Tag Archives: FBA

How to Capitalize on Amazon’s Super Saver Shipping Price Change

Amazon just quietly changed the price for non-Prime members to qualify for Free Super Saver Shipping, a decrease from purchases of $35 down to $25. In other words, non-Prime members now have to buy only a minimum of $25 worth of Prime-eligible items in their shopping cart in order to qualify for free shipping. This can be an order containing a combination of items from every category.

This is not the first time Amazon has changed the price to qualify for free super saver shipping. In October of 2013, the price for free super saver shipping increased from $25 to $35 and remained $35 for almost 2 years. In early 2016, the minimum price increased from $35 to $49. In the middle of 2016, Amazon started to feel the impact of Walmart.com’s $25 free shipping threshold and responded by lowering super saver shipping from $49 back to $35. This week, Amazon has again lowered the minimum price back down to $25.

If you react correctly, then this change by Amazon will actually help your business. Here are some reasons to celebrate this change:

Amazon-Prime-Streaming-Video-Service-Bundles1. With this change, more people will be buying items that are Prime-eligible (this means items stored at FBA warehouses). With more people buying Prime-eligible items, there will be more people to buy your FBA products.

2. The more people who decide to use Prime shipping as a non-Prime member means that more people will be testing out Prime shipping benefits. More customers will fall in love with the free Prime 2-day shipping, and that will cause more people to sign up for Amazon Prime. The more Prime buyers, the more customers to buy your inventory.

It will take a little work, but those that react the fastest will win. I recommend doing some price changes quickly. Here is what I plan on doing with my inventory:

Price-Increase1. Price many items at $25. Search and see which inventory items I have priced between $22 and $25 to see if I should raise the price to $25. Based on my competition, this might be a great idea. This strategy will cause non-Prime shoppers to get free shipping on your items and they will choose your $25 item instead of a competitor’s item priced at $22 + $5 shipping.

2. Another “magic” price point will be $12.50. If the item you have could possibly be bought in multiple quantities, then this is a great price point for people who want to buy two. Two items at $12.50 total $25 and will qualify for Free Super Saver Shipping!

Of course there will be some exceptions to the above rules. Exceptions come into play when you look at other current FBA prices, how many items are being sold of that item, how the particular product category works, and more… but most of my prices will be updated with this thought process in mind! For more from Amazon on the Super Saver price change, click here.

So what do you think about the new $25 price point? How do you plan to react to these changes? I’d love to hear your thoughts in the comments below.

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Using Feedback Genius To Generate Positive Product Reviews

Last time on the blog, I interviewed Karon Thackston about her new book, Review Advantage (she said her coupon code review10 is still live). In that interview Karon shared so many great tips and tricks (as well as what not to do) in order to get more product reviews for the items you’re selling on Amazon.

Now we know that getting multiple great product reviews is important to increase sales, but too many times the process of asking for those reviews can be time-intensive. Some sellers seem to think it takes so much time that they don’t even ask for reviews at all. If only there were a program that would automatically ask customers for product reviews for us! Spoiler alert: there is!

I wouldn’t recommend trying to generate product reviews for every single item you’re selling on Amazon. If you’re selling one-offs or items with lots of sellers on the listing, you can’t spend the time and effort to generate reviews for those items. It’s just not worth it.

But some types of items you might be selling on Amazon could really benefit from a few (or many!) more product reviews. Here are the types of items we think are worth spending time and effort generating product reviews for:

  • High number of multiples/replenishables – For me it would take at least 10 or 20 units of a very profitable item in stock before I would want to take the time and effort to increase product reviews.
  • Items that I can order wholesale – If I can easily restock an item from a wholesale source, it’s worth it to me to help that product get more reviews.
  • Items where I create a new listing – It seems kind of obvious, but I would definitely take the time and effort to try to generate reviews for new listings that I have created within the Amazon catalog. This would also include bundles or private label items.

As we discussed in our previous blog post with Karon Thackston, there is a right and a wrong way to go about generating product reviews. Again, I highly suggest you check out that blog post for Karon’s great insight on this topic.
Once you’ve decided you have a product worth your time and effort in trying to generate new reviews AND you’ve studied up on how to compose the right type of email asking for reviews, I suggest looking into automating the process.

