Has Anyone put products on Amazon to sell?
It would great to hear experiences about Amazon selling. Having your own products seems like it would be ideal, however, is it tough for a newbie?
There is the advantage of a greater commission, less people competing with you on a product even to the point where you have a monopoly. Of course you can interact much better with your customer giving you the opportunity to show them how much you care about their satisfaction.
I often wondered how they came up with so many goods and why the counts and prices were different on the exact same items.
So having to find, stock and ship items is a draw back unless you have the time, space and staff for it. It certainly has opened my eyes as to the possibilities of this review driven market.
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Hi Narda
I am an Amazon seller and there are many different models to operate however I will outline my methodology as an example.
1. I evaluate products currently being sold on Amazon and the competition and estimate volume of sales.
2. Based on the outcome of my research I source a similar product in China and have the manufacturer put my own Brand Label on the product.
3. I have the manufacturer ship the products to the US and then into Amazons warehouses.
4. I create a Product Listing om Amazon.
5. A buyer purchases my product and Amazon sends the product direct to my customer.
6. Amazon deposits money into my back account (Yippie!)
I sell on Amazon dot com as it's the biggest Amazon marketplace but I live in the UK so shipping individual items to customers is not really an option due to the costs involved.
You could operate my model and source products more locally but I chose China as the initial purchase costs are far lower, even after imports costs.
To answer some specific questions
Importing from China might sound scary but it is mostly a process with various steps that can be followed. Everybody starts out as a newbie.
I started with Ebay, then my own websites, Affiliate Marketing via Youtube and joint ventures and then Amazon. Success in one gives you confidence to look at other options. Affiliate Marketing is a great "easy" low cost, low risk entry into the world of online business.
As far as pricing is concerned it is mostly trial and error and analysis.
Obviously it depends a lot on how cheaply you can source products for as it is the initial purchase costs that really drive profits. Also it is not always the product that sells for the least that achieves the most sales, there are many factors involved so you will always find a range of prices for any given product as a result.
Profit is obviously based on sales - costs and I aim to have no less than a 40% profit margin but can achieve 200% + on some products.
You can also achieve a commission by promoting your products on you own web site.
I would disagree with your statement about better interaction though.
You can put far more of yourself into your own website to help build that trusting relationship also you can add an email list to your own site to establish a relationship that could be long lasting.
Amazon does not let you harvest buyers email addresses like this and all email communication is done via Amazons encrypted messaging system. If you handle the stock and shipping yourself then you will have the buyers postal address but maintaining a relationship in that manner would be more costly and I don't know what the success rate would be.
So instead of stocking products and shipping myself I use Fulfillment by Amazon (FBA) which though some might think expensive you need to weight this up against the cost of storage, stock security, and staffing etc. Also Amazon handle all initial contact with buyers including returns.
This business method is way outside the scope of training here at WA and indeed one could create a site and training program of a similar size just for Amazon selling. I know programs exist but they are not cheap and I have no particular knowledge of them to vouch for their value and legitimacy.
Dave
I really appreciate the detailed and candid reply, Dave. This absolutely has me thinking in a new direction.
You certainly 'paid it forward' here and I am going to have a look at your material right now.
Thank you so very much,
Narda
Your welcome Narda and I hope that I have not put you off anything.
If you're referring to the site in my profile then it's a simple resources site lifted from my home server, nothing fancy.I would like to add some technical training aimed at non-techies using screen casts if time permits. I will never promote any Internet marketing training.
For me the golden rules for success in any business are.
1. Know who your customer is. i.e. your target market.
It is never, NEVER, EVERYONE
You cannot provide information,products and services to satisfy peoples needs if you do not know who they are and what issues they have. You should have a profile of who your typical customer is.
i.e age range, gender, interests
Their is a reason that TV commercials are aired at certain times and during certain programs. It is NEVER down to guess work
2.Support your customer by providing them with the information and products they need. You should see all your promotions as providing a service to your customer. Not your bank balance! (Though if you get it right your bank manager will love you)
3. IMPORTANT! You need to be able to answer the question. Why should a customer visit my site/store and buy from me? If you can't answer that, you have a problem. PERIOD!
I wish you every success wherever your ventures may lead.
I think you might just have to leave Fortran behind though, I am not so sure that it plays such a big part in the development of today's financial systems. It was amazing what you could achieve in 1K back then. So I have heard, cough! cough! ; )
Awesome...again...No stretch to guess how many computer languages you are proficient in.
I think if you do something you truly enjoy, get great at it and people trust you, the money will come....if that is what you want.
You are really helping me get the dust outta my brain, Dave.
My problem had been that I wanted to learn everything all at once.
Actually, my self discipline has improved, however, I have become quite selfish about my alone time to focus on one task at a time.
I do spend quality time with my grown children, then it is back to me! I have a dog just to get me out a few times daily.
I read about you having a stroke - how terrible for you - so young for that! I also read you may be leaving WA. It would be a huge loss with your skills in this community, however, life is short and you will do what is right for you. I can tell.
Talk Soon!