Contents · affiliate model, you do not need to invest in inventory to start your e-commerce business. The main disadvantage of the affiliate model is the low commissions offered

2

Secrets To Selling On Amazon

Contents

SECRETS TO SELLING ON AMAZON .................................................................................................... 3

1. BUSINESS MODELS TO SELL ON AMAZON ...................................................................................... 4

1.1 AFFILIATE MARKETING: ....................................................................................................................... 4

1.2 DROPSHIPPING ................................................................................................................................... 5

1.3 ARBITRAGE MODEL ............................................................................................................................. 7

1.4 PRIVATE LABEL BUSINESS MODEL .................................................................................................... 7

2. HOW TO APPLY THE ARBITRAGE MODEL ........................................................................................ 9

2.1 WHERE TO SELL MY PRODUCTS? ...................................................................................................... 9

2.2 WHY NOT START WITH AN ONLINE STORE? .................................................................................... 10

2.3 UNDERSTANDING THE ARBITRAGE MODEL ..................................................................................... 10

2.3.1 SOME CUSTOMERS WILL PAY MORE ............................................................................................ 11

2.3.2 AMAZON PRIME BENEFITS ............................................................................................................ 11

2.3.3 MODELS TO BUY PRODUCTS AND APPLY ARBITRAGE ................................................................ 12

3. CONFIGURING THE SYSTEM TO BE ABLE TO SELL ON AMAZON ................................................. 13

3.1 BASIC CONCEPTS ............................................................................................................................. 13

3.2 ABOUT THE AMAZON SELLERS PROGRAM ...................................................................................... 13

3.2.1 AMAZON SELLERS PROGRAM FEES .............................................................................................. 15

4. HOW TO FIND OFFERS .................................................................................................................... 16

5. HOW TO SELECT W INNING PRODUCTS ........................................................................................ 17

5.1 BEST SELLER RANK (BSR): ............................................................................................................... 17

5.2. PROFIT MARGIN ............................................................................................................................... 18

5.2.1 AMAZON FBA LOGISTICS SERVICE: ............................................................................................... 18

5.2.2 PRICE TRACKING AND BSR ............................................................................................................ 19

5.3 SALES LEVEL .................................................................................................................................... 19

5.4 REVIEWS AND PRODUCT RATINGS ................................................................................................... 20

5.5 SELECTING WINNING PRODUCTS .................................................................................................... 21

6. PREPARING PRODUCTS TO BE SHIPPED TO AMAZON .................................................................. 22

7. CONCLUSIONS ................................................................................................................................ 23

3



A practical system based on proven models for making money by selling everyday products on Amazon from your home or anywhere in the world.

This eBook could be one of the best options available for you if you want to build an e-commerce business in a simple and fast way. Here you will find highly relevant information regarding the most effective methods to earn money selling products online.

This is not a get rich scheme. Building wealth requires applied knowledge, planning, patience, work ethic, time, and mentors/coaches. You will learn relatively simple methods to obtain income working from home with a repeatable system. However, I must clarify that it will take you a few months to be successful with this system. Whether it takes two months or twelve months or more, your success will be determined by your dedication and effort. As you progress in applying this system, you will learn that there is a world of opportunities available to you as an online seller. The experience you will acquire will open your eyes to the profitable world of e-commerce and selling online. So, I invite you to start immediately. Applying this knowledge is the way to make the methods really work for you.

By Jeyson Baldovino

Copyright © 2017 by Jeyson Baldovino - All rights reserved.

This book or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of the publisher except for the use of

brief quotations in a book review.

4


1. Business Models To Sell On Amazon

Before we start, I want you to become familiar with the business models you can apply on Amazon to build your e-commerce business. In doing so, you will have a general idea of how to earn money by using this platform. This eBook will explain various models to begin building wealth on Amazon with a focus on the Arbitrage models.

1.1 Affiliate Marketing: This is the simplest model that exists. It essentially consists of affiliating with Amazon. In this model, you will have affiliate links. Your job is to send qualified traffic to the products using your link, so that when a sale is made, Amazon will know you are the one who referenced the product by means of the cookie installed on the customer’s computer. The great thing is you will earn a commission for this.

