Author Topic: Selling on Amazon Prime via fulfillment (Amazon FBA) - Anyone try this?  (Read 17093 times)

Cwadda

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Re: Selling on Amazon Prime via fulfillment (Amazon FBA) - Anyone try this?
« Reply #100 on: August 08, 2017, 08:56:33 AM »
For some categories and lots of brands, yes you have to provide invoices. And some you have to get an authorization letter from the brand owner stating you can sell their products on Amazon. But as you can see that hasn't stopped me from making money, and I started in March. I wasn't grandfathered into anything, I've had to apply for everything just like a new seller would today in August.

The guy who got me started began a few years ago, and he's grandfathered into just about everything. It's not fair that he can go out and buy whatever Mattel and Little Tikes junk he wants, and I can't. But that's the way it goes.

It's not gonna stop me from throwing myself in and trying as hard as I can to knock this out of the park.

Question for you: how did you go about getting the grocery category approval? Is it difficult?

mustache you a question

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Re: Selling on Amazon Prime via fulfillment (Amazon FBA) - Anyone try this?
« Reply #101 on: August 08, 2017, 12:16:50 PM »
For some categories and lots of brands, yes you have to provide invoices. And some you have to get an authorization letter from the brand owner stating you can sell their products on Amazon. But as you can see that hasn't stopped me from making money, and I started in March. I wasn't grandfathered into anything, I've had to apply for everything just like a new seller would today in August.

The guy who got me started began a few years ago, and he's grandfathered into just about everything. It's not fair that he can go out and buy whatever Mattel and Little Tikes junk he wants, and I can't. But that's the way it goes.

It's not gonna stop me from throwing myself in and trying as hard as I can to knock this out of the park.

Thanks for the answer!  I've been looking into Amazon FBA for the last month or so and have really focused on the private label piece of it.  I'd like to also do some RA but was concerned when I heard about the invoice issue.  Your answer definitely helped alleviate my concerns.

Thanks again!

hodedofome

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Re: Selling on Amazon Prime via fulfillment (Amazon FBA) - Anyone try this?
« Reply #102 on: August 08, 2017, 12:57:37 PM »

Thanks for the answer!  I've been looking into Amazon FBA for the last month or so and have really focused on the private label piece of it.  I'd like to also do some RA but was concerned when I heard about the invoice issue.  Your answer definitely helped alleviate my concerns.

Thanks again!

Almost always the seller app will tell you that a brand is restricted so you know ahead of time. There are a few brands who aren't restricted but will hit you with intellectual property complaints if you try to sell their stuff. Here's some I've heard of:

Altec-Lansing
August
Belkin
BESTFactor
Boppy
Canary
Celestial Teas
Crime Scene
Disney Software
Drop Kitchen
EB5
Ecstacy Soaps
Honest Kitchen
Kinsa
Kong Pet Products
Kraken Aquatics
K'Tan
MHD
Nest
Nutramax
Ohuhu
Olay
Olympian Athletics Swimcaps
Philips Hue
Rapid Brands
Replogle Globes
Ring (Doorbell)
ThinkGizmos
UAG (Urban Armor Gear)
Vipertek
Ziwi Pet Products
Vic Conner

I wouldn't sell any of these products.

hodedofome

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Re: Selling on Amazon Prime via fulfillment (Amazon FBA) - Anyone try this?
« Reply #103 on: August 08, 2017, 01:25:13 PM »
Question for you: how did you go about getting the grocery category approval? Is it difficult?

Sign up for a free account on Pricemaster.com

You will either need to make 3 separate purchases if you don't have a sales tax certificate or Business License or Home Occupation Permit, or 1 purchase if you have 1 of those documents. I did 1 large purchase (probably too large) as well as submitted my Texas Sales Tax Certificate.

You will need to make sure the business name and address on the Pricemaster invoice is identical to the business name and address on your Amazon seller profile. Note this is not your store name, but the name you give Amazon for tax purposes. You want it to be clear to a foreign Amazon seller support associate that it is the same person/company.

The grocery application form will tell you how many units you need to have on the invoice, but plan on buying at least 10 cases of each item. If you need 3 invoices, then place 3 orders of 10 cases/boxes each.

Product 1: https://pricemaster.com//WALKERS-SHORTBREAD-ROUNDS-24PCSBOX?path=
matches with https://www.amazon.com/Walkers-Shortbread-1-2-oz-2-Count-Cookies/dp/B0019VM5FC

Product 2: https://pricemaster.com//HARIBO-DINOSAURS-5oz---12-BAGSCS?path=
matches with http://www.amazon.com/dp/B008M2DYOC

Product 3: https://pricemaster.com//KOOL-AID-BLACK-CHERRY-48S-3214?path=
matches with http://www.amazon.com/dp/B000ED6IZE

Expect to pay a good amount for shipping. Expect to lose a few bucks on this, but you won't lose a lot. These items sell well (you'll probably sell out within a month) and the ROI on each one is close to break-even after Amazon FBA fees. However, once you factor in shipping you'll probably lose a little bit. It's worth it though. I probably made the money back within a week or two. Grocery can be an awesome category.