One method I’ve used to generate product reviews on listings I’ve created is the service Feedback Genius. Now, in the past I’ve done blog posts about how I’ve used Feedback Genius to keep my seller feedback at 100% – but Feedback Genius is also a great way to send out compliant emails to generate product reviews without going against the Amazon terms of services.

The way Feedback Genius works is you set up the service to send out automated emails to customers who buy your items on Amazon. If you’re trying to increase your seller feedback, you set up an email with links for leaving seller feedback to go out to anyone who buys from you on Amazon. But you can also set up the service to send out an email when you sell a particular ASIN, and that email will include links for leaving a product review. Pretty cool, huh? One automated system for emails, two different types of results.

For example, we had a source for the 4th edition of a book that was selling really well for us. After several months of selling on the well-established product page for that book, the 5th edition of the book was released. We decided to go to the effort of creating the product page for the 5th edition, knowing how well we had done on the previous edition – the new edition should do equally well, right?

Well, after a couple of weeks, we started to see sales trickle in, but we weren’t getting any reviews on the book on the new product page. We also noticed that even if we typed “5th edition” into the Amazon search bar, the 4th edition was still coming up at the top of the search for that book – possibly because the 4th edition had way more product reviews than the newer one.

We decided to set up Feedback Genius to generate product reviews for the 5th edition of the book, and sure enough, within a short time we started seeing lots of 5-star reviews coming in. The 5th edition also moved up to the top spot in Amazon searches for that book. Success!

We knew going into the venture that the book has a history of being well-received, and we knew it would be worth the time, effort, and money to send out the emails to generate product reviews. We had a source to keep replenishing our stock of the book, and we enjoyed the increase in sales once it had more reviews and landed in the top spot of searches.

If you have a product that fits the criteria we listed above and you think it could benefit from some extra product reviews, check out Feedback Genius for generating reviews. Signing up through our Full-Time FBA link will get you a free 60-day trial with 500 free emails. That’s a lot of free emails!

So if you combine the lessons you learn from Karon Thackston’s wisdom on how to get more product reviews with the automated services of Feedback Genius, you should start seeing more reviews on your products…which should lead to more sales!

Now, we’d love to heard from you! Which items in your inventory could use more product reviews? Have you tried to seek reviews from your customer’s yet? What strategies have you used (that are within Amazon’s guidelines)? Let us know in the comments below.

Improve the Customer Experience: Think Like an Amazon Customer

One thing Amazon wants to be known for is having the most customer-centric online marketplace in the world. Amazon truly takes “the customer is always right” to the extreme – just look at their super lenient return policy if you need an example. They want happy customers. Customers who will come back again and again. Customers who trust Amazon. Customers who leave raving reviews. Customers who tell all their friends how much they love Amazon.

Amazon wants the customer experience on their website to be the best in the world.

And that’s a phrase you as an Amazon FBA seller should remember and ingrain into your psyche: the customer experience. If you can begin to focus on how you as a seller can contribute to the customer experience on Amazon, you can begin to increase your profits and decrease your returns as an FBA seller.

The easiest way to make this mindset shift is to think like an Amazon customer. Shift away from always thinking like an Amazon seller…shift toward thinking like an Amazon customer.

Shift away from thinking only about your bottom line as a seller…shift toward thinking about how the customer will react when they open your product after their delivery arrives.

One tendency many of us resellers have developed over time is frugality. We are always on the lookout for a good deal, and we’re willing to overlook some minor flaws in order to save a few bucks. When customers go to Amazon, however, to purchase new items, they are looking for good deals but not at the expense of quality. They don’t want to receive an item with dinged up packaging or crushed corners. They want their merchandise to arrive in pristine, gift-quality condition.

As resellers, we absolutely cannot send in inventory to FBA warehouses that will cause customers to lose trust in Amazon or have an unpleasant customer experience. We must look for ways to positively impact the customer experience by providing quality merchandise. And when we give customers a great experience, it can increase our profits by giving us more sales, more product reviews, and more positive feedback.

