Selling Products On Amazon As A Cash Flow System
Sometimes it is hard to know what works until you have a trusted friend tell you something is working and you know beyond a shadow of a doubt that friend is not trying to sell anything to you. The trust increases exponentially when someone you know who is trustworthy gives you so much information and you know they are not going to be gaining anything by giving to you the free information.
This happened to me recently when someone who had been involved with ponzis and pyramid schemes and other kinds of flimsy online money making opportunities in the past, sent me the information below. The first segment of information that is in black came in an email from her make money email list that I was subscribed to. The free info. that is in purple was sent to me only when I requested it from her.
But did you know that Jim Cockrum the creator of one of the best how to succeed at Amazon courses in the world ( < click on blue lettering to get the course ) has created the best Amazon educational course with everything you need to more than succeed. They keep adding more and more all the time. Plus, they have a forum where experts will answer your questions about setting up and running your new or old Amazon Biz. But if you would rather rely on free information on the Internet you may do that.
Here below are the words of someone who has earned my trust and who is now succeeding because she purchased information to help her, but now claims a person can start up and run an Amazon business with free information that is available on the Internet.
My friend's words: I have been very actively selling products on Amazon with the Amazon FBA system that I learned about with Infinii. I am no longer active in Infinii, but the information I had there is what led me to giving up on online programs and becoming an Amazon seller. I did start with the paid stuff at Infinii, but learned more from the free info I found!
My selling has been increasing exponentially since I started. So much so that I was required to get a business license. This alone took me weeks. France is infamous for its nightmare of paperwork, and although I did most of it digitally, the nightmare is still part of the equation…
I am thrilled with my Amazon business and am going to concentrate on that. I’d love for you to give it a try as well! You don’t have to join anything, or pay anyone to learn about it, although quite a few websites make their money teaching you to do it. But all the info you need is available for free, more than enough to get started and the rest you learn from experience. I listed a few info sources in one of my posts earlier this year. If you want a copy of that, just let me know.
Selling on amazon is not “passive” in the sense that I have to go out and buy stuff, label it, pack it up and send it to Amazon at least once a week and sometimes many times a week. But it can be low cost to start, and you don’t have to actively sell anything to anyone. Amazon does all that for you.
Your job is to make the products available. How much you make on them is simply a question of arbitrage. You pay X, amazon takes Y, customer pays Z. If X+Y is less than Z, you make a profit. I sell stuff that I buy in the supermarket and make a profit on it… some people buy things on amazon at a huge markup because it is convenient and fast. That is their choice! You’d be amazed at how much you can make on just stuff you can get at the store!
After I got the email above from her, I then sent to her this message: "Dear xxxxx:
What a thrill it was to hear that something is finally working for you.
You said about working Amazon: " But all the info you need is available for free, more than enough to get started and the rest you learn from experience. I listed a few info sources in one of my posts earlier this year. If you want a copy of that, just let me know."
Please send me copy of that as you stated.
Also, you are buying stuff and sending it onto Amazon FBA. That works. But I have heard that if you order stuff from a company at a low price and then sell it successfully on Amazon that Amazon will take that away from you by finding your source (because it is being shipped from the source to them so they can see where it is coming from) and then Amazon will under cut you. So I am not very hopeful because I do not want to go out and find stuff myself. I want to order it but do it in a way that Amazon will not be able to find my source and under cut me. Any ideas?
Thanks my good friend, Andrew"
She responded: "Hi Andrew
Yeah, what you are talking about is people who order private label products from China. I know how to do it, but am not there yet. But one thing you could do, if you go that route is to simply have them ship the products to you, then you ship them in smaller batches to Amazon…
I re-wrote the info below. If you have any questions, just let me know!
I then responded to her with this email: "I got into Jim Cockrum's Amazon course several years ago when he was selling it cheaply. I am a member of that so I am sure with all the help on the forum there and the courses available I will be able to find the sources in China who could send me crates of what I need to sell, and then sell the stuff using Amazon FBA. You are the first person I trusted because you told me it was working and you did not try and sell me anything. NOW I HAVE HOPE ABOUT AMAZON AGAIN.
xxxxxx of xxxx xxxxxx told me that he was concentrating on building an Amazon business but he was selling something, but now after your testimony, I believe him more and I am excited about what he shared with me also.
I will be in touch.
If you want to purchase the AMAZON COURSE developed by Jim Cockrum, please ask me and I will send to you a link to buy it."
Below is the free information that she sent to me:
How to get started Selling on Amazon (FBA)
YouTube (look for the playlists for beginners, or getting started):
My favorite!! ( Editors comment: She then lists her favorite videos that trained her in Amazon selling. As a member of this Freedom Cash Flow Systems training website you will get access to those, but the best thing you can do is to buy the course by Jim Cockrum here: )
Written Info: ( Editors comment: She lists all her favorite sites that give free written information that has trained her in Amazon selling. So as a member of the training website Freedom Cash Flow Systems, you will get access to that free information. But why not get all the best information that is available in PAC instead of spending hours looking for it? )
All of these people (editors comment: She means the people who did the youtube videos or the pages with written information on them) do offer paid information, but don’t do that. You don’t have to pay anything to get started and I learned everything from just the free info, plus experience. I did start with the paid stuff at Infinii, but learned more from the free info I found!
