Andy Dew

Transcription

1 Sourcing and understanding Sales rank in Toys & Games and Cleaning supplies Andy Dew

2 What is Sales Rank? -Sales rank is a snapshot in time of how recent an item has sold. -Every category is different. -A 1,000,000 rank in books, is much different than 1,000,000 in Toys&Games. -Sales rank should not dictate every buying decision.

3 A different take on sales rank By having certain tools, sales rank will look different to you. Selling a Toy that is ranked 5,000 with a ROI of 8% isn t very appealing to me.

4 Tools for protecting your margins and increasing ROI. RetailMeNot.com Upromise.com Evreward.com Select Reward Credit Cards Gift Card engineering The best one of all... Automation

5 I decided to purchase 10 of one item from DisneyStore.com The Sales Rank # was 5,292 in Toys&Games Everyone wants to sell items with this great of a sales rank. Why doesn t everyone carry these items? Not everyone has the tools to protect their margins.

6 Here, I was buying 10 of one item. The total order (assuming a 6.75% sales tax rate) is about $ That makes the cost of each item about $12.00 $ Sales Tax = $120.60

7 When we run the numbers on the Amazon Revenue Calculator, the profit ends up being roughly $3-$5 per item sold. Cost of each item = $12.00 Revenue generated per item= $17.44 Cost of outbound shipping per item= $.50- $1.00 That leaves us with a $3-$5 profit per item. This leaves us with an estimated 25-42% ROI

8 Now we use our tools to enable us to sell Toys&Games with a great sales rank. RetailMeNot coupon = About a $4.00 discount per item after tax. UPromise savings = $3.75 or $.38 per item. Credit Card Rewards= $3.75 or $.38 per item. Average cost per item is now: $8.00 or $7.25 after redeeming cash back from UPromise and Credit Card Rewards.

9 Cost of each item = $8.00 Revenue generated per item= $17.44 Cost of outbound shipping per item= $.50- $1.00 That now leaves us with a $7-$8 profit per item. Now we are left with a ROI of 100%+

10 What else should make us see sales rank differently? How many sellers carry the item? How many of those sellers are FBA? Have you started automating your business?

11 Buying Exclusive Brand Products to resell. Selling something that is brand exclusive makes it extremely unlikely that Amazon itself will start carrying the item. Often times, I get excited about the rank of a product and discover Amazon is only temporarily sold out, or eventually starts selling the item.

12 Cleaning Supplies My Experience: The Clorox Toilet Wands and the Swiffer dusters. Discontinued is where it s at.

13 Automation. Hiring out your boxing and shipping. Using sites like odesk.com to find someone to do your online sourcing. This creates a different mindset when sourcing and seeing sales rank of an item.

14 Use the training video provided in the webinar if you hire someone from the Philippines. I typically don t hire anyone under $1.85/ Hour. Start with VERY limited hours and be patient.

15 Q & A Session To learn more about one-on-one coaching for your online business please call