Topic Wiki

    Selling On Amazon
    When signing up for an account there are two options. If you're just starting out, get the Individual Plan, you can upgrade the account whenever you want.

    Individual Selling PlanProfessional Selling Plan
    $0.99 fee for each item sold. If you sell 40+ items/month, you will need the Professional plan.  Flat fee of $39.99/month and more powerful and flexible tools to manage inventory, reports, feeds and access to web services.

    Amazon is an amazing platform that offers great opportunities for starting a business and making money. However when starting out, take it slow.
    There is much to learn and get used to. Before investing all your savings on a product you hope will quickly turn a profit take the time to familiarize yourself with the system.
    Perhaps start out with a smaller investment just to get your feet wet. Go through the basic guidelines offered by Amazon here.

    Below are tips, clarifications and insights from members of this forum. Feel free to pitch in or ask you questions.

    Some factors to consider before investing in a product to sell:

    1) Price: How much did the item cost you? Have you taken into account shipping costs (both to you and to the customer)? Will you have to pay taxes? Amazon keeps a percentage of every sale (including shipping fees). It’s 15% for most product categories besides a few like electronics that are 8%. You can see the full schedule of fees here. There are several online tools to help you price your products including an FBA Revenue Calculator here and an Amazon built iOS app. A quick way to figure out how much you’d need to charge just to break even after amazon fees is to take the total product cost and then multiply it by 1.1766 (for 15% fees) or 1.087 (for 8% fees).

    2) Velocity:  How fast will the item sell? It's nice to find a product for $10 that you can flip for $100.  But if you’ll only sell 1 a year, it won’t be a very good investment. The best way to determine the velocity of an item is to check the sales rank. Sales rank indicates the popularity of a product compared to other products in its category. The lower the ranking the more popular it is. The iOS app has sales rank baked in too. To get a proper feel for the turnaround time of an item, you'll need to dip your toes in slowly. Note: An item may have a great sales rank due to a recent sale, make sure to check price history on camelcamelcamel.com or keepa.com to get a better picture of the real price and rank of an item.

    3) Return Rate: Even after you sold a few laptops and tablets profitably, you'll have to take into account that a buyer may want to return the item. Certain items have higher rates of return, so make sure to take that into account when deciding whether it's profitable/worth your effort to sell the item.


    Fulfilled By Amazon (FBA):
    The seller sends the items to Amazon warehouse. Amazon takes care of fulfilling the order, and customer service related to the order.

    Pro's Of FBA
    Con's Of FBA
    • Easier to get in the Buy Box
    • You're able to offer Prime shipping
    • For anything above $300, Amazon only charges the standard referral fee. This actually makes FBA cheaper when you take the discounted shipping to Amazon into account.
    • If you have a large or heavy item, shipping the item to the customer can be expensive especially if it is going to a residential address. If you send that item to amazon FBA charges will be much lower than your shipping would have cost. (Including shipping it to FBA)

    • Returns (See this post for a more detailed explanation)
      • Returns are accepted without any restocking fee.
      • Items that are Damaged/missing parts are taken back.
      • Since Amazons is super lax on returns, your return rate will be significantly higher.
      • Refunds may harm your cash flow. When a buyer selects "Return" on his order history, often Amazon will immediately issue him a refund, and debit your account.
    • If the item is not a fast selling item, it will sit in their warehouse. Amazon charges a fee for every 30 Days an item remains their warehouse, it is usually a tiny fee, but it adds up.