Affiliate Model

Some of the advantages of the affiliate model are:

a. You are not responsible for the customer. In all cases, Amazon is responsible for the whole process from the sale to the final delivery and the returns, in case they are necessary. Your only job is to send traffic towards the Amazon product pages using your social media pages.

b. As Amazon is responsible for the delivery and other customer service processes in the affiliate model, you do not need to invest in inventory to start your e-commerce business.

The main disadvantage of the affiliate model is the low commissions offered by Amazon. A commission averages 10% of the product price. The cost of the traffic you send to the Amazon product pages will be discounted from that commission.

5


Usually, to obtain the best benefits through this business model, it is recommended to build a good marketing strategy that includes, among others, the following techniques:

• Create lists in an autoresponder: Once the prospect’s email has been captured, it is forwarded to the product page with the affiliate link (this can be automatically configured in the autoresponder).

In this way, it is possible to make an automated follow-up of leads to have a greater possibility of achieving sales. In addition, you will have a list of prospects to send future offers.

• Followers on social networks: As part of your email marketing strategy, you can invite your followers to follow you on social networks. With this, you will be able to carry out a closer follow-up. You can use applications such as HootSuite to efficiently be found on all the social networks you want.

• Become a specialist in a specific niche: By managing the same interests within your list, you will have a greater opportunity of increasing your conversions, as your subscribers will feel identified with the offers you send them. This will also allow you to become an expert in a specific market segment, which will attract more and better customers.

These techniques can be applied not only to Affiliate Marketing, but also to the other business models.

1.2 Dropshipping Step 1: Market analysis: First of all, you must investigate which products are being sold in the market. You should investigate different market segments and identify the customer’s profile within each segment. Then, you can determine what kind of products they buy.

Step 2: Search for Dropshippers: Dropshippers are the wholesalers responsible for providing the product. In this model, they are responsible for sending the product from their factory or warehouse to the final customer.

Step 3: Create an alliance with your Dropshipper: To select the dropshipper with which you are going to work, I recommend that you contact several of them to first analyze the customer service they provide you. In this way, you will know what kind of assistance they are going to provide you and your client(s) once they are in operation.

6


Additionally, I suggest that you purchase a product from each one of them without letting them know that you are making the purchase. This will let you analyze not only the quality of their products, but also the delivery times and the service they provide.

I also recommend that you return the products you purchase in order to analyze whether they actually have an appropriate return policy. By doing so, you will have tested your potential dropshippers without spending too much money.

Step 4: Publication of products: Once you have selected your dropshippers, you can start listing your products on Amazon. It is important that you keep yourself updated regarding your dropshippers’ stock for the products you list, so you do not sell a product that your supplier does not have in its inventory, which would result in negative reviews and a bad reputation on Amazon.

Step 5: Sale and delivery of products: Once the product is sold, you need to buy it from your dropshipper for it to be shipped in your name to your customer.

Amazon makes payments every two weeks. You will have to invest a minimum amount of money in order to buy your products while Amazon pays you for the sale. However, this is a good investment, as it is guaranteed. Remember that Amazon will receive the payment, deduct your commission, and send you the money in a maximum of two weeks’ time to the account number you have provided for that purpose.

Unlike the affiliate model, you will be responsible for delivery and after-sales service (returns and complaints). Therefore, it is very important that you do not select your dropshipper lightly, as they will become your main ally.

The great advantage of this model is the fact that it is not necessary for you to make an investment in inventory. You must focus on a good marketing strategy and after-sale service.

One of the disadvantages of this model is the strong competition that exists due to the model being easy to be implemented. This can be reduced if you form an alliance with several dropshippers and have a varied offer within the same niche. By doing this, it will offer you the possibility of selling within the same niche given your varied offer of products, as long as this variety is supported by a strong marketing strategy.

Another drawback of the model is the fact that you are tied to your dropshippers' offer of products. Sometimes, this means that when your dropshipper stops offering a product from their catalogs, if it is a product that you are selling well, you will lose those sales on products you had already positioned. This is why having a varied offer of products becomes more important.

7


1.3 Arbitrage Model Arbitrage is an ecommerce technique that consists of taking advantage of discount offers and sales of high demand products by buying them to later resell at full market price.

Unlike the previous models, this model requires making an investment in order to be able to sell products.

The key factors for using the Arbitrage model are essentially two:

• A high-demand product

• Finding discount offers

The steps to follow for this to be a successful model are the following:

• Finding offers or sales: Those who apply this model must pay attention to offers from stores such as Walmart, Best Buy, Target, etc.