Here’s how your contribution to the customer experience can increase your profits:

  • Thinking like an Amazon customer opens your eyes to see more items to source. Too often when we’re sourcing we pass up quality inventory because we think, “No one would ever buy that!” But if you’re thinking like an Amazon customer, your mind is open to the possibility that even the oddest item could be something customers are searching for. Scan everything (we use the Scoutify app), and don’t just disqualify items because you personally would never be interested in buying them. Pay attention to sales ranks and sales rank history, and you’ll begin to learn trends in what Amazon customers are buying.
  • Thinking like an Amazon customer helps you find higher ROI items. ROI is return on investment – and in general we as Amazon sellers want to get the biggest ROI possible. As you’re scanning items and keeping an open mind about what customers are looking for, you can start finding items that other sellers would overlook, but that have great ROI potential! Often we make assumptions that items aren’t worth anything, but when we do the work of 1) thinking like a customer on the search for these types of items, 2) scanning anything that fits the description of what an Amazon customer would be looking for, and 3) paying attention to sales rank and how it works in different categories, then we can start finding items that stand out and have higher ROI than if we just follow what every other seller is doing and chase after the latest BOLO.

Now let’s look at the other side of this coin of thinking like an Amazon customer. Here’s how you can begin to decrease your return rate:

  • Think like an Amazon customer while you’re sourcing. When you’re sourcing for inventory, the biggest way you can positively impact your return rate is to stop sourcing borderline items. It may be a hard habit to break, but for the sake of your seller account, I highly recommend you not buy items that are at all questionable as to their condition – and that includes packaging. No more dinged tins, crushed corners, broken plastic, or missing shoebox lids. The reseller thinks, “They’re just going to throw the box away. What difference does it make?” But the customer thinks, “What’s the deal? Why is this packaging all messed up? Is something wrong with the item also? Guess I should return it.” While you’re standing there in the clearance aisle sourcing, stop looking at the dollar signs on your scanning app for a moment and think about how your customer would feel opening an Amazon box and finding this particular item. Would they be pleased with their purchase? Or would they be disappointed because of how it’s presented? There are plenty of high quality inventory finds out there for you to source, so if you think the customer will be disappointed at all with the item in your hand, put that item down and keep moving down the aisle. Your return rate will thank you.
  • Think like an Amazon customer while you’re listing. When you’re listing your items for sale on Amazon, always round down on the condition. You’re not going to be making it out of the store with borderline items anymore, right? But sometimes inventory items make it home with you and you find out too late that there’s a defect in the packaging or something else about the item that makes it not in new condition. In these cases, always round down on the condition. Do not list them as new. List them as like new or very good.

Think like an Amazon customer. If someone buys a book in like new or very good condition, but they open it up and see that it’s way better than they imagined, they’re going to be pleased (and possibly leave you positive seller feedback). On the other hand, if they order a new book but open it up to find it has shelf wear of any kind, that book might be on the fast track to your return pile (and your seller feedback might take a hit). Always round down on the condition, not up.

It’s not worth it to make 5 extra dollars on a sale but risk the return or the impact on your seller account – it’s not even worth it to make $50 extra! Amazon sellers must stop putting their bottom line ahead of the customer experience.

It may seem counterintuitive to think like an Amazon customer, but really, try it! Next time you’re out sourcing or back at the computer listing, start thinking about your products and how a customer would respond to these products if they receive them in an Amazon shipment. It may sound crazy, but thinking this way will begin to increase your profits and decrease your returns.

Have you found some ways to think like an Amazon customer? If so, we’d love to hear from you in the comments below.

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Imagine knowing exactly what to expect in your Amazon FBA business every month of the year.

Imagine what it would feel like knowing you were not missing out on any of the opportunities that will come your way this year. 

Imagine working on your Amazon business knowing exactly what your priorities are, what you need to avoid, and what you need to accomplish during each month to make progress toward making this year your best sales year ever.

Find out more about The Reseller’s Guide to a Year in FBA: A Month by Month Guide to a Profitable Amazon Business today. The package includes a 200-page ebook, monthly live webinars, and 4 special bonuses.

How to Increase Your Amazon FBA ASP (Average Selling Price)

Today’s post is a follow-up to the previous article we posted about why you should consider trying to raise your ASP, or average selling price. If you haven’t read that first article yet, you might want to refer to it before diving into this one.