    Q: How can I move inventory from one ASIN to another ASIN without having them returned on FBA listings?
    A:
    Before I Teach you guys the method you must keep 2 things in mind:
    1) This Method isn't guaranteed! As we all know how seller support is operating, Since this processes involves them its only about %95 accurate but its still a YMMV!
    2) This is kind of grey whether its in violation of Amazon's policy so i do not take responsibility if you get hit!
    Its a 4 step process make sure to follow them properly! Follow this link

    Q: If I have 3 items to send into FBA and they are splitting me to 3 different locations. Can I ship all 3 items to one location?
    A:
    Yes, you can choose "Inventory Placement Service" in FBA settings to send all your inventory to one nearby warehouse. Amazon charges an additional fee ($.30, CMIIW) per item.
    Note: That even once your inventory reaches Amazon, if Amazon is moving it to a different warehouse, the item will be "back-ordered"

    Q: I'm having a hard time finding a box for a large product, can I just ship with the box the way it came from the store?
    A:
    There might not be a clear cut answer for every scenario. But, some have sold many large printers through FBA, by just putting the shipping label directly on the box and not having an issue.

    Q: What is considered case pack when sending in items to Amazon FBA?
    A:
    Case pack is when all the items in the box are from the same ASIN.

    Q: I'm doing FBA shipping for the first time. and it says "prep required". What does that mean?
    A:
    Prep Required means there is some preparation for the products that will need to be done before it could be added the the Amazon inventory. Typically, it is either labeling the items, taping the boxes shut, or poly bagging. If you do not prepare the items yourself, Amazon can/will do it for a charge.
    Q: What is the buy box? How do I win the buy box?
    A:
    The Buy Box is the box on a product detail page where customers can begin the purchasing process by adding items to their shopping carts.
    To give customers the best possible shopping experience, Sellers must meet performance-based requirements to be eligible to compete for Buy Box placement. All Buy Box eligible offers are then further evaluated to determine the Buy Box winning offer. One "New" and one "Used" condition offer, as applicable, will receive Buy Box placement.

    Q: What is an A-Z claim?
    A:
    When you buy from third-party sellers on Amazon.com, the condition of the item and its timely delivery are guaranteed under the A-to-z Guarantee.
    Therefore, a buyer may open a claim if the above is not met to his expectations.

    Q: I have an item that is handmade how do I go about selling it on?
    A:
    Create your own listing and buy a UPC code.

    Q: Any advice on packaging and shipping?
    Check the Shipping Master Thread

    Q: Why are some items on Amazon missing the Amazon sales rank number?
    A:
    Go to add a product > sell yours  it should be in the top right corner. If it's not there usually it means no one bought yet.

    Q: How do you compare Ebay/paypal fees to Amazon fees?
    A:
    Depends on the category. For a lot of categories,Please Update Categories it may be cheaper, as with Amazon there is just one fee, but for eBay sales there also is a Paypal fee.

    Does the Amazon sales rank mean a lot when researching a product to sell?
    A:
    Yes





    Q: How do I get customers to leave feedback (I tried emails)? I sold multiple items
    recently and no feedback yet
    Please Update

    Q: I Got an email from a buyer where's my stuff? I have a Fedex/UPS delivery confirmation signature. How should I go about this?
    A:
    Firstly, tell the buyer that UPS/Fedex shows that it was signed for, and they should check if the item was delivered to a neighbor, from desk of building ect... Next open an investigation from your end with UPS/Fedex to have them do research and contact their driver of what may have happened to this item. It all depends on how co-operative the buyer is, on exactly how to precede. If they are trying to scam you, then there is not much as a seller you could do. They may open an A-Z claim (you would have to weigh your options if it is worth having a claim) Amazon may or may not grant it in your favor. I have never had this with Amazon. Such a claim is not typical.
    What is more common is if there was no signature, and tracking shows it was delivered, and the buyer is claiming they have not received it.
    For myself - Fedex has reimbursed me multiple times with such instances

    Scams
    Q: I posted an expensive item on Amazon. Somebody sent me a message, asking to clarify the condition of the item is (it was clearly stated in the description), along with a request to reply to his own email, and he'll pay through PayPal. Is there anything this buyer can so to screw me over, after I send him the item? Anything else I should know?

