Category Archives: Finding Inventory

Beginner Lessons For Selling Shoes on Amazon FBA

When it comes to sourcing and selling shoes on Amazon, some of the hardest lessons are learned during the early stages of adding shoes to your Amazon business model.

Many of you know that Rebecca and I are a team when it comes to our Amazon FBA business. While I mainly focus on retail arbitrage and wholesale sourcing, she is the specialist when it comes to online arbitrage… and specifically sourcing and selling shoes.

Since my last interview video with Rebecca was so well received, I decided to sit down with her and record another Q&A  interview video with her. Rebecca has such a wealth of knowledge about sourcing and selling shoes and you’ll learn a lot in this video.

In the video below, you’ll learn:

  • How our very first experiment with sourcing and selling shoes went (spoiler: it didn’t go so well)
  • What we learned from that experiment
  • How we almost decided to give up selling shoes – and why we’re so glad we didn’t quit.
  • The biggest thing we wish we knew when we started selling shoes
  • The mindset shift you need to be successful with selling shoes
  • The biggest difference between sourcing items like books/toys and sourcing shoes
  • How to overcome not being able to see sales rank history of shoes
  • Which is better? Going wide or going deep when sourcing shoes?
  • How to find confidence in sourcing shoes
  • How customer returns of shoes are not as bad as returns from other categories (despite what other people might say).

Enjoy! Leave us a comment below the video if you have a specific shoe question and we’ll see about addressing that in a future video.

If you like the shirts we’re wearing in the video above, you can get them right here on Amazon.

Want to learn more? Rebecca and I recently hosted a FREE webinar all about how to get started with selling shoes on Amazon and added it to our YouTube channel. Just follow the link above to see the webinar in its entirety.

How to Find Profitable Wholesale Accounts For Amazon FBA

In my previous blog post I gave you my top 9 reasons why you should consider adding wholesale sourcing to your Amazon FBA business. You may have read that post and started thinking, “Great, Stephen, I’m convinced. I definitely want to try out wholesale sourcing, make my business more streamlined, and protect my seller account. Now where do I find profitable wholesale suppliers?

That type of question is where we end up any time we want to make a change in our business. “OK, I see my sticking points, and I’m ready to press on to get beyond them. But how do I take that next step?

With finding wholesale suppliers, your possibilities are really only limited by your creativity. Ultimately, you want to find unique wholesale accounts where you can develop a great business relationship with your supplier and provide an awesome product to Amazon customers.

Let’s discuss the top four ways you can make that connection and find profitable wholesale accounts:

1. Trade Shows

All throughout the year you can find a trade show going on in areas all across the U.S. (Or in other countries! Don’t limit yourself geographically) and in all niches of products. Think trade shows for toys, bridal products, baby items, kitchen gadgets, home and garden, crafts, you name it.

Beyond those niche trade shows, you can also find larger trade shows and markets where you can find products across all categories presented in one show. The biggest trade show out there is called ASD, and it happens in Las Vegas every March and August.

If you live in a big city, chances are there are trade shows and markets happening nearby throughout the year. I recommend doing a Google search for trade shows in your town or somewhere you can travel to, and check out what’s coming up in the months ahead. Most of these types of shows are free to enter, and you can walk around the exhibits, talk with the exhibitors, and see what types of products are available at the different booths.

One thing you should keep in mind is that two different types of exhibitors set up booths at trade shows: manufacturers and distributors. A manufacturer would be a direct connection to the source of the product, without any middle man. If you get a wholesale account with a manufacturer, you will likely need to make purchases in larger amounts, but you will get a better price per unit. With a distributor, you are usually dealing with a middle man. You can make smaller purchases, but you will pay more per unit.

2. Trade Show Websites

Even if you can’t attend a particular trade show, you can benefit from signing up for the show and doing research on the exhibitors. On the trade show website you can get access to the vendor list and their contact info, which you can then use to call or email for more information on the products they offer.

Whether you attend in person or make contact through the trade show website, it’s all about making connections with the vendors, asking good questions, and developing a relationship that could lead to a mutually beneficial arrangement. You will need to have a resale certificate to open a wholesale account once you have made that connection, so be sure you have your certificate on hand before starting the process to open an account.

If you are interested in more details about how to maximize the opportunities on trade show websites, check out the book Trade Show No Show by Jim Peterson and Jim Cockrum.

3. Product Packaging

This may seem overly simplistic, but finding wholesale sources really doesn’t have to be that complicated!

Pretty much every product you can imagine is going to have the manufacturer’s name and contact info printed right on the product’s packaging. If you can only find the name or part of the contact info, use Google to find the rest of the info, and you’re one step closer to making contact and finding out how to open a wholesale account.

If you have an awesome retail find that you would love to sell more of, check out the product packaging for that contact info and see if you could start buying that product at wholesale prices.

One strategy you can use to get an edge on your competition is to think of products that are made locally to your town or area. What is your area known for? Food products can be especially profitable, if there’s a local favorite that can’t be found in other parts of the country. Find these types of products on your local shelves, get the manufacturer’s info off the packaging, and start making contact.

4. Amazon Best Sellers

Again, it doesn’t have to be overly complicated to find great ideas for wholesale sources. You can research the popular items in your favorite category by checking out the Top 100 sellers and looking up their manufacturer’s info online.

To make it even easier, we have created a quick link, fulltimefba.com/bestsellers, to take you right to the Amazon best sellers page, where you can drill down from the main Amazon categories. Once you find a product you are interested in researching, click to go to the product page, and you should see the name of the manufacturer listed below the product title. You can then do a Google search for their contact info and start the process of opening a wholesale account.

