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 975774 times)

    Offline Centurion

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    Re: selling on amazon
    « Reply #1100 on: August 05, 2014, 05:40:42 PM »
    Regarding the Wiki.

    Should I add
    2 onlinecorses I cam across for selling on amazon?
    A few blogs I follow with lots of grate info?
    Programs/apps we use to streamline selling?
    Please share thanx!
    you can only make a first impression ONCE

    Offline Centurion

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    Re: selling on amazon
    « Reply #1101 on: August 05, 2014, 05:47:45 PM »
    So its just a process of going through lots of distributors until you find a good one? Do you guys have any advice for finding a good reliable distributor with good pricing?

    So Amazon collects the tax for you on the sale and you just pass it on. Sounds simple enough. What do you mean be registered as a reseller? With the State?

    Edit: Just wanted to add that Ive been doing electronics, and I dont know much about other product categories, hence the more general question of "how do I find which products to buy/sell" its pretty easy in tech not as much in other categories. - Do you guys agree with the bestsellers plan? Or should I be looking into private labeling/product creation instead to get rid of competition
    I need to register all states? If I dont I dont have to collect and pay?
    My accountant says I need to collect in all states that amazon ...
    Please advise (my warehouse office in ny and nj)
    you can only make a first impression ONCE

    Offline AnonymousUser

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    Re: selling on amazon
    « Reply #1102 on: August 05, 2014, 06:31:17 PM »
    What's the name of the seller Central app? I can seem to find it in Google store.
    Amazon Seller.
    https://play.google.com/store/apps/details?id=com.amazon.sellermobile.android

    Offline Centurion

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    Re: selling on amazon
    « Reply #1103 on: August 05, 2014, 06:32:44 PM »
    for the wiki:
    programs for inventory management:
    programs for accounting:
    programs for pricing:
    programs for feedback:
    programs for shipping:

    you can only make a first impression ONCE

    Offline Name Changed

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    Re: selling on amazon
    « Reply #1104 on: August 05, 2014, 06:35:20 PM »
    I need to register all states? If I dont I dont have to collect and pay?
    My accountant says I need to collect in all states that amazon ...
    Please advise (my warehouse office in ny and nj)
    Officially you are required to collect sales tax from where the items are shipped. So if items are shipped from any of a few FBA warehouses located in a handful of states you would have to collect sales tax from all orders from those states.

    Just - you are not allowed to collect sales tax unless you are registered to collect.

    I see a lot of big FBA Amazon sellers don't collect sale for a lot of states.

    Offline metziah

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    Re: selling on amazon
    « Reply #1105 on: August 06, 2014, 09:07:22 AM »

    Officially you are required to collect sales tax from where the items are shipped. So if items are shipped from any of a few FBA warehouses located in a handful of states you would have to collect sales tax from all orders from those states.

    Just - you are not allowed to collect sales tax unless you are registered to collect.

    I see a lot of big FBA Amazon sellers don't collect sale for a lot of states.
    You'd should then be required to register in every state that there's a FBA warehouse since you never know where your product will ship from.

    Offline DealRaider

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    Re: selling on amazon
    « Reply #1106 on: August 06, 2014, 09:41:05 AM »
    quote author=DealRaider link=topic=10448.msg884477#msg884477 date=1407179601]
    @Name Changed- So what would you recommend?

    Go read some books. Watch some videos. Read more books. Go to a seminar. Read some more books. Perhaps buy a Kindle. Do not expect to become successful from a handful of strangers online spoonfeeding you. Make a business plan. Write it on paper. Make a 5 year goal. Write it on paper. Oh, also, read a book...

    I'm not sure why what I said came across as asking to be spoonfed, I originally asked if going through the bestsellers and trying to contact the distributors of those products is a good idea and I got a vague answer.
     
    But anyways, I would definitely be interested in reading some more on the topic, do you have any books in particular you would recommend?

    Offline WAM

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    Re: selling on amazon
    « Reply #1107 on: August 06, 2014, 09:43:33 AM »
    I'm not sure why what I said came across as asking to be spoonfed, I originally asked if going through the bestsellers and trying to contact the distributors of those products is a good idea and I got a vague answer.
     
    But anyways, I would definitely be interested in reading some more on the topic, do you have any books in particular you would recommend?
    Bestsellers are not always the way to go. There are plenty of different strategies. Use the volatile Amazon pricing to your advantage! Btw, I'm not really a seller, but I do know a drop about selling [ETA on Amazon].
    « Last Edit: August 06, 2014, 09:47:22 AM by WAM »

    Offline metziah

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    selling on amazon
    « Reply #1108 on: August 06, 2014, 09:46:10 AM »
    Bestsellers are not always the way to go. There are plenty of different strategies. Use the volatile Amazon pricing to your advantage! Btw, I'm not really a seller, but I do know a drop about selling.
    I think "knowing about selling" and "knowing about selling on Amazon" aren't necessarily the same thing.
    The trick on Amazon is to choose an industry and REALLY to know everything about those items you'd like to concentrate on.

