AMAZON FBA: When to Bootstrap and When to Pay Up

You guys know I’m all about bootstrapping – which I define as investing my time where I would otherwise invest money.

There are so many services out there that can help you manage a specific part of your business, but they all have a cost. How do you determine when you should spend your time and when you should spend your money?

Today I’m sharing a short case study for how I decided to make that decision. It is all going to come down to how much time you have, how much money you want to invest, and what your individual risk tolerance is for when things go wrong.

Mentioned in the video:
Tax Jar (affiliate link)

Transcript:

1
00:00:00,000 –> 00:00:05,580
when the bootstrap and when to pay up

2
00:00:01,709 –> 00:00:07,200
let’s talk about it hey welcome back for

3
00:00:05,580 –> 00:00:08,550
another episode of the bootstrap

4
00:00:07,200 –> 00:00:11,250
boutique where beginners build

5
00:00:08,550 –> 00:00:13,769
businesses you guys know I am all about

6
00:00:11,250 –> 00:00:15,719
bootstrapping which I define really as

7
00:00:13,769 –> 00:00:18,690
putting in time when I could otherwise

8
00:00:15,719 –> 00:00:21,570
put in money but there are some times

9
00:00:18,690 –> 00:00:24,300
when you should probably just pay for

10
00:00:21,570 –> 00:00:26,250
help or you may not be comfortable with

11
00:00:24,300 –> 00:00:27,779
trying to go it alone so let’s look at

12
00:00:26,250 –> 00:00:30,119
two different examples of how that

13
00:00:27,779 –> 00:00:31,500
applies to an FBA business when I think

14
00:00:30,119 –> 00:00:34,860
especially when you’re starting out you

15
00:00:31,500 –> 00:00:37,440
are ok to bootstrap in a time when I

16
00:00:34,860 –> 00:00:39,570
think you should probably pay for some

17
00:00:37,440 –> 00:00:41,940
expert opinions ok let’s talk about a

18
00:00:39,570 –> 00:00:44,129
time when I think it is totally fine to

19
00:00:41,940 –> 00:00:46,320
DIY it and that is when it comes to your

20
00:00:44,129 –> 00:00:49,680
feedback sequence after you made a sale

21
00:00:46,320 –> 00:00:51,690
on Amazon so we know that emailing

22
00:00:49,680 –> 00:00:53,850
customers and asking for reviews is a

23
00:00:51,690 –> 00:00:55,680
good way to actually get reviews on your

24
00:00:53,850 –> 00:00:58,170
product otherwise you’re just relying on

25
00:00:55,680 –> 00:00:59,489
people to rob whatever you’re selling so

26
00:00:58,170 –> 00:01:01,739
much as they come back and do it on

27
00:00:59,489 –> 00:01:03,390
their own volition some will they’ll do

28
00:01:01,739 –> 00:01:06,180
it all in their own without you asking

29
00:01:03,390 –> 00:01:09,119
most will not they need a little nudge

30
00:01:06,180 –> 00:01:10,979
nudge reminder so what you do is you

31
00:01:09,119 –> 00:01:14,340
just go into so essential and you can do

32
00:01:10,979 –> 00:01:15,750
this all manually it takes time but if

33
00:01:14,340 –> 00:01:18,270
you’re just sewing your first product

34
00:01:15,750 –> 00:01:20,939
say you’re selling 10 a day you write a

35
00:01:18,270 –> 00:01:23,880
form email you go in you copy you paste

36
00:01:20,939 –> 00:01:25,860
and you send it and it takes like five

37
00:01:23,880 –> 00:01:27,299
minutes a day actually I’m doing mine

38
00:01:25,860 –> 00:01:29,610
and just bashing then I’m doing on

39
00:01:27,299 –> 00:01:31,079
Wednesdays and Fridays takes a little

40
00:01:29,610 –> 00:01:32,610
bit of math because you want to make

41
00:01:31,079 –> 00:01:34,350
sure you’re not sending it before the

42
00:01:32,610 –> 00:01:35,880
customer actually would have received it

43
00:01:34,350 –> 00:01:38,009
so you gotta say ok if they did two day

44
00:01:35,880 –> 00:01:39,420
delivery I need to count back add a day

45
00:01:38,009 –> 00:01:41,130
for them to actually get their mail and

46
00:01:39,420 –> 00:01:43,560
open it up and that’s today I need to

47
00:01:41,130 –> 00:01:45,210
send it but it doesn’t have to be exact

48
00:01:43,560 –> 00:01:46,770
as long as it’s sometimes after when

49
00:01:45,210 –> 00:01:48,960
they should have received it it’s really

50
00:01:46,770 –> 00:01:52,259
not a big deal that is something I think

51
00:01:48,960 –> 00:01:54,570
you can absolutely do yourself again

52
00:01:52,259 –> 00:01:56,729
this is really true for at the beginning

53
00:01:54,570 –> 00:01:59,159
you probably only have one product you

54
00:01:56,729 –> 00:02:02,130
probably only have a couple of sales a

55
00:01:59,159 –> 00:02:04,320
day you know probably 10 15 20 if you’re

56
00:02:02,130 –> 00:02:06,210
like killing it but you can definitely

57
00:02:04,320 –> 00:02:07,829
do it yourself and there is a time later

58
00:02:06,210 –> 00:02:10,020
down the road when you want to use a

59
00:02:07,829 –> 00:02:12,390
third-party software because you are

60
00:02:10,020 –> 00:02:14,160
selling multiple products you have like

61
00:02:12,390 –> 00:02:16,290
