Amazon FBA

agmccall

8 years ago

go to the amazon sellers forum. They have lots of members from all over that are extremely helpful.

al

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milliondollaraussie 8 years ago

Originally Posted by agmccall

go to the amazon sellers forum. They have lots of members from all over that are extremely helpful.

al

Thanks, is that the forum that is hosted on the actual Amazon site?
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- agmccall 8 years ago
  
  Originally Posted by milliondollaraussie
  
  Thanks, is that the forum that is hosted on the actual Amazon site?
  
  Yes, here is the link https://sellercentral.amazon.com/forums/index.jspa
  
  al
  
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  "Opportunity is missed by most people because it is dressed in overalls and looks like work." Thomas Edison
  
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Gambino

8 years ago

Well, you're going to have to check the minimum order quantities, shipping costs for different methods and the shipping times for each method. Obviously, you'll have to manage your inventory so that you don't run out and that its cost effective.

There is a well known beer pong table company that has their product made in China but sends in over by sea in shipping crates. To me, that's probably the most effective method, but it depends on the size of the products and quantity that you order.

I tried to use Amazon about a year ago. They had the worst support I've ever dealt with. For some reason, they blocked my account and said it was because my bank account wasn't attached so it was flagged. But, they disabled my password so I couldn't log into my account. If I changed my password, the new password wouldn't work. I must have talked to over 200 people at Amazon on the phone, via their Twitter support and via email and not one person could give me access to the account or understand that I couldn't log into the account because my password was disabled and/or not working. A lot of them said they would send my inquiry to the next tier and someone would contact me but they never did. After about 6 weeks I gave up. I realized I didn't want to build a business and have its sustainability rest in the hands of such unstable management and support.

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milliondollaraussie

8 years ago

Originally Posted by Gambino

Well, you're going to have to check the minimum order quantities, shipping costs for different methods and the shipping times for each method. Obviously, you'll have to manage your inventory so that you don't run out and that its cost effective.

There is a well known beer pong table company that has their product made in China but sends in over by sea in shipping crates. To me, that's probably the most effective method, but it depends on the size of the products and quantity that you order.

I tried to use Amazon about a year ago. They had the worst support I've ever dealt with. For some reason, they blocked my account and said it was because my bank account wasn't attached so it was flagged. But, they disabled my password so I couldn't log into my account. If I changed my password, the new password wouldn't work. I must have talked to over 200 people at Amazon on the phone, via their Twitter support and via email and not one person could give me access to the account or understand that I couldn't log into the account because my password was disabled and/or not working. A lot of them said they would send my inquiry to the next tier and someone would contact me but they never did. After about 6 weeks I gave up. I realized I didn't want to build a business and have its sustainability rest in the hands of such unstable management and support.

Thank's for your tips and opinions Gambino.

A friend told me about the Amazon FBA today and it was a method I had never heard of and thought I'd jump right in but the way I'm looking at it now I think I might just go close my account until I actually know what I'm doing otherwise I could be forking out the monthly subscription seller account fee for no point.

I will do further research into and do my due diligence before going any further. If I were living in the USA where it would be cheaper to post the products directly to Amazon then I'd be more interested but as I stand now I think there would be a few head aches.

Thanks
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Gambino

8 years ago

Originally Posted by milliondollaraussie

Thank's for your tips and opinions Gambino.

A friend told me about the Amazon FBA today and it was a method I had never heard of and thought I'd jump right in but the way I'm looking at it now I think I might just go close my account until I actually know what I'm doing otherwise I could be forking out the monthly subscription seller account fee for no point.

I will do further research into and do my due diligence before going any further. If I were living in the USA where it would be cheaper to post the products directly to Amazon then I'd be more interested but as I stand now I think there would be a few head aches.

From the 'experts' I've talked to, it seems that Amazon takes a while to generate consistent, high volume sales. I'm not sure what their algorithm is but like anything else, it takes time to organically rank your products, generate reviews, etc and have sales come in. So, I'd plan on at least a few months before you gain traction. Of course, that depends on your product/competition as well.

