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Long Awaited Amazon Guide by Archixet - Learn & Make Money Selling over Amazon

Discussion in 'BlackHat Lounge' started by archixet, Mar 27, 2019.

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  1. archixet

    archixet Jr. VIP Jr. VIP Premium Member

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    E-commerce is going to be the future of business world and that future will be controlled by the E-commerce giant Amazon. Establishing a business on Amazon is no piece of cake. You gotta put all your energy into it to make yourself successful as a seller. Amazon’s policies are considered to be tightest among all e-commerce platforms and the reason behind this is their blind support and trust towards their customers. Amazon provides special royalty to its customers and in return they gain their trust on the platform. This one trait of Amazon gets them retainable audience in huge numbers around the globe.

    Amazon has been expanding their marketplace around the globe and they now they have their footprint in many countries. Amazon accepts its sellers through some specified countries and list of those countries can be seen on their website. If you are not a resident in any of the acceptable countries, you may establish a limited liability company in any of the accepted countries and register yourself at amazon as a business. Once you have registered on Amazon either as an individual or as a business you can start selling on Amazon immediately after the verification of your documents.

    There are three most famous business models in terms of selling on Amazon.

    1-) Private labelling
    2-) Retail Arbitrage
    3-) Drop shipping


    We’ll be starting with Private Labelling. Private labelling is basically a process to build your own brand and sell products under that brand name. Selling on Amazon as a private labelled seller is a process that can be divided into small phases. The process starts with product research. A seller needs to aware of the market trends and product demand before choosing a product to sell. It breaks down into many small processes like product competition, product demand and profit calculations. In some scenarios you might have to get safety certificates from the concerned departments. There are some tools that help a lot in product research Junglescout, Viral launch and Helium 10. These tools help a lot in providing statistical data. Product research also has a very vital part which is called keyword research. You need to find good keywords for your product. Keywords help you to rank your product on Amazon. Merchant words is a very commonly used tool to explore keyword options.


    After you are done with product research you are down to the next phase of this journey which is product sourcing. Product sourcing can be done from any part of the world depending upon the nature of your product. Mostly, people source their products from China, Japan, USA and India. Quality inspection and freight forwarding are the two main pillars of product sourcing. You need to make sure that the product that you are selling matches completely with the product that you are buying in terms of packaging as well as quality. After the product is prepared and packaged, you need to decide freight forwarding. Usually there are two methods of shipping your goods; by air or by sea. There are many companies that can handle freight forwarding on your behalf. For product sourcing, most famous platform is Alibaba which is a Chinese platform for sourcing products.

    Now you need to decide the fulfillment of your product to your customers. You have two options here. You can either receive your product at Amazon warehouse and let Amazon handle your fulfillment or you can receive your stock at your warehouse and you do the fulfillment by yourself. The first option is termed as Fulfillment by Amazon and second option is termed as Fulfillment by merchant. In our experience we have concluded that FBA is they best way to go because of Amazon’s swift shipping and cheap rates. Amazon’s returns handling procedure is very efficient as well.

    After we are done with these initial phases, we move to the most important phase of the journey which is reviews and ranking. The most difficult part of this journey is to obtain reviews on your product and rank your product to the first page of Amazon. There are many methods that sellers use to rank their product in Amazon search results. Sellers use coupon codes, giveaways and launchpads to attain sales on their product. Amazon’s ranking system is purely dependent on sales velocity. Sales velocity is basically the ratio of the customer that Amazon sends on your product and the customers that actually buy the product. The seller with highest sales velocity ranks highest. There are a few ranking techniques that we’ll be sharing with you. Viral launch has a very efficient and famous launchpad that many sellers use to launch their products. There are some facebook groups where sellers can contact people to buy their product for free and leave a review for their product. To rank your product to first page, you need to compete with the sales velocity of the sellers that are on first page of Amazon. If the last seller on first page is getting 10 sales daily than you need to maintain 11-12 sales daily to replace him from the spot. You can also use Amazon advertisement and Facebook advertisement to get sales on your products. You need to invest in your product initially to rank it on Amazon’s first page against your keyword. This basically means that you need to sell your products in loss until you rank on first page, and then you can start increasing your price gradually to maintain your sales velocity. You need to choose your primary keyword which will be the one with most sales. The customers who will buy your for free must type your keyword in Amazon’s search bar and find your product on Amazon and then place order so that Amazon does not get suspicious about the orders. Passing your product URL to the customers is a bad strategy and it will not be much useful in product ranking.


    When you are done with the ranking of your product and you have started to get profit from your sales, that means that you have built an asset for yourself. That asset is worth the effort that we sellers put to accomplish. The product listing that we have created and ranked can also be sold on websites like www.empireflippers.com


    The second business model is Retail Arbitrage. RA is based on the concept of reselling. Amazon allows more than one sellers to sell a product. There are a lot of big brands that have listed their products on Amazon. Amazon allows you to sell those products if you have purchased the products directly from the brand retailers. You must have invoices and receipts saved for submitting to Amazon as a proof of purchase. Most of the brands sell their products to whole sale dealers at cheap cost. You can find such brands and make great deals and earn profit by selling on them on Amazon. You can either talk to brands or you can directly buy from whole sale stores like Costco and Walmart in USA. You need to look out for promotions and discount offers to make good profit. For the fulfillment of these items to customers, you can use any of the two fulfillment methods that we discussed in Private labelling section. Retails arbitrage is also a widely followed business model among Amazon sellers, but some sellers use tricks to increase their profits like they buy cheap knockoffs instead of the original brand product. In this scenario, if a few customers complain about the product and leave negative seller feedback, Amazon will either block you from selling that product or they will block you from selling on Amazon entirely. This is a situation which every seller must avoid as it is very difficult to reinstate an Amazon account this is blocked. Amazon also does not allow multiple seller accounts in one house hold. So, your seller account is your most precious asset.