• Analyzing the numbers to determine the potential return on investment per unit

• Determining whether the fulfillment will be by you, the merchant, or by Amazon

1.4 Private Label Business Model The Private Label model is an evolution from the Arbitrage model. It essentially means creating a brand, identifying suppliers who can make products scale with reduced costs, and conducting a marketing campaign that will create demand for the brand.

Factories from China, for example, offer you the possibility of creating your own winning product which you have identified within your niche market. This means applying what is known as “technology of the obvious,” which consists of taking a product, analyzing it, and improving it in order to sell with greater possibilities of success within the market.

All the above-mentioned models can be applied internationally or within any country. However, it is more common for private brands to have Chinese suppliers, as they offer the best costs and, lately, they have substantially improved their compliance in terms of quality.

8


Let’s summarize the basic process of the Private Label model:

• Find a high-demand product

• Find a factory that can manufacture that product or produce a new one for your brand

• Carry out a financial analysis to determine income, costs, and profits

• Create the brand design

• Request a sample to evaluate the factory’s quality and compliance

• Place your first order destined for an Amazon warehouse

• Carry out the necessary marketing campaign in order to sell the product

Now you are familiar with the most important and profitable business model to sell products within the ecommerce industry and specifically on Amazon. My favorite models to use on Amazon are the Private Label model and the Arbitrage model. I do not use the dropshipping model on Amazon, and I would not recommend you to use it on Amazon either. I use the Affiliate model on digital products from other marketplaces.

9


2. How to Apply the Arbitrage Model

In the previous chapter, we showed you the arbitrage business model and other models you can apply on Amazon and eBay. Let’s expand on that.

2.1 Where to sell my products? The first thing I want you to know is that you can sell these products on Amazon and eBay. They are platforms that guarantee traffic to your products thanks to the positioning they have on the internet. However, this eBook will focus on Amazon as the main platform.

In other words, selling on these two platforms is like stepping on the shoulders of giants due to the recognition they have. Additionally, they solve an important problem for you: traffic. As these platforms already have plenty of their own traffic, you only need part of it. Also, carrying out marketing strategies on these platforms is easier than you think because everything is standardized.

I have tried to position websites on Google’s first pages, and this has been too complex for me. Besides, positioning yourself on the first page of Google does not guarantee sales.

If you compare SEO for Google to the SEO for Amazon and eBay, these platforms make SEO look like child’s play. Appearing on Amazon or eBay first pages guarantees you sales for one simple reason – both Amazon and eBay are specialized search engines for electronic commerce. That is, a person who visits eBay or Amazon to search for a product already has the purchase in mind (he or she has his/ her credit card nearby), something that does not happen with Google. This makes conversions on Amazon and eBay much higher in terms of electronic commerce.

On the other hand, carrying out an advertising campaign on Amazon or eBay is a piece of cake compared to the complexity involved in implementing Facebook Ads or Google AdWords.

10


2.2 Why not start with an online store? Many courses will recommend you set up your own online store to apply Arbitrage or another one of the models I have explained in the previous chapter. However, I do not recommend you do this. Let me explain why.

I am assuming that you are a newcomer to electronic commerce, just like I was when I first started in this field at the beginning of 2015. At that time, I was looking for a simple model. Something that really worried me was marketing, in particular, driving traffic towards my products. This concern was based on the fact that I have previously struggled with traffic to other businesses I previously managed. That is why I decided to start selling on Amazon and eBay, as my mentors for both platforms agreed on the fact that there was no great effort involved in marketing to sell on them.

If you set up an online store, the process will be very slow, as you will have a website for an unknown brand. You will also not only need knowledge, but also enough money to invest in marketing. My preference is to invest in products for sale (inventory) that give me the best profits. I choose to share the marketing strategy with Amazon.

With this I do not intend to say that you do not need a marketing strategy on Amazon and eBay. What I mean is that it is much simpler when you use their already proven platform and brands. In the case of the Arbitrage model, you do not have to do any marketing at all. You only carry out a marketing strategy when you use the private label model.