You will need to send Amazon the 'original' invoice from Pricemaster. Just wait a day or two after placing the order and they will send it to you. Don't send in the order form or the online Order Invoice you get from the Pricemaster website. You should get an "Original Invoice" from them a day or two after placing the order.

Write the ASIN of the item next to each line item on the invoice. Assume the Amazon seller support has no idea how to read an invoice and figure it out on their own. Make it easy for them. Write down the appropriate ASIN on the same line, and cover up the pricing info. I used Kami online PDF annotation and markup tool. You can do it by hand if you want and scan in the invoice.





Cwadda

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Re: Selling on Amazon Prime via fulfillment (Amazon FBA) - Anyone try this?
« Reply #104 on: August 11, 2017, 10:06:43 AM »
Question for you: how did you go about getting the grocery category approval? Is it difficult?

Sign up for a free account on Pricemaster.com

You will either need to make 3 separate purchases if you don't have a sales tax certificate or Business License or Home Occupation Permit, or 1 purchase if you have 1 of those documents. I did 1 large purchase (probably too large) as well as submitted my Texas Sales Tax Certificate.

You will need to make sure the business name and address on the Pricemaster invoice is identical to the business name and address on your Amazon seller profile. Note this is not your store name, but the name you give Amazon for tax purposes. You want it to be clear to a foreign Amazon seller support associate that it is the same person/company.

The grocery application form will tell you how many units you need to have on the invoice, but plan on buying at least 10 cases of each item. If you need 3 invoices, then place 3 orders of 10 cases/boxes each.

Product 1: https://pricemaster.com//WALKERS-SHORTBREAD-ROUNDS-24PCSBOX?path=
matches with https://www.amazon.com/Walkers-Shortbread-1-2-oz-2-Count-Cookies/dp/B0019VM5FC

Product 2: https://pricemaster.com//HARIBO-DINOSAURS-5oz---12-BAGSCS?path=
matches with http://www.amazon.com/dp/B008M2DYOC

Product 3: https://pricemaster.com//KOOL-AID-BLACK-CHERRY-48S-3214?path=
matches with http://www.amazon.com/dp/B000ED6IZE

Expect to pay a good amount for shipping. Expect to lose a few bucks on this, but you won't lose a lot. These items sell well (you'll probably sell out within a month) and the ROI on each one is close to break-even after Amazon FBA fees. However, once you factor in shipping you'll probably lose a little bit. It's worth it though. I probably made the money back within a week or two. Grocery can be an awesome category.

You will need to send Amazon the 'original' invoice from Pricemaster. Just wait a day or two after placing the order and they will send it to you. Don't send in the order form or the online Order Invoice you get from the Pricemaster website. You should get an "Original Invoice" from them a day or two after placing the order.

Write the ASIN of the item next to each line item on the invoice. Assume the Amazon seller support has no idea how to read an invoice and figure it out on their own. Make it easy for them. Write down the appropriate ASIN on the same line, and cover up the pricing info. I used Kami online PDF annotation and markup tool. You can do it by hand if you want and scan in the invoice.

Thanks so much for this info. I might go for it when time permits.

In the meantime, I've been looking into some bookkeeping softwares. I came across GoDaddy which seems reputable and a nice option, for only about $10/month. Inventory Lab seems a bit overpriced at $50/month, but it might have some extra features that are more tailored to Amazon FBA.
https://www.godaddy.com/email/online-bookkeeping#plans

hodedofome

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Re: Selling on Amazon Prime via fulfillment (Amazon FBA) - Anyone try this?
« Reply #105 on: August 14, 2017, 12:29:31 PM »
I haven't subscribed to any accounting software yet but I'm about to pull the trigger on Inventory Lab. IL is supposed to make it easier to list your products and print out labels, among other things I'm sure. It also has a smartphone app for sourcing that is supposed to show you the keepa graphs for the product you're looking at, which is super handy. I've just been using the Amazon seller app for retail arbitrage and I've been burned several times trusting the rank the Amazon app tells me, but when I look at the keepa history it shows no sales. So I bought something that turned out to be dead inventory.

