FBA Coaching with Chris Green CEO of FBAPower Part 2: If you were scouting with me, where would we go?

FBA Coachingwith Chris GreenCEO of FBAPower

Part 2:If you were scouting with me, where would we go?

Already Gone Through PAC• How do I sell on Amazon?

• What is FBA?

• How do I use FBA?

• What tools & programs do I use?

FBAPower & FBAScout Support

• Support: email info@fbapower.com

• Watch the Videoshttp://fbapower.com/home/fbapower-videos/

• FBAPower support staff happy to help

Where to find inventory - BOOKS

• Book sales

• Thrift stores

• Garage sales

• Estate sales

• http://booksalefinder.com/

Books & Media:

ProsCheap to acquire

Leads to high margins

Low cost of investment in inventory

Books & Media:

ConsMost competitive category - most scanners still consider

themselves book sellers and have not made the transition to FBA & ‘Everything Else’

Limited places - if not in major metro area, thrift stores may not be as pentiful

Book sales and library sales are only on certain dates of the year

More work per unit- finding ‘singles’

Where to find inventory – Everything Else

• Retail stores

• Closeout stores

• Discount Clubs (Costco, Sam’s, BJ’s)

• Pharmacy

• Grocery store

• EVERYWHERE!

Retail Arbitrage:

ProsMany places to acquire inventory

Some open 24/7

Not as competitive

Less work per unit - finding ‘multiples’

Easy to list ‘multiples’

Easy to replenish

Opportunity to create new listings

Retail Arbitrage:

ConsHigher product cost per unit

Higher inventory costs

Can lead to lower margins

Can be considered higher risk

Side Note: Creating Listings

Skip McGrath has posted about how he creates new listings in the MST forums with great success.

Skip uses the same strategies that I tought him and I’m teaching you here.

How to prevent competitors from listing on your newly created Amazon product page.

How to Make a Unique Amazon Product Page(Prevents competition from piggy-backing on your listing and driving price down)

Where to Buy Bar Codes

So, Where Would We Go First?

Closeout stores like Big Lots

Already lower price

Constantly putting out new inventory

Cities with multiple stores – go to them all!

Clearanced Items First

Almost all stores have a clearance section

Prices already lower than regular price

Items may be seasonal, slow moving, or old models

Doesn’t matter on Amazon – product is either in demand or not. If it is, buy it!

Talk to store manager to get additional discount

Stores that you don’t think of

Many stores sell a variety of items that they are not known for.

What I say Kohl’s, TJMaxx, or Burlington Coat Factory, do you think of a place to buy toys?

Each of these stores (and many others) sell products other than their primary category.

They will often have a big sale to move items that have been sitting for too long.

Exclusive ProductsExample: Toys R Us & Target

Both get exclusive toys; you can only buy them from Toys R Us or Target

Toys are advetised on national TV creating demand

Not everyone lives near a store

Amazon buyers PREFER to buy from Amazon

Exclusive ProductsIf retailer exclusive, then you know that Amazon

won’t sell it directly – less competition

Exclusives can have long term value

Think of collectors who want a complete set of toys – they need the exclusives

If they don’t live near a store, they buy online

Exclusive Products

Sales Rank: 30,000

Exclusive Products

Sales Rank: 7,000

House BrandsExample: Craftsman at Sears

Example: Ryobi at Home Depot

Same principles as exclusives – demand exists that prefers Amazon but Amazon does not sell the item (until you do!)

General Retail Store Strategies

Avoid ‘commodity’ items

Example: Newest Fisher Price toys – Amazon likely sells (unless a low cost makes it worthwhile)

Look for items that you may have never heard of – just because no demand in store, doesn’t mean no demand on Amazon

General Retail Store Strategies

Stores in rough parts of town can have great stuff

Slower sales means merchandise sits on shelves longer

Good items that are sold out elsewhere are sitting on the shelf

Other scanners don’t go to them – go where your competition doesn’t go!

There is no ‘List’ of good products

It’s not the items, but the characteristics of the items that make them winners

Consider brand, cost, margin, competition

Importance of learning to read FBAScout data

Pixar effect – Cars came out in 2006

Still strong demand for toys from Cars

Toy Story 1 came out in 1995!

FBACoaching Parts 3,4 & 5

• Part 3: How to buy lower than your competition – retailer secrets

• Part 4: There is always gold, lazy scanners, advanced FBA

• Part 5: Open questions. Send them in ahead of time. No time limit; I’ll answer them all!

Questions?