    Offline WAM

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    Re: selling on amazon
    « Reply #1109 on: August 06, 2014, 09:47:55 AM »
    I think "knowing about selling" and "knowing about selling on Amazon" aren't necessarily the same thing.
    Fixed!

    Offline Name Changed

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    Re: selling on amazon
    « Reply #1110 on: August 06, 2014, 09:53:34 AM »
    I think "knowing about selling" and "knowing about selling on Amazon" aren't necessarily the same thing.
    The trick on Amazon is to choose an industry and REALLY to know everything about those items you'd like to concentrate on.
    Well said.

    It is hard to focus on a lot of different category items (unless you have people working for you ect)

    Learning products and their sales trend is a big key to success for selling on Amazon.

    Offline ya

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    Re: selling on amazon
    « Reply #1111 on: August 06, 2014, 10:41:10 AM »
    bc he was was listing non authentic products under under someone else's listing.
    Thats a valid reason to close him down.

    Offline yossi4k

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    Re: selling on amazon
    « Reply #1112 on: August 06, 2014, 11:48:04 AM »

    Offline Name Changed

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    Re: selling on amazon
    « Reply #1113 on: August 06, 2014, 12:17:12 PM »
    FINALLY!! ;D :o ::)
    App looks pretty nice, but I would like to see it do more.

    Offline AnonymousUser

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    Offline nocknock

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    Re: selling on amazon
    « Reply #1115 on: August 06, 2014, 03:43:36 PM »
    On this thread there was a link to a small claims lawer on how to fight amazon for 25k or less

    Offline Centurion

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    Re: selling on amazon
    « Reply #1116 on: August 10, 2014, 02:31:54 AM »
    i cant seem to find - besides camcamelcamel there was another website mentioned.
    also
    what program is best for inventory uploads etc? quickbooks with excel?
    all other seem very expensive- 7k plus 1% commission!!??
    you can only make a first impression ONCE

    Offline ueaiouioei

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    Re: selling on amazon
    « Reply #1117 on: August 11, 2014, 12:20:30 PM »
    On this thread there was a link to a small claims lawer on how to fight amazon for 25k or less

    That would actually be nice for when I finally get burnt out from Amazon and decide to close my seller account. All those retarded A-Z's that were closed against me and all the random fees.
    Live life to the fullest

    Offline DealRaider

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    Re: selling on amazon
    « Reply #1118 on: August 11, 2014, 10:13:06 PM »
    I wanted to share these resources-

    http://www.startupbros.com/
    These guys have an emphasis on importing from China. See their main articles on product selection

    http://www.startupbros.com/step-by-step-guide-on-how-to-find-a-profitable-product-to-sell/

    Edit: I wanted to add this one - http://www.startupbros.com/import-replay I think theyre taking down the replay tonight, Im halfway through the video and its great material. Double Edit: I skimmed ahead and it seems like the last half is a sales pitch for there personal training program.. eh I dont know. Im leaving the link for now while its still up because it still has good information.

    Worldwidebrands is a website designed for getting you in contact with dropshippers. I havent actually used them because from the reviews it seems that theres just too much competition to get these manufacturers + the whole world dropships and you wont make as much money as just buying and selling it yourself.
    BUT
    they have some good ebooks for the beginner.

    http://www.worldwidebrands.com/wwb/kh_freeebookHOME.asp

     Thats a direct link to the ebook download page.

    Skip Mcgrath is supposedly a bigtime Ebay seller (although Ive never understood why he would need a blog or sell a course if hes making so much money with Ebay.. maybe its just more money Idk.) either way he has many free articles and a monthly newsletter with new product Ideas

    http://www.skipmcgrath.com/

    Here is a link to where he describes the process of making a new Amazon account and what to watch out for. Theres another article in the free articles section but I cant find it now.
    http://www.skipmcgrath.com/newsletters-2012/2012_06_June_midmonth.shtml#two

    Thats all off the top of my head. Ill try to post more resources if I remember and I hope I helped someone!

    Oh and also Youtube might be useful. And Google  :D
    « Last Edit: August 11, 2014, 10:32:34 PM by DealRaider »

    Offline DealRaider

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    Re: selling on amazon
    « Reply #1119 on: August 11, 2014, 10:17:52 PM »
    Heres another two I found recently, I cant vouch for the overall content but it looks like there should be some good info.

    http://www.ecommercebytes.com/

    And

    http://www.thefastlaneforum.com/community/

    This is a specific thread for selling on Ebay from the Fastlane forum

    http://www.thefastlaneforum.com/community/threads/ama-importing-wholesaling-for-resale-on-ebay.51843/