Condition Notes on Amazon

Every step forward is a step toward your dream.

Did you know that you're only supposed to use the condition notes box to describe the condition of used items? You're not supposed to use it for new items.

Yet, sellers use this box all the time. The following is a common sighting on Amazon:

Eligible for FREE Super Saving Shipping! Fast Amazon shipping plus a hassle free return policy mean your satisfaction is guaranteed! Tracking number provided in your Amazon account with every order. Item is brand new.

Recently third-party sellers have received warnings from Amazon to clean up the condition notes boxes, and they were given 24 hours to make it happen or else risk losing their account! Removing condition notes requires that you go into each listing and remove the notes. It's very time consuming. If you have condition notes on new items, then it would behoove you to get on this task asap.

You don't want to get caught up in an Amazon cleaning spree. 

Another important thing to note is that NEW means gift giving condition. You're not supposed to say, "This is unopened, never used, but the box is torn, or a widget is missing." This could get you into hot water with ZON. It's either new, or it's used, but it's not new with a "but".

Don't risk your account over these seemingly minor matters because they are not minor, and they do matter.

Running the Numbers

You cannot help others if you don't take care of yourself first. 

No one would ever accuse me of being a numbers person. Math is not my thing, but if you hand me a calculator, and tell me the formula, I can figure a few things out.

If you want to know your profit in dollars:

Price - Fees - COGS = Profit
*This does not include storage, supplies, or inbound shipping. It's easier to take these numbers off of your totals rather than on individual items.
Example:
Price $18.99
Fees $6.21
COGS $6.78
Profit $6.00

If you want to know your ROI percentage (profit margin):

Profit divided by COGS x 100 = %

Example:
Profit  $8.53
COGS $4.00
=213% ROI

COGS - cost of goods sold
ROI - return on investment

Random FBA Notes & Thoughts

Our thoughts create our reality.

Random FBA Notes & Thoughts:

1. If you've been using balloons to replace air pillows, please STOP NOW. I asked seller central about this practice (after hearing that someone got a policy warning), and this was their response: Balloons are not acceptable as they do not protect the product from the damage and hence results in damaged goods received in the Shipment.

2. There are lots of unofficial lists floating around of products that have been restricted, yet on those same lists are products that other sellers have sent in without issue. I think it's safe to say that anything that could be potentially hazmat, high end brands like Coach (even accessories like key chains), liquids (over 4 oz in glass containers are not allowed FBA), powders (anything with phosphate -even food items), and glass could cause you problems, so proceed with caution.

As Q4 gears up, there are a few toy items that you simply need to avoid: Disney Frozen (all products were FROZEN by Amazon without special approval), Rainbow Loom, and Discovery Toys. Some sellers have had Hello Kitty items restricted while others have sold them without issue. It's a toss! Amazon doesn't have an official list which is part of the problem, so I've learned that if you're in doubt, ASK seller central. Get their answer in writing! If a toy is super popular, and could possibly have counterfeits running around, then you need to be cautious.

3. Source outside of the box -big box stores that is. Look local. Think about places that might have items you can source that people wouldn't typically think to look there. Do you have a chain of stores that is specific to your state or region? What about mom and pop shops? Do you live in the city? Take a country sourcing trip. Do you live in the country? Go into the city for a day or two. Get out of your comfort shopping zone, and look for the unexpected in the places least hunted. Think of it like one big giant Easter egg hunt! Where might those valuable eggs be hidden?

4. Get a handle on your numbers. Get your focus on. Set goals. (Note to self).

5. Set a sourcing budget. Plan what / where / how. Focus on one type of sourcing at a time (category, store, online, niche, bundles, multipacks, fast turns, long tails, ect.). For example, I've been focused mainly on toys this week. Next week, I will probably focus on replens, but I also have some bundles I want to explore, so I might take a week just to focus on that. There are so many ways to go about this that it helps to focus on one at a time and rotate. Keep adding baskets for your multicolored eggs.

FBA Quick Tip of the Week

You are the inventor of your destiny.

Here is a quick tip for all of you FBA sellers out there:

Go through your inventory, and if you have anything priced $30-34.99, then change your price to $35.00. I was just looking at something I sold for $35.00. I have one more left, and I noticed that there are two sellers priced below me: one at $34.99 and one at $34.94.

