Originally posted by TestMangler
View Post
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
PM FAO MF (Amazon trading)
Collapse
X
-
What happens in General, stays in General.You know what they say about assumptions! -
Originally posted by MarillionFan View PostYes there are a lot of courses, videos, gurus, software tools, methods and facebook groups etc.
It's an interesting area Dave and there are four ways to source product products for Amazon, and primarily three ways to sell them.
RA - Retail Arbitrage is the process of going into a store finding a product on the shelf for X and selling it for Y on Amazon to make a profit. YouTube (This guy is my favourite to watch, sketchy as hell)
OA - Online Arbitrage is the process of finding products to buy online for X to sell on Amazon for Y and make a profit.
WHolesale - Buy from a wholesaler and sell online
PL - Private Label - Make your own product (or White Label) a product and sell it online for more.
Amazon uses three different distribution models
(1) FBM - Fullfilled by Merchant - Basically you send it out and do all the customer support yourself
(2) FBM Prime - Fulfilled by Merchant, but as part of the prime membershup (you need a proper distribution company/warehouse for this)
(3) FBA - Fulfilled by Amazon
FBA is where you get any of the products sourced above and send them to Amazon. They sit in their warehouse, they do all the distribution and customer service. This is the most popular, becuase it allows you to have a business that they effectively run for you (hence the videos sitting on beaches)
So Ive created a six figure Amazon business and I've turned over £20k in the last three weeks mostly flipping products from retail stores / online sites at 3x buying price.
There;s loads of things in this area, you just need time to learn it all
The Online Arbitrage with FBA was specifically want I was interested in since it needs minimal resources other than the time spent to end products and capital to buy stock and cover operating costs. No storage, stock handling etc.
I get the principle behind it, I'm just skeptical about how well it works in practice since most of the info out there seems to come from the guys selling the arbitrage software tools etc."Being nice costs nothing and sometimes gets you extra bacon" - Pondlife.Comment
-
Originally posted by DaveB View PostCheers MF.
The Online Arbitrage with FBA was specifically want I was interested in since it needs minimal resources other than the time spent to end products and capital to buy stock and cover operating costs. No storage, stock handling etc.
I get the principle behind it, I'm just skeptical about how well it works in practice since most of the info out there seems to come from the guys selling the arbitrage software tools etc.
If stuff is easily found the price tanks and the margin disappears as everyone jumps on it, so there are lots of others more advanced methods to make money.
an example of a flip at the moment is a Crayola Tracing Pad at Smyths. Doesn’t come up obviously on a software scan but it’s a 3 for 2. £12.49 each comes down to £8.33 each. Then with vouchers you could get another 10% off so £7.60 ish then using another process of buying gift cards at a discount(another trick) I got them closer to £6. There’s some clever cash back and stacking tricks.
Ive just woken up to find the 10 I sent in last week have all sold this morning alone at £18.20 each. So at 7.48am I’ve already sold £230 worth stuff including them. I say it works if you know what you’re doingWhat happens in General, stays in General.You know what they say about assumptions!Comment
-
Originally posted by MarillionFan View Postsome of the software is useful some not.
If stuff is easily found the price tanks and the margin disappears as everyone jumps on it, so there are lots of others more advanced methods to make money.
an example of a flip at the moment is a Crayola Tracing Pad at Smyths. Doesn’t come up obviously on a software scan but it’s a 3 for 2. £12.49 each comes down to £8.33 each. Then with vouchers you could get another 10% off so £7.60 ish then using another process of buying gift cards at a discount(another trick) I got them closer to £6. There’s some clever cash back and stacking tricks.
Ive just woken up to find the 10 I sent in last week have all sold this morning alone at £18.20 each. So at 7.48am I’ve already sold £230 worth stuff including them. I say it works if you know what you’re doing
How much time do you spend doing this? And how much does the shipping to Amazon eat into your margins? What is your % margin averaging out at, based on your capital outlay?Comment
-
To be frank it sounds too much like hard work but I'll give you this for the next stage - packaging of the purchases to meet Amazon warehouse rules.
Why thousands of Amazon packages converge on a tiny Montana town - The Vergemerely at clientco for the entertainmentComment
-
Originally posted by Paralytic View PostI used to do stuff like this with Tesco purchases in order to get Avios. I've still got close to 1.5 million and that's with having long-haul Business/First class flights for the past 6 or 7 yers . But I found it took a lot of time to get the best deals.
How much time do you spend doing this? And how much does the shipping to Amazon eat into your margins? What is your % margin averaging out at, based on your capital outlay?
After fees, software tools, subscriptions, shipping to Amazon etc, the margin comes to 22% for me. So for this month I'll do £30k, that will net me around £6k profit.
By the time you include all my time etc, it works out about £20 per hour. I'm now paying someone £10 an hour to do the packing / shipping. So it has a finite cap on your own time.
I know someone doing £1 Million turnover and he's outsourced a lot of it, so he pays someone to source, someone to pack, someone to buy online, a runner for stores etc and his net profit on that is £80k so he's focussing on developing the tools to sell and has started another business doing that.
It does not compare to contracting, but then again, not much does.What happens in General, stays in General.You know what they say about assumptions!Comment
-
Originally posted by MarillionFan View PostThe margins look great on paper, but in practicality it's not great as Amazon takes so much.
After fees, software tools, subscriptions, shipping to Amazon etc, the margin comes to 22% for me. So for this month I'll do £30k, that will net me around £6k profit.
By the time you include all my time etc, it works out about £20 per hour. I'm now paying someone £10 an hour to do the packing / shipping. So it has a finite cap on your own time.
I know someone doing £1 Million turnover and he's outsourced a lot of it, so he pays someone to source, someone to pack, someone to buy online, a runner for stores etc and his net profit on that is £80k so he's focussing on developing the tools to sell and has started another business doing that.
It does not compare to contracting, but then again, not much does.merely at clientco for the entertainmentComment
-
Originally posted by MarillionFan View PostThe margins look great on paper, but in practicality it's not great as Amazon takes so much.
After fees, software tools, subscriptions, shipping to Amazon etc, the margin comes to 22% for me. So for this month I'll do £30k, that will net me around £6k profit.
By the time you include all my time etc, it works out about £20 per hour. I'm now paying someone £10 an hour to do the packing / shipping. So it has a finite cap on your own time.
I know someone doing £1 Million turnover and he's outsourced a lot of it, so he pays someone to source, someone to pack, someone to buy online, a runner for stores etc and his net profit on that is £80k so he's focussing on developing the tools to sell and has started another business doing that.
It does not compare to contracting, but then again, not much does."Being nice costs nothing and sometimes gets you extra bacon" - Pondlife.Comment
-
Originally posted by DaveB View PostSone of the stuff I was looking at with the online buying was shipping stuff direct to Amazon from the source so no personal packing/shipping overheads, or is that not an option?
Easy Prep UK - Amazon FBA Prep Centre
In answer to Eeks question software yes.
Seller Amp – Tools For Amazon SellersWhat happens in General, stays in General.You know what they say about assumptions!Comment
-
Originally posted by MarillionFan View PostNo, they tend not to take stuff directly from suppliers, it has to go via a prep centre.
Easy Prep UK - Amazon FBA Prep Centre
In answer to Eeks question software yes.
Seller Amp – Tools For Amazon Sellers
As for those software prices - You need a lot of people at £12 a month to make a decent living. There are far better markets to be in.Last edited by eek; 5 December 2019, 13:33.merely at clientco for the entertainmentComment
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Comment