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2018 Winter Sale

Managing and Controlling Amazon FBA Storage Fees

The eBay & Amazon Seller's News ~ April 2018 ~ Volume 19, Issue No. 7

Tips, Tools, News and Wholesale Resources for eBay and Amazon Sellers
by: Skip McGrath

In This Issue:

Musings from and about eBay, Amazon and The World Wide Web

  1. Managing and Controlling Amazon FBA Storage Fees
  2. Tips to Be More Successful Selling on eBay and/or Amazon
  3. Online Reselling: Investments and Startup Costs
  4. Using Amazonís Buy Box Page to Create Fast Selling Bundles
  5. Is Consignment Selling Still Alive and Well?
  6. New Wholesale Sources for eBay and Amazon Sellers

"Don't cry about money, it never cries for you." ~ Kevin OíLeary


Musings

I mentioned my testimonial contest in the last issue, but we learned there may have been a problem with the form. So, here is the information again:

Testimonial Contest: Win a $100 Amazon Gift Card!

The last time I did this was about 3 years ago. I get a lot of positive mentions in my email from those of you who have bought my courses, but many of them are now somewhat out-of-date, so I am looking for some fresh testimonials. Therefore, I have decided to run another testimonial contest. You can refer to a product you purchased or how useful this newsletter is to you.

Here is what I am looking for:

  • Testimonial should be about 50 to 100 words (give or take a bit).
  • Please make it product-specific.
  • Please get into some detail: A comment such as Skip's Amazon Marking System helped me build a $5000 a month business is better than, Skip's courses are great. A good testimonial will mention a specific product (book), or the newsletter, and how it helped you.
  • Sign your testimonial with your first name and last Initial plus the name of your city. For Example, Bob W., Pittsburgh, PA.
  • Please click here to write your testimonial
  • Note: We reserve the right to make minor changes to spelling, punctuation and grammar that do not change the specifics, or content of the Testimonial.

Prizes: The best testimonial (in the judgment of our coaching staff), will win a $100 Amazon Gift Card. Everyone who enters will go into a drawing for a $50 Amazon Gift Card. I will announce the winners in the May 22nd newsletter, and the winners will get an email from me before that.


My friend, Jordan Malik, is having a 50% Off Spring sale on his most popular 3 Amazon/eBay seller tools : Cleer Platinum, Intellizon and Check Permission. And, they all come with Jordan's No-hassle, 30-day guarantee.

  • Check Permission: Instantly tells you if you're approved by Amazon to sell any item in its catalog. HUGE if you got hit with recent book restrictions - see more.
  • Intellizon: Legally spy on other sellers, and download sellers' inventory with just 1 click (awesome for online arbitrage) - see more.
  • Cleer Platinum: Browser extension for finding cheap (or not cheap) products online to resell on Amazon - see more.

I haven't tried his Intellizon Spy tool, but I use Cleer Platinum and Check Permission and they work great. Click hear to read about the sale .


Amazon is closing buyer accounts for review abuse. Now if they would only cancel buyer accounts for abusing the return policy such as returning unopened items as "defective," so us sellers have to pay the return shipping.


In the News: If you have been following the news about Facebook, they you know they are under fire for selling their user data without permission. Well, earlier this week, Facebook announced major changes to its privacy settings. Apparently, they're going to start having some.

And in a TV interview, Facebook Chief Operating Officer, Sheryl Sandberg said that users could opt out of the targeted advertising program, but they would have to pay a fee.


eBay Announced their next Seller Conference. Here is the announcement:

eBay is excited to personally invite you to this year's eBay OPEN, the seller event of the year.

Please join us July 24-26 at the Mandalay Bay Resort in Las Vegas for what I promise will be an incredible time-and a great opportunity to learn, network, and celebrate! Be sure to register now.

For the general sessions, we'll be joined by senior eBay executives who will share eBay's long-term vision and strategy for advancing your success. Our inside experts and industry partners will be on hand throughout the event to answer your toughest questions on all aspects of selling.


Should I sell on eBay or Amazon?

There are lots of factors that come into play when deciding which Marketplace(s) you should sell your products on. Audience, fees, marketing capabilities… the list goes on.