    A: SCAM SCAM SCAM. There is NO reason you should EVER do this. There is a reason why Amazon has this policy. This is how the scams works.
    The guy sends a FAKE email from an email account such as paypal1@realpaypal.com. In reality no money was sent to your account and its bogus. The scammers are hoping that you will think that you got the money and will send the item.
    You should report it to paypal each time. beware! always check your paypal account if the money came.
    Another reason not do this-you will get kicked off amazon for good,sometimes competitors set this up.[/list]



    Commonly used resources

    A List of lots of links to resources commonly used in Amazon selling
    http://www.asgtg.com/amazon-services/


    « Last edited by mgarfin on January 02, 2018, 09:07:51 PM »

    Author Topic: Selling on Amazon Master Thread  (Read 971175 times)

    Offline Tzadik Nistar

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    Re: selling on amazon
    « Reply #800 on: May 05, 2014, 11:18:50 PM »
    I said sell TO amazon
    I know someone that did and stopped, it could be very difficult to deal with them they cancel orders after you ship and they keep on charging back etc.

    Offline ya

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    Re: selling on amazon
    « Reply #801 on: May 06, 2014, 11:52:03 AM »
    I know someone that did and stopped, it could be very difficult to deal with them they cancel orders after you ship and they keep on charging back etc.
    What do you mean by charging back? They have been asking me to sell to them for awhile but I am not sure its the best idea.

    Offline Tzadik Nistar

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    Re: selling on amazon
    « Reply #802 on: May 06, 2014, 04:54:05 PM »
    What do you mean by charging back? They have been asking me to sell to them for awhile but I am not sure its the best idea.
    They placed orders, after the order shipped they canceled them and charged back for shipping canceled orders.

    Offline ilherman

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    Re: selling on amazon
    « Reply #803 on: May 06, 2014, 06:30:33 PM »
    And they force you to take customer returns... They think they own the world.
    You can say what you think when you think what you say.

    Offline Joe4007

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    Re: selling on amazon
    « Reply #804 on: May 06, 2014, 06:47:33 PM »
    And they force you to take customer returns... They think they own the world.
    Well, they kinda do...

    Offline ya

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    Re: selling on amazon
    « Reply #805 on: May 07, 2014, 09:19:46 AM »
    And they force you to take customer returns... They think they own the world.
    How is this different then FBA- They do the same. You have to understand you are selling on their platform.

    Offline california

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    Re: selling on amazon
    « Reply #806 on: May 07, 2014, 10:54:22 AM »
    How do I remove a review thats about the costumer service and not about the item?

    Offline yossi4k

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    Re: selling on amazon
    « Reply #807 on: May 07, 2014, 02:14:40 PM »
    How do I remove a review thats about the costumer service and not about the item?
    contact seller support

    Offline dave

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    Re: selling on amazon
    « Reply #808 on: May 08, 2014, 03:54:16 PM »
    any recommendations on cheap product photography?

    Offline Centurion

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    Re: selling on amazon
    « Reply #809 on: May 10, 2014, 11:33:53 PM »
    any "dont use" programs out of the box for repricing and/or feedback?
    you can only make a first impression ONCE

    Offline Centurion

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    Re: selling on amazon
    « Reply #810 on: May 10, 2014, 11:35:31 PM »
    looking for the best software to do asin matching - any ideas?
    you can only make a first impression ONCE

    Offline sam123

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    Re: selling on amazon
    « Reply #811 on: May 11, 2014, 08:55:08 AM »
    Hi

    I'm looking for a listing company to list easily on amazon and eBay,
    but I wanna hear from experience, not just names thar are out there..
    And just a company that charges a flat fee, not by %.

    Offline Centurion

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    Re: selling on amazon
    « Reply #812 on: May 11, 2014, 10:06:53 AM »
    Hi

    I'm looking for a listing company to list easily on amazon and eBay,
    but I wanna hear from experience, not just names thar are out there..
    And just a company that charges a flat fee, not by %.

    can you tell me who "not to use"?
    you can only make a first impression ONCE

    Offline Centurion

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    Re: selling on amazon
    « Reply #813 on: May 11, 2014, 10:09:06 AM »
    They charge also a fulfillment fee.

    I usually use the 2 day shipping option, rates are good.

