Amazon to amazon flips

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Amazon to Amazon Flips An evening of training with Alex Moss and Nate McCallister

Transcript of Amazon to amazon flips

Amazon to Amazon FlipsAn evening of training with Alex Moss and Nate

McCallister

The Concept

Buy on Amazon at one price, sell back on Amazon at a higher price, keep the profit…

End of basic summary!

TERMINOLOGY

Terminology ●OOS -> Out of Stock

●ROI -> Return on Investment

●Net profit -> Profit after all fees (shipping, packaging, taxes)

●Sales Rank -> A number representing the recency of the sale of a product in relation to all other products sold.

●COGS -> Cost of goods sold

3 COMMANDMENTS OF AZ FLIPS

The 3 Commandments of AZ to AZ FlipsCOMMANDMENT #1 DON’T USE YOUR PRIME BENEFITS

●You cannot use your prime account privileges to fulfill orders!

●So calculate shipping into your orders if applicable.

●In his book, Online Arbitrage, Chris Green recommends starting a new buyer’s account and do NOT purchase prime benefits for it and use this account for your flips.

●A suspended buyers account = A suspended seller’s account if they are associated!

COMMANDMENT #2 YOU CAN’T COLLUDE WITH OTHER SELLERS

Violates the Sherman Antitrust Act.

Tempting once you understand the concept, but fight the urge!

The 3 Commandments of AZ to AZ Flips

COMMANDMENT #3 DON’T ABUSE AMAZON’S RETURN POLICY

Don’t make a habit of returning items you purchase for resale.

The 3 Commandments of AZ to AZ Flips

Amazon-ConomicsWHY DO THESE OPPORTUNITIES EXIST?

REASON #1 AMAZON’S RELUCTANCE TO INCREASE PRICES TO MEET DEMAND

Amazon wants to provide the best price to their shoppers. They are not interested in capitalizing on spikes in demand that go beyond MSRP.

This is actually a chance for them to shine!

REASON #1 AMAZON’S RELUCTANCE TO INCREASE PRICES TO MEET DEMAND1. Demand increases (seasonal, current events, shortages, changes etc.)

2. Amazon responds by increasing supply (if possible), but not price.

3. Amazon receives a huge influx in units ordered.

4. Amazon can’t stay in sock.

5. Resellers notice these trends, see stock levels, analyze previous OOS trends and make purchases from Amazon assuming that they will go out of stock at some point.

6. The products are shipped and listed strategically (well above Amazon’s price) in an attempt to time Amazon’s OOS.

7. Amazon goes out of stock, 3rd party sellers sell at premium.

8. Amazon comes back in stock and the cycle may repeat (or Amazon stays in stock)

REASON #1 AMAZON’S RELUCTANCE TO INCREASE PRICES TO MEET DEMAND

REASON #1 AMAZON’S RELUCTANCE TO INCREASE PRICES TO MEET DEMAND

REASON # 2 3RD PARTY SELLERS NEED TO MOVE INVENTORYThere are many reasons why a seller would want to price their items incredibly low:

●Running low on capital to purchase better margin products.

●They are Leaving the industry.

●The items nearing expiration

●To avoid Long-term storage fees

REASON # 3 SELLERS MISPRICE INVENTORY

You be the judge here…it is an ethical dilemma.

●Most sellers do cancel the orders if the product is far more expensive than the listed sales price.

●Sellers may have fat fingered a number.●Sellers may have listed a smaller part of a product against a bigger

item. (Example: Memory card listed in place of a camera.)

REASON # 3 SELLERS MISPRICE INVENTORY

WARNING: In many cases, the product (if shipped) may not be what you expect. If you see a $400 Camera for $10, be ready to receive a memory card.

Also, before reselling anything purchased like this, make sure it is actually the same product as the one in the listing at the price you anticipate to sell at.

REASON # 4 SELLER’S JUST HAVE GREAT MARGINS

Not much to this one. Some sellers just want to move product and still profit at stupid low prices.

Some mo stuffff

Amazon quantity limits are typically enforced only once a product has shown a spike in popularity. Finding deals before this point is ideal.

On quantity limits...

When you flip a product well above MSRP, you may be listing against a “suppressed buybox.” in which case the product page will look differently and Amazon will make it clear this is being sold well above retail.

Pro Tip: A suppressed buybox may be an indicator or a profitable alert to set. Amazon will come back in stock! And they may run out again soon, like before.

On suppressed buyboxes...

Unless a product has been discontinued or cannot be created anymore, inflated prices on Amazon will always drop back to near MSRP as supply increases to fill demand. Bottom line, SELL WHILE YOU CAN! If a prices jumps from $19.99 to $76.99 when Amazon runs out of stock, don’t get greedy and hold out for something unreasonably high. You can’t control if and when Amazon comes back in stock or if they will ever go out of stock again once their back.

On getting in and getting out…

Amazon will break MAP (Minimum Advertised Price) to price match another online retailer who broke MAP first. Amazon will not break MAP first but they will break MAP in a heartbeat if a competitor breaks MAP.

On Amazon racing to the bottom…

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