Michael in ABQ

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Re: Selling on Amazon Prime via fulfillment (Amazon FBA) - Anyone try this?
« Reply #106 on: August 14, 2017, 10:21:54 PM »
Finally started getting some sales of my FBA inventory. I found some tea kettles for cheap online and bought a dozen at about $12each. With the ebates reward (including a $10 new user credit) my actual price including taxes was about $11. This particular color was selling on Amazon for $35 (most other colors were around $25) so I thought I had found a good deal and calculated a profit of about $7-8 each after FBA fees. By the time I got them to the warehouse the price was down to the low 30s. I tried to be a bit lower in order to win the buy box or at least get someone to click on the other sellers to save a few cents. Nope. Amazon was the lowest price and every time I dropped my price they matched it. Even when I went below my break-even point they followed right along. Finally I dropped the price a few dollars below my break-even price just to see how low Amazon would go thinking that maybe I could trick them into selling out of their stock at a lower price. I finally found the magic number where they didn't go any lower if I dropped down to $21.99. Amazon is at $22.24 and I've got the buy box. Within a few hours I had my first sale and four more after that within a little over a day. I'm losing about $2.50-$3.00 each but since I already decided to pull the plug for the time being I'm happy to just recoup most of my costs on this particular item. Had I looked at the history on CamelCamelCamel a bit closer I might have seen that they were always the lowest price and matched any third-party sellers.

Overall a valuable lesson that RA/OA isn't always as easy as it may seem to be. My $8 profit became a $3 loss because I was having to compete head to head with Amazon.
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hodedofome

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Re: Selling on Amazon Prime via fulfillment (Amazon FBA) - Anyone try this?
« Reply #107 on: August 20, 2017, 02:53:23 PM »
If at all possible I don't compete with Amazon. They play dirty. There are plenty of items out there that they don't sell and those are where I'd put most of my focus. The only time I feel comfortable competing with them is when I've found an item on clearance/liquidation and I got it so cheap I don't care about getting in a price war. They will share the buy box, but they don't share it evenly.

Early on I found some financial calculators for $25 on clearance at Wal-Mart, selling for over $50 on Amazon with Amazon as a seller. Rank was like 5k. It sold all day long so all I had to do was drop my price a dollar and get a sale almost immediately.

Recently I found stacks of new books for $0.50 each at a liquidation store. Amazon was a seller on some of them but I still get a sale about every week or two. I just let my repricer match them and eventually they'll rotate me in the buy box. You have to be patient though and like I said, most times I don't buy an item if they are a seller.

NorthernDreamer

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Re: Selling on Amazon Prime via fulfillment (Amazon FBA) - Anyone try this?
« Reply #108 on: August 21, 2017, 09:56:15 AM »
I'm super interested in this idea.

Anyone doing FBA in Canada?

Once you've mailed your items to the warehouse, is it easy to get your items back from Amazon if they don't sell or you decide to stop?

What brands are prohibited? I assume Disney....  Gah just realized there are three pages of info here, found my answer...
« Last Edit: August 21, 2017, 10:15:59 AM by NorthernDreamer »

TheCrew

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Re: Selling on Amazon Prime via fulfillment (Amazon FBA) - Anyone try this?
« Reply #109 on: August 23, 2017, 01:15:13 PM »
I'm posting to follow this. I just launched my first FBA product a few weeks ago. How are gaining reviews? I want to turn on PPC, but feel like I need to wait to get enough reviews to make it worth it?

hodedofome

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Re: Selling on Amazon Prime via fulfillment (Amazon FBA) - Anyone try this?
« Reply #110 on: August 29, 2017, 09:42:27 AM »
I'm posting to follow this. I just launched my first FBA product a few weeks ago. How are gaining reviews? I want to turn on PPC, but feel like I need to wait to get enough reviews to make it worth it?

I haven't done any private label, nor have I gotten big into listing new products yet. But here's what I've learned so far:

Look at your competitor's listings on the front page of Amazon. See how their listings are different from yours. Do they have more pictures? Do they have better pictures? Do they have action shots? Is the description better and longer? Are they using up all the available bullet points? What are their keywords?

Free keyword search tool: http://sonar-tool.com/us/
Also you can use Google's keyword generator and Helium 10 for keyword research.

I've read about vipon.com, where you do a promotion using amztracker.com to get lots of 'VIP' people to buy your product at a discount, review it, then you're off to the races.

tralfamadorian

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Re: Selling on Amazon Prime via fulfillment (Amazon FBA) - Anyone try this?
« Reply #111 on: August 29, 2017, 01:05:10 PM »
You all inspired me to expand my Amazon business; I'm giving wholesale a try with a couple of new brands. 

CargoBiker

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Re: Selling on Amazon Prime via fulfillment (Amazon FBA) - Anyone try this?
« Reply #112 on: August 29, 2017, 09:10:13 PM »
I'm posting to follow this. I just launched my first FBA product a few weeks ago. How are gaining reviews? I want to turn on PPC, but feel like I need to wait to get enough reviews to make it worth it?