hundreds of sales a day at that point

62
00:02:14,160 –> 00:02:19,020
right and you don’t want to spend that

63
00:02:16,290 –> 00:02:21,690
time sending out feedback request emails

64
00:02:19,020 –> 00:02:23,730
but at the beginning absolutely this is

65
00:02:21,690 –> 00:02:25,680
a place where we can save some money and

66
00:02:23,730 –> 00:02:27,540
who doesn’t want to do that now when do

67
00:02:25,680 –> 00:02:29,970
I think you should go pro some of you

68
00:02:27,540 –> 00:02:31,980
may debate and disagree with me that is

69
00:02:29,970 –> 00:02:34,230
totally fine I’m just talking about what

70
00:02:31,980 –> 00:02:38,220
I think from my personal comfort level

71
00:02:34,230 –> 00:02:40,280
my level of risk for how much and I

72
00:02:38,220 –> 00:02:42,270
willing to accept this I screw it up is

73
00:02:40,280 –> 00:02:44,130
going to be different it’s going to be

74
00:02:42,270 –> 00:02:45,750
different for everybody for me sales tax

75
00:02:44,130 –> 00:02:48,000
is an area where I really wanted some

76
00:02:45,750 –> 00:02:50,250
help so I got an account with tax jar

77
00:02:48,000 –> 00:02:52,410
where they’re telling me how much sales

78
00:02:50,250 –> 00:02:54,450
tax I owe to my state now because my

79
00:02:52,410 –> 00:02:56,370
products not priced that high because

80
00:02:54,450 –> 00:02:58,530
I’m not selling that many units I’ve

81
00:02:56,370 –> 00:03:00,120
only registered to collect sales tax in

82
00:02:58,530 –> 00:03:02,400
the state where I live where I have

83
00:03:00,120 –> 00:03:04,110
nexus I also think it’s a good idea just

84
00:03:02,400 –> 00:03:05,970
to get in do the work and get your hands

85
00:03:04,110 –> 00:03:08,190
dirty so you understand what’s going on

86
00:03:05,970 –> 00:03:10,170
so that’s even a way that while I’m

87
00:03:08,190 –> 00:03:11,910
paying for the tax to our account I’m

88
00:03:10,170 –> 00:03:13,830
going to file the sales tax myself

89
00:03:11,910 –> 00:03:15,660
they’re just going to help me kohli not

90
00:03:13,830 –> 00:03:17,579
information get it together and get it

91
00:03:15,660 –> 00:03:18,900
ready to go if you want to check out tag

92
00:03:17,579 –> 00:03:20,730
star if you’ve never used it before

93
00:03:18,900 –> 00:03:22,320
there’s a link in the description below

94
00:03:20,730 –> 00:03:24,540
you can go down and you can get a free

95
00:03:22,320 –> 00:03:26,250
trial so try it out is an affiliate link

96
00:03:24,540 –> 00:03:28,019
so if you use a product I get paid a

97
00:03:26,250 –> 00:03:30,060
little Commission it doesn’t cost any

98
00:03:28,019 –> 00:03:31,440
more you know how that stuff works I

99
00:03:30,060 –> 00:03:34,560
don’t really need to explain it to you I

100
00:03:31,440 –> 00:03:37,250
just like to be open oh and what I said

101
00:03:34,560 –> 00:03:39,090
earlier about only having a sales tax

102
00:03:37,250 –> 00:03:40,530
certificate for my state right now

103
00:03:39,090 –> 00:03:42,690
because that’s the main place where I

104
00:03:40,530 –> 00:03:44,610
have nexus that is not tax advice it is

105
00:03:42,690 –> 00:03:46,290
not legal advice you make your own

106
00:03:44,610 –> 00:03:48,150
decisions on that if I have learned

107
00:03:46,290 –> 00:03:50,489
anything about selling on Amazon it is

108
00:03:48,150 –> 00:03:52,530
that there are a ton of third-party

109
00:03:50,489 –> 00:03:54,329
services that will help you run a

110
00:03:52,530 –> 00:03:57,000
specific part of the business but they

111
00:03:54,329 –> 00:03:58,470
all have cost and you really need to

112
00:03:57,000 –> 00:04:01,260
weigh out for yourself where it makes

113
00:03:58,470 –> 00:04:03,420
sense to invest your money and where it

114
00:04:01,260 –> 00:04:04,980
makes sense to invest your time and is

115
00:04:03,420 –> 00:04:07,470
there may be a little mix of both that

116
00:04:04,980 –> 00:04:09,060
you can find in there so as I continue

117
00:04:07,470 –> 00:04:11,489
to find new stuff and you stuff and

118
00:04:09,060 –> 00:04:12,959
learn about it and like it I am happy to

119
00:04:11,489 –> 00:04:15,570
tell you guys about it but just now I

120
00:04:12,959 –> 00:04:17,070
have really also in the nitty-gritty

121
00:04:15,570 –> 00:04:19,169
weeds of doing this stuff because I

122
00:04:17,070 –> 00:04:22,470
think it’s important to learn the way to

123
00:04:19,169 –> 00:04:24,479
do it also just all hands-on so that’s

124
00:04:22,470 –> 00:04:26,070
what I’m doing any questions comments

125
00:04:24,479 –> 00:04:27,720
concerns please leave them in this

126
00:04:26,070 –> 00:04:30,440
scription below I will talk to you next

127
00:04:27,720 –> 00:04:30,440
time take care

You can watch this video at The Bootstrap Boutique YouTube channel here.

You can watch The Bootstrap Boutique YouTube Channel videos here.

Leave a Reply

Your email address will not be published. Required fields are marked *