 12 years old, he found the barter section on Craigslist, where he traded all the way up to an Iphone 4 (newest at the time), which he sold for over 400 dollars.
By the time he'd turned 15, he'd learned how to private label products from China and sell them on Ebay.
When he was 16, a friend introduced him to selling those same products on Amazon.
So by the time he was a sophmore in highschool, Beau was making more than his teachers.
Later in highschool, Beau got into competitive cross-country running, which became more and more of his life until an injury sidelined him.
To make a long story short, Beau ended up deciding against going to college on a running scholarship to focus all of his effort on his business.
So he knows wh't he’s talking about and from all of his experience, he understands that working with authorized suppliers & selling big brands on Amazon is the truly scalable way to go.
When you start makin' your way through his book it begins to make a boatload of sense why you (like Beau) might also benefit from selling big brands.
"When people ask what differentiates my successful sutdents form unsuccessful students, my answer is simple: The amount of action each one chose to take."
Beau Crabill ‧ Entrepreneur
Principles for Success with Selling on Amazon
Be Patient:
You likely won't be able to become wealthy overnight, but you can become a millionaire with 5 years of persistent effort.
Take Substantial, Quick Action:
This is the principle that those who want all their ducks in a row get stuck on. Essentially, this is Beau's form of Nike's motto.
Keep Things as Simple as Possible:
When you want to move quickly, it's best to keep your process as streamlined and straightforward.
"You don't need to be a genius. I'm not a genius. I'm just smart enough to realize that the best plan is to work with Amazon and the big brands...instead of against them."
Beau Crabill ‧ Entrepreneur
Beau's Way of Selling on Amazon (9 Modules)
Below is a summary and review of the chapters in which Beau outlines and describes his online retail selling process.
Module 1: First Steps
When Beau talks about laying the foundation for your business, he talks about it being a pretty dry portion of the selling process since all you are really doing is shuffling a bunch of papers and sending info to the government and Amazon.
Here's a detailed look at each step:
Step 0: Acquire Investment Capital
Here Beau talks about how much money you should have available to invest in your Amazon business.
But however much you decide you can invest, the most important thing is getting started ASAP.
Step 1: Set Up a Legal Business
This next step is a bit of commentary is Beau walking through what he did to set up his legal structure, his LLC.
While you can't take Beau's instructions as legal advice (Crabill's not a lawyer), he does include what you can expect to need to do (like what paperwork, your business name, EIN, etc.)
Step 2: Get Your Reseller's Permit
In this step, Beau explains how to get your resellers permit, which keeps your company from paying sales tax on the product it buys to resell.
I found his explanation helpful, especially with how authorized suppliers will request your permit information when you begin your relationship with them (it's a way you'll know your supplier's legit and vice versa)
Step 3: Create Your Amazon Seller Central Account
Overall, the process of creating your seller central account is pretty straightforward, but Beau does pen a lot of insights that are helpful, like:
Step 4: Get Familiar with Seller Central
While there's a ton of features within the seller side of Amazon, Beau notes that there's really only a few features which sellers need to be intimately familiar.
Those are Beau's 5 steps to lay the foundation for an online retail business. The next step is to pin down a few products that would be profitable to retail on Amazon.
"Identify products that meet your investment criteria. I recommend ordering products that have at least 10 percent ROI and a one-month turnaround, especially when you are first starting out in your online sales business."
Beau Crabill ‧ Entrepreneur
Module 2: Product Analysis
Step 1: Find the ASIN
To find the ASIN, you can look in the product URL and on the product's listing.
Step 2: Add Up Amazon Fees
Use the Amazon Calculator to Add up all these prices.
You can find the Amazon FBA Revenue Calculator either on Amazon.com or you can download a spreadsheet version here.
Step 3: Add Shipping Fees
While Amazon's fullfillment fees encompass most things, they don't include the pick & pack fees that Amazon charges for every product shipped.
Beau says that he's never had these fees be over 50 cents per item.
Step 4: Use Keepa to Analye Price History
Keepa is a chrome extension that enables you to see the price history for the items that you are interested in selling.
You want to calculate your costs at the lowest sale price and make sure that you're still profitable (Beau says to have an return on investment (ROI) of a minimum of 10%)
Step 5: Calculate Your Turnaround Time
If you don't get this right, you might incorrectly calcluate your estimated ROI.
**Beau makes an aside that many would-be successful retail sellers forget this element**
"Of all the strategies or instructions or insights or tips that I've put forth in this book, you need to keep one crucial compotent in mind: Buy low & Sell high."
