Proven Wholesale Course Week 3
What are we covering today Analyzing Price Sheets What We Look For Calculating Expenses Intro to Bundles
I will review at the beginning of next session If you are math adverse breath deeply and remember there are calculators Experienced peeps bear with me
You Ready? You ready for the big secret? How do I find so many items?
The Hidden Sourcing Secret Run Everything Running the numbers reduces risk Can you just randomly run items? Winning the lo;ery Knowing how to win You will have to change you system over?me
Give Yourself Time A classically trained musician looks at sheet music and sees something different than the regular person What might look like squiggly and straight lines to me- has a whole new meaning for the musician It takes time to develop that eye
Running the Numbers First things first- Check on the order sheet and the reseller agreement for any language about MAP and selling on Amazon Can you lie to get an account started? Guard your reputa?on by being honest and forthright
Margin You might see lower margins than RA and OA. However, your acquisi?on costs will be less Includes Boxes Usually Less Prep Required Time Spent Sourcing and Driving Replenishable items Easier to scale
What you need to factor into your margin Shipping (Vendor to You) Shipping (From You to Amazon) Wages and Supplies for any prep (Even if you are doing this yourself) Check for Assorted Boxes (Run math with average case # s) Outside of Gross Margin (Taxes, overhead, etc.)
Calcula?ng an Average Inbound Shipping Rate Take a sampling of shipments you have done in the last 30 days. Add together all the shipping fees together Divide by the total number of lbs. sent in That is your average cost per lbs. Make sure you add extra allowance for oversized items due to dimensional weight
Calculating Wages Per Item If you are paying someone $10.00 an hour If they can prep 60 an hour 10/60=0.1667 That averages to less than.20 per item Add this to cost of polybag (especially on larger lower cost items)
Calculating Vendor Shipping Take the total shipping cost and divide by items or lbs. Use free shipping to allow yourself to go over these numbers before second order.
Calculating Cost If it priced by case divide by the number in the case ($12 dollars/12 pieces=$1 each) Add inbound shipping estimate Add prep costs Cost= Item Cost + Inbound Shipping + Prep Costs + Vendor Shipping Cost= $10+ ($0.50*2lbs)+ $0.20 wages + $0.50 Polybag +.20 Cost= $11.90 per item
What we Look for Gross Margins of at least 40% + Gross Margin does not account for overhead (Rent, Tape, Lis?ng Services, etc) Again, there is more than one possible business model
# of Sellers Will Vary depending on business model Generally the lower the rank the more sellers a lis?ng can tolerate Does the number of sellers indicate an oversupply vs Demand? We only look at this when going deep on an item
Sales Rank The rank you target will depend on your business model Remember that Sales Rank is a snap shot not a fixed data point Seasonal Changes Effect of Blog Post
Sales Rank Niche Items with fewer sellers Item has not been available Item has been overpriced Does the lis?ng have a bad photo or missing keyword data Quick Flips vs Slower with Higher Margins
Quick Flips Pros Turns quicker so you can cycle your money quicker Cons Lower margins means you have to turn more items for the same money You have to keep a closer eye on small expenses (i.e. bubble wrapping a mug with 20% profit)
Slower with Higher Margins Pros Less items needed to turn the same amount of profit Can reduce overhead costs Cons Less turns on of your money each year If you aren t careful you can get stuck with too many slow moving items
Can I Sell an Item if Amazon is Selling it as Well? Yes- but it is riskier Amazon doesn t pay Amazon fees takes lower margins Amazon doesn t have to share the buy box Common Strategies Compe?ng With Amazon Wai?ng for them to run out of stock Trying to share the buy box with them Bundling
Running the Numbers Why a spreadsheet? Takes the gamble out and puts systems in Do I really have to run all the numbers? You don t have to do it manually forever Outsource it to a VA to do it manually for you Use Scan Power Evaluator Numa Solutions coming soon
What Data Do You Need? Whatever criteria you use to qualify your purchase Rank Profit Number of Sellers??? Google FBA Calculator Widget
Running the Numbers
Running the Numbers No sound
Running the Numbers Once I have completed each list I then sort by my criteria. Do the first sort by the criteria that is most important to you. Save the list first as a master list, then Save As the filtered list if needed so you can watch for items that maybe profitable at a later date
Running the Numbers Once I have completed each list I then sort by my criteria. Do the first sort by the criteria that is most important to you. Save the list first as a master list, then Save As the filtered list if needed so you can watch for items that maybe profitable at a later date
No sound
Using Camel Camel Camel Look to see if pricing or rank has been stable or fluke increase/decrease Has Amazon sold this item in the past Especially important if you have to go deep on an item
Camel Camel Camel
Camel Camel Camel
Camel Camel Camel
Why Bundle? Reduce Competition Avoiding directly competing with Amazon Provide a beger value/convenience for the customer
Listing No- No s Don t just create a new listing to keep people off your listings. It is against the terms of service. Plus, they can just be merged later! Do not bundle to try and get around banned items or category restrictions. Don t add something random to create a bundle- Bundles must consist of items that are highly complementary and provide a value to the buyer when compared to the individual items purchased separately.
Bundles Is this an item that would be good to bundle? Highly Complementary Items Item with Refill or Expansion Packs Even if from two separate vendors Must be a good fit together! Ideas that hurt the customer experience eventually won t work.
Bundles Make sure you have read the bundle help pages before crea?ng a bundle Make sure you run the numbers Is it profitable as a bundle for less than buying individually?!
Multi- Packs Can be a good way to raise ASP (Average Sale Price) Keeps products out of Add- on status Can reduce competition. Can increase profitability of an item
Reminder for Orders Take Advantage of show specials- but try not to overbuy. The money you save on show specials is easily cancelled out if you buy too deep on an item. If you are unsure buy the item retail and then test the item.!
Homework for Session 3 Start running price lists analysis Place your first order
Q & A Session 4 New to Amazon Items Promoting Yours Items Tips for Wholesaling Prepping for Q4 Placing Orders Prepping for Shipments Session 5 Maintaining Accounts Tips for Scaling Expanding Lines Reordering