For a quick review, your ASP is the average amount of money you make in sales per item you sell on Amazon. Raising your ASP has some great benefits to add to your Amazon FBA business.

But HOW do you go about raising your ASP?

It might seem easier said than done, but the reality is you can take a few steps to impact your ASP and give your Amazon FBA profits a boost. Here are our suggestions for increasing your ASP:

1. Set a minimum selling price parameter.

A while back, we made the decision in our Amazon FBA business to stop sourcing items that are selling for under $10-$12 on Amazon. Even if we could make 100% ROI on an item that is selling for $8 or $9, we decided to stop sourcing those items and focus our sourcing on higher priced items. When we eliminated the low-priced items from our sourcing strategy, we had more money to focus on buying higher-priced items – partly because we could add up the saved sourcing money to go towards higher-priced items and partly because we were saving money in fees and prep costs when we raised our ASP and lowered our overall number of units sold.

The $10-$12 range is what we chose for our minimum, but for other people that amount might be different. This type of minimum sales price might affect a lot of booksellers or others who (like us in years past) are dependent on high volumes of low-priced toy sales. Overall, though, we have found that eliminating those super low-priced items from our inventory has been the biggest practical step towards raising our ASP.

2. Consider selling bundles or multi-packs.

Multi-packs are multiples of the same item for sale on Amazon. Bundles are a group of items with a similar use or theme for sale on Amazon.

If you follow the Amazon guidelines, you can create your own bundles for sale and increase your ASP per unit sold over the ASP if you sold all of those individual items from your bundle separately instead. If you’re interested in learning more about selling bundles on Amazon, I recommend The Book of Bundles.

For multi-packs, you can no longer create a multi-pack if it doesn’t already exist on Amazon, but you can list a multi-pack of items if it’s already available in the Amazon catalog. Like bundles, multi-packs offer a great way to raise your ASP per unit sold over the ASP if you sold each of those items from your multi-pack separately instead.

Once again, you also save money in fees if you sell items in a bundle or multi-pack instead of individually. For example, if you sell 5 individual units of a $10 grocery item, you would make $50 in sales, but you would have to pay 5 sets of FBA fees. If you sold it as a multi-pack of 5 for $50, you would still make $50 in sales, but you would only have one round of FBA fees to worry about.

3. Source higher-priced items.

It might seem obvious, but sometimes we need to get back to the basics of the topic we’re trying to learn – if you want to raise your ASP, you need to have higher-priced items in your inventory. You can’t sell high-priced items if you don’t have high-priced items available for Amazon customers to buy.

The easiest way we found for selling higher-priced items in our FBA business was to add shoes to our inventory. Our ASP in the Shoes category is about $70, and our overall ASP across all categories combined has risen to $47 now that shoes are a main staple in our Amazon inventory.

When we talk to other sellers about adding shoes to their Amazon inventory, we often get asked, “Isn’t Shoes a restricted category? Isn’t it hard to get ungated?” And the answer is YES Shoes is a gated category, but NO it’s not hard to get ungated in Shoes right now. If you want more info about how to get ungated in the Shoes category, you can click here to download our free guide for the shoe approval process. If you want to read more on our blog about selling shoes on Amazon, you can click here for the blog series.

Shoes aren’t the only higher-priced items you can source. Other sellers like to sell electronics to raise their ASP. Some sellers go with high-priced toys to raise their ASP. Whichever category you like to focus on, there are ways to start sourcing higher-priced items as a step towards raising your overall ASP.

Those are the top 3 ways that we have impacted our ASP and raised it to a point where we’ve seen an increase in our disbursements and a significant boost in our Amazon FBA business. Do you have any other tips or tricks you would add to this list? Please leave us a comment below!

Why You Should Consider Raising Your ASP (Average Selling Price)

Did you see that we recently released a PDF of Amazon acronyms you can print out and refer to in your FBA business? If not, you can grab a copy of the acronym list here as a handy reference.

One of the acronyms at the top of that list is ASP: average selling price. Over the next couple of blog posts, we’re going to discuss ASP and how it impacts your business.