I am not saying that the Arbitrage model does not work with new online stores. What I’m trying to get across is that setting up a new online store is a slow process that will require a considerable investment of time and money in order to achieve success. A very good strategy is to use the Arbitrage model on the established platforms to generate revenue while you build your online store and do the things that direct traffic to it.

2.3 Understanding the Arbitrage model Arbitrage is a model that benefits from the price difference between two market suppliers by buying a product at a low price and selling it at full price. With this, the seller receives a profit thanks to the price difference between suppliers.

The term arbitrage comes from the stock market. People buy when stock prices are low and sell when they are high. It’s a very simple concept, but the details for applying this concept to online retail sales is a bit more involved.

11


For the purpose of applying the model on Amazon, it is necessary to verify the current price difference of a product’s price on Amazon and the same product’s price at a store which will function as our supplier.

One of the tricks to benefit from store promotions is having in mind that they usually offer discounts for larger purchases.

2.3.1 Some customers will pay more One of the more common questions I have been asked when explaining this business model is why would customers pay more if they can also do as I do and find the same offers?

The first reason is that people trust Amazon as a recognized brand. Many people visit Amazon and buy immediately without comparing prices, as they usually believe that due to the fact that it’s Amazon, they are getting the best offer, in price and/or in quality.

Another reason is that most people do not have time to have a “Shopping Plan,” which is visiting several stores to make comparisons.

Additionally, Amazon customers have a specific profile on which the Amazon Marketing area has been working for years. In a conscious or unconscious way, they are willing to pay more for a higher-quality product, better delivery times, and a money back guarantee that assures them their money can be back in their pockets with just a couple of clicks.

All of the above things Amazon has ensured with two standard programs – Amazon Prime and its AZ Claim guarantee.

2.3.2 Amazon Prime benefits Amazon Prime is a membership program. Customers pay an annual fee in exchange for exclusive benefits.

There are more than 25 million customers with a Prime membership. This might give you an idea of the loyal customer base Amazon has.

12


Some of the most important benefits of this membership are:

• Free shipping and two-day delivery within the United States.

• Unlimited access to Prime Instant Video – a collection of movies, series, and others

• Unlimited access to Prime Music – unlimited access to songs within a collection of more than a million songs

• Kindle eBooks loans

I am not explaining this for you to purchase an Amazon Prime membership program, but for you to understand the psychology of Amazon’s customers and take advantage of it.

2.3.3 Models to buy products and apply arbitrage There are two ways to buy products and apply arbitrage. These are:

• Scouting: This purchase modality consists of physically going to the stores and buying products that are on sale. It is very common to find products that are on sale. Not because they are damaged, but for other reasons. Those reasons range from excess inventory, seasonality, liquidation, going out of business, etc. We can benefit from this.

• Online Arbitrage: This is the method I have applied because I do not live in the United States. As its name points out, it consists in buying from online stores and then sending the product to Amazon’s warehouses to later resell at a higher price.

13


3. CONFIGURING THE SYSTEM TO BE ABLE TO SELL ON AMAZON

3.1 Basic concepts If you have previously purchased products from Amazon, you need to know that the account you used is a buyer cannot be used to sell. But that does not mean you cannot sell on Amazon.

In order to be able to sell on Amazon, you need to create a seller account on the sellers’ platform called “Amazon Seller Central.”

To create an account on Seller Central, you will need the following:

• A credit card with which you will pay the monthly fee to Amazon

• A bank account where the earnings from the sale of your products will be deposited. Briefly, you need an instrument to be able to pay and another one to receive money.

• A photo ID for verification purposes.

You only need this credit/debit card for the first payment. As you sell products, Amazon will discount the monthly fee from your profits. Amazon’s monthly fee is $39.99 per month for a professional account.

On the other hand, the bank account is necessary to receive the money from the sale of your products.

3.2 About the Amazon Sellers Program Now, I want to offer you some context regarding the program Amazon offers to those who sell on its site for you to open your vendor account and have everything ready to start selling on the internet.

Since 2000, Amazon has allowed both businesses and independent people to sell on its platform in more than thirty categories as professional sellers. Today, more than 50% of Amazon’s sales come from this modality. The preceding information offers you an idea of how important this program is for Amazon, and why the company is constantly working to improve it. The opportunity is right there, ready to be taken, with enormous possibilities for growth as Amazon continues to grow worldwide.

