What is going on Amazon sellers or hopefully soon-to-be Amazon sellers, my name is Beau Crabill
and in today's video I want to talk about the topic of
What's going to happen to selling on Amazon if we go through a recession now?
There's not bringing this video up is because I've had a few people ask me is like beau
It seems like we're going through a recession is your business model of making money recession proof and there's four topics
I want to discuss today and one is going to be about are we even heading through recession -
What happens to the retail industry in a recession three is?
Selling on Amazon recession proof and four. What do you need to do today?
To prepare and then also, what do you need to do for tomorrow to prepare?
so now let me get right into are we heading through recession well,
The facts show it's a maybe not there's no crystal ball explaining that
Oh, yeah, we're gonna go through a recession or not
You can find gurus saying oh yes, there is going to be a recession in what amount of time and people saying? Oh no,
We're fine
however on average there's typically recession every six years depends on what resources look at and the
Last recession was in 2008 right now. It's 2019. So I mean those facts kind of show there. Okay?
Yeah, it could be possibility. The feds have been raising interest rates. The stock market is down 3,000 points in the last six months
So you can look at things right now saying well does it's not really going up right now
So yeah, we it could be possible that we'd go through a recession. However this going to lead to the next point on
What about the retail industry how the retail industry adapts during a recession? Well be very honest
What happens in the retail industry during the recession? Well, people still need to buy things. People are always buying things
it doesn't matter if the recession or there's recession going on or if there's a slow economy or
Really good economy. People still need to buy things
Now people may not be spending easily 1200 1500 bucks on an iPhone. They may be buying more of cheaper goods and
What I've actually noticed studying the retail history looking at stores like the Dollar Tree
Walmart, Big Lots or that stores that are very diversified and are
marketing towards products that are for the everyday consumer and
Sometimes maybe cheaper products that maybe have deals on them typically do better and some of these
companies, especially like Dollar Store Dollar General
T.j.maxx clearance outlets and then Walmart actually do better in recessions
And the great thing is that you're selling online and you're able to adapt
So I actually have a few screenshots up here showing about the dollar trees
Revenues, and you can actually see in 2008 that they're doing still pretty decent
You can see Walmart doing pretty decent
however
One company they didn't do as good during a recession kind of flatlined as you can see right here is Best
Buy now Best Buy, they sell higher-end electronics more expensive items, so they're not really to diversify
So yeah, if your business song on Amazon is just through those high-end products. Yeah, you might not do as well
But I don't care what I sell
I'm only gonna sell what makes sense and is worth a profit selling on Amazon recession-proof
Now this is actually a very interesting video
specifically for me because when I first started actually making money online by selling products
It was actually technically during a recession on the 2008 or so and to be very honest with you
I didn't know as a recession, but I was doing pretty well and I was making money as a young kid flipping products online
so
Obviously back then I was making money during recession. So I think I'm a very valid point to talk about this
however
The question I want to ask you is are you willing to adapt are you willing to change?
Because if you're not then selling on Amazon is not recession proof for you
So I'm not gonna say that selling on Amazon is recession-proof or not
But I would say is that if you're willing to adapt you can do a lot better
There's a lot of people who make a lot of wealth
during recessions
I mean
you can definitely see the
Wider spread of the top 1% versus the 99% is even larger larger since the recession
So what's gonna most likely happen is the people who understand how money works?
Understand how money flows are gonna do much much better
The people who understand that money travels in the easiest path to grow it are gonna be the ones who win one more thing
I want to touch about on still the topic of is Amazon recession proof is actually want to talk about the topic of
suppliers right now many suppliers
I will say on a fork in the road not because that the economy is going up or down is
Simply because many suppliers are not willing to adapt to online
Sellers selling online is only going up Amazon did well over two hundred billion dollars in 2018. Last one 2017
They did 178 billion
However, many suppliers that I've noticed who don't adapt for Amazon sellers did really bad in their business
I know many suppliers who did
Twenty five million dollars less than the year before
And it's not because they have worse products. Technically the economy went up - they're not adapting
so what I like to do with my suppliers is actually
Build really good relationships with them and see how I can add value to them to help them adapt
So if you know how to do that
Like if you're in my course or you've gone to any of my summit events or growth events
Then you kind understand what I'm talking about in
Adding value to them and then you can definitely work on those lines. So now the last topic I want to discuss is
What should you do today? And
Tomorrow to prepare. So what should you do right now for selling on Amazon and just in case of this recession?
What should you do? And the answer is very simple
Sell products that sell answers the same you're going to buy low of products that are in demand right during a recession
There's me different products and demand well by those lower
sell them higher if you know how to communicate with your suppliers because your suppliers going to be really working hard for you because
What I like to do is definitely follow the money and understand that my suppliers are the ones who are researching the products
Understanding what's in demand and if there's a recession and whatever consumers are buying up different products
Your suppliers are probably one of the first people to understand what's gonna sell well
So if I know how to work with them communicate with them get access to their products that I'm good
So to answer that last question
Sell products that sell that's a lot to say in this video just to recap this yet
There may be a recession, but with me I've actually made money in recession by selling products online
Yeah, obviously
I was younger not making nearly as much money as I am today and did back then
But for me not knowing what I was doing it was working back then so I'm not really concerned
I understand that a lot of money is to be made during recessions. So I'm not saying that Oh, whatever
I hope there's a recession but I know that I'll be able to make a lot of money during the recession
So that's all I have to say for this video
Thank you so much for watching
If you have any questions at all, feel free to drop them down below and if you also want to get extra information
and if you're a student my amazon course feel free to
Attend the Las Vegas online retail summit on March 14th and 15th. We're expecting around 200 people there only students my Amazon course
It's be an amazing event. So we'd be going over in advance information if I wanna learn more about that
there will be a link down below for that?
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