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 520075 times)

    Offline ilherman

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    Re: selling on amazon
    « Reply #1185 on: September 04, 2014, 01:02:20 AM »
    Yes.
    You can say what you think when you think what you say.

    Offline yakov116

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    Re: selling on amazon
    « Reply #1186 on: September 04, 2014, 01:11:29 AM »
    Quote from: wiki
    Easier to get in the Buy Box
    Its not just a better chance?
    Money talks...mine says goodbye!

    Offline ilherman

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    Re: selling on amazon
    « Reply #1187 on: September 04, 2014, 01:14:37 AM »
    Its not just a better chance?
    When you sell FBA you get the buy box as much as other top rated sellers get it.
    You can say what you think when you think what you say.

    Offline yakov116

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    Re: selling on amazon
    « Reply #1188 on: September 04, 2014, 01:19:42 AM »
    When you sell FBA you get the buy box as much as other top rated sellers get it.
    Hence its easier. Ok got it thanks
    Money talks...mine says goodbye!

    Offline Zevwolf

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    Re: selling on amazon
    « Reply #1189 on: September 04, 2014, 12:06:46 PM »
    When you sell FBA you get the buy box  even when you are more expensive than the not FBA seller till a certain amount.

    Offline Name Changed

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    Re: selling on amazon
    « Reply #1190 on: September 04, 2014, 12:34:30 PM »
    Thanks

    Any one want to elaborate on the retuns issue with FBA.
    I saw upthread someone wrote about amazon taking back software even after it was open and after the license was used.

    Any other issues with the retuns that should be added? What would be a concise way of puting that down?

    Any suggestions?
    Issues are:

    Returns are accepted without any restocking fee. Although per Amazon policy item has to be in 'new' condition, I have received returns that were damaged by recipient, used for 30 days.
    Returns will be accepted for items missing original box, and even missing components (making resale of returned item harder)

    Generally the customer has 30 days to initiate a return, and 45 days until the return is actually received by Amazons warehouse - for the customer to get their credit (or pre-credit not re-charged)

    Amazon does make acceptations and allow customers to return after the given return policy, but they usually will reimburse you for the return.

    Due to Amazons super lax return policy your return rate will be significantly higher on FBA items. (Keep in mind that on most items sale volume of FBA items will also be a lot larger, so total net profits may be worth for you dealing with the higher return rate)

    Additionally, there are a lot of abusive buyers that use Amazons return policy to steal items, and components.
    Buyers may swap the item with a dummy items, and the return will be accepted, and Buyers may deliberate take components (opened computers missing essential components). - for these 2 issues, Amazon should reimburse you, but you will have to be on top of it, and open a case, and follow thru with information needed by Amazon.

    Another issue, is that 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 buyer does not send the item back within 45 days, Amazon will reimburse your account. This causes you to have the funds debited from your account for possible multiple orders.


    As a suggestion, I would not suggest someone to sell FBA items that they are not able to service, or have the know how to sell like new again.
    To name a few, I have had cell phones returned to me flashed to other firmwares. Computers returned with OS passwords, Bios passwords.

    Although there is a big downside of FBA with the returns, the sales volume will be a lot greater. So figure out for yourself what works for you. 

    Offline yuneeq

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    Re: selling on amazon
    « Reply #1191 on: September 04, 2014, 02:59:17 PM »
    Issues are:

    Returns are accepted without any restocking fee. Although per Amazon policy item has to be in 'new' condition, I have received returns that were damaged by recipient, used for 30 days.
    Returns will be accepted for items missing original box, and even missing components (making resale of returned item harder)

    Generally the customer has 30 days to initiate a return, and 45 days until the return is actually received by Amazons warehouse - for the customer to get their credit (or pre-credit not re-charged)

    Amazon does make acceptations and allow customers to return after the given return policy, but they usually will reimburse you for the return.