Note: I do not recommend opening wholesale accounts with companies when Amazon is selling the product. Even if you think you can get a great wholesale price, Amazon is likely getting an even greater volume discount, and it’s too hard to compete. You should also check out the sales history on CamelCamelCamel and Keepa to see if Amazon is out of stock now, but might have been on the listing in the past. There are plenty of other products out there, so move on to ones where Amazon isn’t currently on the listing or doesn’t seem like they’ll come back in stock in the future.

There you have it, my top 4 ways to find products where you can open a wholesale account. The key to getting those accounts is to just make contact. Get the door open, start a conversation, ask for a catalog, ask what you need to do to apply for an account – it really doesn’t have to be more complicated than that.

Last week, I shared with you a free video that showed you how to find amazing wholesale opportunities with a strategy unlike what anyone else is teaching. Well, today I have another free video about wholesale.

In today’s free wholesale training video, my buddies Dan and Eric will show you:

– How to recognize awesome potential wholesale products
– How to avoid purchasing bad wholesale products and wasting $100’s or even $1000’s
– How one good account could make you $1000 per month (and how to find accounts like that)
– The top 3 factors for great wholesale products to sell on Amazon
– The free tool you can use to make better wholesale decisions
– Why the number of Amazon competitors is a meaningless number (and what number you really should be focusing on instead)
– And so much more!

To access today’s free video right now, all you need to do is click here.

Remember, these free videos are only going to be accessible for a limited time, so you need to click here and watch today.

Do you have other tried-and-true places you like to look for profitable wholesale sources? If you would like to add to my list, we would love to hear from you in the comments!

Monitoring Prices on Your Replenishables – StockUp Review

stock-up-titleOne of the most frustrating aspects of selling on Amazon is when your competition comes in and begins to lower the prices of an item that you were once consistently selling. When an amazing source of profit seems to dry up, we often decide to sell out as fast as we can so we can reinvest that capital into inventory that will bring profits much faster. Usually once the price of a formerly profitable item has “tanked,” we don’t think about that item again.

But what if we’re missing something? What if the price goes back up? How would we even know?

Do we ever actually go back and see if the price has recovered? Usually the answer to that question is “no.”

search-computerFor a long time I searched and searched to see if there was a tool out there that would track the prices of items on Amazon and would automatically notify me when those items reached a certain higher price point, but never found one. I love using Keepa and CamelCamelCamel, but those services only notify you automatically when the prices of items on Amazon fall to a desired price point. I  just couldn’t find an easy way to keep track of prices when they go back up.

Sure, I could probably create a spreadsheet with a list of ASINs I wanted to track, then then copy and paste the ASIN in Amazon to see if the price has recovered. I could try to remember to do that once a week or once a month… but honestly, I don’t have time for that. I needed a tool to do everything for me.

online_toolsSince there was no tool, I decided to reach out to my buddy Christopher Grant who has created some awesome tools like revROI (an easy tool to maximize your cash back on OA purchases) and BrickSeek (if an item is sold out online, this tool will show you where you can buy it locally based on your ZIP Code). I told Christopher about my frustrations and my idea for a new tool and he said he thought he could make it happen. After a few months of working with developers and beta-testing, and the StockUp tool is ready!

StockUp – the only tool that will automatically notify you when the price of an item goes back up to the price you want.

stock-upWith StockUp, all you have to do is go to the Amazon product page for the item you want to track, click on the StockUp extension, put in your name and email address (don’t worry, we aren’t keeping these for later), then choose a price, any price. The StockUp tool will then check Keepa for you once an hour and if the price goes up to the level you choose, then StockUp will send you an email to notify you. There will even be a link you can click on to take you to the Amazon product page so you can double check and make sure the price really has recovered. Then, all you need to do is go and buy it again from your source. So easy! I’ll show you a video in a moment, but here’s what it looks like:

screen-shot-2016-11-10-at-1-49-11-pm

StockUp is a Google Chrome extension that you easily install into your Chrome browser. If you don’t use Chrome, the web browser is a free download and super easy to use. In fact, I formerly used Safari for my online browser, but have since moved to Chrome as it’s so much more user friendly (as well as all the amazing extensions you can install).

To see StockUp in action, check out this video where I walk you through just how easy it is.

Save today with coupon code!

Here’s the deal… right now, StockUp is available at a one time fee for a lifetime of use. Plus, if you use the coupon code SMOTHERMAN then you can save $8 off the price of the extension. Right now, we’re working on adding a texting notification as well, but that’s still in the planning stages… once the texting capabilities are in place, we’ll definitely be raising the prices on the extension. In fact, the StockUp extension might end up going to a monthly fee as we continue to add more features… so now is the best time to get this tool.

Can you imagine how awesome it will be when the price of one your replenishable items comes back up and you can add it back to your inventory again? Talk about easy sourcing!

 

Selling Shoes through Amazon FBA: Buying Decisions

Let’s get down to the nitty gritty details of sourcing shoes for FBA, shall we?

As I (Rebecca) mentioned in a previous post of this series, I personally don’t source for shoes using retail arbitrage (RA). I tried it and came up dry. I use 100% online arbitrage (OA) for my shoe sourcing strategy. The gist of this post, however, will cover topics that apply no matter what type of strategy you use for sourcing. I won’t get into details of what types of stores to find shoes in, what brands to look for, what styles to look for, and so on. Instead, I’m going to talk about some fundamental issues related to sourcing shoes that you can apply to your own personal sourcing strategy, whether you prefer RA, OA, wholesale, or something else.

shoe-experimentOur Initial Two-Week Shoe Experiment

After we got approved to sell in the shoe category, we decided to spend a two-week period sourcing shoes through OA, track the resulting sales, calculate our return on investment (ROI) and profits, and then decide from there how we wanted to proceed with adding shoes to our overall FBA strategy.

