Tag Archives: Inventory

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?

The Biggest Mistakes I Made With My First Wholesale Order

About 6 months ago, my very first wholesale order was delivered to my house… Of course, I had to take a picture. We worked as fast as we could to prep and send this huge wholesale order to Amazon. As soon as our wholesale shipment arrived at Amazon, we started to see some sales… but then things started to go terribly wrong. Sales started to slow and prices began to tank.

To make a long story short, I ended up actually losing money on my first wholesale order. Sure, I was able to get almost all of the capital back, but overall it was a massive failure.

If you know me, then you know that I’m a “glass half full” kind of guy, and I was able to turn this epic failure into a learning experience. Since mistakes were made, I thought I’d share with you the 6 biggest mistakes I made in my first wholesale order (and the last mistake was the biggest) so that you can set yourself up for successful future wholesale orders.

1. Ordered too many items

When ordering products from wholesalers, the items you buy usually come in cases, so buying only one of an item is usually not a possibility. I knew I was going to need to buy multiples, but I must have had my head in the clouds because I bought way too many items.  I honestly should have known better.

Any time you try something new, it’s usually best not to jump headfirst into the deep end… but instead to wade in slowly until you get used to the water. In my first wholesale order, I went way too deep and ended up with plenty of inventory that took forever to sell. Some of them I may even be paying long-term storage fees for soon.

2. Spent too much money

I mean, waaaaaaaaaay too much money. When you’re dealing with a wholesale supplier, they’ll usually have what is called a Minimum Opening Order amount. Different wholesalers will have different minimum amounts that they’ll need for your first order. They have these so the wholesale supplier knows that the buyer is a serious buyer and will be worth the time and energy to work with.

For my first wholesale purchase, the Minimum Opening Order was around $350, but I think I got caught up in the excitement and totally blew past that minimum. I ended up tying up a lot of my sourcing capital that could have gone to my retail or online arbitrage sourcing.

When you make your first wholesale order, be sure to not go too far above the minimum. Not only do you not want to use too much of your sourcing capital on a method you’re not yet confident in, but you’ll also want to make sure the items you order meet your expectations. Once you find success in your opening wholesale order, then you can go back and get more.

3. Ordered time-sensitive goods

I ordered items that were focused around a specific season, and for the wholesale order to be successful, I needed these items to sell quickly. It turned out they didn’t all sell in time and when the season passed, I had to drastically lower my prices in order to get the sales and to avoid any additional monthly or upcoming long-term storage fees.

It’s probably best to order items that should sell well all year long when it comes to your first wholesale order. I ended up putting all of my eggs into one basket hoping that all these items would sell by the end of that season, and I ended up paying for it.

4. Didn’t Negotiate

I’ve negotiated deals to get a better price most of my life. I can do it at garage sales, thrift stores, and at retail stores with store managers. Most of the time I’ll say, “If I buy all these items, will you give me a discount since I’m buying so many?” Most of the time I can get a small percentage off of the overall total. That one question has saved me thousands of dollars… but for some reason, I just never thought about it with this order.

Now, don’t get me wrong, I understand trying to negotiate a better deal on the first order isn’t always the best way to introduce yourself to a supplier, but remember mistake number 1 and 2 from above? I ordered way too many items and spent way too much money. If I was ordering the minimum, I would not have asked for a discount, but since my first order was a great deal higher, I think I could have negotiated a better deal.

5. Made faulty assumptions

I made two very incorrect assumptions that cost me both time and money. My first assumption was assuming that my shipping was going to be free. I guess with all of my online purchases in the past, I assumed an order this big would qualify me for free shipping. I had no basis for this assumption, and when I saw the final shipping costs, it ended up eating into the profits I had calculated.

I also assumed that the items I was buying would not come poly-bagged. My first wholesale order had many items that were going to need poly-bagging in order to send to Amazon. I ordered a ton of poly-bags and suffocation warning labels so that when the items arrived, I could bag them up and ship them to Amazon quickly. As it turned out, the items were sent already poly-bagged and had a printed suffocation warning label on them. So now, I have what seems to be a lifetime supply of poly-bags in my office.