    The third business model is drop shipping. Drop shipping is considered to be the best business model as it doesn’t involve any investment. Sellers who adapt this business model sell products on Amazon without keeping inventory. This is where they are saved from investment. Both other business models require this investment. In this model you buy stocks after you have sold a product. In this model, you are provided with two options. You can either create your own listing like in private labelling or you can sell an existing brand like in Retail arbitrage. You can buy the product from anywhere and ship it directly to your customers address after you have received the order. That is the beauty of this model. In this business model, you cannot use Amazon’s warehouse for fulfillment as you don’t have the stock. The fulfillment will only be carried out by yourself. It can be through any channel like you can buy the product from online stores and ship directly to customers or you can buy products from physical store and then ship the product to customer yourself. There are a whole bunch of tricks involved in this business model as well. Sellers make fake purchases against competitors and leave negative feedbacks just to get others out of the competition. This is the most risky business model. You need to have invoices and receipt in case Amazon asks for it. You need to deliver your product on time. You need to stay clear of dirty competitors. One of the best product research technique in this business model is to find out of stock products with good ranks on Amazon. You can sell that product at high until the original brand owner restocks it. Then you can buy your products from the brand owner at cheap price and deliver products to your customer. You can also check if the brand owner is out of stock on Amazon but stock is available at other store like bestbuy, Walmart, target etc. This technique has best profit ratio but equally high-risk factor. Lots of sellers lose their seller accounts because of inexperience. Amazon is tightening its circle against drop shippers as the are damaging their reputation in the E-commerce world with their dirty tricks.


    Private labelling on Amazon and FBA is the future on E-commerce. People like to get their products quickly, so Amazon fulfillment is the best way to go and due to the new restriction imposed by Amazon scammers are being reduced on Amazon every day. Amazon has a very strong system to detect fraud sellers and most of their systems and algorithms rely on artificial intelligence which is getting mature and mature in terms of catching frauds. Our teams have developed method that cannot be caught by Amazon’s system. We have created sustainable assets in all three business models of Amazon and with experience we have discovered patterns and loop holes in the system which make us different from the people who are using trivial techniques to sell. Understanding the operations and algorithms of Amazon is the key to get ahead in this business and we have teams with great experiences and understanding of these operations and algorithms.
     
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  2. archixet

    archixet Jr. VIP Jr. VIP Premium Member

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    Some Real Quick Hacks/TIPs Exclusively for BHWers.

    * Amazon professional fee can be refunded in whole no matter for 1 year or 5 years if you have been paying it. You just need to contact seller support & ask them to refund it in courtesy as you haven't been doing well in these past few months/years. It works so far!
    * Clicking your own ads do help with rankings on Amazon.
    * Opening cases again & again helps in getting negative feedbacks removed.
     
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  3. Topiano

    Topiano Jr. VIP Jr. VIP

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    Say What?
    You aged enough to know this doesn't belong to the LOUNGE!
     
  4. peppe

    peppe Jr. VIP Jr. VIP

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    to the JR.VIP section it goes
     
  5. mhtro

    mhtro Supreme Member

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    Inb4 this gets moved to jr.vip
     
  6. Topiano

    Topiano Jr. VIP Jr. VIP

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    There is already a copy at Jr Vip. This is another one...

    Maybe to money making section this time.
     
  7. INCC

    INCC Jr. VIP Jr. VIP Premium Member

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    This is just more or less generic overview what dropshipping and amazon is.
     
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  8. anon7

    anon7 Registered Member

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    I've been dropshipping since 2009 and you're right, there's many risks to your metrics involved on Amazon, and you really have to know what you are doing. Newbies on Amazon have an almost 0% chance of sustaining that type of model for very long before they're suspended.
     
  9. thescrrr

    thescrrr Jr. VIP Jr. VIP

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    Skyrocket Your Ranking Today
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    yeah, this was really underwhelming.
     
  10. RedemptionT

    RedemptionT Registered Member

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    Are you dropshipping on Amazon?

    If so could we talk? I used to do that 2-3 years ago and did fairly well but then my items stopped selling plus some other stuff which Id rather not say here.
     
  11. tarron

    tarron Newbie

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    really nice tips, thank you archexit!
     
  12. archixet

    archixet Jr. VIP Jr. VIP Premium Member

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    Hi there,

    I asked to move it to lounge so everyone can read it. I first posted it in Amazon section but that is just for the JR VIPs..
    I am dropshipping on a very large scale & yes maybe we can speak.
     
  13. amoon

    amoon Jr. VIP Jr. VIP

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    Bookmarked,
    great post :)
     
  14. archixet

    archixet Jr. VIP Jr. VIP Premium Member

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    Thanks mate!

    Let me know if anyone wants to question about anything.
     
  15. Doctor.R

    Doctor.R Jr. VIP Jr. VIP

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    Thanks for the guide!

    What does your PL launch strategy looks like ?
     
  16. archixet

    archixet Jr. VIP Jr. VIP Premium Member

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    I'll write a thorough response to this one so reserving this place! Will update shortly.
     
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  17. Doctor.R

    Doctor.R Jr. VIP Jr. VIP

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    Awesome, thank you!!
     
  18. techfan

    techfan Junior Member

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    Pm me to drop ship my products.
     
  19. smlover

    smlover Junior Member

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    You have no idea how long I waited for this thread :D
    I really admired your struggle and success.
    Thank you very much :)
     
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  20. archixet

    archixet Jr. VIP Jr. VIP Premium Member

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    Thanks - Means a lot.