Every day for two weeks, I diligently looked at the deals on my paid sourcing subscription list, spent my sourcing budget, and waited for the shoes to arrive at our doorstep. The shoes came in, we processed them, and we sent them to FBA and waited for the sales.

clock-147257_1280And waited. And waited. And waited.

I didn’t source any more shoes online for about five or six weeks after that, as I waited to see how our experiment turned out. The sales trickled in soooooooo sloooooooowwwwwwwwwly from those two weeks of sourcing. I was very discouraged that shoes I thought were a low rank at the time I bought them turned out to not sell for weeks and weeks and weeks. I questioned whether I should stop thinking about buying shoes and just stick to toys, books, or another category I already knew well.

Rather than completely giving up, I decided to learn more, ask a ton of questions, reach out to people who have experience in the category, and try again. It was a slow process, but here we are a year later – and shoes are consistently our second highest category in dollar amount of sales.

For the rest of this post, I want to give you several points of consideration for making buying decisions in the shoe category that will hopefully accelerate your learning process.

What I Wish I Had Known About Sourcing Shoes Before I Started

  1. capital-moneyShoes take a LOT of capital to buy.

Unlike categories such as books or toys, with shoes it’s not possible to take a small amount of capital, buy items at a ridiculously low price and high ROI, and turn a fast profit that you can reinvest within a short amount of time. Shoes can give you a great ROI and a fantastic average selling price (ASP), but the buy cost for one pair of shoes typically ranges from $20 upward. It’s not uncommon to spend $50 or more on one pair of shoes.

  1. iguana-1441439_1280Shoes are long tail items.

Not only does it take a large initial investment (relative to other categories) to start buying shoes, it takes a lot of patience. Shoes typically do not sell at the same velocity as toys, books, groceries, and other faster moving categories. Shoes aren’t typically something that you can replenish, either. You generally buy a style of shoe, send it in to FBA, and move on to finding the next pair of shoes.

I sank a bunch of money into shoes in our original two-week experiment and became frustrated and disappointed that I didn’t get my return on that investment as soon as I had hoped. I eventually did sell all the shoes from that two weeks, but it took as long as six months for some of those shoes to sell – and in some cases as long as nine months. Once they did sell, the high ASP was nice to eventually see in our disbursement, but if we had needed that money back any sooner than nine months, we would have been in trouble.

The key with getting a steady stream of high ASP sales from shoes is to give yourself several months to ramp up. It will take several months of sending in a steady stream of shoes, and then you have to wait for those high-priced shoe sales to start trickling in. If you continually source shoes and send them in on a regular basis, after a while you will see the fruits of your labor in the form of higher disbursements and higher ASP. Stephen is always saying that patience brings profits, and that is definitely the case in the shoe category.

One item of note: Because shoes are a long tail item, it is more strategic not to go deep in any one variation, but go wide and buy multiple variations of the same style instead. It’s much easier to sell out quickly of one pair in each of size 6, 7, 8, and 9 than to sell out of four pairs of size 8.

  1. Sales rank for shoes is much different to gauge than in other categories.

screen-shot-2016-10-04-at-5-30-37-pmEach shoe listing on Amazon can potentially have dozens of variations, depending on the number of colors and sizes available. When you look at the sales rank for a pair of shoes you want to source, you aren’t looking at the sales rank for that particular pair of shoes; you’re looking at the sales rank for all of those variations combined. If the Amazon product page says a pair of shoes is ranked #568 in the overall shoe category, you have no way to know which size and which color of those shoes are receiving the sales that give it that low rank.

To further complicate matters, CamelCamelCamel and Keepa do not show sales rank history for shoes. When I’m making sourcing decisions, I don’t even bother looking at Camel for shoes. Keepa, however, does provide crucial information about whether or not Amazon has ever been in stock on any variation of shoes, and it shows price history. I highly recommend becoming fluent in using Keepa for making shoe sourcing decisions (you can get started reading Keepa graphs with this blog post).

So how can we make smart sourcing decisions if we have no way to know the current sales rank or sales rank history for a variation of shoes?

Here are two ways I can limit my risk as far as shoe sales rank is concerned:

* I stick with buying shoes that have a low number of variations. I prefer to buy shoes with only a low number of color options, not 15 or 20 colors. I also prefer to source shoes that don’t have a narrow, regular, and wide variation for each size. Tons of colors and tons of size options means more variations, which means the overall sales rank becomes increasingly meaningless as far as each variation is concerned.

* I stick with buying neutral colors (black, white, gray, brown). The majority of people are going to buy neutral colored shoes, and I prefer to buy inventory that’s more of a sure bet. I don’t buy shoes in a crazy floral print or neon green, no matter how cute they are — unless the only options on a low ranking shoe are bright colors and no neutrals; then I’ll branch out.

  1. Every shoe seller likes to take a different approach.

shoeKeep in mind that I’m trying to give you some general principles for making shoe sourcing decisions. Every seller finds their own groove, and you have to figure out what approach you personally want to take.

Some sellers prefer to stick with common sizes and colors, while some sellers like to provide Amazon customers with the hard-to-find colors and sizes. Some sellers stay away from sourcing half sizes because they find they sell less than whole sizes, but other sellers swear by sourcing half sizes because they’re harder to find and therefore more lucrative.

Personally, I usually stick to sizes 9-12 for men, 6-10 for women (but if 5 or 11 in women’s is currently unavailable on Amazon, I will consider buying it). That’s a wider range than some sellers would recommend; many will only source women’s 7, 8, 9. Also, I tend to buy more half sizes for women, less for men.

