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 514939 times)

    Offline Super Speed

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    Re: selling on amazon
    « Reply #375 on: December 10, 2013, 11:39:04 PM »
    Do you have any idea why they shut you?

    I think you mentioned a while ago that they removed some of your listings, no?
    Wow great memory yes they did but they reinstated everything because it was a mistake. This time also the rep had no clue why they just told me to email the seller performance team.

    Offline Super Speed

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    Re: selling on amazon
    « Reply #376 on: December 10, 2013, 11:40:39 PM »
    Wow

    When I started selling on Amazon, they froze my account for 6-8 weeks while doing a review, and tied up about $6-8k.

    In my case, my account was still active all along
    I don't care so much about locking my account for now as I didn't have any active listings. The money though I need this is totally insane.


    Offline metziah

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    selling on amazon
    « Reply #377 on: December 10, 2013, 11:40:58 PM »
    How do I go about filing a quarterly sales tax report when selling on Amazon? What happens when they collect sales tax? do they pay it or do they pass it on to me? in my quarterly report do i list the total amount sold on Amazon?etc.. thanx for any help
    Bump

    Offline metziah

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    Re: selling on amazon
    « Reply #378 on: December 10, 2013, 11:43:34 PM »
    Also, anyone have experience using amazon's tax collection system? Tia

    Offline ilherman

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    Re: selling on amazon
    « Reply #379 on: December 10, 2013, 11:57:50 PM »
    I don't care so much about locking my account for now as I didn't have any active listings. The money though I need this is totally insane.
    I doubt they are going to run away with your money.... The question is when they will give it back to you....

    I can only wish you, good luck!! lets hope they will reopen you soon, and everything will be fine.
    You can say what you think when you think what you say.

    Offline sillypainter

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    Re: selling on amazon
    « Reply #380 on: December 11, 2013, 12:14:46 AM »
    I doubt they are going to run away with your money.... The question is when they will give it back to you....

    I can only wish you, good luck!! lets hope they will reopen you soon, and everything will be fine.

    I don't want to scare you but in March '12 Sears Marketplace suspended my account, and owes still $4500. I used Smallclaim.com this month to sue them, and finally I got a call today from thier legal team that they want to know what goes on.

    I'm not saying Amazon is Sears, but there is a way out. Easy process. Small claims. I'm starting to really think of using it for clients that dispute charges for no good reason.

    Sears was ignoring my emails for 1.5 years, finally they run after me.

    Offline sillypainter

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    Re: selling on amazon
    « Reply #381 on: December 11, 2013, 12:16:59 AM »
    I don't want to scare you but in March '12 Sears Marketplace suspended my account, and owes still $4500. I used Smallclaim.com this month to sue them, and finally I got a call today from their legal team that they want to know what's going on.

    I'm not saying Amazon is Sears, but there is a way out. Easy process. Small claims. I'm starting to really think of using it for clients that dispute charges for no good reason.

    Sears was ignoring my emails for 1.5 years, finally they run after me.

    Offline Tzadik Nistar

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    Re: selling on amazon
    « Reply #382 on: December 11, 2013, 12:24:09 AM »
    When Amazon shuts a account they freeze the money for 90 days.
    Do they give a reason why that shut the account, do you have a option to appeal?
    Amazon seller performance is very tough and it could take time to get back up.

    Offline Super Speed

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    Re: selling on amazon
    « Reply #383 on: December 11, 2013, 01:27:09 AM »
    I don't want to scare you but in March '12 Sears Marketplace suspended my account, and owes still $4500. I used Smallclaim.com this month to sue them, and finally I got a call today from thier legal team that they want to know what goes on.

    I'm not saying Amazon is Sears, but there is a way out. Easy process. Small claims. I'm starting to really think of using it for clients that dispute charges for no good reason.

    Sears was ignoring my emails for 1.5 years, finally they run after me.
    How do I file a small claims against Amazon and what does it cost.


    Offline Super Speed

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    Re: selling on amazon
    « Reply #384 on: December 11, 2013, 01:30:07 AM »
    When Amazon shuts a account they freeze the money for 90 days.
    Do they give a reason why that shut the account, do you have a option to appeal?
    Amazon seller performance is very tough and it could take time to get back up.
    Well I sold about 50 items recently and 2 buyers filed A-Z claims so they can return their items as I officially don't take returns (now I was told I must up to 30 days but can charge restocking up to 50%) so my ODR is above 1 % so there. I have responded to both buyers about the returns and haven't heard back from them so there's nothing I can do at this point. Any suggestions?


    Online lifetimedeals

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    Re: selling on amazon
    « Reply #385 on: December 11, 2013, 01:58:14 PM »

    Offline ya

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    Re: selling on amazon
    « Reply #386 on: December 11, 2013, 02:25:57 PM »
    I don't care so much about locking my account for now as I didn't have any active listings. The money though I need this is totally insane.


    If there are no more claims they wont hold your money for more then 6 months. Nothing to do here - Sue them by the time your done it will be six months and out lawyer and court fees.

    Offline Solomon

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    Re: selling on amazon
    « Reply #387 on: December 11, 2013, 03:07:19 PM »
    Well I sold about 50 items recently and 2 buyers filed A-Z claims so they can return their items as I officially don't take returns (now I was told I must up to 30 days but can charge restocking up to 50%) so my ODR is above 1 % so there. I have responded to both buyers about the returns and haven't heard back from them so there's nothing I can do at this point. Any suggestions?
    Did they provide you a reason when they notified you that you are suspended? High ODR for new sellers can be a big reason for suspension, On the notification you received from them should be a appeal button.
    Now in a appeal they do not wanna hear excuses why you got the claims. the main thing they wanna hear is a plan of action in the future. Provide them a good plan of action and they should reinstate you, But it might take some time.

    Offline Solomon

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    Re: selling on amazon
    « Reply #388 on: December 11, 2013, 03:09:16 PM »
    I don't care so much about locking my account for now as I didn't have any active listings. The money though I need this is totally insane.
    If they don't reinstate you they will freeze the money for 90 days.

    Offline Super Speed

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    Re: selling on amazon
    « Reply #389 on: December 11, 2013, 03:17:07 PM »
    Did they provide you a reason when they notified you that you are suspended? High ODR for new sellers can be a big reason for suspension, On the notification you received from them should be a appeal button.
    Now in a appeal they do not wanna hear excuses why you got the claims. the main thing they wanna hear is a plan of action in the future. Provide them a good plan of action and they should reinstate you, But it might take some time.
    It is the ODR I wrote that above, I believe. So now what's my plan of action supposed to be? I will make sure I adhere to every rule? Please help me.