Depends on how competitive the niche is and what your CPC is.

PPC isn't going to convert well without reviews. 

If the the niche is competitive and the CPCs are high, you are going to lose money on ads.

If the niche is non-competitive and the CPCs are cheap, you will probably make money on ads, even without reviews.


Bonus takeaway:  Getting sales through PPC will increase your organic search rank, which will increase organic (free) sales, which will increase your organic search rank, which will increase organic sales, which will...


See where I'm going with that?   What seems to be unprofitable at first, might be an extremely profitable investment in the long-term.
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hodedofome

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Re: Selling on Amazon Prime via fulfillment (Amazon FBA) - Anyone try this?
« Reply #113 on: August 30, 2017, 08:03:18 AM »
Finally signed up for Inventory Lab so I could track my actual profits from this side gig. I was selling too much to try to do this manually on a spreadsheet. I'm selling ~$13k/month on Amazon now, looks like actual profit is about 25% of that. Note that this screenshot includes all my inventory cost and Amazon fees, but there's a few outside expenses I didn't include yet. Most likely I've made ~$3k profit for August when it's all said and done. This number is from 8/1-8/29, so there's a few days left that's not reflected.


what is image hosting

As of this point, I put $12k into buying inventory and supplies and whatnot up to this point. As of today I've received $18k back from Amazon, so I guess you could say I've made $6k or 50% Return on Investment. I started from nothing late March. However, I'm not new to running a business, and I've traded stocks and commodities on the side since 2011. There's been a lot of knowledge transfer from my experience to this business, so I bet I've picked up on it quicker than someone who's never done anything like this before.
« Last Edit: August 30, 2017, 08:30:06 AM by hodedofome »

Cwadda

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Re: Selling on Amazon Prime via fulfillment (Amazon FBA) - Anyone try this?
« Reply #114 on: August 30, 2017, 10:16:52 AM »
Finally signed up for Inventory Lab so I could track my actual profits from this side gig. I was selling too much to try to do this manually on a spreadsheet. I'm selling ~$13k/month on Amazon now, looks like actual profit is about 25% of that. Note that this screenshot includes all my inventory cost and Amazon fees, but there's a few outside expenses I didn't include yet. Most likely I've made ~$3k profit for August when it's all said and done. This number is from 8/1-8/29, so there's a few days left that's not reflected.


what is image hosting

As of this point, I put $12k into buying inventory and supplies and whatnot up to this point. As of today I've received $18k back from Amazon, so I guess you could say I've made $6k or 50% Return on Investment. I started from nothing late March. However, I'm not new to running a business, and I've traded stocks and commodities on the side since 2011. There's been a lot of knowledge transfer from my experience to this business, so I bet I've picked up on it quicker than someone who's never done anything like this before.
Do you know if it's possible to just sign up for this around tax day and have all the figures calculated from the year? $40/month is pricey for me right now.

hodedofome

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Re: Selling on Amazon Prime via fulfillment (Amazon FBA) - Anyone try this?
« Reply #115 on: August 30, 2017, 12:45:33 PM »
There's a free trial but it only goes back 2 months. If you pay you can get all your data synched. I think month to month it's $50, and takes a few days to sync your data. Plus you have to put in all your inventory costs and expenses for it to be accurate.

I'm just gonna dump spreadsheets of my credit card transactions and add that up as my expenses. Then take the payouts I received from Amazon for the year and record that as my income. Cash basis is the simplest way to go and I like simple.

hodedofome

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Re: Selling on Amazon Prime via fulfillment (Amazon FBA) - Anyone try this?
« Reply #116 on: August 30, 2017, 04:08:01 PM »
Also, notice on my income statement that I had $688.76 in reimbursements this month. That's because UPS damaged and discarded an entire box of inventory I sent Amazon back in late June. It took about a month before the shipment was able to be investigated, and almost another month for the investigation to conclude that yes, all my crap was destroyed and it wasn't my fault. It was over $300 my cost for that box. Amazon eventually reimbursed me, along with the potential profit I would have had, but it took a while.

You'll need to check each shipment after it's been received and make sure that they received the same number of items you sent them. It's amazing the number of times they say I only sent 3 when I sent 5, or whatever. You have to open up an investigation on each shipment, and you have to wait like a month before it's 'available' to be investigated.

There are plenty of times a seller can feel like Amazon is screwing them over, but sometimes it comes out in your favor as well. Amazon says I sent them 2 textbooks that sell for $200 each, when I only sent 1. I would have known if I had more than 1 of those!!! Anyways, both of them sold and I was credited for the sale. That 1 book alone probably paid for a lot of the items Amazon has 'lost' and not reimbursed me for over the past few months. I'm guessing it ends up in a wash.

