This is a step by step guide on how you can make $7,500/ month or more selling on Amazon. What I am about to show you is a tried and tested approach to making hordes of money selling on Amazon and the best part is, you will not have to stock products. (Book Mark This Page – You Will Want to Come Back!)
Here is a step by step guide to maximizing profits on Amazon.
1) Choose a niche that you want to start selling in. I like to focus on niches that will sell for a decent amount. My personal price point is products that sell for $25 + and that I know will do decent sales. If you go lower than this you run into problems with your arbitrage (or buying low – selling high strategy).
So for the purpose of this exercise let’s look at video games. . .
Since I know the 2nd Installment to “Trans Formers” movie just came out, I am sure that video game sales will also do well. So I quickly locate the product on Amazon (here is a search link)
Now, I notice that the game seems to be listing in the Amazon marketplace for an average $59.99 (with free shipping) so I know if I am going to sell this product on Amazon, I need to be in the range of $57 – $64 (with free shipping) to capture any sales.
2) Find a seller / drop-shipper . . . After you have located your product you need to find some sources where you can buy (ideally cheaper) than you have found it on Amazon.
I like to use the Google Product Search tool.
Once we are on Google juts search for “Transformer Revenge of the fallen PS3”.
Then sort for suppliers that have a 4 star rating or better. When you are using this strategy, you really can’t afford to buy from some fly-by-night supplier and run the risk of them not shipping your item.
I can see using this method that there is a 4 star selling who has the game for $39.99, now our question is how much they are going to charge us for shipping?
I placed the item in my shopping cart, and went to their check out. You can see that they are charging $7 for standard shipping which will take 5 – 10 days.
So, that brings our price to $39.99 + $7 shipping (We will call it $47.00 total).
3) Make sure you will be profitable . . . Next, find a good Amazon calculator (just Google to find one of your choice).
I like the Amazon calculator at rolbe.com.
Do Reverse Amazon Fee Calculation and enter in $47 (after fees) to receive this amount. (Assume a Pro Merchant Subscription – so we can remove the $0.99).
Our sale price on Amazon has to be $56.88 to cover our fees.
This means that if we sell for $59.99 we are going to profit $3.11 on every copy we sell.
Now this is not going to make you rich by it-self, but if you do this across 50,000 products and sell just 0.5% of those products sale 1 time / month, that gives you 2500 sales . . . and at $3 / sale profit you are PROFITING a cool $7,500 / month.
Final Thoughts and Tips
One of the most appealing nuances of selling on Amazon is that all you need is a SKU number. Once you locate the SKU of the product you are going to sell you can simply enter it in and the description, image, and product information will instantly be added in.
You don’t always have to shoot for the lowest price, and don’t worry about being on the 3rd and 4th pages. The trick here is volume of products. By sorting and compiling a list of 50,000+ products you will have a great chance of success with this method. You don’t need to be concerned about having a large list of products; Amazon.com has a lightning fast product upload system.
Remember the target is 0.5% of your products will sale at least 1 time / month, so 50,000 products would net you 2,500 sales / month.
Don’t forget when you are ordering from a retail store to have them ship it as a “gift” meaning you don’t want the price to show or an invoice to be sent. If you start doing considerable sales in a particular niche it will be easy to establish a working relationship with a online drop shipper.
Don’t be afraid to sell items over retail and rest assured you will still do sales.
Make sure to request your money daily from Amazon as this will help your float.
These are just a few tips I have learned while researching and selling on Amazon.com.
Your comments and feedback is appreciated.