When you are making your first order, don’t be afraid (or too proud) to ask your supplier questions. Even if you think the questions are elementary, go ahead and ask so you are able to make knowledgable decisions.

6. Didn’t realize difference between a manufacturer and a distributor

This ended up being my biggest mistake. If I could have known this and applied that knowledge to my wholesale sourcing strategy, then most of the other mistakes from above could have been avoided.

When you purchase from a manufacturer, you’re buying directly from the maker of the product. You’ll be able to buy your inventory with the highest possible discounts. You might have to go a little deeper when buying from a manufacturer, but knowing you’re getting the best deals usually outweighs how deep you might have to go.

On the other hand, when you purchase form a wholesale distributor, you’re working with a middle-man who needs to take his cut of the profits. The distributor buys directly from the manufacturer and then marks up the inventory so that he can make a profit. Then the distributor offers up these wholesale items to us with smaller minimum orders than the manufacturer requires.

As you may have guessed by now, my first wholesale order was purchased from a distributor. When I got my huge wholesale order processed and sent to Amazon, I immediately began to see some sales come in, but after a short time the competition started to come in (who probably got their inventory from the manufacturer at better prices) and the prices tanked quickly.

In the end, I was able to recoup almost all of my capital back from that first wholesale order. I know some people will think that it was a waste of time and money, but I don’t see it that way at all. While the order ended up not meeting my expectations, it did provide many valuable lessons. I have taken these lessons and applied them to future orders and have seen great success.

Aside from my first wholesale order, I simply love sourcing and creating wholesale orders.
I’ve found some great companies to work with and have reordered many items over and over again. I’m most thankful to my wholesale mentors Dan and Eric from The Wholesale Formula. After taking three different courses on selling wholesale items on Amazon and not finding the success I was looking for, finally the teachings from The Wholesale Formula just plain worked!

Right now, the the free video series from The Wholesale Formula is closed, but it will open again sometime in the near future. If you want to be notified when the free video series opens again, be sure to click here and join the notification list.

 

Do you have any worries about making a wholesale order mistake? Have you ever placed a wholesale order before? Did you make any mistakes? What did you learn from your mistakes? I’d love to hear from you in the comments.

9 Reasons Why You Should Add Wholesale to Your Amazon FBA Business

The more you talk with Amazon FBA sellers from all walks of life, the more you understand why each seller prefers the sourcing model used in their business.

Some folks love the thrill of the hunt, and they thrive on getting out there and scanning to their heart’s content at garage sales and thrift stores. Other sellers enjoy working retail arbitrage into their daily routine, or they love the huge profits that come from RA during the Q4 selling season. Some sellers live in a remote area or their time is limited, so they choose to do online arbitrage (OA) or wholesale. Still others like all aspects of product development and marketing, so they dive into private labeling.

Today I want to focus on one method of sourcing for Amazon FBA: sourcing from wholesale suppliers. We’re going to have a couple more posts after this one, so stick with me to learn more about where to find wholesale sources and other wholesale time hacks. But for today, let’s discuss the top 9 reasons why you should consider adding wholesale sourcing to your Amazon FBA business.

1. Profit potential

We’re all in this business to make profits, right? Well, selling items sourced via wholesale has huge profit potentials. You can find items with great return on investment (ROI) for resale on Amazon because you buy them at a low wholesale price, compared to what other sellers are getting by buying from retail sources.

2. Go both wide and deep on inventory

Buying via a wholesale account gives you the opportunity to search their catalog for several different profitable items in one product line, and you can then buy larger quantities of those items than you would be able to if sourcing via RA or OA. Once you’ve done your research on the sales history data on CamelCamelCamel and Keepa, as well as researching how much your competition has in stock (we use the How Many? extension for doing this research), you can make an informed decision and buy as many of an item as you feel comfortable buying, rather than being limited to what’s on the shelf at the retail store.