Your ASP is the average amount of money you make in sales per item you sell on Amazon. ASP is calculated by dividing the dollar amount of sales by the number of items sold. To find your ASP, follow these steps:

  • Log in to Seller Central.
  • Hover over Reports.
  • Click on Business Reports.
  • Check out your Sales Snapshot – your ASP is the amount listed for “Avg. sales/order item.”

Why is it important for you to know your ASP and why is it important to increase your ASP?

I really believe that an Amazon FBA business needs a higher ASP in order to make it long-term in this business. If selling on Amazon is a business for you and not a hobby, you want to make sure you’re getting paid like a business would pay you. One way to increase your ability to pay yourself out of your business is to increase your ASP.

Sure, there are plenty of people who are able to make good money on Amazon with a lower ASP, for example book sellers or sellers in other categories that depend on high volume at low prices. Depending on your business model, you can really make a lot of money at high volume and low prices. But along with that type of business model also comes more work because you’re having to find and sell more items in order to make that volume. That type of business model also might require more outsourcing if you want to scale even larger, more sourcers to find your inventory, more listers and preppers, etc. I’m not saying this isn’t a viable business model; I’m saying that selling at a low ASP comes with a price.

In my experience, my business has seen more growth when I have focused on finding items to resell at a higher ASP, rather than trying to increase my volume on low ASP items. I’ll share with you a few reasons why I believe this has been the case:

1. You can save a lot of money on FBA fees when you raise your ASP.

Let’s think about an example using two FBA sellers, Bob and Sally. Bob typically sells lower priced items on Amazon. Today so far he has sold 10 items at $10 each, so he’s made $100 in sales. Sally, on the other hand, has sold one item today, but it was priced at $100. Both sellers have the same dollar amount in sales, but their FBA fees are taken out of those sales differently. Sally only has the one sale, so she only has to take care of the referral and FBA pick & pack fees for just the one item ordered. Meanwhile, Bob has to pay the referral and FBA pick & pack fees 10 times for 10 items. All those fees on low priced items add up over time.

In the end, Sally’s $100 of sales allows her to take home about $80 of profit. Bob’s $100 of sales leads to closer to $60 of profit. If you increase your ASP, you reduce your fees and increase your profit.

2. You can save a lot of time, money, and effort on prepping and shipping items when you raise your ASP.

Think about Bob and Sally again. With Sally’s one $100 item, she only had to expend the time, money, and effort to put one FBA label on her item, put one poly bag on her item, and pack that one item in her FBA shipment. But Bob with his $10 items…he (or someone he has hired) has to put on 10 FBA labels, seal 10 poly bags, and pack 10 items for shipment to get that $100 in sales. All of those costs add up over time, and you can save money and increase profits by reducing the amount of prep work required in your business. Increasing your ASP is a great way to reduce your necessary prep work.

3. You can give yourself more wiggle room for price fluctuations when you raise your ASP.

Back to Bob and Sally…

For sellers like Bob who have items priced mostly in the $10-$15 range, if the going price of their items begins to drop, they don’t have much room to lower their price and stay competitive without losing all their profit. If they lower the price even a couple of dollars, it drastically changes their return on investment (ROI). But if Sally’s $100 item lowers in price by $1, $2, or even $5-$10, she still has wiggle room to lower her price and stay competitive, without sacrificing her ROI.

Note: In general I don’t recommend always lowering your price whenever your competition does, which can start a race to the bottom. But in those instances where for some reason you need to keep your price competitive, having that wiggle room to lower your price without sacrificing profit and ROI is a nice feature of increasing your ASP.

4. You can increase your Amazon disbursements if you raise your ASP.

When you have fewer fees removed from your FBA sales and you sell more items with higher ASP, the natural result will be higher disbursements from Amazon. More profits, more money to reinvest in your business, and more money to take out of your business in the form of income for yourself and your family. That’s the progress we personally have seen over the past few years – the number of items we have sold via FBA has decreased each year, but our ASP has increased, and as a result our Amazon disbursements have increased.

Like I said earlier, some business models work very well by selling a high volume of items at a lower ASP. But for the amount of time, effort, and money that I want to invest in my business, I have found that sourcing and selling higher ASP items has given my business tremendous growth. My goal is to continue making a full-time income with only part-time hours through Amazon FBA, and increasing my ASP has been a vital component of achieving that goal each year.