But what about the most important metric, which one will make you the most PROFIT? Find out in this Amazon vs. Ebay showdown!

A new free report by Jungle Scout - Selling on Amazon vs eBay - Which One Is More Profitable? answers that question


There are dozens of free groups on Facebook related to selling online, or specifically selling on eBay, Etsy or Amazon. In general, many people in these groups are happy to share advice and answers. But, remember: Free advice is worth what you paid for it. So don't take every post as Gospel -take the trouble to check it out. You can learn a lot, and get some really good advice in these groups, but don't assume just because you read it on Facebook, it is 100% true.

To find these groups, simply type the name of the site and the word groups into the Facebook search bar, such as Amazon groups, eBay Groups, Etsy groups and so on.

By the way (or should I say BTW?), I am working on setting up a Facebook Group. Watch this newsletter for an announcement.


Has your account been threatened with suspension or have you received threatening letters from other sellers? If so, you need to read this story in the eCommerceBytes blog.


Letís get started with our in-depth articles:

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1. Managing and Controlling Amazon FBA Storage Fees

Starting April 1, 2018, monthly inventory storage fees will be increased by $0.05 per cubic foot for standard-size and oversize items. Let's take a look at the fee changes first (Charts by Amazon®).

This change will first be reflected in May 2018 charges for storage, that occurs in April 2018. Long Term Storage fees will also increase - These are much more dramatic (see chart below).

Chart of Amazon storage fees

Regular storage fees can add up quickly and start eating into your margin. So it pays to stay on top of them. It costs 50¢ per item to do a removal order. So when looking at your inventory; If you have excess inventory it pays to calculate the cost of leaving it at Amazon, or performing a removal order. (Of course, since storage fees more than triple from October through December, you have to take the time of year into account).

(TIP: I almost never remove food items (unless we plan to eat them ourselves), because they are difficult to send back. I usually tell Amazon to dispose of them if they are unsellable).

Let's take an example. Say you have a small kitchen gadget in a box that is 4 x 4 x 4 inches. That is 64 cubic inches (.037 cubic feet). So, most of the year, Amazon is charging you 26¢ per month. But in October that jumps up to 89¢ per month.

We tend to sell so much from October thru December (even slow-moving items), that I don't worry that much. So, lets look at the rest of the year.

Assume you sent 10 of those to FBA. They sell -but not that quickly. After 3 months you still have 6 left and the Long Term Storage Fee (LTSF) period is coming up soon. So, you want to reduce your normal storage fee of 26¢/month. (Since you have 6 in stock, that is $1.56/month total). Now you have a decision to make.

The first thing I look at is my margin. If I am only making $2 or $3 on each item, I am going to look at removing them quickly, and will most-likely no longer carry the item. But, if I were making $12 to $15 on each item, I may want to leave them until 31-days before the Long Term Storage Fee (LTSF) kicks in.

Why 31-days? If I remove an item within 30-days of the LTSF date, then I cannot replenish that inventory for at least 6 months. This way, I could remove 4 or 5 to keep both my regular and LTSF low, but as they sold off, I could still replenish my inventory as needed. (Note: There is some disagreement about this. But this reflects my personal experience. Items I removed from FBA less than 30 days before the LTSF date were restricted when I tried to send them in before the 6-month day).

(Tip - One thing I often do is remove all but one each of an item. So, if I had a quantity of 7 at FBA, I would remove 6. Again, I would do that more than 30-days before the LTSF date, so I could replenish products as needed)

Another strategy with slower moving products is to lower the price -or set up a Coupon. Doing this will usually (not always) increase the inventory turnover speed. (This seems to work on about ½ of my products).

Advertising is another way to help turn over slow-moving inventory. As many of you know, I am not a fan of Amazon Sponsored Ads, but I am coming around on that. Stay tuned to this newsletter for more info soon.

If an item is really moving slow, I often just toss it, and write off the cost. However, since Christmas, I tried something different. Usually when I write off merchandise, I donate it to a thrift shop and take a tax deduction. But earlier this year, an indoor flea market opened just on the edge of town.