14


Amazon has already shown its interest in growing outside of the United States by opening its own warehouses in Mexico. This important new player in Latin America is changing the concept of e-commerce in those countries, and both you and I can take advantage of this.

There are many reasons to sell on Amazon. The main one is the fact that you can access an established base of millions of loyal customers right now without the need to have your own website, or carrying out complicated marketing and fulfillment processes.

Another great advantage of selling on Amazon is that it offers its customers a fraud protection program through its customer protection policy. With this, customers are 100% sure of their purchase. This has been the main reason for Amazon’s success – the trust it has built among its customers.

This program is aimed at both customers and sellers. It gives us peace of mind regarding our businesses because, in the case of sellers, Amazon analyzes fraudulent purchase orders and automatically deletes them. That is, it verifies the customer’s payment before making the order visible and requesting of sellers the delivery of the product.

Regarding the buyer protection guarantee, I must tell you that it is one of Amazon’s characteristics to offer a quick answer to its customers in order to solve their problems.

The most common problems arise when customers do not receive the right product, or they receive a defective one. They will request a refund.

If the seller is not able to solve the problem, Amazon is responsible for providing a solution by contacting the seller with the buyer and acting as a mediator. In case they cannot reach an agreement, Amazon intervenes quickly and effectively, offering a solution that can include returning the product, offering a refund to the customers, etc.

In the model that I am explaining in this eBook, it will not be necessary for you to participate in the resolution of conflicts (which are actually very few in this program), since I am going to teach you how to associate with Amazon for the company to be in charge of all the customer service. (Your work will end once you deliver the products to Amazon’s warehouses. From there, Amazon will take care of everything.)

Your Amazon Sellers account can be closed at any time in a simple way. You only need to take the necessary precautions before closing it. For example, you will want to sell off all your inventory first before closing it permanently. The support staff can help you during this process.

15


3.2.1 Amazon Sellers Program Fees Amazon offers two kinds of plans. The professional plan is available from $39.99 USD/month and the first month is usually free. This is the plan I recommend.

The other plan is the individual seller plan. It costs only a fee of $0.99 USD per product sold, but it has many restrictions. The most important thing is that you can only sell up to 40 units per month. You are not authorized to sell in all categories, and the system of reports offered carries out analyses of your business that are very basic.

Once you create your seller account, you can start selling immediately by following the steps below:

Listing the products: For this you need to define the logistic model you will use. On the first model, you purchase the products, store them in your house, and then send them as soon as the sales are made. This is known as fulfillment by merchant.

Another model is the dropshipping model, which we already explained. A third model is to buy the products, store them in Amazon’s warehouses, and let them take care of all the logistics and customer service. This is known as fulfillment by Amazon.

Selling: After you list your products, Amazon’s customers and visitors will see your products, and sales will be carried out. In the Arbitrage model, you will be allied with Amazon, which means that you will not have to do anything else unless you decide to fulfill the order yourself.

Receiving the payment: Amazon makes its payments on Sundays, every two weeks. You will receive your payment in the account you have registered according to the methods I explained before.

16


4. HOW TO FIND OFFERS

For the Arbitrage model, here is what your main job will be:

Finding offers. In fact, while working on your business, this will be the task that will take most of your time. The other tasks are very simple and some even automatic.

You can apply the following techniques jointly for the benefits to be greater than if you apply them separately:

Price comparison services

First of all, I recommend you subscribe to services that allow you to automatically compare prices for the same product on the internet. When you are looking for products, this service will automatically show you the best offers for that same product in other stores.

The opening of markets has made China a very important ally when it comes to finding low-cost suppliers to sell through Amazon.

Directories of secure suppliers such as www.aliexpress.com can help you find commercial partners that offer you a permanent supply of your products.

Trade with China is a fairly broad topic because of several aspects. The ways in which this model works would be a subject too extensive to deal with in a single chapter. In another eBook, I will devote myself completely to explaining the strategies of buying from China and how you can do it easily and safely through websites such as AliExpress and also its older brother, Alibaba (which has become my preferred business ally).

One of the most difficult jobs in this business is to find offers, but you need not worry. When I started in this business, I did not know how to find them. One day, my coach sent me a direct offers service to my email. That meant he sent me a daily email in which he provided the link of the products on Amazon and the link of the providers with the discounted prices... Bingo! That was what I needed. At that moment, I hired the service and 30 days later my business started to grow.