What's wrong with this picture? Why did mine sell even thought it's priced higher?

FREE SHIPPING! Non Prime members get free shipping when their purchases equal $35.00 or more. Pricing right under $35 is leaving customers to other sellers! Swoop in and do your repricing. Thirty-five is the magic number.

Walmart Savings Catcher

Pennies add up to dollars.

Catch a little savings from your Walmart trips. Set up a free Walmart Savings Catcher account, and begin entering your receipts each time you shop.

It's so simple! If a local competitor has a lower price, then Walmart will give you the difference in the form of a gift card. Don't expect to get big bucks back however, let your little savings add up to a decent amount, then redeem your gift card. Buy products for FBA, and double or triple your savings!

You can also download the Savings Catcher app from Google Play or Apple App Store. Scan your receipt on the way out the door! A moments effort adds up.

The Flexibility of an FBA Business

Unwrap a challenge and accept it as a gift of your strength.

This past week my family has faced some unexpected challenges. I needed to stop everything, and devote my full attention to unwrapping this gift. If I had a day job, I would not be able to do that which would have made the challenge more difficult and stressful. 

Although my FBA business is not at full time status, I am so grateful that I've found something that allows flexibility in my life. The beauty of FBA~

• I choose my own hours which allows me to devote time to my family.
• My business continues on even when I can't.
• My shipment can sit while I weather life's storms. There are no deadlines. As soon as the sun shines again, I can pick right back up where I left off.
• I can take my business with me when I travel.
• I can work on my business from home or a waiting room.
• I can set my own pace.
• I can choose how much I invest -in both time and money.

FBA all the way!

Buying Decisions

You might not know what is behind the door, but if you never open it, you will never find out.

What should you consider when making buying decisions for FBA?

• Your cost of goods. Set a budget when you go out sourcing and stick with it. Try to get the most items with the highest ROI potential that you can buy on your fixed amount.
• Average buy box price. Don't just look at the buy box. What is the average price of the lowest priced five sellers? Now subtract your cost of goods. 
• Fees. You need to consider weight and size. If it's a heavy item or a large item, then it's going to cost you more in fees. Run the numbers through the FBA calculator.
• What is your potential ROI? Is it double or triple your money? Is it a slim 10-20%? How much wiggle room do you have if Amazon or another seller drops the price? 
• How many FBA sellers? And how many does each seller have available (put the item in your cart, then edit it to reflect the highest number you could purchase, then delete it from your cart). The more FBA sellers that have the product available the longer it will take to sell (even when the rank is super low).
• Rank. The lower the rank the better, but how fast a rank of 25K will move in groceries vs. how fast in home & kitchen is drastic. Ranking changes on the hour too, so if one just sold the rank will go down, but if it hasn't sold in a long time it will go up. 
• How fast (based on the above information) do you believe the item will sell, and how long can you afford to sit on it?
• Is Amazon selling it? You can sell items that Amazon is selling. Despite the popular belief, Amazon does share the buy box, but they also have tremendous buying power and can afford to drop the bottom out of your price. They also tend to run out, and when you get your turn, you can sweep up the money at a higher price.
• Is it an add on item? Add ons are known to be slow sellers, but if there is only one or two sellers, and super duper low rank, add ons do sell. Add on with caution.
• Only consider reviews if the item is one or two stars. It's possible the item is a dud, and would end up a return if you sent it in. 
• Hassle. Is the potential ROI worth the hassle? Is it oversized or heavy? Do you need to shrinkwrap, polybag, add expiration dates, etc.? Your time is also a commodity.

There is not an exact formula for success. There are many variables to making buying decisions. In the end, you have to make a quick analysis of the data, and essentially make an educated guess. You will guess right a lot of the time, but sometimes you make a buying error. Retail stores make buying errors as well. The widget they thought would be hot turns out to be not. It's part of business. Take in all of the data and make the best decision possible with the information you have on hand.

P.S. Avoid glass grocery / health & beauty products over 4 ounces, high end designer names, gated categories (that you don't have permission to sell in), any potential hazmat items, and items that fragile or easily breakable (unless you are a super hero packer).