  1. screen-shot-2016-10-04-at-7-11-11-pmLook at reviews to see popular color and size.

A work-around for making a shoe sourcing decision without sales rank history is to read the reviews. Within the Amazon reviews for any verified Amazon purchase, you can see what size and color the customer bought. It’s fairly safe to assume that colors with more reviews are receiving more sales. You can also read the reviews and look at the “fit as expected” percentage to see if shoes tend to run small, large, or as expected. You can assume that shoes with a high percentage of “runs small” or “runs large” are likely to have a higher rate of return, which is a risk you might not be willing to take with your sourcing budget.

  1. shoes-high-heelsLook at the average price of shoes across all variations, not just at the price of the variation you’re considering sourcing.

This might be the biggest lesson I wish I had known before I started sourcing shoes. It’s possible that one random person will be willing to pay 3x for a blue leopard print shoe in women’s size 11.5 – but it’s not likely. It’s less risky to source shoes you can price competitively with other variations of the same size or color, rather than keeping your fingers crossed that someone will pay way above the average price listed on Amazon for your particular variation.

article_separator

Shoes aren’t for everyone selling on Amazon. The learning curve can be steeper than with other categories, shoes require a lot of capital, and the wait for sales can seem like an eternity. Even if you read every word I say above and every word in every Facebook group about shoes, it still takes trial-and-error to learn the category through your own experience. Everyone will have different results, and everyone will find different areas where they excel and prefer to source. What works for me might not work across the board.

shoesBut if you’re willing to commit the time and money…and some more time…and then a little more time to learning the category, the profits are worth it. We’ve spent the past year ramping up our shoe inventory and now have a continual stream of high-priced sales from shoes on a daily basis.

Have you found success selling shoes through Amazon FBA? Is there anything you would add to my above list of points to consider when sourcing shoes? We would love to hear from you in the comments!

********************

Our hope for this series on selling shoes is that we’re able to help you make informed decisions about whether the category is right for you and to help you find success in sourcing and prepping shoes.

If you’re ready to step up your game with selling shoes on Amazon, check out our course,The Reseller’s Guide to Selling Shoes: Kick up Your Profits with New Shoes via Amazon FBA. It’s a combination ebook (100+ pages) and video course (over 4.5 hours of no-fluff content) that will help you avoid all the mistakes we made and get your shoe selling off on the right foot.

Selling Shoes through Amazon FBA: Why We Added Shoes to Our Sourcing Strategy

In 2015, Stephen and I (Rebecca) decided to add shoes to our Amazon FBA inventory. Since our very first initial experiment with shoes, we have learned so much about how to source and sell shoes on Amazon. In fact, right now, shoe sales are accounting for about half of our Amazon sales. Since we’re finding such great success with shoes, we thought we’d share with you our experiences over the past 18 months as we’ve ventured into selling shoes through Amazon FBA.

If you’re not familiar with our story as a couple and as business partners, Stephen is the one in our marriage with the business experience, and I am the one who came into this whole FBA thing with a bit of skepticism. Now that we’ve been working on the business together for a few years, we’ve found areas where I gravitate more than Stephen (check out our post about my experience getting into online arbitrage, for example). It’s been a work-in-progress to get to the point we’re at with our current roles in the business, and I’m sure it will continue to evolve – but for now we’ve found a system of sourcing that we love and is profitable for us.

red-shoesOne key component of our current sourcing strategy for Amazon FBA is selling shoes. We added shoes in the fall of 2015, and after a slow start we are pleased with the difference this category has made in our business and are continually looking for ways to expand our shoe inventory.

Here are the main reasons we decided to add shoes to our FBA sourcing strategy:

  1. time-to-diversifyShoes gave us an opportunity to diversify our inventory.

Before fall of 2015, our main categories were toys, toys, toys, books, toys, home and kitchen, toys, and a smattering of sports, grocery, and health and beauty. We wanted to find a category where we could consistently source products and diversify our inventory away from being so toy heavy. Don’t get me wrong – we love selling toys and are always super excited when Q4 rolls around. But we wanted to branch out and try something new, and shoes were very appealing for us as a new category for diversification for reasons I’ll get into below.

  1. price-tag-267x300Shoes have a high average selling price.

A relatively high average selling price (ASP) can be a step towards both saving time and increasing profits. Don’t we all want to make more money and spend less time doing it?

Think about it this way: You can sell one widget for $100 or ten widgets for $10 apiece, and you make the same amount in sales, $100. What about the prep and handling time, though? Those ten widgets require ten times the prep work, ten times the labels, ten times the handling to put into a shipping box. The FBA pick-and-pack fees will apply ten times to the $100 of sales. The one $100 widget, however, requires 1/10th of the prep work and only one pick-and-pack fee.

Shoes are a great way to increase the ASP of your FBA inventory. In 2013 and 2014 we sold a lot of $10 or $15 toys. A lot. In 2016, we’ve sold a much lower number of inventory items, but our ASP has gone up considerably because of the number of shoes we’ve sold. In the past three months, our ASP in the shoe category has been $71, while our overall ASP across all categories is now up to $34.

  1. low-competitionShoes have fewer competitors for sales.

Shoes are a gated category for Amazon sellers, which significantly lowers the number of competitors on any given item. While many low ranking books or toys might typically have 100+ sellers, it’s relatively easy to find low ranking shoes on a regular basis with only a handful of sellers – or even one or none on certain variations.

When we got ungated in shoes, the process still required applying with a flat file and photos, so the number of competitors was even lower than it currently is. Now that automatic approvals are a regular occurrence, the number of sellers in the category has increased somewhat, but not enough for us to be unable to find listings with little or no competition. And even though some shoe sellers bemoan auto-ungating as the end of big profits in shoes, we’ve found that the recent round of brand and ASIN restrictions have further kept the competition at a minimum, and we believe it will continue to do so into the future. (You can watch our YouTube video for more on our optimistic view of the recent brand restrictions.)

