Making Money with Amazon FBA Profit Plus Tips and Advice: Update #3

Amazon FBA Update #3: My First $1,000 Plus Tips and Advice

Overview:  I’ve been so busy.

This Amazon FBA / Retail Arbitrage has proven to be a really good side hustle / business.

And it’s going really well.

 

 

Am I making money?  Yes, we’ll get to that.

Am I making mistakes that you can learn from? Yes.

So let’s get to it.

I began focusing on books and textbooks.

It seemed like the most straight forward place to begin.

 

• Disclaimer:  My aim is to recommend products that will truly benefit you.    I believe in transparency and want to disclose that I’ve included certain products and links to those products on this page that I will earn an affiliate commission for any purchases you make.  You pay nothing.

 

 

Relevant Articles:

45 Ways to Increase your Income

9 Best Ways to Save $7K This Year

11 Legitimate Survey Sites for 2018

 

 

 

Learn from the Amazon App:

I use the Amazon app to tell me the rank (how quickly a book sells).

Less than 50,000 means it’s flying off the shelves.

Less than 250,000 is a solid seller.

1M still pretty good.

Over 1.5M. Questionable.

Over 2M must be a huge profit margin to buy.

Amazon charges fees to store books in their inventory. So, it becomes a cost benefit analysis of what is worth selling.

The good news: all of the info is on their app.

 

Where am I finding inventory to sell?

Or how am I sourcing inventory for Amazon FBA.

Garage sales worked out really well for me. Everything is very cheap. I live in a nice area and people want their stuff gone. The problem is garage sales are only on the weekend.

I needed more inventory for my Amazon FBA store.

Goodwill: They are a bunch around my area and I went to almost all of them.

Each day I would take about an hour and check them out and buy undervalued books.

It was really easy. And very profitable. Especially textbooks and nonfiction.

Because it’s August, I have been stocking up on popular textbooks that will be in demand very soon.

Many of these are selling for $2 at Goodwill and selling for $30 or more on Amazon. – Not on EBay.

 

 

Gating Issues on Amazon:

One issue I’ve been having is that Amazon restricts ie “gates” some product categories for new sellers. Sometimes there is a great profitable book and I’m restricted from selling it.

What do I do? I check on EBay and see if it’s worth selling. And profitable.  Some are.  Some aren’t.

Books are heavy and expensive to ship, so you have to be careful to include the total costs. But, I’ve found some gems that I’m selling on Amazon and EBay.

Free Books? Yes.

I’ve been learning a lot via YouTube and one of the thrifters (that’s what they call themselves) mentioned Facebook Marketplace. So, I tried it out.

A girl near me was moving and giving away a stack of college textbooks. Perfect timing.

I arranged to meet her and got three bags of books and dvds for FREE.

 

Score.

It can’t be that easy. It’s not. I decide to venture out into Retail Arbitrage at my local Ross Stores. All the youtube thrifters talk a lot about jeans and I’m trying to venture out from just books.

Even though I like books and it’s very profitable.

So I found a new pair of True Religion Jeans that looked like a great Deal at $49.95.  Retail was ~$220 new.

I checked a eBay and it seemed they were all selling for much more. The retail for these jeans was around $200, so I thought it was a good deal.

Unfortunately, when I got home, the comps were right around what I paid. – $50. So, I listed them for $69.95 and I’m determined to wait to see if they can sell.

With clothes, you have to take a bunch of pictures and provide measurements.

Books seem much better to me.

My strategy: stick with what’s profitable and keep learning about other areas/ product categories.

Maybe ill leave the jeans to the young thrifters.

Observations: it’s really fun because it feels like a treasure hunt.

And it’s been very profitable. I can make $75-$100 in gross profit in an hour many days.

Profit margins: I think after expenses the Net profit margins should be in the 35%-40% range.

 

Expenses:

Amazon FBA fees

UPS Shipping fees

Amazon Storage fees

Gas/ parking

Boxes / Shipping supplies/ ink

Taxes

 

Relevant Articles:

45 Ways to Increase your Income

9 Best Ways to Save $7K This Year

11 Legitimate Survey Sites for 2018

 

My strategy: Products that I cant sell on Amazon FBA can be sold on Ebay.  If I find a very profitable product (like a new toy from Disney), I will check the comps on EBay and sell it via EBay.

So, I am also making a lot more money from EBay. Which is great.