Here’s one strategy I suggest for anyone who might struggle with having enough money in their sourcing budget to make it from one Amazon disbursement to the next: Start setting aside a portion of your budget solely dedicated to higher ASP items. Make sure you are gradually working at finding items that will increase your sales without increasing your work. In my next blog post, I’ll go into more detail about how to raise your ASP and start getting more bang for your buck with your sourcing budget, time, efforts, and energy.

Keep an eye out for that next blog post soon, but in the meantime we would love to hear from you in the comments. Have you had success increasing your ASP over time? Are you actively trying to increase your ASP? Or is your business model built on lower ASP items?

Easy Way to Track your Mileage for Retail Arbitrage Trips

Am I the only reseller out there who has ever done a great day of retail arbitrage and forgotten to write down my mileage?

I am? Really? Hmmm. I thought surely I wasn’t the only one who’s done this before.

OK, thanks for finally admitting it. You’re just like me…you don’t always remember to track the tiny details of your Amazon FBA business without a little assistance.

Tracking your business mileage may seem like an inconsequential part of your Amazon business, but in reality those miles can really add up over the course of a year. You don’t want to miss out on a single mile if at all possible! Your CPA or tax preparer is going to want to see those miles at the end of the year, and you need a way to smoothly record all of your business trips.

What qualifies as a business trip for an Amazon FBA seller? Any trip in your vehicle where you are adding miles for a 100% business purpose, including but not limited to:

  • Driving from store to store for retail arbitrage
  • Driving to the UPS store, FedEx, post office, or wherever you need to drop off packages for shipment
  • Driving to Staples or wherever to pick up office supplies
  • Driving to The Home Depot, Lowe’s, or wherever to pick up shipping boxes
  • Driving anywhere to do errands or tasks related to your Amazon business

Over time you can save a lot of money in your business by writing off the mileage on your tax return that comes from these business trips. Always speak with a CPA or tax professional to make sure that the types of trips you are recording qualify to be written off.

In the past I’ve used a number of different solutions for recording my mileage, some of which worked better than others. I started off by carrying a little notebook and pen in my car to write my details down for start mileage, end mileage, destination, and purpose of the trip – but who knows how many times I forgot to write it down over the course of the year! I even left a sticky note on my dashboard for years with the word “MILEAGE” in all caps, in an attempt to remind myself to record my trips. If I didn’t manage to remember, I would have to go to Google Maps and try to recreate my trip and estimate my mileage.

Then I progressed to using a couple of different smart phone apps to help me record mileage, and they were just OK. They were more convenient than trying to jot things down in a notebook, but they still didn’t help me solve my main problem: remembering to record my miles!

Finally I found the MileIQ app, and I landed on an automatic solution that saves me time in recording my mileage and (more importantly!) saves me from having to remember to record it.

The way the MileIQ app works is by running in the background as you drive to different destinations throughout the course of your everyday life. The app tracks each trip you make in a vehicle, logs it, and learns how to categorize it.

The app knows when you start and stop a trip, and all you have to do is review your trips at the end of the day and tell the app whether it was a business or personal trip – all with one swipe classification. Swipe one direction for personal, the other direction for business. After a while, the app will start to learn which destinations you usually classify as business, and it will automatically classify those trips for you.

Now, I’m sure you’re wondering, just like I did at first, what happens if you’re riding in someone else’s car? Does MileIQ know the difference? No, it doesn’t know the difference and will still track the mileage even if you’re not in your own vehicle, but you can easily cancel those trips during your review of your mileage. You can also choose to turn off tracking if you want to… just remember to turn it back on when you’re back in your own vehicle.

Another handy feature of MileIQ is that at the end of each month you receive an email from them with your stats for the month. At the end of the year you can quickly download a report with your mileage numbers for the year, and all you need to do is pass this report along to your CPA and presto – you’ve efficiently tracked your business mileage without having to remind yourself to log any numbers!

I’ve been using the app for almost a year now, and the app hasn’t been a battery hog for my iPhone. It’s always running in the background, but it doesn’t affect my phone’s usage in any way.