I'll admit that tapping into Amazon's established platform is appealing. I think about it from time to time. Maybe one day I'll take the plunge again, assuming I'm allowed to have an Amazon account again. Lol

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Cary Sanders 8 years ago

Also be aware that they seem to be targeting small business owners with ungating refusals, listings taken down for weird reasons etc.
Apparently they are out of storage space in their warehouses. So it makes sense from their point of view to maximise usage by keeping available storage for bigger players. I have gone with another fulfillment agency who inform me that Amazon are outsourcing their fulfillment to private companies. So when they say fulfillment by Amazon ........
They are constantly changing the goalposts and criteria, so be aware that if you take this route you need to be extremely flexible and ready to change direction at the drop of a hat. This said, certainly you can make a good amount of money from Amazon, but only if you can do it in an entirely professional way.
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guywithawebsite

8 years ago

At some point, it can be profitable, but not until you start increasing sales volume. Right now, without FBA, you are competing against Amazon, but with it, you are a part of their marketing strategy.

Use their calculator to find out if it is right for you. It is very honest, and clear cut. Basically if you are low volume, and want FBA, you will need to still do all branding, packaging, and shipping to a fullfillment center, and there, you will be charged rent and shipping/handling fees, which really add up quick. If you are selling like 10 products a day, which is a moderate amount to sell, you will probably break even but not have to deal with customers or anything really. So Yea, if you can get to that point it's worth it. Otherwise, your profits will decrease, or you might just straight up lose money if you didn't think it through fully (I have had this happen).

If you've got a product already, branded, packaged, an ecommerce portal, you've already done like 90% of the legwork. Now you just need to read up on internet marketing. Check your keywords in AWS to see if people are even looking for your product, or you will just be wasting your money on FBA. I think you should try to step it up with a website if you don't have one already, and get busy (real busy as you will see) marketing it online. If you've hit a wall selling on Amazon, build a website, then crosslink it to Amazon, and build content. That is where the vast majority of people fail.

As a side note, the margins from selling Chinese products seems to have dropped off the check book for me anyways... I have moved into developing, branding, and selling my own products. My niche involves selling items which are sourced and made in the U.S.A., which I sincerely believe people appreciate in this day and age.

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moneymagneto

8 years ago

Can someone clarify this for me? What happened to the free account for up to 40 items? It seems that has vanished and now it's pay only except 1 month free. ???

Thanks

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DWaters

8 years ago

Originally Posted by milliondollaraussie

Is anyone familiar with the FBA program Amazon has?

I have just joined up as a professional seller and have come to a halt. Since I am in Australia what would be the best method of shipping the products to Amazon.? Would it be better to send them direct from China or import them to Australia and then send them onto Amazon?

I'm so worried about all this shipping Im thinking the costs outweigh even bothering giving it ago.

Would like peoples opinions.. cheers

You may want to search this forum for posts by ImportExport, who is an experienced importer and he shares a lot of his expertise. I expect that you will be able to learn some info that will help you.

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Importexport

8 years ago

Originally Posted by milliondollaraussie

Is anyone familiar with the FBA program Amazon has?

I have just joined up as a professional seller and have come to a halt. Since I am in Australia what would be the best method of shipping the products to Amazon.? Would it be better to send them direct from China or import them to Australia and then send them onto Amazon?

I'm so worried about all this shipping Im thinking the costs outweigh even bothering giving it ago.

Would like peoples opinions.. cheers

There are many people I know who live outside the US and operate successful businesses using Amazon's FBA.

Shipping cost are only a problem if you are buying from traders pretending to be manufacturers, and there are huge numbers of those listed on the major and most popular B2B sites.

I have taught hundreds how to safely source small (or large) quantities from China and other countries. Shipping is something you must understand before you place an order. You will find a lot of help on that subject in my thread:

Ask Me Anything About Product Sourcing And Importing For Profit. ― Veteran Importer Here. where you can ask questions if you like.

Amazon FBA will provide low cost shipping to your customers for you. I am sure you know that Australia Post's charges are prohibitive, so FBA is a great way to go.