I pulled about 40 separate items (SKUs) out of FBA before the LTSF date in February. Some of them had quantities of more than one, so I had about 140 items all together. I paid $25 for a table at the flea market and sold about 120 items at slightly over my wholesale cost. That left me with about 20 items to donate to my local thrift shop. OK - I didn't really make any money, but I did recover about $700 in costs that I was able to recycle back into faster-moving inventory.

As I promised earlier, lets look at the changes (increases) in LTSFs.

Chart of long term storage fees at Amazon

It used to be you could check your calendar every six months, but now with a rolling progression, you need to be on top of this constantly. And remember, to preserve the ability to replenish items, you need to do a removal order at least 31-days (32 or 33 days is safer) before the item hits the 181-day mark which occurs on the 15th of every month (Starting in September).

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2. Tips to Be More Successful Selling on eBay and/or Amazon

Let's Face it: Anyone who tells you that selling online is easy, is full of you know what. You can make a lot of money in this business, but you have to work at it. Over the years, my wife and I have been pretty successful at this, so here are some of the rules, habits and practices we follow:

  • Time Management. This is absolutely critical to your success. There are two factors to making this work:

    • The first thing we do every day is make a list of all the important things we have to do today.
    • Next, we prioritize the list, but we always put the most difficult and unpleasant item first. By doing that, we remove a ton of stress that would be hanging over us all day. A lot of people push unpleasant, or time-consuming tasks off in the distance. This is a major mistake.
  • Understand what you are doing and why you are doing it. The best reasons "why," are seldom related to just making more money. Your "why" should be related to personal freedom, a sense of accomplishment, or things like that. This is closer to the mindset of a successful entrepreneur. An example of this is a quote by Barbara Cochran of Shark Tank: "I had twenty-two jobs before I started my own business at the age of 23 and I didn't want one more boss telling me what to do. So I was motivated simply because I didn't want a boss."

  • Set Goals. When I go to the supermarket - I know where I am going and how to get there. I don't jump in my car and start driving aimlessly, hoping I will run into a supermarket. Running a business is the same way. You need a destination in mind.

    There are two rules for goals: Goals should be achievable -and measurable. Having a goal of making a million dollars a year is great -but that is a very long-term goal. To get to that point, you need some interim goals such as:

    • Source at least 100 products a month that make at least a 20% margin after costs and selling fees.
    • Grow sales to $25,000 a month by the end of this quarter (As time goes on you keep extending or raising this figure)
    • Create my first Private label product by June 1st.
  • Seize Opportunities - Here is another Shark Tank quote that illustrates this. This one is from Lori Grenier: "Dear optimist, pessimist, and realist--while you guys were busy arguing about the glass of wine, I drank it! Sincerely, the opportunist!"

  • Focus - Focus - Focus. One thing about this business is that it's easy to become distracted. Every day you will get emails about a new training product, or third-party service that promises to save time, make your life easy, or instantly make more money. OK - there are some great training resources and 3rd party services out there, but realistically - if they could all do that, sellers would beat a path to their door and they wouldn't have to advertise and promote their services.

    People often start selling on one platform such as eBay, Etsy, Amazon or their own website. My advice has always been; focus on one of them until you achieve sustained profitability, and then move on to the next. Same with developing a niche: Focus on one niche and master it before adding a new one.

  • Never stop learning. I like to think my books are the best training materials on the market. I will let you be the judge of that. But, no matter whose book or course you invest in, that should be your first one -not your only one. Never stop trying to improve yourself and your skills. I am a voracious reader (I read at least two books a week split evenly between fiction and non-fiction). Read anything you can lay your hands on that will broaden your knowledge -and never stop doing that. These do not have to be books about online marketing. Read anything that will broaden your horizon or expand your knowledge.

  • Set Aside some time for yourself, and your family. I like to spend at least 30 minutes a day just thinking about things. (I admit some of that time is spent daydreaming). Family time is important too. When my kids were younger and still at home, we always carved out some family time where we could all do something together. Now that we are empty nesters and both working in the business, we still make time just for us. Sometimes its just a dinner out, but we also like to sneak off during the workday occasionally to visit our new granddaughter.

  • Avoid negative people and influencers. Whenever you try to do something new or different, the naysayers seem to come out of the woodwork. They may be family, friends or co-workers, and they will tell you all the reasons why what you are doing is bound to fail. Because these are usually people close to you, you can't easily avoid them.