17


5. HOW TO SELECT WINNING PRODUCTS

Before you list any product, you should analyze it to determine its sales potential and profitability. There are several variables you can use to select winning products, namely:

5.1 Best Seller Rank (BSR): Amazon updates daily its best-selling products ranking, which will give you an idea of the sales levels for each product. When you check a product on Amazon, you will find the following information:

● Product Details

● Shipping Weight: 2 pounds (View shipping rates and policies)

● Domestic Shipping: On items that can be shipped within U.S.

● International Shipping: Items eligible for international shipping

● ASIN (Amazon Standard Identification Number)

● Item model number

● Average Customer Review

Amazon Best Sellers Rank You will find the BSR at the bottom of the sales page in the “Product Details” section. You only need to consider the BSR of the main category, which is the first one that appears, as this product is compared to all the BSRs of each category. Below it, you can see the BSR for the sub-categories (the BSR for the sub-categories is not important to us).

The BSR works in the following way: The closer the product is to the number 1 position, the higher the level of sales, and the further away the product is from the number 1 position, the level of sales decreases.

There is no general rule to apply here, as each category has a different number of products and their sales levels are very varied. What I can tell you based on my experience is that you should not offer products whose BSR is greater than 50,000.

18


5.2. Profit margin We recommend a minimum profit of 30% of the product’s final price. The remaining 70% is usually divided between what you pay to the manufacturer or wholesaler for the product, and what you pay to Amazon for the logistics and customer service they provide you.

The above means that for a product you sell for $100, there should by a minimum net profit of $30 for you. As I mentioned, 30% is the minimum, but you might be able to find products with better profits.

To calculate your profit margin, you must consider the average price of the product to be sold, the fee Amazon will charge you, and the price you will pay when buying the product from the wholesaler, or store that supplies it.

Next, I will show you how to find out what is the price you can assign to your product and the fees that Amazon would charge you. To learn about the fees charged by Amazon’s logistic services, you first need to learn about the Amazon FBA program.

5.2.1 Amazon FBA Logistics Service: FBA means Fulfillment By Amazon. It is a service offered by Amazon to its sellers through which you benefit from the logistic services they provide. With this service, you can buy the products you are going to sell, and send them to the Amazon’s warehouses. Then, Amazon is responsible for storing the product, delivering it to your customers when a purchase is made, collecting the money, and paying you after they have discounted Amazon’s commission for the sale. Amazon is also responsible for the after-sales customer service in case of returns and complaints.

The Amazon FBA program is the one that allows us to work on our business instead of in our business. Amazon takes care of all the logistics, leaving us the job of finding good offers, buying the products, and sending them to their warehouses. Our job is to truly manage the business throughout seller accounts instead of labeling, storing, packing, shipping, customer service, etc.

19


To calculate how much Amazon would charge you for this service, I will explain to you the process next:

First, you will need to know the ASIN for the product you are analyzing. You can find it in the “Product Details” section for each product’s sales page, as shown below:

With the ASIN, you need to go to the Amazon Revenue Calculator found in your seller account. This page is a calculator available for you to estimate how much Amazon will charge you for the FBA service.

5.2.2 Price Tracking and BSR Due to the markets’ volatility, both the BSR and the prices can vary at any time. This carries the risk that you do your profitability analysis based on a price that could be at a high or low peak at a certain time. This would bias your analysis. It would be better to do your analysis using an average market price.

Having this in mind, I present to you here a free tool that allows you to track product prices:

The tool is found at www.camelcamelcamel.com.

This tool shows you the price history from lowest to highest within the period you specify. With the above information, you can estimate an average price for your product to carry out a better financial analysis.

Additionally, you can also see a tab that allows you to monitor the sales ranking. This will help your analysis be more successful.

5.3 Sales level Determining the sales level for a product will tell you how much you can sell when you start competing in the same listing.

In theory, if there are two competitors selling the same product, and you are interested in competing for that listing (assuming the three of you would offer the same price), you could think you would sell 30% of the current sales level (this is only an estimate for you to make a projection of your sales, as there is nothing that guarantees your future sales).

http://www.camelcamelcamel.com/

20


I can recommend to you two tools I have used to track my competitors’ sales. They are:

www.junglescout.com - This is the one I like the most to find out my products’ sales levels immediately, as it shows you an average sales estimate for the product. It has other features that are not important for us at this time. It is a paid tool.

