We’ll be taking an indepth look into what a 7 figure outsourced Amazon operation looks like

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Disclaimer: You don’t need a lot to make great money on Amazon. Don’t let social media fool you. $20k months with average margins is a full time income for most. Bigger numbers mean exponentially more work. If 6 figure months are the goal, be prepared for the grind.

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Before we can talk operations let’s run the numbers

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$100k Monthly Numbers Breakdown

Here’s what it looks like to generate 6 figures monthly with an OA to Prep Center setup:

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Revenue: $100k
​Profit: $10k - $15k
​Spend: $50k - $60k

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Profits will likely be around 10% - 15% margin

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As your operation expands, your expenses will also increase

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This will allow you to move lower profit inventory at scale but your margins will reduce some

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Basically increasing volume of sales (profits) while reducing quality of sales (margins)

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Spend will likely be around $12.5k - $15k weekly

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The ease of hitting your spend targets depends on your Average Purchase Cost

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Spending $15k weekly is a lot easier when each unit costs $100+

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Cheaper items & categories require more units, more labor, and more tracking to earn the same amount of profit as higher ticket items

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Higher ticket items involve more risks, require more experience, and sometimes come with more customer returns than cheaper items

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Understanding the categories, the niche, and the brands you invest in is half of the battle when looking to consistently generate $100k+ monthly

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Now let’s take a look into the actual operations

$100k Monthly Operations Breakdown

The main goal here is time freedom

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To achieve this eventually, we hire, train, and automate as many parts of our business as possible

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The 3 main resource pools for outsourcing are

1. Virtual Assistants
2. 3rd Party Prep Centers
3. Automatic Repricing Tools

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Let’s cover each in detail

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Virtual Assistants

VAs work insanely well with online arbitrage systems because you can hire from anywhere in the world

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With proper training and systems they can manage your:

• Sourcing
• Purchasing
• Admin Work

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I currently have 2 VAs:

- 1 Sourcer/Purchaser

- 1 Admin

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They run the OA → FBA portion of my Amazon business on their own

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Why pay a 17 year old in the US who couldn’t give a shit about your business $7.25/hr

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When you can pay a Filipino with a Master’s degree $4/hr to treat your business like his own

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They get paid well above average salary in their country

You get to hire quality help without paying $20/hr

Win Win

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Virtual Assistants are everywhere looking for hire

• Onlinejobs. ph
• Facebook VA Groups
• Upwork/Fiverr/Reddit

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And the vast majority are eager for work and will take it 100% seriously

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3rd Party Prep Centers

Prep centers not only take care of all of your prep work

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They can also offer sales tax exemption on purchases

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This is HUGE for high ticket OA sellers

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Why pay 7% on a $150 item ($10.50) when you can pay $1.50 for a prep center in a sales tax free state to do it for you?

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You simultaneously save big on time and save money

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Google "List of Amazon FBA Prep Services” for a solid list of prep centers to vet and start working with

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Focus on the ones in a sales tax free state such as:

• Oregan
• Delaware
• Montana

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Automatic Repricing

Repricing is done to competitively price your inventory in order to win more sales and maintain quality profits

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As your catalog grows this task becomes more difficult to manage

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Usually we outsource to people but since repricing is so data based there’s tons of different software that have fully automated the process making it cheaper

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With an automatic repricer you set your desired:

1. Profits & returns
2. Pricing strategy

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In other words you create a range for your price to fluctuate between depending on market conditions and a strategy to target within that range

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Targets can be:

• Lowest price
• BuyBox
• Other seller’s price

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Not all repricers are built the same

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In my opinion the best on the market (not including Seller Snap) is BQool

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It’s cost effective with quality prebuilt strategies for beginners and great customization options for more experienced sellers

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Hiring competent VAs
Finding quality prep centers
Using an efficient repricer

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That's the foundation of a 7 figure Amazon operation

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It'll be a lot of work

It'll take a lot of testing

It absolutely won't be easy at first

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But stick with it long enough and you'll have a fully outsourced income that requires less attention than a pet turtle

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Thanks for reading

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