But you don’t have to worry about making a huge wholesale order of only one item to meet a company’s minimum purchase requirement. You can order a few of several different items, test them out, assess the results of your sales, and make a decision about reordering and possibly going deeper.

3. Opportunity for consistent replens

“Replen” is short for replenishable. A replenishable item is one that is profitable to buy over and over again because you can sell through the item at a decent rate. Replens can be a lovely cash cow for your business, since all you have to do is order, send to FBA, sell, order, send to FBA, sell, and repeat, repeat, repeat. Finding a replen today saves you time tomorrow by not having to repeat your sourcing research once the item sells out. You’ve already done the research – now all you need to do is reorder and send that item in again. It’s a much more time-efficient process than the one-offs that come with RA, OA, garage saling, and thrifting.

4. Potential for less competition

If an item isn’t available from retail sources at a low enough price to resell on Amazon BUT you can find it at a wholesale source, you will have lower competition. If you’re sourcing items that anyone can find at a retail store and resell for profit, it’s often only a matter of time until a ton of sellers jump on that listing. Sourcing via wholesale opens the door of opportunity to find unique items that RA and OA sellers can’t source at your buy cost.

5. Predictable cash flow

Once you have found several replens through wholesale sourcing, you can get to a place in your business where you have more predictable cash flow. Often with RA, OA, and thrifting, you will see ebbs and flows with your sales throughout the year, depending on what’s going on in your part of the country or in the stores where you like to source. Wholesale sourcing can provide more stability when it comes to ordering products to sell consistently throughout the year.

6. Saves time

Like I said above, finding a wholesale replen saves you a ton of time when it comes to not having to constantly be out sourcing for more one-off items to resell. It could take you all day to drive around town and spend $800 on RA finds, or you could spend a couple of hours doing wholesale research and find a great replen, place an $800 order, and then just reorder when you’ve sold out.

Another way wholesale saves time is when it comes to prepping your inventory. Wholesale items won’t have stickers to remove, and they often (though not always) come already poly bagged. You also can save time in listing the items. Instead of having to list and price 20 one-offs from RA clearance, you could list and price one item with 20 multiples from a wholesale source.

7. Easier to scale the business

As your FBA business grows, you will need to find ways to scale the business. Scaling your business means being able to increase your output. There are only so many garage sales in your town every week, so unless you hire folks in other towns to source for you, you can’t scale an FBA business based on garage saling. Same with retail arbitrage – you only have so many hours in the day to drive to retail stores, so you will need to hire someone else to source if you want to scale your RA business. But with wholesale, it is much easier to keep your business simple, source large amounts of inventory, and process it without needing to hire help. In fact, if you use a prep and pack center to process your inventory, you can grow your Amazon FBA business even more through wholesale.

8. Protects your seller account

Many Amazon FBA sellers experience great anxiety over the thought of being suspended because of claims by customers, especially claims of inauthentic products. As of this writing, Amazon is accepting retail receipts as proof of your source for inventory, but it’s often more difficult to prove your case with Amazon using retail receipts than using wholesale invoices – not to mention, at any point Amazon could stop accepting retail receipts altogether. Adding wholesale sources to your Amazon inventory gives you a level of protection for your seller account.

9. Become a brand approved seller

Brand restrictions on Amazon can be tricky when you’re looking for good retail sources for inventory. There’s nothing worse than finding an awesome item for resale, only to discover you are restricted from selling that brand. But with wholesale sources, you have the potential to work with Amazon and the manufacturer to become a brand approved seller. It requires some time and effort to get approval, but if you’re successful, you have the potential to make even more profits with even lower competition.

Now you have plenty of good reasons why you should consider adding wholesale to your Amazon FBA business. Stay tuned because in our next blog post, we’ll share with you how to find profitable wholesale accounts.

For the longest time I had wanted to add wholesale to my Amazon business. I have actually gone through 3 different wholesale courses to teach me how to do it. Each time I went through a new wholesale course, I would try what was taught, and I kept coming up empty. It was extremely frustrating… then I scheduled a phone call with Dan, one of the guys behind The Wholesale Formula. That conversation opened up my eyes to things about wholesale I’ve never thought about before. I took his advice and began to find multiple wholesale accounts.