If you go through this link, MileIQ offers a free trial of 40 drives per month and a 20% discount off an annual subscription if you decide to upgrade. The subscription comes out to a few dollars a month, but it could add up to hundreds of dollars saved by logging miles you would otherwise forget.

The MileIQ app has been extremely helpful for my business, and I hope you find it helpful too!

Any other MileIQ users out there? Share with us in the comments if you love the app as much as we do.

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.

Selling Shoes on Amazon FBA – Should You Do It?

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 on Amazon.

Since Rebecca has such a wealth of knowledge about sourcing and selling shoes, I decided to sit down with her and record a Q&A interview video focused on the biggest lessons we learned when we first started selling shoes on Amazon.

In the video below, you’ll learn:

  • Why we added shoes to our Amazon business model
  • How adding shoes impacted our Amazon FBA business
  • How shoes helped our ASP increase substantially
  • What the competition is like in the Shoes category
  • Why brand restrictions in shoes don’t have to be a problem for FBA sellers
  • How selling shoes has changed our lives
  • Why we choose to source shoes via OA instead of RA
  • How sales ranks of shoes are different than most other categories
  • … and more!

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 blog post or video.

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.

Money Saving Post-Long-Term Storage Fee Strategy

As you’re probably aware, twice a year (February 15th and August 15th) Amazon charges a long term storage fee (LTSF) for all items that have been stored in a FBA warehouse for 6 months or longer. This fee can be very high as it’s currently $11.25 per cubic foot for the 6-month fee and $22.50 per cubic foot for the 12-month fee.

With Amazon charging this big fee twice a year for any item in their warehouse over six months, it’s a good strategy to possibly wait until after long-term storage fees are calculated on February 15 to send in items you think might take longer than six months to sell (or sell out if you have multiples). Here’s my thinking on why:

When Amazon calculates long-term storage fees on February 15 and August 15, they look at all of your inventory and charge you a fee for anything that’s been in an Amazon warehouse over six months. But here’s what many people forget: If you send your inventory to Amazon right after February 15, then when Amazon calculates long-term storage fees on August 15, they will only charge you the fee for any items that were stored in Amazon since before February 15 (the long-term storage fee calculation date). Here’s an example:

Scenario 1 – Sending inventory to Amazon right before February 15:

Send an item to Amazon FBA on February 10. When August 15 comes around, if you have not sold that item, then you’ll be charged a six-month long-term storage fee since you have been storing that item at an Amazon warehouse for over six months (6 months and 5 days to be exact).

 Scenario 2 – Sending inventory to Amazon right after February 15:

Send an item to Amazon FBA on February 17. When August 15 comes around, if you have not sold that item, then you won’t be charged a six-month long-term storage fee since you have been storing that item at an Amazon warehouse for under six months (5 months and 29 days to be exact). You won’t be charged a six-month long-term storage fee until February 15 of the following year.

In summary, the few weeks after Amazon calculates long-term storage fees are the absolute best days to send your potentially slow moving inventory (long-tail items) to Amazon, since you’ll be buying more time to sell your items without incurring long-term storage fees.

Keep this strategy in mind as you source for inventory throughout the year. During the summer, if you come across some items  you think might take longer than six months to sell, or if you find multiple items you think might not sell out in six months, then consider holding on to them and don’t send them to Amazon until after August 15. That way, you’ll be buying even more time before the long-term storage fees are calculated. You could even merchant fulfill these items you are storing at home before you send them in after the long-term storage fees are accessed.

Of course, this strategy is not for everyone. Hopefully, your sourcing skills have gotten so good that most of your inventory sells within the first few months of hitting the FBA warehouses. If you’re looking to learn more about how to know exactly how long it might take for an item to sell on Amazon, be sure to watch my free tutorials on how to understand Keepa, and how to understand CamelCamelCamel or check out my book/video course, The Reseller’s Guide to How to Keepa Camel: Using Amazon Sales History to Make Smart Sourcing Decisions.

Now, I’d love to hear from you. Do you have any strategies that help you gain more time to sell your inventory without long-term storage fees? Do you have some helpful tips on quickly selling your inventory so that long-term storage fees aren’t even an issue?