Selling On Amazon - Dropshipping

BPBryanBPBryan
edited May 2015 in Wealth Hacking

This post is similar to: http://forum.bulletproofexec.com/index.php?/topic/9995-dropshipping-selling-on-ebay/


 


But expands drophipping to Amazon. I've been selling for just over a month and have had $20K in sales and close to $1,500 in profit so far.


 


The idea is simple, take items from Walmart, Home Depot, Wayfair, and other major suppliers and sell them on Amazon at a markup.


This is done mostly on eBay but Amazon is a much larger market and making sales and putting up listings is far quicker.


 


The site where I learned how to do this is called DS Domination: www.saleswithbryan.com


 


- There are two ways to make money


          1. You can take the knowledge you gain from the training and sell on ebay/amazon


          2. You can promote the company and gain commissions from getting others to join


 


The pros:


 


  • One time fee of $500 (learning to sell on ebay is $20 per month subscription)
  • List of videos and training materials to show exactly how to handle many situations that come up
  • Faster sales and larger market than eBay
  • Amazon is much better at handling customer service inquires than ebay
  • Can hire VA's to manage inventory/orders/customer service from elance.com

The cons:


  • It sounds scammish
  • It looks scammish
  • You have to join by referral
  • The training programs is setup in a way where the beginning stage is to sell on ebay and then transition to amazon and eventually to amazon FBA. So you have to purchase the ebay subscription for one month in order to then buy the Amazon membership.

 


Of course there is a learning curve and you could try this on your own, but the training videos and resources that are available have been much value to me.


 


PM me if interested in learning more. I've done some google hangouts with people wanting to learn more details.


 


 



 

Ordered product sales

Units

7 Days

$4,364.77

12

15 Days

$10,128.96

35

30 Days

$20,356.63

71

Comments


  •  

    Ordered product sales

    Units

    7 Days

    $12,802.11

    76

    15 Days

    $26,581.64

    144

    30 Days

    $41,093.70

    214
  • 4 month update - looking to break $500K in one year.


     


     



    Total order items

    826




    Units ordered

    884




    Ordered product sales

    $167,056.90




    Avg. units/order item

    1.07




    Avg. sales/order item

    $202.25




    Compare sales






     

    Graph view






     

    Table view







     




    Total order items




    Units ordered




    Ordered product sales




    Average units/order item




    Average sales/order item




    This year so far




    826




    884




    $167,056.90




    1.07




    $202.25




    Last year




    0




    0




    $0.00




    0




    $0.00




     % change from last year




    N/A




    N/A




    N/A




    N/A




    N/A





     

     

     

     

     

     

     




    Sales by category




    Is this tool useful?







     



     

     





     



     




     




     




     




     




     




     




     




     




     




     




     




     




     




     




     




     




     




     




     




     






     




     




     




     




     




     




     




     




     




     




     




     




     




     




     




     




     




     




     




     




     

  • I'm fairly frustrated with Amazon.


     


    I got into a pretty good grove selling items on sale that had additional coupons. Like vacuum cleaners from BonTon who also ships as a gift (only gift receipt given.)


     


    I hit a "velocity limit" on Amazon, which I knew nothing about until it happened. It means I sold so much in a short period of time that they froze my account to make sure I would deliver and meet the Amazon best selling practices. This also meant that I couldn't get my funds released in time to keep turning over inventory. At one point, they froze $5,000 which was pretty much all my working capital.


     


    I finally got released but the game was too much of a hassle. None of the happy customers left feedback and a few disgruntled folks left crappy feedback. Then a very few idiots who had retarded complaints ("I didn't get it in time for the birthday" which I knew nothing about) would leave negative feedback. The Amazon feedback system sucks. So do their fees.


     


    Anyway, I'll admit that I enjoyed the concept of selling online and dropshipping (or manually shipping local items) as a side gig. There is money to be made. 


     


    I signed up with Doba to try their dropshippers. I even paid an extra $150 to have them craft me a special list of the top 100 selling items. I posted all of them and sold nothing. My Doba annual account just expired a few months ago and their items were still in my inventory on Amazon. I finally sold a comforter last week. A little late for that. Had to refund.


     


    BP, what do you have to say about all this? Is there hope to make an extra $10k a year playing around on Amazon? I still have my sellers account on Amazon and eBay. I just wish you could buy the items you sell with the Buyers money like I used to do on eBay a decade ago. The Buyers payment would go straight to PayPal and with my PayPal debit card, I could turn around and my the product with the Buyers money and never be out of pocket. I miss those days.


     


    OJD


  • Hey OJD,


     


    Once I started I also hit velocity limit and they held my funds for 2 weeks. This is normal from my interactions with dropshippers, especially with new accounts. For me I used my credit cards to fund purchases when the funds were held. My credit score took a dip but it will go back up as I'll be able to fund purchases without credit in about a month from now.


     


    It takes time to learn how to manage the entire account. I didn't know about some of the performance metrics when I started and had to learn by making mistakes and adjusting them.


     


    For the reviews, Amazon is pretty quick on removing negative feedback unless it is warranted. I appeal each negative feedback and all but one has not been removed. It takes time to get the feedbacks but there is www.feedbackfive.com which send out emails from your orders and asks for feedback. This was $10/mo and I found this useful in getting positive reviews.


     


    I've outsourced my customer service which is almost necessary if you want to sell 10-20 items per day. They also handle the feedback and negative reviews. All for about $4.75/hr. Well worth it and needed to have a good quality of life while selling.


     


    Doba sucks from just looking at it for a second. You can find most of those products from Walmart. The margins are inflated too much. Finding products is an art and science. Art because you have to be creative in searching for products that not everyone is listing. And science becaus I've just followed from what I've learned in the training videos from DSD.


     


    There is money to be made and it takes time. I made $150 my first month which involved many losing sales. Now I've learned to get cash back using a few websites and credit cards that increasing my profitability. I've also just got a resellers license which takes most taxes out of purchases for most states. $10K is well within reach per year. It's not instant and takes work each day, but easy to do on the side like me.


     


    Cheers,

    Bryan


  • It is easy if you have the right items, how are you doing your product research?




  • It is easy if you have the right items, how are you doing your product research?




     


     


    There are a few ways:


     


    1- start by browsing stores such as wal-mart, home depot, sears, etc. Find a product and google search the description. It most likely will be on amazon in the search results. List the product if there is a profit in it.


     


    2- start by browse items on amazon and google search to find them on wal-mart, etc.


     


    3- find other sellers an see which products or types they are selling


     


    4- browse the top 100 lists of amazon to find products that are drop-shipped and list those

  • Update through October


     


    Sales to date: $243,383.59


    Total expense: $221,262.22


    Profit: $22,121.37


     


    This is my rough estimate as these numbers are automated by my online bookkeeping.

    Other factors not included, sales tax exemption and advertising costs

Sign In or Register to comment.