Walter Hay

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Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com

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milliondollaraussie

8 years ago

Thank's for your tips Walter, I did read some of your other posts the other night in some other threads and they were great material.

It is good hearing the success of startups outside of the US perform well. It gives me hope that it could work if I give it a shot.

The outlay might be to great for me however to start. Right now I think I might be better off becoming an Amazon affiliate by setting up a website and sending traffic to it and collecting the commission that way.

Thank's for your help again.

Thanks
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Gambino

8 years ago

Originally Posted by milliondollaraussie

Thank's for your tips Walter, I did read some of your other posts the other night in some other threads and they were great material.

It is good hearing the success of startups outside of the US perform well. It gives me hope that it could work if I give it a shot.

The outlay might be to great for me however to start. Right now I think I might be better off becoming an Amazon affiliate by setting up a website and sending traffic to it and collecting the commission that way.

Thank's for your help again.

If your ultimate goal is to get into private labeling or ecommerce, I'd also consider drop shipping instead of becoming an Amazon affiliate.

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milliondollaraussie

8 years ago

Cheers Gambino, have you done any private labelling with drop shipping before?
Seems like a complex process to deal with the branding and shipping etc.. do you recommend any manufacturers to start with or how to organise a deal with a manufacturer to brand a product to then ship with a private label on it?

I always thought it might turn out a headache with more work but then again I have never done it before so Id be keen to hear from someone who has had experience with it.

Thanks
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Gambino

8 years ago

Originally Posted by milliondollaraussie

Cheers Gambino, have you done any private labelling with drop shipping before?
Seems like a complex process to deal with the branding and shipping etc.. do you recommend any manufacturers to start with or how to organise a deal with a manufacturer to brand a product to then ship with a private label on it?

I always thought it might turn out a headache with more work but then again I have never done it before so Id be keen to hear from someone who has had experience with it.

I've done both. In my opinion, private labeling is where it's at. But of course it's more costly because you have to order product but it's also extremely profitable.

Honestly, it can be a bit frustrating if you haven't done any design or outsourced it but any reputable company will work with you.

Are you located in Australia? I sold a business a while back that had a decent number of orders from Australia even though we never advertised there. I signed a noncompete/disclosure but I can see if the new owner would be open to working with you. We got killed on shipping costs shipping individual orders but still managed roughly 30% profits. If bulk shipping reduces the cost per unit it could be extremely profitable for both of you.

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Importexport

8 years ago

Originally Posted by Gambino

I've done both. In my opinion, private labeling is where it's at. But of course it's more costly because you have to order product but it's also extremely profitable.

Honestly, it can be a bit frustrating if you haven't done any design or outsourced it but any reputable company will work with you.

Are you located in Australia? I sold a business a while back that had a decent number of orders from Australia even though we never advertised there. I signed a noncompete/disclosure but I can see if the new owner would be open to working with you. We got killed on shipping costs shipping individual orders but still managed roughly 30% profits. If bulk shipping reduces the cost per unit it could be extremely profitable for both of you.

I agree that private labeling is the way to go, but as you point out, it is necessary order product.

What most people seem unaware of is that private labeling can be done on a very small scale. Labels take many different forms and some are very low cost.

I have taught some people who import their small orders unlabeled, then have them labeled locally.

Whatever business model milliondollaraussie chooses, I hope he doesn't fall for the dropship from Aliexpress model.

Walter Hay

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Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com

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milliondollaraussie

8 years ago

Are you located in Australia? I sold a business a while back that had a decent number of orders from Australia even though we never advertised there. I signed a noncompete/disclosure but I can see if the new owner would be open to working with you. We got killed on shipping costs shipping individual orders but still managed roughly 30% profits. If bulk shipping reduces the cost per unit it could be extremely profitable for both of you.

Yes, I live in North Queensland, Australia. Did you start off with some sort of course to learn about private labelling or was it mainly trail and error to see what works?

What most people seem unaware of is that private labeling can be done on a very small scale. Labels take many different forms and some are very low cost.

