1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Follow Along: Road to 25%-50% Profitability

Discussion in 'Making Money' started by Kostya76, Feb 19, 2017.

  1. Kostya76

    Kostya76 Registered Member

    Joined:
    Dec 15, 2016
    Messages:
    77
    Likes Received:
    16
    About me: I consider myself a rookie in everything that is related to the Internet Marketing even though in the past I have managed to sell an authority site for a couple of grand, find and optimize profitable affiliate offers (mostly Casino and Adult in IN and IT geos), have a small but constant Adsense revenue that helps to offset hosting costs, receive tons of free VIP and all-access tickets to events that I cover on the site, etc. However, my knowledge and expertise is still not sufficient to quit my day job and focus on the internet marketing and e-commerce full time. That’s why I keep experimenting with different way to make money online with the hope that one day I can start making a living online.

    My current quest: I’ve been selling cheap cell phone accessories from China on Ebay. Because I was able to get them from a supplier on Alibaba at a low cost I can compete with other power sellers on Ebay. I receive a great amount of orders and my feedback is 100% positive, so I think I’m ready to move to sell a more expensive products which I personally consider more risky as the same dollar amount buys me 10x more units of cell phone accessories than units of my current product.

    Product: so, I’ve done some research and identified an Amazon product that is quite popular, in fact it’s one of the most popular items on Amazon. I also contacted a couple of suppliers on Alibaba who told me that I can get the same product for 30%-50% of retail price depending on the # of units I order. Unfortunately, it turned out that I cannot sell this product on Amazon, but there are multiple related products (extensions) that can be sold without limitations. Need to mention that this product have very high sales rank too, so I just went for it.

    In the end, I’ve spent $330 dollars on the following:
    • 16 units of product A (most popular)
    • 7 units of product B
    • 7 units of product C
    I could have lowered my per unit cost significantly, but I wanted to test a small batch first to see if I can sell it for a 25%-50% profit. If I can do it then I will place another order to purchase more units at a lower per unit cost.

    Distribution channels: I will list my products on the websites that have worked for me in the past:
    • Amazon
    • Ebay
    • Craigslist
    • Offerup
    I’m really skeptical about setting up an e-commerce website for just three products, at least at this point it doesn’t seem practical, so I will wait to get first results in and then I will consider adding more posts of sale.

    Next steps:
    • I was told that I will receive the products in 10-15 days
    • I will list them on the 4 aforementioned websites
    • Will provide weekly reports on my progress
    • Place a larger order if I achieve at least 25% ROC.
    Footnotes:
    • As I mentioned earlier, I don’t consider myself a pro, so any advice from more experienced board members is appreciated.
    • I may consider ordering one whole container of the product in the future. Let me know if you are interested in cheeping in and getting the product at a very low cost.
    • I still have a few hundreds of iPhone and iWatch screen protectors. I can sell them to you at cost. Let me know.
     
  2. Kostya76

    Kostya76 Registered Member

    Joined:
    Dec 15, 2016
    Messages:
    77
    Likes Received:
    16
    So, I received the first shipment from China yesterday. It took 9 days from the day placed the order and 7 days from the day they dropped it off at DHL location for my order to arrive.

    I have noticed that the product is not of the highest quality even though when I was ordering it I was told that it is not indistinguishable from the original. Individual items didn't have the special holographic seal that is put on the authentic products.

    I also did some research on the internet and identified some things that are different from the original product.

    Now, having said this, without the research that I've done trying to spot inconsistencies between what I've got and the original product, I don't think I would be able to tell that there is something is wrong. So, the quality is pretty high overall.

    My next step is to do some pricing survey and list the products for sale on Ebay and Amazon.