Beau Crabill ‧ Entrepreneur
Module 3: The Role of Suppliers
Relationships over Products
Many would-be-Amazon-retailers fail, says Beau, because they put so much on effort into finding the perfect, pristine product while not finding out how they might be best of service to those suppliers that they've spoken with.
Find the best Suppliers to Be Competitive
If you are looking to be a long-term retailer like Beau, your best bet is to build a relationaship with several suppliers so that you become their favorite retailer, aka the most likely to be given the best promotions when the promos come around.
As you build trust, you'll qualify for greater and greater deals, because the supplier will realize, more and more, that you are in-it for the long haul, and they (the supplier) best keep you around (because you help them do what they want (move product as fast as possible).
"It doesn't matter what you sell. Once you find good suppliers and build solid business relationships with them,so that they give you their best deals, finding profitable products will be easy."
Beau Crabill ‧ Entrepreneur
Module 4: Finding Suppliers
In this longer section, Beau goes over the entire process of finding suppliers for the products you've discovered have a consistent ROI
Step 1: Learn the Different Types of Suppliers
In this step, Beau introduces the four different types of suppliers that you will likely encounter throughout your search and vetting process.
- Wholesalers
- Distributors
- Closeouts
- Manufacturers
He describes each one, and shows how supplying company can perform one or more of the first 3 roles (ie. a supplier can be both a wholesaler and a close-outer)
Step 2: Authorized vs. Unauthorized Suppliers
The main point here that Beau covers is what an authorized supplier will ask for versus an unauthorized supplier.
Authorized suppliers will ask for your reseller certification number (and possibly your EIN) versus an unauthorized supplier won't.
Step 3: Your Supplier Search Process
Beau here advises to first make a long list of suppliers and then work the list through the gauntlet of your letting process.
Step 4: Contact Brands to Find Their Distributors
Since Beau's model revolves around selling big brands, you might be wondering (and rightfully so) how to find the distributors of the brands products.
Beau outlines a number of ways to do find them, from calling up the brand and asking for their distributors to searching the internet using various wholesale websites.
Warning
**Don't use the wholesalers who pop to the top of Google, says Beau, they have plenty of suppliers coming to them just the same way you found them, so you won't get good pricing from them.**
Then Beau outlines a simple version of how to find suppliers online (but you'll have to read his book to get the details)
Step 5: Beau's Supplier Vetting Process
In this step, Beau gives you a list of questions to ask the supplier on the phone so that you can find out whether that supplier is A+ material or if you're better off continuing your search.
Step 6: Honing Your Supplier Senses
As you search for suppliers, Beau urges you to cultivate a sense of what a good supplier looks like versus a false one.
Take some mental notes of what you are seeing and hearing when you talk with suppliers and also note your gut is telling you.
Step 7: Contacting Your Potential Suppliers
Ever Heard of Batch Contacting?
After you've compiled a list of suppliers that seem pretty solid, it's time to get start seeing about placing some orders with them.
It's easiest if you organize all the companies with their contact information (phone, website, email address) into a spreadsheet and then go down the list signing up with each one.
Typically, writes Beau, you'll register on the suppliers website and then be given access to either their online catalog of products or an excel sheet with their product list.
And then, should they have your products, you can begin to negociate pricing and possibly place your first product order.
Final Tips for Success
At the end of his chapter on locating suppliers, Beau leaves you with a list of tips that smooth out your selection process a bit, like staying focused on building long-term relationships (which is what the good suppliers are focused on as well).
Reflections on Beau's 4 Module
Overall, I found Beau's process for finding suppliers to be very thorough and holistic. Clearly he couldn't pack all the details from the 5 years he's been selling on Amazon into a chapter, but for what it is, Beau did a very good job.
"Knowing this information will help yo uunderstand where your products orginated and will make it possible for you ask the right quesitons of your supplier."
Beau Crabill ‧ Entrepreneur
Module 5: Building Supplier Relationships
This module is the shortest of Beau's process modules, but I believe he includes it merely to further emphasize relationship-over-product to his readers.
Relationships Over Product
Beau is definitely in the retailing game for the long term.
Many other course creators promote building a business to make some quick cash, but Beau isn't one of them.
Rightfully, he's adopted a mindset similar to the suppliers that he dealing with.
This mindset that prizes the long-term win-win situation for both supplier and retailer:
Building Trust with One Another
"Building long-term relationships with suppliers is a win-win pursuit... Suppliers want your consistent business, and you want to be rewarded by getting access to their best deals."
Beau Crabill ‧ Entrepreneur
Module 6: Shipping to Amazon
Having your suppliers ship directly to Amazon (instead of to you and then you shipping your products to Amazon) is the simplest way to do online retail.