RFord617

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Re: Selling on Amazon Prime via fulfillment (Amazon FBA) - Anyone try this?
« Reply #117 on: September 08, 2017, 07:50:28 PM »
Interested in following this thread. My wife and I finally started selling on amazon more seriously. I've had a seller account for a few years, but never did more than a few random sales because of life. Then I watched two of my best friends both create full time incomes from home through amazon. This year, we made the decision for my wife not to go back to teaching (it had taken a toll over the 6 years and we're young enough to take some chances) and keep her full time at home to attack the amazon model.

We started off dabbling in drop shipping, which one of my friends does and makes a good living. We decided we liked the FBA model much better, and just switched to that. Our first shipments just went out yesterday. If anyone is interested, I'd be more than happy to update.

A bit of food for thought on how we approached this. The whole purpose of this venture was to build a method to replace my wife's income so she could raise our kids. Right now we don't "NEED" the income and are in a place to take some chances. We set up and LLC and ALL of the infrastructure before doing anything. This included, which I'm thankful for already, purchasing the best software and tools to make the job as streamlined as possible from the jump. This included a thermal label printer, Inventory Lab, and all the extra stuff I knew we would need. I've spent a lot of time trying to set my wife up for success, and so far so good. We spent around $1500 on inventory this week, and plan to repeat next week. All works out, there should be at least an average 25% ROI.

If you want to get into this, know the competition is out there, but there is plenty of money to make. Unless you jump into with both feet though, it will be very discouraging at first. Having the tools to make the job much easier is an immediate relief and will make life much better, which in turn will help you grow faster.

There's a lot of good info in this thread for anyone thinking of making the jump.

SimpleGuy

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Re: Selling on Amazon Prime via fulfillment (Amazon FBA) - Anyone try this?
« Reply #118 on: September 15, 2017, 09:11:44 PM »
I'm interested in this too, although I'm a bit skeptical.  Sounds too good to be true.  For those of you who are selling with FBA, how much are you making per hour?  I'm considering working part time over the next 10 years instead of full time for 5, and something like this would be perfect.  But only if it would be more profitable then a low stress job making $10-12/hour.   

RFord617 - how much did you spend getting set up for your operation?

Thanks.

hodedofome

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Re: Selling on Amazon Prime via fulfillment (Amazon FBA) - Anyone try this?
« Reply #119 on: September 19, 2017, 01:07:46 AM »
Update: I haven't had much time to source the past month so my sales have flattened and actually dropped about 10%. I'll probably make somewhere between $2-3k profit for September. Working about 5-10 hours a week. I just bought a house so for the next month all I'm doing is re-ordering replenishables that I run out of stock of. I realize 4th quarter is coming up and I want to hit that hard end of October and all of November.

Amazon just started auto-approving most of the sub-categories, at least for more experienced sellers. I was able to get into all of them and it's awesome. Supplements, baby products, OTC medicine etc. There's a lot of that stuff on clearance in stores and it's high dollar too. I can tell it's going to help tremendously.

Plan is to hit Q4 hard with OA and RA, and in 2018 grow into wholesaling. I want to get a virtual assistant soon to source for me on the OA side.

Crusading Angel

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Re: Selling on Amazon Prime via fulfillment (Amazon FBA) - Anyone try this?
« Reply #120 on: October 07, 2017, 03:11:05 AM »
I'm interested in this too, although I'm a bit skeptical.  Sounds too good to be true.  For those of you who are selling with FBA, how much are you making per hour?  I'm considering working part time over the next 10 years instead of full time for 5, and something like this would be perfect.  But only if it would be more profitable then a low stress job making $10-12/hour.   

RFord617 - how much did you spend getting set up for your operation?

Thanks.

It's definitely not too good to be true. It's a steep learning curve, but it's extremely easy once you have everything set up. I've done seller-fulfilled for 3 years. Just got into FBA a year ago. I've made about $12,000 in the last 3 months working about 10 hours per week. Everything is pretty much automated for me now other than buy items online and repackaging everything to ship them to Amazon. At the rate I'm going it's about 100$/hr. I make all of this from my couch. Honestly my biggest problem is the way I source my product. The place I buy from puts limits on what I can buy with each order. So if I want to buy like 100 of something I have to put in 20-30 orders. My UPS and mailman guy also both hate me. I have a huge staircase up to my house. They probably bring a couple hundred packages up those stairs each month.

I do have some tips that are a little uncommon but can help you make extra profit.

1. Definitely get InventoryLabs for tax purposes. I use to spend the bulk of my time entering stuff into my spreadsheet. I don't have to do that any more. In fact I made about $130,000 in sales in the last 3 months and it would be a MAJOR headache to do this by hand.

2. Use online portals if you plan on buying from well known stores like walmart/target etc. I received an extra $1500 in cashback for this year alone from doing that.