Would you have wanted to listen in on that conversation? Unfortunately, we didn’t record the call, but Dan and his business partner Eric recently recorded an entire video series that focuses exactly on adding wholesale to your Amazon FBA business. The best part? It’s free! So many people think that you have to have thousands of dollars or special connections to start selling wholesale items on Amazon, but that’s just not true.

In this free video series my wholesale mentors, Dan and Eric, will teach you exactly how to find profitable items to buy via wholesale so you can experience growth in your Amazon business.

Now here’s the deal. These free videos are only going to be accessible for a limited time, so you need to click here and watch today.

Have you considered adding wholesale to your Amazon business? Have you been successful? If you have not tried it yet, what’s stopping you? What’s getting in the way of you sourcing directly from wholesale suppliers? Let me know in the comments so I can best help you in our current wholesale blog series.

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: Prepping and Processing (Plus Returns)

Knowing which shoes to source isn’t the only new skill to acquire when it comes to adding the shoe category to your Amazon FBA inventory. Prepping your shoes can also present some new opportunities to learn, but the differences from prepping and listing in other categories are easy to learn if you read and follow the Amazon guidelines.

Before I (Rebecca) dive into more details on processing your shoe inventory, I want to make sure you’ve had an opportunity to read the previous posts in our series on Selling Shoes through Amazon FBA:

Why We Added Shoes to Our Sourcing Strategy
Beginner Lessons for Selling Shoes on Amazon
Shoe Buying Decisions
Should You Sell Shoes on Amazon?

Ok, back to prepping shoes…

Inspect Your Shoe Inventory

shoe-box-prep-1Whether you inspect your shoes in the retail store before you make the purchase or after you receive your online order, careful inspection of your shoe inventory is a must. We’ve just about seen it all when we open up shoe boxes to check them out for the first time, and you want to make sure that you are the one to discover any oddities about a pair of shoes, not your customer.

Here are a few things you want to check carefully on every pair of shoes that you send to Amazon FBA:

  • the correct style
  • the correct color
  • the correct size (including width)
  • one right and one left
  • the condition is new

We’ve received shoes in our online orders that were the wrong style, wrong color, wrong size, wrong width, two left shoes, only one shoe, one size printed on a tag and a different size printed on the shoe, shoes that have clearly been worn and returned to the store, and shoes in crushed shoe boxes. You also want to check for any markings in ink on the soles of the shoes or price tags stapled to the soles.

shoe-storeIf you’re sourcing in a retail store, the obvious solution to any of the above problems is to not buy the shoes in the first place. If you are doing online arbitrage and receive shoes with the above problems, you can return the shoes for a refund, or you can sell them on a different platform, like eBay, where you can give details in your product description about the shoe being slightly worn, having a different size listed on the box, etc.

Note: You CANNOT list a pair of shoes in new condition on Amazon and attempt to put any type of description of the shoes in your condition notes. Shoes sold as new on Amazon must EXACTLY match the description on the product page and be in absolutely new condition.

Prepping Shoes

As I said at the beginning of this post, one of the keys to successfully prepping your shoes for the Amazon FBA warehouse is to read the guidelines. Here’s the excerpt from the guidelines about prepping and packaging shoes:

“Footwear, regardless of material, must be packaged with no shoe material exposed, either in shoe boxes or bagged in a polybag with a suffocation warning. Shoe box lids must be secured with a non-adhesive band or removable tape.”

In general, we make sure our shoe inventory is sent to the FBA warehouse in the branded shoe box it came in, and we use stretch wrap to secure the lid. We made a video to show you exactly how we secure the lids with the stretch wrap:

Typically we don’t bag shoes in a polybag, except for flipflops, crocs, slippers, or any other type of shoe that you would buy at a brick-and-mortar store hanging on a rack rather than on a shelf of shoe boxes.