  1. OA KeyboardShoes provide an opportunity for me to source solely (that pun is for you, Stephen!) via online arbitrage.

I know a lot of people make big profits on shoes doing retail arbitrage, but not me. I tried it and hated it. Hated it. I mean it, seriously, I did not find even one pair of shoes to resell doing RA. Instead, I signed up for a deal list (Gated List) and OAXray, and I’ve stuck with those for the past year. Over the course of that year, I’ve been able to switch from doing part RA/part OA across several categories to doing only OA, mostly in shoes with a handful of other categories. Before I started buying shoes, I couldn’t find enough inventory to buy online in other categories to spend my entire weekly sourcing budget. I would have to also go out and do RA to find enough inventory that fit my sourcing parameters.

Shoes changed everything for me as far as focusing on OA alone. My mileage records for 2015 and 2016 prove it: I stopped recording mileage for sourcing at exactly the same time I committed to sourcing shoes online. Switching to only OA for shoe sourcing has allowed me to stay home more, put fewer miles on my aging car, and focus on other professional pursuits. Buying shoes through OA truly has allowed our business to make more money and spend less time doing it.

shoes-that-are-healthy-700x700I do have to say, though, I wasn’t so sure at first that we would make shoes a permanent addition to our FBA inventory. After we got ungated in the shoe category, we decided to undertake a two-week experiment of spending the majority of our sourcing budget and time on shoes and then just see what kind of sales we could get before deciding whether or not to continue buying shoes. I’ll talk more in detail in the next post about why making a decision based on this kind of experiment isn’t the best idea when it comes to learning the shoe category, but for now I’ll just say we were less than enthused about the results. We asked a bunch of questions from people who know the ins and outs of the category, and after some soul searching (or sole searching – another pun! OK, I’ll stop) we decided to keep at it.

I’m so glad we did! I was afraid all the hype about shoes was just that…hype. But for us, shoes have lived up to their incredible reputation as an Amazon FBA profit powerhouse.

Shoes aren’t for everyone, and we’ll spend some time over the next couple of posts discussing the ways we’ve run into issues and learned to overcome those obstacles. Our hope is that this post and others to come will give you a way to make an informed decision about whether or not to try out the shoe category.

Do you sell shoes on Amazon? Do you have any reasons to add to our list above? Let us hear from you in the comments! We would also love to hear your questions about selling shoes as we continue to focus on shoe tips and tricks over the next couple of weeks.

article_separator

Our hope for this series on selling shoes is that we’re able to help you make informed decisions about whether the category is right for you and to help you find success in sourcing and prepping shoes.

If you’re ready to step up your game with selling shoes on Amazon, check out our course, The Reseller’s Guide to Selling Shoes: Kick up Your Profits with New Shoes via Amazon FBA. It’s a combination ebook (100+ pages) and video course (over 4.5 hours of no-fluff content) that will help you avoid all the mistakes we made and get your shoe selling off on the right foot.

7 Ways to Save Money So You Can Spend More on Inventory

Save Money Spend MoreWho doesn’t love to save a little time and money?

I would prefer to save a lot of time and money, but hey, every little bit counts when we’re trying to make a profit at Amazon FBA. Any time I can save money on shipping supplies or other areas of my business, I can use that saved money to buy more inventory – and buying more inventory is how I would prefer to spend my money in my business!

All of the tips I’m going to share with you in this post should be either free or next to free. I hope you find these tips super practical and easy to implement right away in your Amazon FBA business, no matter what stage of business you’re in.

Before I get into my tips, I want to invite others to add their advice to the comments at the bottom. Let’s make this post our most-commented post ever! We all have knowledge and experience that others can benefit from, so please share your wisdom and be a blessing to others in the Amazon FBA community today.

Also, if you want to see these tips in action, scroll to the bottom of this post to watch a video of Stephen demonstrating them.

Now…here we go…my top Amazon FBA hacks to save money:

brownbox21. Use free boxes from grocery stores for Amazon FBA shipments.

Especially in the early stages of your FBA business, there’s no need to pay for shipping boxes when you can get them free from grocery stores, friends who have recently moved, or other places who are just going to recycle their old boxes. Find out from store employees when they’ll be restocking the shelves, and stores are generally happy for you to come take the empty boxes out of the aisles for them.

2. On a similar note, use the boxes from online arbitrage purchases to send in Amazon FBA shipments.

We do a significant amount of our sourcing through online arbitrage, so we just turn around and send our shipments to Amazon in the online stores’ boxes. Just make sure you remove or cover up any previous barcodes before putting on the Amazon and UPS label.

AirPouch-Open-Box-w-EarthAware-Biodegradable-Pillows3. Use free dunnage for your Amazon FBA shipments.

Dunnage (isn’t that a weird word?!) is the stuff you put in a shipment to pad the items and keep them from touching the sides of your shipping box. Here are a few ideas for things to use for dunnage:

  • air pillows from online arbitrage purchases
  • blank newspaper
  • plastic grocery bags filled with printed newspaper and tied off (do not let newsprint come into contact with your inventory in the shipment)
  • small cardboard boxes

3117TC++78L4. Use lighter fluid to remove residue from price stickers.

I usually recommend using Goo Gone for removing price sticker residue, but if you don’t want to rush out and buy a new bottle of Goo Gone, you can use lighter fluid if you already have it at your house. (If you want to see how I remove price stickers, check out this video.)

board game closet5. Get FREE inventory from around your house.