    Over the years I have developed a technique to handle this. Whenever someone buttonholes me and starts telling me all the things that could -and will, go wrong, here is what I do: I let them speak and look at them and nod my head like I care what they are saying. When they are finished, I say: "You make some really good points. Let me think about that for a while." Then I promptly put them out of my mind and go on working on my new thing.

There are more good habits to get into such as, get enough sleep and exercise, get up early and get to work and surround yourself with people who inspire you or you can learn from. So if you are struggling to start or to grow, try developing these habits and put these techniques in place.

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3. Online Reselling: Investments and Startup Costs

The following article is a guest post by Erin Alexander from BULQ.

I have written about Bulq before. They are a prominent supplier to eBay and Amazon sellers for liquidation and surplus merchandise. What separates them from other Liquidation sellers is their focus on online resellers and ability to supply small lots in reasonable sizes.


Investments and start-up costs

Online reselling, just like any business, requires certain essential upfront costs and investments. Regardless of the scale of your reselling business, certain basic commitments can mean the difference between a thriving business, and one that's dragging behind the competition.

After speaking to successful resellers of all size and scale, we've compiled a list of some of the key investments you'll need to consider when launching your reselling business.

What Investments Are Needed?

Photo of a desktop with common office tools

One of the most compelling points to online selling is convenience. The majority of resellers work right out of their home. For them, an in-home office means not having to invest in external office space and other pricy overhead costs. However, working from home also means that you'll need to stock up on a few essential supplies.

  • General Office Tools: Having regular access to a few key office tools is essential for any reselling business.

    • Computer: A computer is the foundation to any reselling business. You can save important documents, source wholesale and liquidation inventory online, research products, and manage your selling platforms.

    • Printer: While you can certainly get by without a printer, many resellers find it convenient to have one handy to print helpful resources such as invoices and manifests. The great thing is that printers are quite affordable - you can find a Canon Wireless Office Color Printer for under $70.

    • Barcode Scanner: A barcode scanner can certainly help speed up the listing process. If you are sourcing multiples of a product, a barcode scanner or app can do the bulk of the work for you. There is no shortage of barcode scanners and apps on the market. In fact, you can download many barcode scanning apps directly onto your iPhone or Android device for free. The best recommended scanner under $40 is the NADAMOO 2.4GHz Wireless Barcode Scanner (2-in-1 2.4GHz Wireless & USB2.0 Wired) USB Automatic Barcode Reader Handheld Bar Code Reader USB Rechargeable Bar code Hand Scanner For Mac or PC Computer.

    • Smartphone: Smartphones are incredibly useful tools to help enhance your reselling business. Just like your computer, smartphones can be used to source inventory, monitor and manage online sales, communicate with customers, scan barcodes (see above) and make payments.

  • Service and Software Tools: In addition to the essential reselling tools and supplies, there are also some services and tools that can help to optimize your business and save time along the way. These tools are especially useful when it comes to market and product research, Amazon ranking details, competitor tracking and customer feedback management.

  • Packing and shipping supplies: After sourcing and selling online, you'll need to plan for all things shipping.

    • Packing and Shipping Basics: Some packing and shipping basics include envelopes, boxes, bubble wrap, tape and scissors. While the cost of these essential supplies will vary depending on how often and how much you ship, there are some ways to save on these supplies.

    • Shipping Scale: A shipping scale is another useful tool to have when running your own reselling business. In order to estimate shipping costs, you'll need to know how much a shipment will weigh and then decide how much to charge a customer (or whether to offer free shipping) Shipping scales start as low as $15 on Amazon.

    • Label Printer: A label printer is also a extremely useful tool for streamlining the shipping process. Thermal barcode printers don't use ink, so you're saving money in the long-term on ink and toner. A high quality Zebra LP 2442 Thermal Printer is a good investment.

As you're getting started, it's important to recognize early on that the startup costs of supplies can add up and potentially affect overall profit margins. Because so many of these tools and supplies are one-time purchases, these costs will likely decrease over time. However, for those few ongoing costs, there are always ways to be resourceful and scrappy when sourcing supplies. For instance, consider sourcing packing supplies from offices or retails stores that are throwing excess materials away.

