I wanted to give you an update on my local retail arbitrage business through Amazon.
You know, last July I purchased a course called Shop Your Way To Wealth, went to the workshop, and took action on everything I learned. I wanted to put this business model to the test to see if my personality would enjoy it.
I documented everything and shared it all with you in a blog post called My First 27 Days in Local Retail Arbitrage. In that article, I share with you:
- Why I made a decision to add local retail arbitrage to my income streams in my business model.
- The Step by Step list of what I did.
- My timeline in which I took action.
- The tools and resources I purchased to get started.
- The detailed results of my first 27 days.
I was in profit and having fun!
=====FAST FORWARD: END OF YEAR 2015 UPDATE=====
I’m happy to report to you that I closed out 2015 with $35,687.30 in sales and an average of 30% profit.
I took a full month and a half off going into 4th quarter and then only worked first 2 weeks in Dec.
So….not bad for a newbie learning the ropes in a business model I knew nothing about until July of 2015 and didn’t work it hard.
*Disclaimer: My results are based on my work ethics, the time I put in, my buying decision making and so forth. Your results will be based on what you do. I’m sure you know that. You may do much better than I did. You may do much worse than I did. I probably didn’t need to even say this, but I like to be clear with people about what it takes to get results in anything I recommend or experiment with myself.
I’ve really have enjoyed my new journey because it’s gotten me up and out from behind my computer and has opened a door of opportunity that is providing me and my family with income to do more things in outreach, for retirement and travel.
If you haven’t read My First 27 Day In Local Retail Arbitrage, and you’re the least bit interested in what it is and how it works, you must read it. It will give you such a good picture of whether or not such a business model is for you.
More Reasons I’m Loving Local Retail Arbitrage:
It’s fun. I find searching for those treasures with good profit margins is just fun.
My own hours. Not that you need to, but for me, often, when everyone is in bed, I’ll hit the 24 hour stores, it’s quiet, I have full staff to assist me if I need something, no lines in the checkout and I’m very productive. Obviously if you’re working in the morning your job can’t suffer so that’s a not a good move for you.
However, I’m spending about 2-3 days a week part time in my Amazon business and I can work around everyone’s schedule and store hours.
No team building. I’ve built teams of hundreds in the past and I enjoy it, however, I was glad to find the Amazon ecommerce business is a solo act for two reasons.
1) I control my work, my income, my time. I’m not relying on anyone else’s work ethics and abilities to generate an override income for me.
2) I have experience and first hand knowledge of a business model that I can share with those I coach who are looking for a home business where they do not want to talk to or deal with other people. Not everyone wants to be leaders and build teams. However, they DO want a home business model and this will work for them. So, no teams to build or new recruits to field questions from. If you really like that, you want to perhaps consider selling on Amazon. This is a profitable model.
Here’s a peek into my “ecommerce working days”
Get out and shop!
Bring it home and get it listed
Pack and label to Amazon
Drop off your boxes of shipments to your local UPS store.
Stay connected with your Amazon Seller friends. Get to events and/or connect on Facebook.
Here I’m masterminding with new friends and we’re talking about creating bundles and listings.
TIPS FOR ECOMMERCE
I’ve learned so much in the last 6 months about being successful with Amazon. Here’s a few tips I’d like to share from my experience.
1) Be patient, like with anything else that’s new. It’s not hard but there are steps to follow to get your products from your shopping cart to your store on Amazon. When Amazon changes a way they want you to do something, you must be flexible and go with the flow.
2) You can sell your products through merchant fulfilled (MF) or fulfillment by Amazon (FBA). I’m choosing FBA because I don’t have to deal with customers, shipping out orders, handing customer service, etc. I just send my products in and they do the rest. This frees me up to find and ship more products into Amazon. Amazon will keep about a third of your profits for their service but it’s totally worth it for me.
3) Look for products you can sell that have a big enough profit margin where if the prices fall on Amazon a bit, you can still make a profit.
4) Join groups on Facebook where you have others who are willing to share their experiences, answer questions, help you understand a concept, share results and where you can give back to the community as you learn and help others. If you decide to get started with your Amazon selling business, let me know and hook you up in a good group outside of paid programs. The group is free.
5) Buy a box resizer (about $15) as this will save you on packing materials and box / bulk size when sending in products to Amazon.
6) Don’t scrimp on cheap tape to secure your boxes. By good brands, spend a few dollars more. The last thing you want is your boxes to come unsealed during shipping. Many of them will be in 18x18x24 moving size boxes and can weight up to 50 lbs.
7) Rather than buying your mailing labels to label your boxes to Amazon, go to your local UPS store and ask for free box label pouches. Then you can print your label on copy paper and slip your label inside the waterproof pouch and adhere to the box.
8) Set a schedule to do your shopping and prepping. If you don’t you’ll find yourself all over the place and spending too much time away from the family (it’s easy to lose track of time). Get your process of when to shop, when to prep and have everything you need handy.
9) Make a route of the stores you want to shop at so you’re not wasting time driving extra miles.
10) Keep track of all your miles as these are tax deductible at .58 a mile.
11) After you get your feet wet, expand your business to try new ways to make money on Amazon.
12) Getting approved in categories can be tricky. I’ve been denied in beauty twice, but approved in grocery and personal care, clothing, luggage, jewelry. As a new seller you get automatic approval in about 10 categories including home, baby, toys, lawn and garden, etc. so there’s plenty to get started with.
Update ecommerce with Retail Arbitrage Summary
Well there you have it. I’m happy with my results and what I’ve learned.
I’m discovering how valuable InventoryLab is to help me track all aspects of my business. A must have in my book for keeping your records.
In looking at my average sales price and amount of items sold, I can see if I would buy higher ticket items with higher profit margins, I can decrease the amount of items I’m sending in and make more money. So I’m going to work on improving those numbers.
I’m also branching out into books. I took a course, got the knowledge, now I need to apply it. I just purchased my first 20 books and will be sending them in this week. There’s a whole other set of rules on how to process books with Amazon. I’m in the learning curve now. I think I’m going to really like it.
I also want to branch out this year and add bundles and do my own listings.
Later in the year if I feel I’m ready, I’d like to attend a wholesale buying conference and look into sourcing from China.
Being a seller on Amazon is a process. You can do as little as you want or as much as you want. You can stick to local retail arbitrage or add on additional ways to make money with Amazon. You can just do books, or just do private label, you can mix and match. There’s quite a bit of options. You want to find what you enjoy and do that.
I hope this update has been helpful.
If you would like to attend the webinar coming up on where I learned how to do this and the course I took, CLICK HERE. I don’t know if at the time you read this, the page will be active but check it out and see. It’s not always opened for new students.
To Your Best Life My Friends,
Had to be silly with you… I was sitting front row in the Grand Jubilee show in Branson and was pulled on stage to participate. Had fun…. living life to the fullest!
PS: If you love to travel, check out this membership I own. You can too. For example, I stayed 7 nights in a 3 bed/4 bath,1500 SF fully furnished condo in the heart of Branson for a grand total of $398. Read about the Surrey Vacation Resort Carriage Place and learn more about this membership. I’ll take about 10 vacations this year because they are so affordable. I can’t afford NOT to travel!