We all have items sitting around our house that are brand new or barely used – prime candidates for sending to Amazon and turning into profits. Check out your bookshelves, your kitchen cabinets, your game closet, and your kids’ rooms (with their permission), and you might be surprised what you can find that you don’t use and would actually turn a profit on Amazon.

freecycle_logo6. Get FREE inventory from Freecycle.org.

You can join a group for your area of town on the Freecycle Network and keep an eye out for items that people are giving away for free. I’ve been able to source free board games (new and used), boxes of books, and other items. If you claim an item on Freecycle, the person will leave it on the porch or sidewalk for you to drop by and pick up on your own time. It’s way easier to coordinate than Craigslist purchases, but please still use safety practices and don’t make pick-ups alone.

facebook-twitter7. Join Amazon FBA Facebook groups to get tons of free FBA business information.

One of the easiest ways to absorb free information from the FBA community is to join Facebook groups, search and read the archived posts, and ask questions. We have a Full-Time FBA Facebook group that we would love for you to join, and there’s tons of other groups you can search for on Facebook as well.

Those are my top tips for getting FREE items so that you can use the money you save on buying inventory instead. Let me know in the comments if you know of any other awesome ways to save money on supplies for your business.

Here’s the video (Amazon FBA Hacks to Save Time and Money) with these tips in action:

Overcoming Your Fear of Leaving with an Empty Shopping Cart

Empty Shopping CartWe’re well into our second round of blog posts in our series on Overcoming Your Amazon FBA Fears. If you want to catch up on the previous posts, click here to read through them.

Today we’re going to discuss a fear that can strike deep in the heart of anyone who spends time doing retail arbitrage (RA). Sometimes the fear can strike as soon as we walk through the doors of a retail store. Sometimes it takes a few minutes into scanning the clearance aisle before we feel it creeping in. Other times it can mess with our heads after an hour or more spent scanning items, and it can cause us to throw our sourcing parameters out the window and start making ridiculous choices.

It’s the fear of leaving a store with an empty shopping cart.

No one who does RA likes to spend 30 minutes, an hour, two hours in a store scanning items and come up empty. We can feel like the time has been wasted or that we are inadequate as resellers. It’s easy to start thinking that the problem must be with me, that I am not good enough to find something to resell in this store.

While it’s true that the more you scan the more you can find and the longer you’ve been in the business the more quickly you’ll be able to load up a cart, we all need to remember that there are days when the stars just don’t align and we can’t find anything worth buying in a store. Sometimes you hit home runs. Sometimes you strike out. It’s all part of the game.

Everyone has a different business model when it comes to Amazon FBA. When you head into a retail store (or garage sale, thrift store, online store, wholesale marketplace, etc), you should know your business’s unique buying parameters: the categories you’re interested in, your maximum buy price, your minimum sell price, your expected return on investment (ROI), and your maximum sales rank percentage per category. In certain categories you will have other criteria as well, including number of sellers, number of reviews, or number of variations.

You should set up these parameters well before you head into a store so that you can make the best decisions possible for your business and so that you are equipped to handle just such a situation as the empty cart scenario.

Here are 3 truths to remember when you are tempted to buy something, ANYTHING, rather than leave a store with an empty cart:

burning_money11. You don’t want to waste your money.

If you spend your capital on items outside your sourcing parameters, you are using up capital you might need later that day or that week. You don’t want to buy items outside your parameters and then not be able to buy that amazing home run at the next store because you ran out of money.

shutterstock_373325772. You don’t want to waste your time.

It may seem like you’re wasting your time by scanning for an hour and then just leaving the store empty handed, but that’s the short sighted way of looking at this situation. Think about how much more time you will waste by not just walking away. You will waste the time spent arguing with yourself that it’s OK to forget your sourcing parameters. You will waste the time standing in line to check out with your less-than-stellar purchases.

And then for weeks and months you could potentially be wasting time dealing with dead inventory at the FBA warehouse. I’ve found that often times the items I had to convince myself to buy in order not to feel like a failure at RA are the exact items I regret buying 8 months later when no amount of repricing will get those suckers to sell. Then I have to spend more time and mental energy deciding whether to remove the items or destroy them to avoid long term storage fees. Why didn’t I just walk away in the first place?!

IMG_15713. You don’t want to fall into the comparison trap.

If you spend any amount of time in Facebook groups for Amazon sellers (and I recommend you do join some groups for the camaraderie and education; ours is found here), you will see that some sellers like to post pictures of their latest RA haul: a receipt stretched out for yards, multiple shopping carts attached in a train, the back of a van packed to the ceiling with shopping bags. These photos can be inspirational, but they can also come back to haunt us when we we are standing in the store aisle with an empty cart.

comparison-is-the-thief-of-Please, please do not compare yourself to any other FBAer when you are sourcing. You don’t know what their parameters are, you don’t know how far in debt they may be in order to make those purchases, you don’t know if that inventory is going to sit languishing on a warehouse shelf never selling or selling at a loss. Please do not spend one moment comparing yourself to anyone else. Do not be discouraged by walking out of a store with an empty cart. It does not mean you weren’t successful at sourcing. It means you were wise in your choices.

I hope these truths have helped you understand how you can fight the fear of the empty cart. It’s my desire for you to have a successful Amazon FBA business and be prepared with the knowledge you need in various sourcing situations. Next time you’re in a store and can’t find anything to buy, no matter what you scan, know that you need to stick with the sourcing parameters you set up ahead of time. It’s OK to walk away. It’s OK to leave an empty cart. Move on. You have better buys around the corner.

 

Overcoming Your Fear of Starting Your Amazon FBA Business

Starting Amazon FBA

Are you dragging your feet in starting your Amazon FBA business? This post is for you.