This tool is an app you need to install on your browser (the process is explained on its website). When you run it while on the Amazon page, it will show you the sales information for your product.

The previous information offers you an idea of your real sales possibilities, if you consider the number of competitors and your market price.

The other tool is www.amztracker.com. Its only disadvantage is the fact that it gives you sales information on a daily basis, but this information is delivered a day after your request.

5.4 Reviews and Product Ratings E-views (electronic reviews) are provided by some buyers once they have tried the product and decide to give their opinion on the Amazon sales page of each product.

When a buyer decides to provide a review, he can give it a score between 1 and 5, with 5 being the highest value and 1 being the lowest. In addition to the score, he/she can also leave a written comment describing his/her experience with the product.

A product’s comments or reviews tell us the level of acceptance it has within the market. In general, I recommend that you only enter listings that have at least 20 comments and a minimum score of 4.0.

To see a product’s comments and reviews, you need to go to the bottom of the Amazon’s sales page.

http://www.junglescout.com/

http://www.amztracker.com/

21


5.5 Selecting Winning Products In this chapter, I offer you details about four variables you must consider when buying products with sales potential and good profit margin.

• Profit margin

• BSR (Best Seller Rank)

• Sales level

• Quality and number of reviews

For each product that you analyze, I suggest you create a spreadsheet where you can see that the products you are analyzing actually meet the requirements that we specified to determine whether you will buy them or not.

Once you determine which products you will buy, you need to purchase them and continue the process explained in the next chapter.

22


6. PREPARING PRODUCTS TO BE SHIPPED TO AMAZON

Once you buy the products in stores or from your suppliers, you should not send them to Amazon’s warehouses immediately. You need to prepare them according to the quality standards specified for storage, packaging, and labeling required by Amazon. This can also be done by utilizing a prep center, which will prepare your products for shipment to Amazon according to their standards. They are responsible for receiving the products, removing the labels from your supplier, repacking it according to Amazon standards, placing the labels supplied by Amazon to such purpose, and finally sending it to the warehouse specified by Amazon.

You can also prepare the product yourself at home. Let your financial analysis determine when this makes sense.

When you use Amazon’s FBA program, your physical work ends when you send your products to your chosen prep center or to Amazon, if you’ve chosen to do the prep work yourself.

Before you start working with any prep center, I suggest you start with small orders while you get to know each other and establish a commercial relationship.

As your business grows, the unit price for this service should decrease as the higher the volume of your orders is, the lower the unit logistics fee should be. However, for you to have an initial idea of the costs, this service should not cost you more than 1 dollar per unit (including the shipment to Amazon’s warehouses) for products whose final sale price ranges between 20 and 40 dollars.

23


7. CONCLUSIONS

The era of electronic commerce has arrived. E-commerce is within everyone’s reach. Today, it is very easy to do business at the speed of light from your home or anywhere in the world.

Believe me, it is real. I started my e-commerce business while I was living in Colombia. Today, as I write this book, I am living in Mexico. Guess what happened when I changed the country where I lived?

The answer is NOTHING. Nothing happened. My business continued to work as it was working when I lived in Colombia.

There has always been talk of the difficulties that exist in e-commerce. My goal is not to refute them here. What I want to make clear is that platforms like Amazon, eBay, and MercadoLibre are aware of the barriers that exist. They are working to make e-commerce accessible to all by generating more programs that increase trust among their customer base, while driving more traffic to its stores, and above all creating more and better opportunities for freelancing entrepreneurs like you and I to build profitable businesses that we can continue doing over a lifetime.

The world is going through countless changes in the electronic commerce industry as it becomes a huge global trend that makes it easier for you and I to access quality products and services in a more agile and simple way. This trend is bringing about the expansion of this industry and will continue moving forward with stronger and bigger steps.

I am already riding the wave, although I still have a long way to go. But I am not the one that matters. It’s you, my friend. The real question is whether you will ride the wave of electronic commerce in this new era, or are you like those who prefer to watch the wave as it goes and applaud others for taking advantage of it while your pockets are empty?

24


Documents

Contents · affiliate model, you do not need to invest in inventory to start your e-commerce business. The main disadvantage of the affiliate model is the low commissions offered