Handling Returns

return-refund-imageAlmost without fail, when an Amazon seller talks about how great the profits are with shoes, the response they get is this: “Yeah, but what about the return rates? Is it even worth it with all the returns?”

I’ll be the first to admit: the psychological hit you take as a seller is harder when you get a return on a $120 pair of running shoes than for the return of a $15 toy. But the financial hit doesn’t have to be that hard.

When a pair of shoes is returned to Amazon, many times the warehouse workers inspect them and see that they haven’t been worn and simply enter them back into your inventory.

open-shoesIf the warehouse worker does mark the shoes as “customer damaged” and the shoes move to your unfulfillable inventory, that doesn’t necessarily mean the shoes are damaged. In these instances, have the shoes returned to you for inspection, and you can decide what to do from there. Sometimes the shoes haven’t been worn and can be sent back to the FBA warehouse in new condition. If the shoes clearly have been worn, you can still sell them on eBay with detailed condition notes.

We have found that the majority of our returned shoes can still be sold on Amazon, with a rare few needing to be sold on eBay. When you start crunching the numbers, the return rate for shoes may appear higher than other categories, but if you’re still able to sell the shoes in the end, the impact on your business isn’t that high.

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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: 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.

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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!

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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.

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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:

How to Use Inventory Lab to Track Supplier Profitability

Inventory Lab, Track, Supplier, Profitability

Let’s talk profitability, shall we?

You’ve likely heard us mention that we use the Inventory Lab software package to streamline our process of listing inventory on Amazon FBA and for sourcing inventory through the Scoutify app. Today we want to share with you another feature of Inventory Lab that we’ve come to depend on: the ability to track supplier profitability through Inventory Lab reports.

175_InventoryLabSometimes it’s easy as a reseller to get caught up in the rush of sourcing for inventory, sending it in to the FBA warehouse, and seeing the pending sales in Seller Central. Honestly, isn’t the thrill of the hunt and the excitement of the sales one reason we all do this business?

But if we stop and dig a little deeper into those sales, would we still be as excited about the raw numbers? Sales numbers can be deceiving at times, and if we don’t take the time to look at and think about our actual profit, then we don’t really know if our business is as successful as we want it to be.

Inventory Lab allows you to enter the total cost of an item when you list it on Amazon. Inventory Lab then takes that cost, your sales price, and associated fees to calculate profit and return on investment (ROI). You can see the projected profit and ROI for a batch when you’re listing through Inventory Lab, but you can also run reports to show you the actual profit and ROI based on payments from Amazon for your inventory items.

Supplier Profits

The circled area is where you input the data to help Inventory Lab calculate supplier profitability. Some areas of the screen shot have been blurred out for business privacy.

Prices may change from the time you enter a batch to when the item actually sells – it’s fun to think about a batch having 150% ROI when you send it to the warehouse, but it’s more useful to look at the ROI when you are actually paid for the sale of those items. From time to time we need to stop and analyze our numbers and ask ourselves, “Am I making the ROI I want/need on my inventory? How do I need to tweak my business to get the ROI I want?”

You can take the profitability question a step further by entering not just your total cost for each inventory item, but also the supplier. Then the question becomes, “How do I need to tweak my sourcing from each supplier to get the ROI I want?”

We currently use the supplier profitability report in several ways:

  1. To track how much commission on sales we need to pay our helper who sources for us
  2. To track the profitability of our online arbitrage subscription services
  3. To track the profitability of our wholesale sources

Enter Supplier ProfitsIn order to run the supplier profitability report, you will first need to enter a supplier at the time of listing an item. Inventory Lab comes with many retail sources already listed as options for supplier, but you can easily add your own. For instance, we use our helper’s initials as the supplier when we’re listing items she has sourced for us. We use other abbreviations for tracking each of the OA subscription services we use (e.g. Cyber Monkey Deals is CMD, Gated List is GL, Your Sourced Inventory is YSI, OAXray is OAX, etc).