3. Use credit cards to purchase your items. Manufacture spending on those cards for free vacations etc. My chase ink earns me 5x points back. I can use it to buy gift cards from cardcash or paypal digital gifts from ebay to earn that 5x back. I also use 2% credit cards and cards that offers 0% intro APR. In fact I got a Amex Blue Plus Biz card from Amex. They gave me a $21,000 limit for like a year on 0% APR. That's how I was able to grow my business immensely. This is the points and miles I've about gained within the last year or two. 60k ANA 55k Lufthansa 2 Fairmont Free Nights 75k Mariott 45k SPG 7.5k Hyatt + 2 Free Nights 267k MR 201k UR 201k Delta 110k American (In Progress). I can pretty much redeem the American Express MR points and Chase UR points for an extra ~5,000. I churn credit cards for sign-up bonuses, kind of like what some people do with churning bank accounts.

4. Get a CPA. I actually haven't gotten one yet.... Last year I made only like 20k in sales and 7k in profit (without Amazon FBA) and figured I could do my taxes myself. I'm definitely getting one now. Also don't be like me and put spending on random cards, ideally get a business card to track your spending. Because I'm going to have a headache come tax time when the CPA tries to balance my spending. Oh and also maybe get a business checking account to separate business and personal spending. You probably won't really need this if you your business is starting out small.'

5. Go and watch amazon videos on how to start becoming an Amazon FBA seller. All it took was for me to watch an hour long video. The first week was nerve wrecking, but it was easy sailing from there. I don't have the exact link, but just search on youtube.

6. I honestly might start outsourcing the prepping of my inventory. There are actually companies out there that can do it for you for a price. Might be a good idea later on if you get big. One of my biggest problems is space in my house as well as having these mail carriers ship large amount of items to my house. They start to ask questions.

7. Inventory often get misplaced by Amazon. They won't always reimburse you for it. I use a 3rd party program to get them to auto-reconcile for me. I spend $40 a month on this like inventor lab. Again think of it this way. I make about $100 an hour because I automate everything. It costs $80 for me to have programs find my lost items and to record my sales. That's an extra hour I might have to source products or just chillax. It's a worthy investment.

8. Slickdeals is not too bad of a place to look for inventory to sell. They're one off items, but money is money.

Here's my IL. I'm jealous of you though hodedofome I could get the same ROI lol. On the bright side I do earn a lot of points doing this though.

« Last Edit: October 07, 2017, 03:36:11 AM by Crusading Angel »

Cwadda

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Re: Selling on Amazon Prime via fulfillment (Amazon FBA) - Anyone try this?
« Reply #121 on: October 09, 2017, 07:29:44 AM »
I'm interested in this too, although I'm a bit skeptical.  Sounds too good to be true.  For those of you who are selling with FBA, how much are you making per hour?  I'm considering working part time over the next 10 years instead of full time for 5, and something like this would be perfect.  But only if it would be more profitable then a low stress job making $10-12/hour.   

RFord617 - how much did you spend getting set up for your operation?

Thanks.

It's definitely not too good to be true. It's a steep learning curve, but it's extremely easy once you have everything set up. I've done seller-fulfilled for 3 years. Just got into FBA a year ago. I've made about $12,000 in the last 3 months working about 10 hours per week. Everything is pretty much automated for me now other than buy items online and repackaging everything to ship them to Amazon. At the rate I'm going it's about 100$/hr. I make all of this from my couch. Honestly my biggest problem is the way I source my product. The place I buy from puts limits on what I can buy with each order. So if I want to buy like 100 of something I have to put in 20-30 orders. My UPS and mailman guy also both hate me. I have a huge staircase up to my house. They probably bring a couple hundred packages up those stairs each month.

I do have some tips that are a little uncommon but can help you make extra profit.

1. Definitely get InventoryLabs for tax purposes. I use to spend the bulk of my time entering stuff into my spreadsheet. I don't have to do that any more. In fact I made about $130,000 in sales in the last 3 months and it would be a MAJOR headache to do this by hand.

2. Use online portals if you plan on buying from well known stores like walmart/target etc. I received an extra $1500 in cashback for this year alone from doing that.

3. Use credit cards to purchase your items. Manufacture spending on those cards for free vacations etc. My chase ink earns me 5x points back. I can use it to buy gift cards from cardcash or paypal digital gifts from ebay to earn that 5x back. I also use 2% credit cards and cards that offers 0% intro APR. In fact I got a Amex Blue Plus Biz card from Amex. They gave me a $21,000 limit for like a year on 0% APR. That's how I was able to grow my business immensely. This is the points and miles I've about gained within the last year or two. 60k ANA 55k Lufthansa 2 Fairmont Free Nights 75k Mariott 45k SPG 7.5k Hyatt + 2 Free Nights 267k MR 201k UR 201k Delta 110k American (In Progress). I can pretty much redeem the American Express MR points and Chase UR points for an extra ~5,000. I churn credit cards for sign-up bonuses, kind of like what some people do with churning bank accounts.