    Using the standard shipping could take a long time, as they often use smart post.

    sure post? innovation mail?
    any info on with UK and Germany  accounts?
    you can only make a first impression ONCE

    Offline mgarfin

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    Re: selling on amazon
    « Reply #814 on: May 11, 2014, 02:59:22 PM »
    Im trying to understand amazon policy

    I solid an item and received after commission and fulfillment  fees $36.57

    customer initiated a return so I was charged $42.15

    after 45 days that product was not returned to Amazon amazon released to me $36.57

    Whats the math here? why do I wind up losing 6$ for nothing?

    Offline sam123

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    Re: selling on amazon
    « Reply #815 on: May 11, 2014, 03:05:07 PM »
    They have a refund fee to..

    Offline ilherman

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    Re: selling on amazon
    « Reply #816 on: May 11, 2014, 03:10:22 PM »
    Im trying to understand amazon policy

    I solid an item and received after commission and fulfillment  fees $36.57

    customer initiated a return so I was charged $42.15

    after 45 days that product was not returned to Amazon amazon released to me $36.57

    Whats the math here? why do I wind up losing 6$ for nothing?
    Are you sure they charged you $42.15?
    You can say what you think when you think what you say.

    Offline ilherman

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    Re: selling on amazon
    « Reply #817 on: May 11, 2014, 03:10:49 PM »
    They have a refund fee to..
    Correct. But not that much.
    You can say what you think when you think what you say.

    Offline mgarfin

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    Re: selling on amazon
    « Reply #818 on: May 11, 2014, 04:21:21 PM »
    Are you sure they charged you $42.15?

    Yes

    Offline mgarfin

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    Re: selling on amazon
    « Reply #819 on: May 15, 2014, 01:36:23 PM »
    Im trying to understand amazon policy

    I solid an item and received after commission and fulfillment  fees $36.57

    customer initiated a return so I was charged $42.15

    after 45 days that product was not returned to Amazon amazon released to me $36.57

    Whats the math here? why do I wind up losing 6$ for nothing?

    So I opened a case to get an explanation and it took them a week to answer and don't get it

    Amazon May 15, 2014 10:01 AM
    Greetings,

    We are contacting you regarding the refund and reimbursement on the order: 113-xxxxxxx-xxxxxxx.

    On Mar 11, 2014, you were paid $36.57 for ASIN B00XXXXXX as part of order.

    On Mar 29, 2014, the buyer requested a refund, and your account was debited the net amount of $42.15.

    The difference of $5.58 in the above two transactions is the result of the FBA fulfillment fees not being refunded to your account. In this case the following fulfillment fees:

    Order Handling fee: $1.00
    Pick & Pack fee: $1.02
    Weight Handling fee: $2.12
    Total fulfillment fees: $4.14

    We also charge the applicable refund administration fee to your account when processing a refund. You were charged a refund administration fee of 1.44 on this order.

    We also credit the commission charged to you. On this order we credited the commission to you in the amount of $1.44.

    All orders on Amazon.com fulfilled through FBA are subject to the following:
    Amazon.com's General Returns Policy
    http://www.amazon.com/gp/help/customer/display.html/?nodeId=901888#policy

    Related FBA Service Terms of the Amazon Services Business Solutions Agreement
    https://sellercentral.amazon.com/gp/help/1791#FBA

    Amazon's decision to accept or decline a return and determination of the condition of the returned unit is final.

    I know that it is disappointing, however, please understand whenever a unit is lost or damaged in the warehouse we consider the unit to be sold and reimburse you exactly the same amount that you would receive if the unit was actually sold.

    So this is the reason the FBA selling fees is deducted at the time of creating the reimbursement. This process is completely automated and we are not authorized to make any changes to the system.

    Expecting your diligence in understanding Amazon's policies.

    Thank you,


    Thank you!

    Please note: This e-mail was sent from an address that cannot accept incoming e-mail.

    Thank you for selling with Amazon,

    Dinesh K
    Amazon.com Seller Support