After this info is entered and enough time has passed to have generated some sales, you can run the supplier profitability report by following these steps:

  • Go to the top menu on Inventory Lab.
  • Click on Reports.
  • Choose Supplier Profitability.

(Note: You will see there are several other useful reports you can run to analyze your inventory’s profitability.)

The default selection will be for the last month, but you can click Advanced Search to choose more date range options. You can choose within the last 1, 3, or 6 months or the entire date range since you started tracking. You can also choose a specific date range from a drop down calendar.

Reports menu

Once you’ve pulled up your report, you can sort by supplier, units sold, revenue, % of revenue, profit, ROI %, and on hand (number of units currently on hand in your inventory).

Suppliers all dates

Depending on the circumstances, each of the fields might carry a different weight for you as a seller in your decisions for how to adapt your business to improve those numbers. Some sellers like to have 100% ROI on everything they sell; others have a business model that supports 50% or even 30% ROI. The point of running these reports isn’t to compare your numbers to someone else, but to look at your own results and see if they meet your own business model’s criteria.

Let’s look now at two practical ways that we use our supplier profitability report.

  1. To track how much commission on sales we need to pay our helper who sources for us

At the beginning of each month, we run the supplier profitability report and look at the line with our helper as the supplier. We look at the dollar amount for the previous month under the Profit column, and we pay her commission out of that amount.

  1. To track the profitability of our online arbitrage subscription services

We also look once a month at the lines for each of our subscription services as the supplier. First, I look at the profit and make sure it’s more than the amount we’re paying for the subscription. This is an easy way to put solid numbers together to show yourself whether or not it’s worth it to pay for that particular subscription.

roiI also will look at trends as far as profit and ROI go. I don’t rush to cancel a long-standing subscription if I randomly have an off month, but I do look at whether a service seems to be deteriorating for me over time and make my decision whether to keep subscribing or not.

I also don’t rush to cancel a subscription if I think that I’m the problem rather than the service. For example, a while back I saw in my monthly report that my units sold and ROI for OAXray were not what I would prefer. A quick look back over my schedule for the previous weeks reminded me that I hadn’t been spending the same amount of time using OAXray each day as I had in the past. Of course those numbers are going to go down! If I’m not prioritizing my time to use the product as often as I should and actually send in items I sourced with it, the problem is me, not the product. So I made some adjustments to my schedule, made more time each day to use OAXray, and the numbers the following month were back up where I wanted them.

We’ve also started using Inventory Lab to track supplier profitability for wholesale sources, and many people use it to track their retail arbitrage sources. Are there other ways you use the supplier profitability report in Inventory Lab? We would love to hear your ideas and experiences in the comments!

Overcoming Your Fear of Training Your Competition via Outsourcing

Fear of Training Your CompetitionWe all need help.

Especially when it comes to running an Amazon FBA business, we need help in order for our business to grow. Sure, there are days when I feel like no one can Tetris the contents of an FBA box quite as well as I can, but in reality my business has more potential to grow if I put down the tape gun and let someone help me.

Many aspects of an FBA business can be outsourced or automated in order to free up my time or expand my capabilities. Tasks such as removing price stickers, poly bagging and shrink wrapping, prepping shoe boxes, listing the inventory, and packing shipping boxes can all be outsourced to someone else. Virtual tasks such as requesting reimbursements, fixing stranded inventory, or searching for online arbitrage leads can be outsourced as well.

There’s one task, however, that many Amazon sellers fear outsourcing more than all other tasks. Sourcing. The actual task of going out and scanning the aisles or the garage sales for inventory to resell.

Over and over we get this question when we tell people we’ve outsourced some aspects of our sourcing:

“Aren’t you afraid of training your competition?”

I can tell you emphatically that the answer is always NO. I don’t at all fear training a competitor. I’ll get into the reasons why I don’t have this fear in moment.

scrollAfter your business reaches a certain level of inventory and sales, it becomes harder and harder for one person to go out and buy enough inventory to maintain business at that level, much less grow beyond that level. It can become tiresome or even impossible to maintain that level of sourcing without becoming more than a one-man-show.