4. Get a CPA. I actually haven't gotten one yet.... Last year I made only like 20k in sales and 7k in profit (without Amazon FBA) and figured I could do my taxes myself. I'm definitely getting one now. Also don't be like me and put spending on random cards, ideally get a business card to track your spending. Because I'm going to have a headache come tax time when the CPA tries to balance my spending. Oh and also maybe get a business checking account to separate business and personal spending. You probably won't really need this if you your business is starting out small.'

5. Go and watch amazon videos on how to start becoming an Amazon FBA seller. All it took was for me to watch an hour long video. The first week was nerve wrecking, but it was easy sailing from there. I don't have the exact link, but just search on youtube.

6. I honestly might start outsourcing the prepping of my inventory. There are actually companies out there that can do it for you for a price. Might be a good idea later on if you get big. One of my biggest problems is space in my house as well as having these mail carriers ship large amount of items to my house. They start to ask questions.

7. Inventory often get misplaced by Amazon. They won't always reimburse you for it. I use a 3rd party program to get them to auto-reconcile for me. I spend $40 a month on this like inventor lab. Again think of it this way. I make about $100 an hour because I automate everything. It costs $80 for me to have programs find my lost items and to record my sales. That's an extra hour I might have to source products or just chillax. It's a worthy investment.

8. Slickdeals is not too bad of a place to look for inventory to sell. They're one off items, but money is money.

Here's my IL. I'm jealous of you though hodedofome I could get the same ROI lol. On the bright side I do earn a lot of points doing this though.

Thanks for the tips.  $12k profit is really nice, congrats.

And I thought I was doing pretty well for my first 2 months lol.  I'm averaging $1500/month in sales doing RA only and work maybe 5 hours a week.  But this number is also growing as I find the right things to sell.  Last week I found 57 copies of a very popular book, which would give $6 profit each (potential $335 profit).  My returns are similar to hodedofome's.  I'm finding difficulty in scaling everything up (replenishable items, online sourcing, etc).  But I haven't invested in the powerful software programs out there yet.

I'd like to scale up more to hodedofome and Crusading Angel's level.  Still have some learning to do :P

SimpleGuy

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Re: Selling on Amazon Prime via fulfillment (Amazon FBA) - Anyone try this?
« Reply #122 on: October 09, 2017, 09:25:41 PM »
Crusading Angel - thanks for the tips.

7. Inventory often get misplaced by Amazon. They won't always reimburse you for it. I use a 3rd party program to get them to auto-reconcile for me. I spend $40 a month on this like inventor lab. Again think of it this way. I make about $100 an hour because I automate everything. It costs $80 for me to have programs find my lost items and to record my sales. That's an extra hour I might have to source products or just chillax. It's a worthy investment.

I was on the Amazon Sellers Forum and read a lot of complaints about lost inventory.  Sounds like it has gotten worse in the last few years.  That concerns me.  Can that be written off?  Or do you just have to eat it?

VA Mustache

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Re: Selling on Amazon Prime via fulfillment (Amazon FBA) - Anyone try this?
« Reply #123 on: October 12, 2017, 10:00:03 AM »
My thanks to all the experienced hands posting on this thread. I've been skeptical of some of the gurus claiming great Amazon FBA ROI. Hearing of the success of fellow Mustachians is reassuring.

Much appreciated, all!

hodedofome

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Re: Selling on Amazon Prime via fulfillment (Amazon FBA) - Anyone try this?
« Reply #124 on: October 18, 2017, 01:22:42 PM »
Crusading Angel - thanks for the tips.

7. Inventory often get misplaced by Amazon. They won't always reimburse you for it. I use a 3rd party program to get them to auto-reconcile for me. I spend $40 a month on this like inventor lab. Again think of it this way. I make about $100 an hour because I automate everything. It costs $80 for me to have programs find my lost items and to record my sales. That's an extra hour I might have to source products or just chillax. It's a worthy investment.

I was on the Amazon Sellers Forum and read a lot of complaints about lost inventory.  Sounds like it has gotten worse in the last few years.  That concerns me.  Can that be written off?  Or do you just have to eat it?

Whatever complaints people have about Amazon, it's not enough to make them leave and go somewhere else. This is the cost of playing on the greatest e-commerce platform in the history of the world. If I make a few thousand per month working a few hours a week, and Amazon screws me over on a few hundred bucks a month, am I gonna complain? Sure. Am I gonna leave?

Heck no.