Have you already started your Amazon FBA business, but you’re tempted to quit? This post is also for you.

Many contingencies and what-ifs might be plaguing your mind right now when it comes to thinking about building a successful Amazon business, but we want to help fill your mind with TRUTH, not fear – and we want to help you stay the course in building your business, even when the times get tough.

It’s easy when you first hear about the opportunity of earning money through selling via Amazon FBA to get excited and want to learn more. We can start making plans to start a business. We can start talking about what it would be like to have a business. We can start thinking about how we would use all that money we’ll make from our business. But what we really need to do is start the business!

Today we’re going to discuss 4 fears of getting started in Amazon FBA and how you can conquer those fears with the truth. If you’ve already started FBA, going back over these 4 truths will help you refresh your memory about how to keep up your progress in selling online.

26409-Brian-Tracy-Quote-To-earn-more-you-must-learn-moreFEAR #1: I don’t know enough to start my own Amazon FBA business.

TRUTH #1: You can always learn! And there are plenty of places to learn – some places for a fee and some really great places to even learn for free. Don’t let your lack of knowledge become an excuse for inactivity.

The best place to get a basic understanding of what you need to know for starting an Amazon FBA business is right there within the Amazon guidelines. Every seller must be responsible to read and apply the guidelines for him or herself.

If you’re wanting to learn the big picture about how to sell on Amazon FBA, we encourage you to read Chris Green’s book Arbitrage. For less than $10 you can get your hands on a brand-new copy of this wealth of information.

For a step-by-step video course on how to sell on Amazon FBA, we recommend Amazon Boot Camp by The Selling Family.

If you’re looking for information on taxes as related to selling on Amazon, check out the awesome services of TaxJar.

And as always, you can get tons of information for free here at the Full-Time FBA blog (subscribe to the newsletter for some free PDFs!) and on our YouTube channel. We also have a Facebook group where you can search the archived posts or ask questions.

garage-sale-sign-with-shoppersFEAR #2: I don’t have any inventory to start an Amazon FBA business.

TRUTH #2: There are great places to find inventory all around you – you just need to start scanning barcodes! (We like to use Scoutify for our scanning app because it comes packaged with Inventory Lab for listing and accounting.)

Our favorite places to look for low-cost FBA inventory are

That last one is our favorite place to find inventory when we don’t know where else to look. Look on your bookshelves for books you haven’t gotten around to reading in years. Look through your kitchen cabinets for a gadget you got last year for Christmas but never even opened. Look for old board games that have no missing pieces, but you just never play them any more. All of these items could be potential profits on Amazon FBA.

3-Strategies-To-Buy-Property-With-No-Money-Down-1014x487FEAR #3: I don’t have enough money to start an Amazon FBA business.

TRUTH #3: Yes, it does take some capital to get started with a business. But unlike many businesses that require a great deal of investment up front, you can get started with Amazon FBA with a relatively small amount of capital. In fact, we have a YouTube video that shows how you could potentially start FBA with as little as $500 (and $300+ of that money would go towards inventory!).

If you’re looking for items around your house, at garage sales, or in thrift stores, you can buy inventory for less than a dollar and potentially sell it for $10, $20, $30 or more. The potential return on investment (ROI) for these types of items gives you a lot of momentum when you’re just getting started.

If you are truly strapped for cash and want to start FBA, we recommend saving up a few hundred dollars first. Some people work a part-time job for a few months in order to save up some capital, and others have a garage sale of things around the house to make some money to invest in FBA.

We do not recommend using credit cards or taking out loans to start FBA. There is too much risk involved in learning the business to run up debt in the process. Instead, focus on finding low-cost, high-ROI items and start your business slowly. You’ll be surprised at how quickly you learn and how quickly you can turn your profits into a snowball of disbursements from Amazon!

self-employedFEAR #4: I’m just not sure I can do this. Do I have what it takes to run my own business?

TRUTH #4: Maybe you’ve tried out other ventures in the past that haven’t turned out so well, and you’re afraid to experience the same kind of results. The fear of failure is holding you back. This fear is valid and real. But it can be overcome!

You have to disconnect the event of failing from you as a person. You may have failed in the past, but you are not a failure. My dad likes to emphasize this truth to me in a quote from Zig Ziglar: Failure is an event, not a person.

For all of us, there will be times that we fail. No exceptions. This applies to everyone. But you can’t take your failures personally. If you do, that’s where your business will start to break down (or never get off the ground!).

Instead, we learn from our failures. We leverage our mistakes into educational experiences that can’t be gained for any amount of tuition at a business school.

When we’re starting out at any new venture, we’re like a new baby learning to walk. The baby may fall down a few times (OK, a lot of times), but never does that baby decide, “You know what, this walking thing is too hard. I just can’t get it. I think I’ll crawl the rest of my life.” No, the baby gets up, tries again, and eventually starts walking. Then running. Then skipping. The same can be true for any of us in our Amazon FBA business.

Do you have any other fears that are holding you back from starting Amazon FBA? Do you ever face the temptation to quit your FBA business? Let’s talk in the comments!

Using the CamelCamelCamel and Keepa Google Chrome Extensions

hqdefaultToday’s blog post will be short on written text so that we can point you directly to a screen capture video. I’ve put together a video walking through the process of researching 5 products from the Amazon catalog, using the Camelizer and Keepa Google Chrome Extensions to help make a smarter sourcing decision.

In the video I will show you how both of these handy extensions work for researching the sales rank and price history of items you might be considering for Amazon FBA. I’ll also discuss my thought process on whether or not I think each of these items would be a good buy.

