Amazon FBA Mistakes: Don’t Get BURNT Buying Wrong Products In Your Online Arbitrage Business!
Over the last couple of lessons, I’ve been sharing that the online arbitrage business FREE course is available.
Previously, we discussed about Amazon FBA For Beginners 2018: 7 Key Elements To An Amazon Listing For Online Arbitrage Success.
Today, I want to share with you three of the most common mistakes that people make in online arbitrage; what to look for, what to avoid, and why we’re not selling these particular products so you don’t get burned. I don't want you to get burned in your online business if you are just getting started.
You start to take massive action, you start to do the research then everything that I share within the free online arbitrage mastery course is all been designed for you to save your money and make money. We don't want to be spending your money on dead stock and on dead products. I want to go over to the Lesson 8 which is all about winning examples and losing examples.
Watch the video below:
I want to share with you three examples of products that we would not purchase for your online arbitrage business. If you want the full course, please go to FREE online arbitrage mastery course. You will get access to the fundamentals of online arbitrage. Also, please join our FREE online arbitrage mastery Facebook group.
We can begin to source for products to see whether they are winners or losers so I'm going to give you three examples of losers and tell you the reasons further.
The first example is simply this toy that was from Argos in the UK, so I searched for it on Amazon and found that the same product is actually available. All the quick checks are being done. Is it the same product? Yes, it is. You can see the image is exactly the same. You can see the title is exactly the same.
The first thing I want to highlight immediately is you can see that the price in Amazon is £20.95, while in Argos, it is £14.99, but what’s interesting about it is there is an offer that’s 3 for 2. So, to purchase 3, you would only pay for 2. Using basic math, you will realize that for the price of 2, you get 3, so that would be around £10 each. It basically shows that the product in Amazon is now within the double range which is great.
The next thing is that there is a buy box which says Add to Basket and that it is a merchant seller and not fulfilled by Amazon. This is dispatched from and sold by V-n-A TOY SUPERSTORE.
You can also see on the Keepa graph straight away that there is no orange. All these signs so far are positive.
But, we can see that the seller’s rank is not very good so that is the first alarm, that is the first indication why this is not a winner. The best sellers rank is over 150,000.
Over the hundred thousand mark that we use as our rule of thumb that basically suggests that this is a slow selling product.
Now, let’s go to Camel Camel Camel. Paste the id from Amazon to the Search box.
If you check the sales rank, it’s not looking too great. When we go to the month range, this product is only sold 3 times. Over the last 3 months, it’s only sold 7 times. Six months and further, there was just no sale.
Really, what you want to do is use all the data you know of. The first thought might have been well it’s £14.99, but remember to always check the offers. There may be Buy One Get One Free’s, or some sort of discount vouchers, or whatever the case might be to get this price down.
You can see that it is double the price and it’s merchant-fulfilled. And because you are an Amazon Prime Seller, you can actually increase the price by £1.00 on top of a merchant seller and you could still get the buy box.
Remember, it’s important to get the buy box. We do not want to get the “Other Sellers on Amazon” area. Buyers are not going to click on Add to Basket in this area and pay £22.99 when they can purchase it for £20.95, unless it’s Prime.
I hope you can see why this is not a winner. You have over analyzed this just to make a point. You can see straight away that it's just not selling enough.
For this second example, I wanted to give you an example directly from my business today. What happened was one of my virtual assistants from my team had found this product. They’ve looked at this product and thought I’m going to see whether this products is available on Amazon. Now, this is a very quick instant rejection because what they’ve done is looked at this product and though this is the same but as you can see it’s not actually the same product. They have different colors.
Very, very important: the number one leading causes for negative feedback is, if it's not the same product you know a customer comes along and purchases this one because they want to have a nice, pink and Summer Infant slumber but is a spring butterfly and they get a different item, they're not going to be happy and they're going to give you some bad feedback, so this was an instant rejection.
You can see where the confusion may lie: the title is exactly the same, you know you look at this and you can see that it says Summer Infant Slumber Body Butterfly. You search for that on Amazon and you can see that there is the same item but the price is low and it’s sold by Amazon so they thought it is the same but they’re not. They’ve clearly not looked at the product properly until one of my senior reviewers had spotted this. Now this is something that we can learn from.
I do believe you are fully aware of what you are looking for and what a losing product is. If you apply all the checklist, the instant rejections, what we’ve learned with Camel and the plugins, you will be able to spot any loser immediately.
Now, let’s go over one more product. I just wanted to just quickly show you a Philips Lumea Advanced, which has something to do with health and beauty, and searching for it on Amazon you can see it's available here and actually sold by Amazon so you would reject it straight away.
If you click on it and have a look at the Keepa graph, it has orange on it confirming it’s sold by Amazon.
It’s not available for us to purchase because Amazon is selling it. Also, it’s a high-end product and you know we don't have any limitations in terms of how much money you would spend on a product but the higher the products, the more risk is involved in you purchasing something at £300 or $300. And if you then don’t sell it and it’s sold by Amazon, you can potentially be stuck with that item or you would have to sell it in other marketplaces.
I hope that's perfectly clear. If you use all the checklists and knowledge you’ve just learned, you will be able to spot any losing example.
If you have questions, please don’t hesitate to ask. And remember, you’ve got to take massive action. Cheers!
Do you relate to this? Let me know in the comments how you're doing and keep taking massive action!
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