Step 1: Find Out if You Are Shipping to Multiple Amazon Locations
You'll want to inform your supplier if you need them to move your products to a variety of Amazon fullfillment centers. (It's likely they'll be cool with it, but they'd appreciate a heads up before you email the labels to them)
Step 2: Select the Type of Packaging
We're not talking cardboard or plastic here, but how you want your products packed: individually or case-packed.
Step 3: Choose the Barcode Method
Your main choice here is between using an Amazon barcode or a manufacturer barcode.
Step 4a: Figure Out Your Delivery Method
The amount of product you are shipping to each location will pretty much make the decision for you as to the method you use.
Step 4B: Choose a Freight Class
The smaller the class, the cheaper the freight. The more space you save, the more money you save.
Additional Shipping Tips
Save additional money by picking "everything in one box"
Other Possible Shipping Scenarios
Are you selling products that Amazon considers hazmat?
Then make sure to get clearance from Amazon to ship those products to the FBA Fullfillment centers. Amazon is a bit arbitrary about who they approve and who they don't.
Your Best Bet?
Don't try to sell hazmat products until you've been selling on Amazon for a while and built up a positive reputation with Bezos.
Think of it like earnin' your Amazon street cred.
"Getting ungated is not difficult, usually, and by making a little effort to get ungated, you'll be allowed to sell produts that have less compettion in their category."
Beau Crabill ‧ Entrepreneur
Module 7: UnGating
Beau's ungating module is pretty short compared to the ungating lesson in his course.
He's both done the ungating process completely himself and has outsourced through the service provider he links to in the course.
Beau's 4th Module Covers
The fast track to approval is to know what categories that you can get automatically approved in when you turn in the right paperwork.
What Categories Aren't Gated?
Categories Requiring Pre-Approval (in addition to Un-Gating)
Categories Requiring Un-Gating
Step 1: Create A Wholesaler Account
Immediately, you are going to need a wholesaler account with a shipping address that is identical the one in your normal Amazon Account.
Do you have an LLC (Limited Liability Company)?
Put Both Names (Yours & your company's) on the application.
Step 2: Go on a Shopping Spree
You'll need to purchase multiple products in each of the categories you want to get ungated in.
**Keep Track of the Invoices**
Important Point to Remember:
Your aim in purchasing these products to resell is not to make a profit (necessarily), but to get ungated to become a seller in the category.
Step 3: Scan the Items Invoices
Treat the Invoices like your mother's white rug!
Don't put any marks on them (if you need make edits or additions, do so on copies of the originals).
My recommendation?
Scan the Invoices Immediately upon getting them.
Why?
Then you can edit them digitally (save as pdf), and always have a back-up in the case that the paper copies are lost or destroyed by a firery tornado that only impacted the papers on your table.
(a bit dramatic, but you catch my drift)
What type of scanner should you use?
A 1988 Xerox Fax, Print & Scan machine.
JK
I've never had a problem with documents I've used my phone's camera to scan
(there's ton's of apps you can use (I use One Drive) and, no, you can't just take a picture - Amazon's rules, not mine)
Step 4: Put in Your Request to Amazon
To send in your request, you'll need to log into the your Seller Central Account, and then find your application(s) in the catalog.
It's a little tricky but stick with me
Here's the exact steps to follow:
First, click on Catalog, then Click "View Selling Applications"
Second, type the name of the product you want to sell into the search bar, then click the "Apply to Sell" button on the side.
After doing a little bit of a walk-through outlining the ungating process, Beau goes over the big steps to getting ungated in any category, which really comes down to having a aged seller account, moderately good sales rate, & good sales history.
How to Get Ungated in any Category?
"FBA sellers always have an advantage over FBM sellers with regard to the Buy Box."
Beau Crabill ‧ Entrepreneur
Module 8: Winning the Buy Box
Only secondary to negociating with suppliers, this module is the most important thing to grasp as you get into selling on Amazon.
Here's what Beau's talkin' about when he says "Buy Box":
This is the main topic that Beau Crabill covers in Module 2: Winning the Buy Box:
How to Win the Buy Box (FAQ)
It's the add to cart section on Amazon.com
The buy box is there to reward the seller who is providing the bets customer service.
You must become the buy box eligible - to maintain buy eligibility 100% of the time, you use fulfilled-by-Amazon (FBA) services.
To win the buy box, you must be selling your products in new condition and at the going buy box price.
You are enabled to sell your products at the highest price possible.
Other Topics Beau Covers in Module 8:
"In online retail, the faster you are able to source produdts the more money you stand to make."
Beau Crabill ‧ Entrepreneur
Module 9: Simplify Your Process with Software
In this section, Beau walks through the process of how to use his proprietary software tool, the Crabill Analyzer Software Tool.
