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  1. Post
    #1

    Amazon FBA

    Just wondering if anyone has any experience or insights regarding this.

    I'm currently unemployed after taking voluntary redundancy & looking for a new form of income. I'm in no rush to start slaving away doing admin/ data entry shit again, which is all I know how to do work wise lol. I recently started looking into Amazon FBA & it seems like a really good way of making money if you do your research, find the right products & do everything properly.

    Seeing as I have a bit of money thanks to the redundancy I can cover the startup costs pretty easily. It sounds like you only need around $1-2k to get started properly.

    Does anyone have any experience with this?

    cheers

  2. Post
    #2
    This always sounded to me like a bit of flash in the pan but I could be wrong.

  3. Post
    #3
    I did it a bit before, found it got hella competitive and a lot of drama with returns, quality issues etc. I still do dropshipping but focus more on niche / customized.

    I think finding products that are geographically difficult and importing them can be more lucrative. A mate of mine is importing electric scooters into Aus and making about 40-50% on them,

    people don't wanna buy scooters internationally and domestic competition is inefficient enough there's good margin.

  4. Post
    #4
    Timmi wrote:
    I did it a bit before, found it got hella competitive and a lot of drama with returns, quality issues etc. I still do dropshipping but focus more on niche / customized.

    I think finding products that are geographically difficult and importing them can be more lucrative. A mate of mine is importing electric scooters into Aus and making about 40-50% on them,

    people don't wanna buy scooters internationally and domestic competition is inefficient enough there's good margin.
    What products did you sell? Regarding the quality I would definitely be ordering samples first to check them out first hand. Also how much did it cost you to start up & how much stock did you order? Also did you make much money from it?

    From the little research I've done so far it seems like a good idea to use the website Jungle Scout to help you find what products are in demand etc. Also common house hold items which are quite cheap sound like the way to go over niche products but the competition would be crazy.

    I guess selling products that people can't buy very easily here or are expensive to buy from retail stores compared to online would be a good idea.

  5. Post
    #5
    Tbh, if you are interested in doing this, rather than selling cheap crap from AliExpress, try and find an affordable source of branded product that we pay a premium for here. That could be box open returns, remanufactured products, that sort of thing.

  6. Post
    #6
    Important part is the improvement of your product. People enter FBA markets with the color red instead blue. So why would the customer buy from you? The other seller got 10 times as much social proof and is at the top of the search results.

    You also need to look at the other products in the niche. If you just got one good product in lets say kitchen tools, you're maybe going to sell it but what about the long term?
    You want to build a brand with just one product? Nope, you need at least 4-6 different products.

    For improvements I find it best to take a look at the questions and reviews of the customers at other products. They'll tell you want is missing, what they like, what they don't like or even hate, whats working and whats not. Full market research done in a couple of product listings.
    And if the seller got a shitty listing you got 3-4 improvements of the product (you know cause the customer literally told them to you in their complaints), that's a good start.

    Thinking of a useful improvement for the customer paired with high quality, is key for the long run. It's not easy and takes some time. Dealing with almost non speaking suppliers in China can be fun.

    I would also not recommend doing FBA with less than 10k -15k to invest. You need to have your money ready, experiments, samples of products, software etc, all that shit costs money before you even sell one product.

    Ideally don't source from China either, look up "Operation Dragon Boat". Chinese suppliers will crush your margins. Better to sell premium products made elsewhere (US/NZ). They will sell for a 3c margin, get massive government loans and can run in the red for years to crush the competition.


    You need one of the following softwares JungleScout / Helium10. Helium10 is better in my opinion but sets you back USD $100 a month.

    You look at the other Amazon listings, how many Sales, Reviews, Rating, is the product description optimised?, how much effort did the seller put into his product /listing? Whats the average sales price? All very important stats.

    Also what many sellers miss is the following:, short calculation

    $5k spend on the products
    Sell them for $8k on Amazon
    Products going good right?

    Now you need to re-order. Not the same amount but a larger quantity because it's going so good. Maybe for 10k. In the best case you got the other 3k but you need to put in another 2k.
    Its very capital intensive, especially if you want to have a quick expansion later on.

  7. Post
    #7
    Sounds super time intensive also.

  8. Post
    #8
    Ins0mn1ac wrote:
    What products did you sell? Regarding the quality I would definitely be ordering samples first to check them out first hand. Also how much did it cost you to start up & how much stock did you order? Also did you make much money from it?

    From the little research I've done so far it seems like a good idea to use the website Jungle Scout to help you find what products are in demand etc. Also common house hold items which are quite cheap sound like the way to go over niche products but the competition would be crazy.

    I guess selling products that people can't buy very easily here or are expensive to buy from retail stores compared to online would be a good idea.
    Oh so I never did that FBA model.. where you work out what products are selling well then become a seller and take a slice of the expected sales. I know guys that were trying to do it with cell phone cases and it was a bit hit or miss kinda thing... I don't think one guy did very well because he didn't stick around in China and the other started doing something else. I did watch a course on it and thought it was interested way to turn over capital.

    I was trying to use first mover advantage (in China) on trends things like baking trays for new movies etc. I didn't do that well, but I think that was more my heart wasn't really in it and I was trying to do like a zillion things at the same time.

    I just think with drop-shipping you need to utilize some advantage; being in NZ, an industry, a trend / coming trend, a connection that needs something from China you can manage. It's not that you won't be successful it's just playing strengths and competing with Chinese on FBA is hard I've heard.