    Due to Amazons super lax return policy your return rate will be significantly higher on FBA items. (Keep in mind that on most items sale volume of FBA items will also be a lot larger, so total net profits may be worth for you dealing with the higher return rate)

    Additionally, there are a lot of abusive buyers that use Amazons return policy to steal items, and components.
    Buyers may swap the item with a dummy items, and the return will be accepted, and Buyers may deliberate take components (opened computers missing essential components). - for these 2 issues, Amazon should reimburse you, but you will have to be on top of it, and open a case, and follow thru with information needed by Amazon.

    Another issue, is that 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 buyer does not send the item back within 45 days, Amazon will reimburse your account. This causes you to have the funds debited from your account for possible multiple orders.


    As a suggestion, I would not suggest someone to sell FBA items that they are not able to service, or have the know how to sell like new again.
    To name a few, I have had cell phones returned to me flashed to other firmwares. Computers returned with OS passwords, Bios passwords.

    Although there is a big downside of FBA with the returns, the sales volume will be a lot greater. So figure out for yourself what works for you.

    Thanks for your very helpful post.
    I will link to it from the wiki.
    Live forever or die trying.

    Offline yakov116

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    Re: selling on amazon
    « Reply #1192 on: September 04, 2014, 04:00:22 PM »
    Thanks for your very helpful post.
    I will link to it from the wiki.
    I did it already but I think it needs to be made a bit shorter
    Money talks...mine says goodbye!

    Offline yuneeq

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    Re: selling on amazon
    « Reply #1193 on: September 04, 2014, 07:30:49 PM »
    I did it already but I think it needs to be made a bit shorter

    Yeh, I'll take it out.
    It's liinked from the cons section.
    Still, the wiki should be shortened in other places too.
    Live forever or die trying.

    Offline yakov116

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    Re: selling on amazon
    « Reply #1194 on: September 04, 2014, 07:34:24 PM »
    Yeh, I'll take it out.
    It's liinked from the cons section.
    Still, the wiki should be shortened in other places too.
    I did it like that on purpose I will edit it later to make it shorter
    Money talks...mine says goodbye!

    Offline yakov116

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    Re: selling on amazon
    « Reply #1195 on: September 04, 2014, 08:18:20 PM »
    Yeh, I'll take it out.
    It's liinked from the cons section.
    Still, the wiki should be shortened in other places too.
    Ok I finished
    Money talks...mine says goodbye!

    Offline DealRaider

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    Re: selling on amazon
    « Reply #1196 on: September 04, 2014, 08:24:43 PM »
    Anyone have experience with this? Amazon notified me.. on second thought Ill just paste it.

    Greetings from Fulfillment by Amazon,
     
    We have received feedback indicating that units of ASIN xxxxxxxx may be inconsistent with the description on the product’s detail page.  In order to provide the best buying experience to Amazon customers, we have temporarily suspended your offer while we review. Our review will consist of an inspection of your inventory and the ASIN catalog details. During this time, the affected inventory units will be listed in an inactive status.
     
    At the completion of this review, if we determine that your offer can be restored, we’ll remove the suspension. If additional action is required, we will update you.
     
    Best Regards,

    This makes no sense. I use FBA and commingled inventory so A- they shouldve told me there was a problem earlier when they inspected and accepted my goods for the listing. B- How do they know what they sent/received feedback about was my item?

    Offline ilherman

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    Re: selling on amazon
    « Reply #1197 on: September 04, 2014, 08:38:37 PM »
    Do other FBA sellers still have that item active?
    You can say what you think when you think what you say.

    Offline DealRaider

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    Re: selling on amazon
    « Reply #1198 on: September 04, 2014, 08:55:48 PM »
    Yes plenty

    Offline Zevwolf

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    Re: selling on amazon
    « Reply #1199 on: September 04, 2014, 11:01:25 PM »
    It happened to me once and they  banned me from selling that item but after I send it my invoice they  reopened it.