The only thing that will get me to leave is if Amazon closes my account.

I just eat the inventory. Either give it away, re-wrap it for gifts, or use it. I got enough Gain multi-purpose spray to last me a year or two. I have enough 'miracle cleaning cloths' to take care of female family's christmas gifts. I have enough slimey goo creation kits for a few years of my kids' birthdays and whatnot. Just comes with the territory.
« Last Edit: October 18, 2017, 01:28:09 PM by hodedofome »

Wayward

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Re: Selling on Amazon Prime via fulfillment (Amazon FBA) - Anyone try this?
« Reply #125 on: October 26, 2017, 08:55:51 AM »
Following!  I have been interested in selling on Amazon FBA, but am nervous to get started and not sure of what to sell. Will check out the podcasts and sites mentioned here!
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rab

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Re: Selling on Amazon Prime via fulfillment (Amazon FBA) - Anyone try this?
« Reply #126 on: November 03, 2017, 04:09:54 PM »
PTF

Crusading Angel

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Re: Selling on Amazon Prime via fulfillment (Amazon FBA) - Anyone try this?
« Reply #127 on: November 17, 2017, 01:26:43 AM »
Crusading Angel - thanks for the tips.

7. Inventory often get misplaced by Amazon. They won't always reimburse you for it. I use a 3rd party program to get them to auto-reconcile for me. I spend $40 a month on this like inventor lab. Again think of it this way. I make about $100 an hour because I automate everything. It costs $80 for me to have programs find my lost items and to record my sales. That's an extra hour I might have to source products or just chillax. It's a worthy investment.

I was on the Amazon Sellers Forum and read a lot of complaints about lost inventory.  Sounds like it has gotten worse in the last few years.  That concerns me.  Can that be written off?  Or do you just have to eat it?

Sometimes you just eat it. Although as I mentioned there are sites out there that will help you with this as well. I mentioned Invy Lab in 7. for data keeping. Forgot to mention the thing I use for lost inventory. I use Refund XRay which is $99 a year. They allow you to check twice a month for any lost inventory. Essentially you download several reports (they have videos to show you how to dl each report) and then you upload it into their system and they automatically read out your lost inventory for you. I then copy and paste the information and open cases with Amazon. It has helped me get some money back, but it's a little glitchy and annoying to do manually. This past month for example I checked some inventory and amazon had already reimbursed me for some and they still gave me the inventory as missing. It's definitely worth the $99 since I'm basically at 300k in sales at this point. I'm not sure of the exact number but I've definitely gotten way more than $99 back.

I also use refundmanager. I originally used this a few months ago when I was smaller and I still do. They charge you 25% of what you get reimbursed back. They automate everything and opens the case on Amazon for you. They've helped me find ~400 in the last 10 month. I'm sure both of these missed some inventory, but I've definitely got reimbursed for probably 1k+ that I probably wouldn't have gotten back while paying only $200 in fees. Refundmanager is great if you're small time while Refund Xray is great for bigger sellers.

Sorry for the late reply btw. Haven't checked mmm forums in a while.

Crusading Angel

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Re: Selling on Amazon Prime via fulfillment (Amazon FBA) - Anyone try this?
« Reply #128 on: November 17, 2017, 01:32:24 AM »
Following!  I have been interested in selling on Amazon FBA, but am nervous to get started and not sure of what to sell. Will check out the podcasts and sites mentioned here!

Oh I found the youtube video that helped me get started with my amazon fba business I mentioned in my post. I'll post it here for anyone that's interested. Feel free to pm or post here with your questions!

https://www.youtube.com/watch?v=vVYNJOEeotQ

hgjjgkj

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Re: Selling on Amazon Prime via fulfillment (Amazon FBA) - Anyone try this?
« Reply #129 on: November 19, 2017, 11:47:51 AM »
For some of the more experienced folks here do you have an estimated all in cost to start doing this?  Do you feel the market is saturated due to ubiquitous tools like Jungle Scout?

Michael in ABQ

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Re: Selling on Amazon Prime via fulfillment (Amazon FBA) - Anyone try this?
« Reply #130 on: November 27, 2017, 02:21:41 PM »
I'm thinking of trying to get back into this but it feels like the online/retail arbitrage space is pretty crowded and that Amazon is making it harder and harder for those who aren't legitimate resellers.

It looks like finding a wholesaler, or better yet a manufacturer, of a product that is already selling would be a lot more stable. You could just replenish your inventory and take advantage of the bulk pricing. Every time I looked for profitable things to sell at a typical store like Walmart or Target it was almost all restricted or wouldn't even break even after all of the fees. The barriers to entry are minimal whereas if you could build a relationship with a manufacturer or wholesale, especially with a restricted brand, you wouldn't face the same kind of competition.
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