The Development of Beau's Software
Beau developed the software out his need to process supplier data faster and faster as he acquired more and more product information from suppliers.
How to Use the Crabill Analyzer Software Tool
Out of his desire to enable his readers and students to grow their businesses faster than he did, Beau outlines the steps to use the tool successfully to find profitable products from the suppliers' spreadsheets.
Tough Lessons Beau's Learned from Selling Online
In this section, Beau walks through a few of the core mistakes that were major learning lessons in his online retail journey.
"I plan to be the preeminent provider of Amazon education, coaching and tools for studnets entering and navigating this dynamic online sales industry."
Beau Crabill ‧ Entrepreneur
Where Beau is Steering His Business
Wondering what vision Beau has for his enterprise?
Having already entered the SaaS industry with his propretary software, Beau is scoping in on becoming the go-to guru for those looking to begin selling on Amazon.
"Of all the strategies or instructions or insights or tips that I've put forth in this book, you need to keep one crucial compotent in mind: Buy low & Sell high."
Beau Crabill ‧ Entrepreneur
Conclusion (Beau's Parting Advice)
Here, Beau drops a few final nuggets to help you get started the smart way.
His parting advice?
Beau's Final Words:
"The patterns you repeat in your life, even the little things, eventually yield the kind of life you will live."
Beau Crabill ‧ Entrepreneur
Pros and Cons of Beau's Selling on Amazon Book
Pros
Cons
Beau's Way of Selling on Amazon is Okay, But Lead Generation is Better, Here's Why:
Amazon FBA
Lead Generation
Look there’s a lot of things to love about the Amazon FBA business, I mean its probably one of my favorite business models when it comes to selling physical products online.
(besides ranking organically & selling shit with free traffic of course)
Those eCom guru guys that like to flash their lambos and big sales numbers don’t really tell you just how much work goes into the FBA biz model and how short-lived some of their products are at being able to sell well using Facebook ads because many of them are banking on fads. #fidget spinners
Basically you end up putting in work to get the sales but you’re not able to stack upon your success if the product stops selling.
Sadly this is true even if you decide to sell big brand products.
(That’s the nature of the physical product business)
Very rarely do products remain Best Sellers for a long time.
For example, if you go to Game Stop today and then you go back 6 months later, pretty much many of the products inside that store has been replaced by something new. #fads
Now this opens the door for new opportunities for Amazon FBA sellers but it also means that the turn over for the successful products you launch is great.
Here's why I believe Lead Generation is Better than FBA:
I believe there’s a reason why there’s so many Amazon FBA or eCom Drop Shipping coaches out there today.
I’ve listened to my good eCom guy talk about this also.
You can experience quite the burn out with eCommerce because it gets real repetitive and quite involved as you've got to track shipments, listing statuses, ppc metrics, etc.
All that work for mere 10-20% profit margins can become exhausting after a while.
Don’t get me wrong: eCom 100 times better than working a 9 to 5.
But many course makers attracted to making nearly 100% profit margins and ability to scale with their course sales being much greater & faster because that’s just the way it is when you sell digital products or services like online education or lead generation service.
People have been pushing physical products since the early eBay days where sellers were storing inventory in their garage.
Bezos launched Amazon FBA in 2006 which allowed mom & pa shops to start listing their products on Amazon and they would take care of inventory and shipping for you.
It wasn’t until 2014ish, when people began to do retail arbitrage and private labeling by utilizing suppliers from overseas, as a result, a lot of knockoffs and honestly pretty shitty items showed up on Amazon.
Many of these accounts have been suspended by Amazon and many of these results were very short lived. #valiantconsultants
Throughout all of this, what’s consistently the biggest money maker on Amazon has been retail brands (not private label products)
Beau Crabill walks through the step-by-step method to start selling these big brands products, which gives some hope to the many that have not seen success in retail arbitrage or private labeling.
If you want to start an Amazon FBA business, you can’t go wrong with Beau’s course.
However, I like building my online business mainly around my skills.
Why?
Because you can rely on your skills over and over again to clone your success, which is different than selling physical products on Amazon because that's more about timing & trends that I gotta bet on.
I don't know 'bout you, but I'd rather build assets that make money for me over and over again than sell an item once and then have to get more.
Here's what your digital lead gen asset income looks like
You construct websites for essential businesses that never lock down, which means your income is recession proof.
An additional benefit of my lead generation skills is that I’m able to change the lives of these business owners, aka 10x their results.
But don't just take my word for it
Here's Patric's:
Learn more about how local lead generation has changed my life and thousands of others by clicking the "Get Started" button below