Reselling Time Commitments

In addition to the physical supplies you'll need, reselling can also call for a significant time investment, depending on the scale of your business. Here's a breakdown of how resellers often spend their time:

  • Online Sourcing: Sourcing online can be a time-intensive endeavor. Depending on the sourcing site you use, new inventory may be listed daily. To ensure that you don't miss out on the most fitting product mix for your business, you'll want to carve out regular sourcing time that coincides with online listing times. It takes some online sellers 8 hours a week to replenish their inventory. This chunk of time consists of monitoring sourcing sites, researching market prices and product popularity, and making purchases. Tip: sign up for alerts and notifications of new inventory when possible.

  • Brick and Mortar Sourcing: Sourcing in-person from brick and mortar stores can be a significant time commitment. Those sellers who make the decision to source in-store, dedicate anywhere from 4 to 12 hours a day, including the commute time. The good news is that, for most resellers, these sourcing days are somewhat infrequent and only require 2-3 trips a month.

  • Receiving and testing: Receiving and testing time commitments can also vary greatly depending on the scale of your business and the inventory condition you decide to source. If you're just getting started and are only sourcing 1 case of new products, you can likely knock out this leg of the process in 1-3 hours. However, be aware that non-new products often require extra time to ensure that all items are fulfillment ready.

  • Listing: Listing time can vary greatly from seller to seller. On average, it could take 5-15 minutes per item to list new items online. This time often includes the product research, writing your listing description, and capturing great photographs to accompany your listing. Certain tools (see the above section on "software and service tools") can also help to expedite the listing process, if you choose to go that route. For those sellers who choose to sell with Amazon FBA, listing time is generally quicker, since Amazon is responsible for the ins and outs of reselling.

  • Fulfillment: Fulfillment is the part of the process where you essentially pack and ship out orders. For those resellers new to the business, fulfillment may be more of a manual process. However, there are certainly ways to streamline fulfillment by using a service that will save you valuable time and a trip to the post office .

  • Customer Service: Once you've sourced, listed, and fulfilled your order, it's time to shift focus to customer service. Top-notch customer service can easily set you apart from other resellers out there, so it's essential to create a great customer experience to keep them coming back for more. Get advice on how to manage relationships with your buyers, whether online or in person.

One of the benefits of being a reseller is that you largely get to craft your own career: you're the one who ultimately decides how much time and money to spend on the job. And while it can take some time to meet your goals, know that success comes in many forms. There are successful resellers out there who do this as a full-time job and others who only dabble on the side. Regardless of your approach, know that with some time and practical know-how, you too can make reselling work for you!


The Bulq Blog is a great resource of information for eBay & Amazon sellers. If you are interested in reading more about souring and liquidation, check out the BULQ blog for helpful resources!

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4. Using Amazonís Buy Box Page to Create Fast Selling Bundles

My master Amazon training course, The Complete Amazon Marketing System includes detailed training on creating and selling product bundles. Plus, you get a special free bonus report on the topic. Let's look at the way I use to determine what makes a good bundle.

First, look at one of the products I sell (This item is also carried by Amazon at the same price, but so far they have been rotating me into the buy box):

Example of an Amazon listing

Click here for a larger image

This item has a sales rank of around 9,400 in Kitchen and Dining which puts it in the top 1% of the category, so it's a quick seller. If you go the the listing page, and scroll down a bit, you will see the following:

Example of items customers bought after buying the item in the listing

Notice where it says: Customers who bought this item also bought you will see several products displayed from left to right: Another RSVP Product, VEG-3 Rotary Food Mill, a set of three vegetable peelers, a Garlic Press, a fat separator cup and a hanging Oven Thermometer. Since buyers who bought the potato ricer, also bought these products, they all have bundle potential. However, there is one more suggestion from Amazon on that page. If you look, you will also see an image that says Frequently bought together.

Example of items frequently bought together on Amazon

You might think, this is the one to focus on, and technically you would be correct, but there can be other factors. One of the most important factors is: Do you have a wholesale source for the product? Note, the product you source does not have to be the exact same product and brand, but the product should be very similar and good quality.