They will also recommend a lot of tools that you can easily get by without at first. You really only need a printer, labels and a computer… later on, as you start selling more and more, their lists of tools do become helpful to save time and be more organized. I used a bathroom scale to weigh my packages at first, for example. Once I started making more, I bought a shipping scale and a laser printer out of profits. That laser printer is a godsend. It uses toner instead of ink, which lasts much longer and is MUCH less expensive!
Also, find where the stores throw away their boxes. I have a great one where I can find large and medium size boxes all the time, as well as packing materials. All for free. This is important because that stuff can cost a fortune to purchase, especially bubble wrap and boxes. All I had to buy was packing tape and labels.
A smart phone is “almost” necessary, especially at first, so you can scan things with the seller app and see if a profit is possible… but I got used to not having it because often I couldn’t get the app to charge inside a store anyway. So I would note the barcode and name of the product and go home and check it on the computer, then go back to the store to buy the item(s).
Eventually I just got a feel for certain things. I sell a lot of the same category of products, so getting a feel comes quickly. Plus, when you start, you’re going to be looking at clearance items, yard sales, goodwill, etc. which means not paying much in the first place. If it turns out that you can’t sell it for a profit, sometimes you can return the item or if not, it didn’t cost much in the first place so use it or give it away to someone.
In one of the articles above, I saw mentioned the “ 3x rule". That is my rule of thumb as well. The amazon seller app does give you the fees, but in reality, they are higher than what it shows (it seems like they include their shipping costs into the actual fees paid, although it isn’t itemized as such). So if I find an item that costs me $5, I look to see if it can be sold for about $15. That allows for about $5 in fees and $10 to me: $5 to repay the purchase price and $5 profit. I don’t always make THAT much in profit, but it is my goal (50-100% profit).
I have products that I buy at full price and sell for a smaller profit, but I sell a lot of them (I can barely keep them in stock!), but on more unique items, like a rare puzzle or board game, I often make 200-300% or more. It may not sell fast, but when it sells… WhooHoo! Love it!
Many of the folks in the videos and sites above ( editors comment: These are the videos and sites you will get as a member of Freedom Cash Flow Systems Training Site ) also sell on eBay, Craig’s List, Etsy and other sites and that is always an option. I don’t because I don’t want to ship individual items one at a time. It would just be too time consuming for me.
I love FBA because I can process a lot of items, get them packed and ship them all at once to Amazon, and then Amazon does the rest. But this is a personal choice. I am limited in what I can sell because Amazon’s standards are high. New or “used like new” items are harder to come by, but I also sell a lot of “used, acceptable” items. But even then, the item needs to be in pretty good shape.
I pass by a lot of stuff I could sell on eBay easily, that would be impossible to sell on Amazon… but again, the individual shipping just isn’t something I want to deal with right now.
So, start small. My first shipment was about 12 items found on clearance, out of pocket cost about $40. I still have a few of these things in my stock at Amazon, but most of them sold within the month. And the rest, as they say, is history. My monthly sales now are between 8,000-9,000. And every month since I started, it has gone up (except during the time I was getting my business license and they suspended my selling privileges for about two weeks, and JULY… no idea why, vacations maybe, but sales really slipped in July.)
Here are some screenshots so you can see what I mean (I wish I had my first months, when sales were in the hundreds, but didn’t think to take the screenshot at the time…):
The other thing to know about these numbers is that they are based on the amount of the actual sale. It is not what I make. I’d say I get back roughly 60% of what you see. Then 25-30% of that pays back my product purchases (and is used to buy more stock), the rest is to pay for supplies, taxes, etc and eventually I pay myself. So I am not an Amazon millionaire or anything, but I pay myself enough to make it “worth it” and I expect numbers to increase continually as my stock increases.
One last piece of advice, unless I think of more… LOL; in the beginning, sell only products that are already listed on Amazon. Once you get the hang of things, you can create your own listings and even create bundles, that probably only you will sell, with a new listing. But just sell already listed products until you understand better how it all works. My first original listing was a nightmare… now I can do them in minutes (seconds even).
There is no minimum amount of stock you need to send. One each of a few things is just fine and I recommend it at the beginning. Your shipping will end up costing a bit more per item, but don’t worry about that yet. Soon enough your one half-filled box will become 16 boxes filled to the brim and then shipping price on a per item average will be .10 - .30 cents max. (UPS comes to my house at least once a week and sometimes 3-4 times. The guy finally asked me what the heck I was shipping. LOL)
Oh, also, Amazon will create a negative balance at first. The only charge that came off my credit card was my first shipment. After that, they will deduct everything from your account balance and I never had a negative balance for long and only at the start. I have paid all fees and shipping and the dreaded returns directly from my balance and I have been paid directly to my bank every two weeks right from the start.
I hope this will encourage you to give it a shot. I resisted it for a long time, but am SO GLAD I finally jumped in and did my first shipment. I will never look back.
If you have any questions, just ask. But I know that if you take the time to watch/read all the info above, you will be just fine and then you can go to more advanced info as your business grows.
Thank you so much and please do let me know how it goes!
Peace and Love,
xxxxxxxxx ( end of information from successful Amazon seller )
But did you know that Jim Cockrum the creator of one of the best how to succeed at Amazon courses in the world ( < click on blue lettering to get the course ) has created the best Amazon educational course which is called the Proven Amazon Course with everything you need to more than succeed. Plus, they have a forum where experts will answer your questions about setting up and running your new or old Amazon Business. If you would rather rely on free information on the Internet you may do that. But not everyone has the time or inclination to risk finding bad information that is for free. That is why some people would rather get the best information to help them that is found in the Proven Amazon Course.