  9. Post
    #9
    also just a side note, focusing on the subjective aspects like what is it you want to be doing, what do you want to be learning, who do you want to be working with / working alone

    I'm always down to start things up with people because I enjoy working with people more than alone.

    but if you assume the glam and shazzle of starting your own little hussle will wear off into long nights and frustration you want that time to be worthwhile

  10. Post
    #10
    Yeah I was going to be doing this with my sister since shes pretty keen on the idea as well. I think I got the wrong impression from you tube that it would be a lot simpler. Basically I'd just like to me my own boss, work from home & make some decent money. However I'm terrible at this type of stuff which is why I'm not diving in head first. It will definitely be a bit of risk with the zero experience & knowledge that I have.

    SlimPimp wrote:
    Important part is the improvement of your product. People enter FBA markets with the color red instead blue. So why would the customer buy from you? The other seller got 10 times as much social proof and is at the top of the search results.

    You also need to look at the other products in the niche. If you just got one good product in lets say kitchen tools, you're maybe going to sell it but what about the long term?
    You want to build a brand with just one product? Nope, you need at least 4-6 different products.

    For improvements I find it best to take a look at the questions and reviews of the customers at other products. They'll tell you want is missing, what they like, what they don't like or even hate, whats working and whats not. Full market research done in a couple of product listings.
    And if the seller got a shitty listing you got 3-4 improvements of the product (you know cause the customer literally told them to you in their complaints), that's a good start.

    Thinking of a useful improvement for the customer paired with high quality, is key for the long run. It's not easy and takes some time. Dealing with almost non speaking suppliers in China can be fun.

    I would also not recommend doing FBA with less than 10k -15k to invest. You need to have your money ready, experiments, samples of products, software etc, all that shit costs money before you even sell one product.

    Ideally don't source from China either, look up "Operation Dragon Boat". Chinese suppliers will crush your margins. Better to sell premium products made elsewhere (US/NZ). They will sell for a 3c margin, get massive government loans and can run in the red for years to crush the competition.


    You need one of the following softwares JungleScout / Helium10. Helium10 is better in my opinion but sets you back USD $100 a month.

    You look at the other Amazon listings, how many Sales, Reviews, Rating, is the product description optimised?, how much effort did the seller put into his product /listing? Whats the average sales price? All very important stats.

    Also what many sellers miss is the following:, short calculation

    $5k spend on the products
    Sell them for $8k on Amazon
    Products going good right?

    Now you need to re-order. Not the same amount but a larger quantity because it's going so good. Maybe for 10k. In the best case you got the other 3k but you need to put in another 2k.
    Its very capital intensive, especially if you want to have a quick expansion later on.
    damn that sounds more complicated than I thought lol. Might have to do a lot more research since I'm pretty bad at this kind of stuff lol. The few videos I've watched on YT made it sound like it was more simple & straight forward.

    When you say spend $5k on products what if they're cheap household items that say cost around $3 or $4 per unit & you can sell them for $6 or $7 each? Would 500 units be enough to start with? That way you would only be spending about $1.5k & getting 3k back. $2k is probably the max I can afford for startup costs. Also I assume it wouldn't be worthwhile trying to sell cheap household items that hundreds of other sellers are probably already selling?

    I'm not expecting to get rich off this right away. I'd be happy with $4 or 5k a month just to cover living costs and having a bit left over
    Last edited by Ins0mn1ac; 15th May 2019 at 12:19 am.

  11. Post
    #11
    gl

  12. Post
    #12
    I think the hardest part is the selling... Are you going to sell via FBA in Amz Sydney, or America? The logistics of supplier in China, product and customer in America / Australia is pretty challenging... and then you have the marketing / differentiation on top which is definitely not trivial.

    Both myself and the missus source some stuff (she does different things to me) from China which we sell here in NZ. Trademe is pretty cool for the right stuff (most of it is automated and your market is right there).

    Selling into extra markets has proved pretty tough.. Getting a website which is one in a trillion in front of your target market is pretty tough. I'm thinking of looking into FB / Insta advertising. The former used to be amazing, but I understand its not as great now

  13. Post
    #13
    Start a YouTube channel, get heaps of hits, sell stuff.

    That dude from unbox therapy must be crushing it.

  14. Post
    #14
    trackers wrote:
    I think the hardest part is the selling... Are you going to sell via FBA in Amz Sydney, or America? The logistics of supplier in China, product and customer in America / Australia is pretty challenging... and then you have the marketing / differentiation on top which is definitely not trivial.

    Both myself and the missus source some stuff (she does different things to me) from China which we sell here in NZ. Trademe is pretty cool for the right stuff (most of it is automated and your market is right there).

    Selling into extra markets has proved pretty tough.. Getting a website which is one in a trillion in front of your target market is pretty tough. I'm thinking of looking into FB / Insta advertising. The former used to be amazing, but I understand its not as great now
    I was going to go through the US. There is honestly a lot more to this than I thought there would be lol. When you hear people on YT talk about it sounds so simple. It sounds like I'd be way out of my depth since I have zero knowledge or experience with anything business related. I'm pretty clueless tbh so it would be pretty risky.

    Just buying stuff directly from China & selling it on Trade Me might be the way to go but after tax & TM fees not sure how much of a profit can be made.

  15. Post
    #15
    Sounds like it could be worth a shot, when you have a job to cover your bills. I don't think anyone would start out with it as their only income. Just something that is built up over time. There will be exceptions, but I bet they are the minority.

  16. Post
    #16
    You always have to be wary hearing of people making big money from something with an incredibly low barrier to entry. The ones who make money are either a) first to market, or b) manage to work out a nice niche for themselves.

  17. Post
    #17
    bradc wrote:
    You always have to be wary hearing of people making big money from something with an incredibly low barrier to entry. The ones who make money are either a) first to market, or b) manage to work out a nice niche for themselves.
    These are my thoughts as well. Think I'm too late to the party & not smart enough to come up with a good plan.