In my case, since I already source from RSVP, it would make sense for me to sell the first product in the Customers who bought this item also bought list, which is the RSVP, Veg-3 Rotary Food Mill

Note: Please don't contact RSVP as a source because they were overloaded with online sellers and no longer accept those wholesale accounts.

I also have a source for vegetable peelers and am looking into those as a potential second bundle, but for now it's just easier to go with the Rotary Food Mill. I just placed an order for those and am awaiting shipment.

Other Bundle Issues to be aware of:

  • Brand Names and UPC codes - When you bundle an item and use the Brand Name in the Brand name field on the listing form, or put the brand name in the title, then Amazon will insist you use a UPC code that matches that brand. There are two ways around this.

    • The first way is to ask the supplier if they will create a UPC code for that bundle. I have found that some suppliers will do this and some will not.
    • The other way is to use your own brand. For example, I have a brand name I created for my kitchen products. So, I could just use that brand name in the listing field, and not use any brand names in the title. This way I can use a purchased UPC code.
       
  • Bundle Pricing - I don't know why (possibly convenience, or the savings on shipping), but, buyers will pay more for a bundle than they would if they bought the products individually.

    When I price my bundles, I add up the retail cost of all the items in the bundle and add a few dollars to the total, to arrive at my selling price. For example, one of my best selling bundles adds up to $21 when you buy the products individually, but I price the bundle at $25.95 so it qualifies for free super-saver shipping, and I sell a ton of them.
     

  • Bundle Photos - When you sell a bundle, Amazon requires the main image show all the items in the bundle (and must not include any items that are excluded from the bundle).
     

  • Bundle Title - Amazon has requirements for bundle titles: This is what they say:

    • Bundle title length should align to title length rules in Amazon's listing policy. This policy allows listings with a title length of maximum 200 characters (including spaces) in all U.S. categories.
    • Include the word "Bundle" and the number of items in the bundle in the product title. For example:

      Bundle - 3 items: Tote Bag, Knit Scarf and Gloves - Blue

    • If the bundle includes only a few items, list them in the title. For example:

      FORMAT [Main Product title] + "Bundle with" + [Bundle Component Product title(s)]
      EXAMPLES
      "Kodak EasyShare C143 12MP Digital Camera Bundle with Rechargeable Batteries & Carrying Case - Blue"

    • If the bundle includes many items, list the primary and secondary items in the title, along with the total number of items in the bundle. In these cases, the entire bundle component information must be listed in the bullet points within the bundle details.

      FORMAT [Main Product title] + "Bundle with" + [Bundle Component Summary] + "(# Items)"
      EXAMPLES
      "Yamaha PAC112J Sunburst Guitar Bundle with Bag, Stand and Accessories (11 Items)"
       

  • Bundle Bullets - The first feature bullet on the detail page for your bundle must state that the product is a bundle of "X" number of items and must identify the products in the bundle.

I have found that bundling is highly profitable, and out of over 50 bundles I have created, only one of them failed to sell. As I mentioned at the beginning of this article, I give complete training on creating and selling bundles in The Complete Amazon Marketing System .

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5. Is Consignment Selling Still Alive and Well?

A few years ago, consignment selling on eBay was all the rage. It used to be that eBay was the only place to sell on consignment, but sellers are now finding success on Amazon as well. In fact, eBay had a special program called eBay Trading Assistants, but like many things at eBay which actually worked, they killed the program a few years ago. Despite that, consignment selling is still very much alive and doing well -not only on eBay, but on other sites, such as Amazon as well.

I like to call consignment selling the perfect online business. One of the biggest problems online sellers face, is finding merchandise to sell at a profit. Consignment selling solves that problem.

People give you things to sell. You sell the goods, take a commission and then pay the consigner for the item. Except for eBay or Amazon fees, there is no payment on your part until the item sells, and you collect the money from the buyer.

My book, How To Start and Run an Online Consignment Business comes with complete instructions including sample letters that show you how to contact lawyers and business people, as well as actual consignment contracts you can simply insert your own name into.

However, there are some pitfalls to the business. One of the largest is, the risk of not delivering the product when it sells. A few months ago a lady sold some vintage stereo viewers for a friend. After they sold, the friend reneged on the deal and refused to hand over the goods. This can really mess up your feedback and endanger your account.

