Good question. It's all about buying. So like you get what you put in, especially because we buy things that we're going to sell it within a month. So let's say we check Jungle Scout and we say, okay, this is selling 7 a month, we're going to buy 7 units. We do three months max, unless we find a really good deal, but we do three months max. So we're going to buy 7 units of this and it should sell without that month.
If you're doing use, about 10% of the total items will still use. So if Joan Scott is saying, he sales 100 items a month, 10 of those would be sold used, roughly between 10-15 depending on how many, like how it really kind of the product bout 10%.
Again the tip will be probably just use the LacROI Chrome Extension, it's only out there. Mark-to-market flips is by far the best but the best scaling thing we have ever seen on Amazon. You want to wholesalers, you’re going to buy 1,000 product on the private label by 1,000. You can do it as small as possible which has not been seen, other than like retail arbitrage or garage slang flipping on Amazon. Those are only ways that you can really do it in small quantities.
We do a few of them. For you starting out, you don't really need them. Right? I say do is bare minimum as possible to get through. Our software is free, so that is a great extension to use. Also, the AMZ Scout calculator is free as well. So those are two free extensions that you can use, which are very, very, very helpful. But we also use Jungle Scout and keep our other two main guys that we go to other than our software.
We also use InventoryLabs. InventoryLabs is very, very helpful if you are sitting out hundreds of products a week. For new people, I would say just use the Amazon Seller Essential. InventoryLabs, like 35 bucks.And we also use Aurora for repressor. I like repressor, is just because you have to do the work manually, especially when you start selling hundreds of products, it becomes hours a day doing all the work, so those are kind of topics where you use them, again they'll be in the thing below.
To start new products, it seemed a bit harder just because like we're in that is well, like we only do new right now. So there's kind of like the bigger players are in new. It's not as low hanging fruit, but it's still possible, it really is still possible.
There's four million products are above that 1% mark and probably even another million that are sold out or slow stock they have high sales, right even though they'll move when they sell when they're in there. So there's a lot of things. There's a lot of things are new and there’s a lot of things re new. Is just incredible amount.
The question is the market to saturate to start new, as in start new person? No, not at all, kind of fits both.
The marketplace to marketplace method is always constantly turning. There's always going to be a new stuff coming up and then new stuff coming off. And same with every other, like every other marketplace. There's people posting on these marketplace day in and day out. So there's stuff coming in, stuff coming out, there's more flow. So in terms of like let's call it like cash. Let's say each big marketplace has a bunch of cash running in there, right, you want to have as much cash going in and coming out as possible because you have more opportunity. That's the biggest thing, but there's so many ways to do this.
don't care, it's like 25 cents, you know is a dollar to dollar. We get everything sent back to us. And then we either auction it on eBay, sell it on eBay or have an auction house come in and just wipe all of our things clean
.Like in our InventoryLabs has all the numbers, those returns, those consequent returns get taken off the books anyway and just taken off the books, but it taken off and we just think, okay, it's just dead money. But then once we auction, now it just becomes free cash that we can then spend. Is really, really helpful.
I would sit with the niche for right now. Find a couple brands that you can figure out that you can sell and then start really diving deep in those. Like the video we did was Walkman. So we did Sony, we know we could sell Sony, we know we can sell Walkman, so we dove deep in a Walkman, just type in that on a troy and you start pulling that data. Right. There's… it's a Walkman, there's Codec as well if you want to get in that one. But those ones are very, very easy to get started with, even the new stuff, it's very, very easy.
I know people that do all careful Codec Carousels that sell fast and they do only used ones. And they move them pretty fast, so make sure again they work. Like that's what I would do. I would start something that you know sells and then buy the new end used version of that as many times as possible can and they start sending those in.
It's just spend more money, right? So to make like… so like if we want to make, look is easy number.
If we want to make $1,000 and we know our problem margin is 50%, that means we need to spend $500. No, we need spend more, profit margin... So if we want to make a dollar and our profit margin is 50%, we need to spend $2,000 to make $1,000.
But the thing with the Amazon instead of the eBay you can scale it faster and it's less work. So you can scale this thing a lot faster even though it has more cash intensive into the system. I just put as much cash as we possibly can, like the first few months when we're doing this when we're really scaling up.
Definitely, not electronics. Do not do electronics if you don't want returns. Electronics are known for returns, you have about 10 to 15% return rate.
Do in that has no computer system, a common kitchen, right. Do damn knives if you have to, those will have very, very low return rate. I think we do mass amount of knives and like our return is a very, very minimal. I think we got one back because it got damaged in shipping. That's about it. It's fire return rate for anything that is not electronics.
100% FBA by far. The reason is because you can streamline the process and be able to scale when you source more products using LacROI.
you had to find a brand that works and then you start buying off that brand. Go new and used. Look on the Lacroix software, will give you a green mark and the ROI that you want and then just make sure that the margins are in there that you want. Stick with one niche first or one brand first. I say brand, go around, ask brand, you can do make sure you can sell it new or you used again.
ery good question.So actually the reprice we have, the ROI reprice actually can be Amazon a lot of the time, right? So what Amazon is really good at is dropping the price below yours and get to just keep buying it, so I use Aurora for it. I took $99, I'm not sponsored by them. Like free cloud for sure, but it can actually be Amazon… this is what we've seen uveitis cool products I had to drop down relatively low.
So Amazon does two things right with this thing. Either you could reprice faster them and get the buy backs because your API will let you do [inaudible 14:36] that's why I use Aurora for it. It's fantastic. It's by far one of the best. Or you can sell it way below their cost. The one good thing about market and marketplace is that you buy it at a lower cost than anybody else and you guys can still make money. This is one product like we having, like I’d to drop the price. Before we get the Aurore software, I drop the price to like 1,100.
We have several accounts but you can start to buy products on your main account and then as you begin to buy more products you can make another account as a back up.
We use Keepa throughout each day as we research sales history. Marketplace New, Marketplace Used, and Sales Rank, you’re left with a plain white graph with no lines or shading.If you click to add back the Amazon data, now you will see orange shading that indicates when Amazon has had the item in stock. If the area is orange, Amazon is in stock. Wherever you see white gaps on the graph, Amazon is out of stock. If you click on the different date ranges you can have Keepa display how often Amazon is in or out of stock on the item.
We first made a web app that allowed for pulling the API, but we were not able to pull enough API calls to grow our business.
Start small and begin to find profitable products from all marketplaces.