I would be keen to do that but then I would shipping the items twice which I was looking to avoid. If I could have the manufacturer/wholesaler label and ship direct then I thought that would be a simpler method.

Whatever business model milliondollaraussie chooses, I hope he doesn't fall for the dropship from Aliexpress model

I have almost gone down that road! I was pretty keen on doing that but thought that there would be quite small profit margins dealing with those types of orders.

I advise against shipping direct from your suppliers to Amazon's warehouse. If a product sells exceptionally well, there is the risk that it will be sold direct on Amazon by the seller's supplier once they know where the person is selling, and they can look up their listing and find how much so they can undercut them.

Also, it is not uncommon for Amazon to decide to sell the same product in competition with their sellers. After all the sourcing work has been done for them and they know where to buy.

You actually have some very good points there which I missed. Very good advice which I never had thought of.

Thanks
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Gambino

8 years ago

Originally Posted by milliondollaraussie

Yes, I live in North Queensland, Australia. Did you start off with some sort of course to learn about private labelling or was it mainly trail and error to see what works?

No, I started off with drop shipping but quickly grew frustrated with the low profit margins and the amount of competition to sell literally the same exact product as someone else. When two products are identical, or extremely similar, then ultimately the competition becomes price. Ultimately, the person with the bigger wallet should/will win because they can order higher volume, reduce their costs, and sell cheaper until they drive the competition out.

It's amazing how changing the label and building a brand influences the perception that people have on your product and the value of buying it. But, it was kind of a weird coincidence when I stumbled on what I initially private labeled. The product was something that I regularly use, going through 12-15 bottles per year, and I happened to stumble across a link to private labeling in the companies footer. A few emails later, I realized I could save myself a couple hundred bucks a year if I labeled it just for myself and then I could make a huge profit selling it.

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milliondollaraussie

8 years ago

Originally Posted by Gambino

It's amazing how changing the label and building a brand influences the perception that people have on your product and the value of buying it. But, it was kind of a weird coincidence when I stumbled on what I initially private labeled. The product was something that I regularly use, going through 12-15 bottles per year, and I happened to stumble across a link to private labeling in the companies footer. A few emails later, I realized I could save myself a couple hundred bucks a year if I labeled it just for myself and then I could make a huge profit selling it.

That's a fantastic success story!
Did you happen to find the company through Alibaba or was it through another site?

So many resources and digging around. It's like panning for gold

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Gambino

8 years ago

Originally Posted by milliondollaraussie

That's a fantastic success story!
Did you happen to find the company through Alibaba or was it through another site?

So many resources and digging around. It's like panning for gold

It was a company that I ordered supplements from a couple times a year, so it was just on their regular site and the link was to a "sister" site which was their private labeling business.

There's a lot of info out there. The best advice I can give anyone who gets into private labeling is to not skimp on their brand name and design. You want to stand out if your on a shelf with a similar product and be remembered. I see a lot of brands that I can tell are private labeled that are just too generic. Which, if you design your labels through most private labeling companies, they'll pretty much have a few stock options and just switch out the logo basically. Invest in your own.

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aizaku

8 years ago

if the plant in china is putting your brand over the white label then why not have it shipped directly from there?

here is a great resource (step by step case study) you might want to read up on:
Follow Along as I Try to Make Money with Amazon FBA

all the best
Ike Paz

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Importexport

8 years ago

Originally Posted by aizaku

if the plant in china is putting your brand over the white label then why not have it shipped directly from there?

here is a great resource (step by step case study) you might want to read up on:
Follow Along as I Try to Make Money with Amazon FBA

all the best
Ike Paz

I advise against shipping direct from your suppliers to Amazon's warehouse. If a product sells exceptionally well, there is the risk that it will be sold direct on Amazon by the seller's supplier once they know where the person is selling, and they can look up their listing and find how much so they can undercut them.

Also, it is not uncommon for Amazon to decide to sell the same product in competition with their sellers. After all the sourcing work has been done for them and they know where to buy.

Walter Hay

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Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com

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pauloadaoag

Administrator 8 years ago

Thanks for this information.

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Amazon FBA

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