That's why I have a strict policy of never selling an item on consignment unless it is in my possession!!!

Another thing that happens to consignment sellers is they take in items that will not sell for very much. You do all the work and end up making two or three dollars. I don't do that much consignment selling these days, but when I was active, my policy was to only accept items on consignment that would sell for at least $50. Later, I raised that to $100. (An exception to this is if a retailer gave me a large lot of new merchandise to sell).

Even with those high values, I never had trouble finding goods to sell. So one of the lessons you have to learn if you are going to sell on consignment is how to say, "No!" Believe me, trying to sell unsalable or low-value items, is nothing more than a waste of time.

Another risk is taking in stolen merchandise. I once had a teenage boy bring me a Bose stereo that was missing most of the cables. Bose Stereo systems are very high-end and expensive for someone so young to own, so I was suspicious.

I explained the only way I work is, I make a copy of his driver's license, and when the item sells, I mail a check to the name and address on the driver's license. When I told him that, he countered with saying he "didn't want to wait that long, so would I just be willing to give him $100 for the equipment?" Since the set was worth closer to $900, I just said no thank you and he left. As he drove away I wrote down his license plate number, called our local police and reported the incident. I never heard if anything came of it, but the last thing I wanted was the police coming to my home because I sold stolen merchandise.

If you really want to build a big consignment business, then you want to work with businesses instead of individual consumers. Some examples are working with stores to reduce their slow selling merchandise, working with bankruptcy attorneys, and charities that are looking to raise money. The B2B side of the consignment business is far more profitable than working with individual consumers, although a lot of small sellers prefer to do just that as they don't want to get involved in a big business.

I still believe eBay is the best place to sell used or vintage goods, but many consignment sellers who work with bankrupt businesses or stores liquidating merchandise, are listing the new unopened merchandise on Amazon.

Remember, How To Start and Run an Online Consignment Business comes with complete instructions, including sample letters that show you how to contact lawyers and business people, as well as actual consignment contracts you can simply insert your own name into.

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6. New Wholesale Sources for eBay and Amazon Sellers

Parade Street Products wholesales fashion accessories, home goods, impulse items, and gift items.

Luce Skin Care sells a silicone facial cleansing and anti-aging device.

Welburn Candles Pvt. Ltd. makes and sells all kinds of wax candles including scented and unscented tea lights, votives, pillars, jars, tins, religious candles, floaters and multipurpose candles. They also offer a Private Labeling service for their products.

BugOffScreen sells a very clever magnetic screen door that works almost anywhere and the have a drop ship program and a reseller packaging program.

Unilution Inc. is a direct importer and wholesaler for electronic gadgets including; digital cameras, electronic Sudoku games, Bluetooth headsets, and more.

Hanners Wholesale sells wholesale tools, apparel, ATVs, motorcycles, and more! They sell all over the country, but if you live in the South, they are located in located in Southeast Missouri and welcome dropins.

Koehler Home Décor is a wholesale resource for home decor accessories gifts, bath & body, candles, Christian, collectibles, general merchandise, licensed products, patio & garden, seasonal decor, shabby chic & more! No minimum size order.

Shine Company, Inc . sells solid wood outdoor furniture and garden accessories.

Brighton is a women's fashion accessory company that sells an extensive line of stylish products to accessorize women from head to toe.

Copper Mugs sells a complete line of copper Moscow Mule Mugs in several designs.

Inspire Active Wear sells active wear for women made from recycled plastic bottles. 100% USA Made.

Nashell Jewelry sells a wide line of affordable fashion jewelry and offers free shipping on orders over $150.

Style Asia Inc. is a wholesale distributor for Tailgating accessories, housewares, electronics, gifts, novelties and promotional products.

Artful Animalz sells a wide range of pet-inspired graphics and animal-themed gift items, including greeting cards, stamps, shoes, apparel and more, perfect for passionate pet owners and animal lovers of all kinds, for any occasion.

Thatís all for now. See you again in about two weeks.

Skip McGrath
The eBay & Amazon Seller's News

P.S. If you missed the last issue, click here to read it.







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