Sourcing is a more specialized skill than removing stickers or packing shipping boxes. Sourcing requires analyzing information and making decisions, and those decisions carry with them a certain amount of risk. Part of what makes each Amazon FBA seller able to excel in their business is their ability to make smart sourcing decisions.

Many sellers fear that if they teach this specialized skill to someone else in order to get help with their sourcing, they risk having that person take their newly acquired skills to go out and start their own competing Amazon business. Here are a few more questions we often get about training other people to source for us:

  • What if they see how much money you’re making at FBA and decide to quit working for you to start their own business?
  • What if they go to the stores in your area and buy all the good inventory for Amazon FBA before you can?
  • What if they get to all the garage sales in your town before you do?
  • What if they keep working for you, but they keep all the good inventory for themselves and only give you sub-par inventory for your business?

worry1We get it. Those are legitimate questions to ask and legitimate risks you are taking when you train someone else to do your sourcing for you. But we feel that the benefits far outweigh the minimal risks. We would rather have the help we need sourcing today than fear something that might or might not (and honestly, likely will not) happen tomorrow.

Here are the reasons we do not fear training our competition to source for us:

1. Not everyone wants to run their own business.

If you’ve been selling on Amazon for any amount of time, you know the time, effort, and money required to invest in running an Amazon business. The return on that investment can be great, but it still takes an upfront investment and ongoing effort to actually do the work of running the business. Not everyone wants to go through that effort of setting up an account, setting up an LLC, setting up programs like Inventory Lab, getting ungated in certain categories etc. Not everyone has the money to invest in a few tools and some inventory (we think it can be done for about $500 to get started) – or wants to spend their money that way. Some people really only want to work for someone else and not have to deal with the responsibilities and headache of being the one in charge. They just want to earn some extra money and be done with work for the day. Just because you train someone to source doesn’t mean that person automatically will want to become the boss.

Abundance_624_3512. We have an abundance mindset when it comes to finding Amazon FBA inventory.

This reason is even bigger for us than the first one is. We truly believe there is more inventory to be found than there are sellers on Amazon. We know for a fact that there is more inventory to be found in our geographic area than our own small business can handle purchasing. If we train someone to source for us and they decide to leave and start their own FBA business, we do not at all worry that we will run out of inventory in our area.

We live in the Fort Worth-Dallas area and belong to a Facebook group of local FBAers. That group has over 200 members. Think about that for a moment. That’s almost 200 people doing FBA in this metropolitan area. Our business has grown year over year since I began selling through FBA in 2011, so I know for a fact that the increasing number of sellers in Fort Worth or Dallas is not affecting my business. Each seller has their own business model, their own strengths at sourcing, their own personal preferences for categories on Amazon. If you send 5 resellers into the same store, it’s likely that all 5 of them would come out of the store with a different set of inventory.

I’m truly not worried about my business if I train someone to help me source and they decide to strike out on their own. There is an abundant amount of inventory in this geographic area, from online stores, and from wholesale sources. Whether you live in a large city or a small town, there are abundant sources for Amazon FBA inventory available today.

If you decide to train someone else to source for you, you only stand to gain from the help. Your business only stands to grow from the increase in inventory. But that other sourcer cannot replace you. No one can source like you. No one has your unique gifts and abilities at making decisions for your business. No one knows your own business like you do and your categories like you do.

If you train someone and they leave to become one more seller on Amazon, bless them in their endeavor and get back to your own business. You have just proven that you can train someone well enough to give them confidence to be independent. Get out there and train another person now.

3d-cover1-738x1024(If you’re ready to take the leap to train someone to source for you, we highly recommend Ryan Grant’s book Outsourcing Sourcing. We used this guide when we hired our first sourcing help and found it tremendously useful.)

SAVE TODAY: Use coupon code FBA30 at checkout and save 30% off the price of the book today!

Have you tried enlisting help in sourcing for Amazon FBA? Are you afraid of training your competition or do you have an abundance mindset? We would love to hear from you in the comments below.