If you’re looking for more info on how to use CamelCamelCamel and Keepa, check out our recent blog posts:

The Most Harmful Amazon FBA Sourcing Decision You Could Ever Make
How to Read & Understand CamelCamelCamel Graphs
How to Read & Understand Keepa Graphs

I want to encourage you today if you’re making sourcing decisions without using historical sales rank and pricing data from CamelCamelCamel and Keepa — there is a better way to buy Amazon FBA inventory! You can make smarter sourcing decisions. Your business will hugely benefit if you take the time to learn how to use these powerful free resources.

Book & DesktopTo find out how to use both CamelCamelCamel and Keepa to make smart sourcing decisions, be sure to check out our brand new course, The Reseller’s Guide to How to Keepa Camel: Using Amazon Sales History to Make Smart Sourcing Decisions. This course is a combo ebook and video course where I walk you through everything you need to know to make sense of both Camel and Keepa in ways you’ve never thought of.

How about you? Do you use the CamelCamelCamel or Keepa Extension while sourcing? Do you have a favorite? I’d love to hear from you in the comments below.

The Most Harmful Amazon FBA Sourcing Decision You Could Ever Make

Harmful Sourcing Decision
Did you know that a book on Amazon ranked 10 million yesterday could be ranked 500,000 today?
All it takes is one sale. Just one. One sale of that book on Amazon could change the sales rank drastically overnight.

Would you buy a book ranked 10 million on Amazon to resell? Would you buy a book ranked 500,000 to resell?

I know there are lots of other factors at play in how you might answer that question, but my point in asking it is to get you to look at the sales rank. You view a book ranked 10 million much differently than one ranked 500,000, right?

Yet every day many, many Amazon FBA sellers are making their sourcing decisions based on today’s sales ranks and low prices. They find a book ranked 500,000 and snatch it up, without checking to see that it was ranked 10 million yesterday. Or maybe it’s a toy ranked 100,000 that was ranked 1.5 million yesterday.

There are two main reasons why you shouldn’t base your sourcing decisions on today’s sales rank and pricing data:

  1. Amazon changes their prices often.

LC_OFF_Body_NLPAmazon is known to change their prices across their website 2.5 million times per day. That’s just Amazon’s prices – that doesn’t include 3rd Party seller prices, which are also being changed constantly throughout the day with repricers. Now, Amazon has hundreds of millions of products, and they’re changing those prices 2.5 million times per day, which is mind blowing if you try to think about what that means. The low price on items also change throughout the day when a seller sells out of an item and the low price bumps up to the next seller. If prices are changing constantly on Amazon, why would you make a sourcing decision based solely on this one snapshot in time of the current low price?

  1. Amazon updates sales rank often.

Seinfeld Scene It RankAmazon recalculates their sales ranks every hour. That’s 24 times a day that sales ranks change on Amazon! If I’m looking at an item to resell, it’s too much of a gamble to base my buying decision on what the sales rank looks like on this one hour of this one day. The current sales rank is just a snapshot in time of how this item has recently sold. I need to make my decisions based on broader information than this one snapshot.

Whether you are in a store doing retail arbitrage or you are at your desk doing online arbitrage or looking at a wholesale catalog, you need more information than this one snapshot in time. You need more than just the current low price and the current sales rank in order to decide if you want to buy 1 of an item, 10 of an item, or 100 of an item. Your hard-earned inventory money is at stake here! You want to make your decision based on the best information available.

Making this type of decision on how to spend your sourcing money without using historical data from CamelCamelCamel or Keepa is the most harmful sourcing decision many Amazon FBA sellers are making.

I would be willing to go so far as to say that making sourcing decisions without CCC or Keepa is one of the top reasons Amazon FBA sellers quit their business. They spend all their sourcing money on inventory without looking at the historical data, the prices tank, the inventory never sells, and they throw their hands up in despair and say, “I quit! I tried Amazon, and it just didn’t work for me.” Now, there may be other factors at play, but for many resellers using CCC and Keepa could be a huge game changer in their business. They could find profitable inventory that will sell in a reasonable amount of time and won’t lower quickly in price.

I’m especially disheartened when I hear resellers saying they want to quit Amazon FBA over these types of inventory problems because this problem is so easily fixable. You can learn to read and interpret CamelCamelCamel and Keepa. The graphs can make sense, and you can use them to make smarter sourcing decisions.

CamelCamelCamel & KeepaBoth Camel and Keepa are free, easy-to-access programs that you can use on your computer or your mobile device, either in a web browser or from your 3rd party scouting app like Scoutify, ScanPower, or Profit Bandit (Amazon Seller app does not have links to CCC and Keepa, however). It only takes an extra 20 to 30 seconds (if even that!) to look at the sales rank and sales price history of an item when you’re sourcing. You can take a quick look at how often this item has sold and how it’s been priced in the past, and you can make an educated prediction about how it will behave in the future.

I want to encourage you today if you’re making sourcing decisions without using historical sales rank and pricing data from CamelCamelCamel and Keepa — there is a better way to buy Amazon FBA inventory! You can make smarter sourcing decisions. Your business will hugely benefit if you take the time to learn how to use these powerful free resources.

Book & DesktopTo find out how to use both CamelCamelCamel and Keepa to make smart sourcing decisions, be sure to check out our brand new course, The Reseller’s Guide to How to Keepa Camel: Using Amazon Sales History to Make Smart Sourcing Decisions. This course is a combo ebook and video course where I walk you through everything you need to know to make sense of both Camel and Keepa in ways you’ve never thought of.

How about you? Do you use CamelCamelCamel or Keepa? Do you have a favorite? What are you favorite things about Camel or Keepa? I’d love to hear from you in the comments below.