My post on How to sell on Ebay here

Amazon FBA restrictions:  Amazon restricts many great brands and products for new sellers:

• Disney,
• Mattel,
• Barbie Dolls,
• DVD’s
• anything Star Wars,
• etc… lots of restrictions with Amazon FBA.

 

 

Amazon FBA New seller profit hold back:

One other thing is that for new sellers like me, Amazon is holding back  my money from sales for 30 days.

So, factor that in if you’re thinking of getting started.

Your cash flow from sales will be delayed for at least 30 days.

Capital needs:

I think you could get started with as little as $500.

You could start with only $250, but it would be tight in my opinion.

Do I need a new laser printer?

Some thrifters on YouTube recommend this printer. Try to get it on sale for around $99 or less.

But, you probably don’t need it until you are up and running and have cash flow.

I have been using my HP Jet printer and it’s been fine.

 

Advantages: Find your advantage.

I have some big advantages and I try to exploit them.

You have some too.

Find them. Use them.

I’m used to being up really early. So, I can be at a garage sale at 7:45 AM on a Saturday or Sunday no problem. It’s a big advantage for me.

Also, I control my own schedule, so I can hit a used bookstore whenever I want.

I have a bunch of disadvantages too!

I’m not young or very hip anymore.

I don’t know anything about which video games. Which are hot or valuable?  I don’t know.

If you know video games, that could be your advantage.

Use what you know to make money.

 

 

Keep Learning:  another advantage I have is that I know a fair amount about men’s clothes. (from overspending most of my life!)

Some brands that can be sold for good money on EBay include:

• Brooks Brothers,
• Thomas Pink,
• Hugo Boss,
• Charles Tyrwhit.

I’m still learning about items that can make me a profit on Amazon.

I’ve done really well with random items:

•  Board games,
• household items,
• books,
• And even an avocado planter!

Seriously. I made $20 buying one at a garage sale.

 

Let’s talk profits from Amazon FBA and EBay:

• I have already sent in 2.5 boxes each week for the past 4 weeks.
• Each box has ~12 items.
• I have already started making sales in my Amazon FBA account.
• In the last week, I have sold $111 worth of items.  Which is amazing.
• Again, Amazon will hold this money for another 3 weeks before they pay me.

 

Based on my sourcing for the past month, I project that when these items will sell on Amazon FBA as well as EBay, I should comfortably clear at least $1,000.

That’s a pretty conservative estimate.

If some of the more valuable books sell, it could be double that estimate.

Plus, I am learning and getting better so I expect the profitability to rise as I keep going.

 

 

Sourcing Spots for Amazon FBA and Ebay Retail Arbitrage

Where have I been able to make money the last few weeks:

• Bed, Bath and Beyond
• CVS
• Goodwill
• Bookstores
• Thrift Shops
• Marshalls
• Ross Stores
• Online Stores like Best Buy
• Amazon

 

Tools I recommend:

These are very helpful tools to get started:

• Quality Shipping Tape- Will save you money.  Don’t buy the cheap stuff.
• Label Scraper (amazingly helpful to remove price tags quickly and without danging the item).
• Poly Mailer Bags for shipping.  These will allow you to send items First Class mail and save money.
• Good Bubble Wrap  If items break, you wind up losing money.  So bubble wrap protects your investment.
• Mister Clean Magic Eraser– To clean up books – These are handy for many different items including cleaning shoes.
•  Quality and affordable shipping scale
• A higher quality shipping scale
• Quality  Lights for Ebay:  These were on sale ~$35 and they are great for the money.
• Better pictures = higher profits on Ebay.  Lighting is very important.
• Shirt Folder:  Makes it easier to fit clothes in the poly bag and saves money over time.  Makes everything much more polished.  More here.
• Thank you stickers:  A classy touch.  And positive feedback is important.  I use these.  More here.

 

 

 

FREE Stuff:

Sign up for a UPS Account and get their free labels.  Nice money saver.

Also, the USPS has tons of free Boxes and Envelopes.  (For use with their shipping).

 

Next Blog Post:

• Updates on what sold on Amazon and Ebay.
• Profit and Loss Details.
• Tips and Strategies that are working.
• Plus, I’ve joined Postmark and will discuss how that is going.

 

Special Bonus:

Here is a special behind the scenes YouTube video of what I bought and how much I made!

(Please like and subscribe!)

 

 

 

Feel free to ask a question in the comment section below and

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