Amazon FBA Scouting Tips - Things I've Learned Along the Way

Scouting locally for FBA inventory can seem overwhelming at first, and rightly so. Large stores like Wal-Mart, Target, Toys R US, Walgreens, and TJ Maxx have thousands of items. How do you know where to start? Your comfort level will grow as you become more experienced. Here are a few tips for learning what types of products to scan and consider for FBA.

Here are a few things I learned about how to scout for toys this past holiday season:

Go to Kmart, not just Walmart, Target, and Toys R Us. Kmart stores are dwindling – there aren’t as many as there used to be. You can often find products that are Kmart exclusives or other products not found in Walmart and Target. And many of your competitors won’t even have access to a Kmart.

Try some items priced $50 or higher. The more expensive an item is, the fewer competitors you will have. According to an informal survey on my Facebook group, 75% of the FBA sellers asked won’t pay more than $10 per item when buying inventory. So if you have the cash flow, and you are not terribly risk averse, try some high dollar products and see what happens. You may see a nice profit and a fast turnaround due to lack of competitors.

Scan items that have fewer quantities on the shelf. For example, maybe there is only 1 purple mermaid Barbie, but 7 yellow ones. This tells you that the purple one is more popular than the yellow, since shoppers may have purchased almost all of them. Or, maybe the store didn’t get as many of the purple because they are in shorter supply. If there is only 1 or two of a variation of a particular item left, this is a clue that the item may be a good seller. Over the 2011 holiday selling season, the pink Fijit sold for about $20 more than any other color. Also, the Pink Leapfrog Leap Pad sold for more than other colors, because not as many pink ones were produced. Look for things in short supply.

Listen to the shoppers around you. Listen to what the kids are asking their parents to buy. If you feel comfortable and it is appropriate, ask a question or two. For example, I was scanning a toy that has about 25 variations. A mom and her 5 year old came to that section and the child wanted a particular one. I asked the mom, “Do you know about this toy? Why is that particular one so popular?” The child actually answered, and said, “Because he is the hero and always saves everyone else.” And guess what. It was an $8 toy. The one the child wanted, that was out of stock, had a 5% ranking and sold for over $30. Listen to what is going on around you!

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Amazon Plans New Fulfillment Centers for 2012

Image Courtesy of Google.com

With the growth of the sales of the Kindle Fire and with the increasing number of sellers using FBA, Amazon will add new fulfillment centers to reach more customers in a more efficient manner. The centers are planned for locations within Virginia, Tennessee and other states. With two new centers planned for Chesterfield and Dunwiddie counties, Virgina, the new centers are projected to bring approximately 1,350 jobs to that one state alone.

The growth is not focused on only US locations. Later this year, Amazon plans to open its first fulfillment center in Mumbai, India. In addition to the India location, Amazon will also add fulfillment centers in Nanning, China and in the cities of Koblenz and Pforzheim, Germany.

If you have ever wondered what the workings of an Amazon fulfillment center looks like, here is a YouTube video that will give you a peek:




The following are just a few of the new Amazon.com US fulfillment centers set to open in 2012:

• West Middletown, Delaware
• Spartanburg County, South Carolina
• Chattanooga, Tennessee (Opened 2/2/12)
• Lebanon, Tennessee
• Murfreesboro, Tennessee
• Dinwiddie, Virginia
• Meadowville, Virginia

What does this mean for the FBA seller? You may encounter additional shipping locations to forward your inventory. You may experience stock movement as inventory is transferred to other locations. While it may be a slight inconvenience to split your inventory, it is still a very efficient process. When you consider the time saved in shipping each item individually and warehousing your inventory, Amazon FBA is still a great alternative. Also, the additional centers shows the growth of Amazon.com. As the company reaches more consumers, so will your products.

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Got the USPS Rate Increase Blues?

If you are still learning to adjust to the recent US Postal Service rate changes, a new guide has been released that may help you figure it all out. Stamps.com is offering a free guide to the pricing change. The “Ultimate Guide to the 2012 USPS Postage Rate Increase” is now available online to help.

The guide takes you through all the various rate increases by level of service. From Express Mail to Priority Mail to First Class Mail, the guide has lots of information about new product offerings and details about the new pricing. The details for each price and service even includes pros and cons to help you decide which USPS mailing service would be best for your package.

To grab your copy of the guide, please click here.

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Don't Miss Sale Event This Saturday At Big Lots

If you are looking for a great way to buy inventory to sell on eBay, then get ready to search this Saturday. On Saturday, January 28, Big Lots is having a big savings event for its Buzz Reward cardholders. Just find your deals, check out and show your Buzz Reward card to receive an automatic 20% off your entire purchase. For more information, click here.

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Hot Items to Sell For Valentine’s Day 2012

Valentine’s Day is less than a month away but it is not too late to stock your eBay store with the things your buyers want! Look at a list of the current hot items buyers are looking to purchase for their sweethearts.

For women, the hot gift items seem to be accessories. Designer handbags and sunglasses top the list. Brands like Michael Kors and Prada are popular gift items. Also, silk scarves and nighties are on the list. Sunglasses are popular for men, too. Rayban and Oakley are the brands that buyers are looking for. Ralph Lauren, Hilfiger and Perry Ellis wallets are on the gift lists, as well. As always, cologne is popular. Buyers are looking for Dolce & Gabanna Light Blue for Women and 212 for Men, just to name a couple of brands. Of course, Paco Rabanne 1 Million and Marc Jacobs Daisy are on the list, too.

Electronics like iPads, eReaders, and headphones are making the list. Buyers are grabbing cameras like the Nikon J1 and home theater systems like the Panasonic 3D Blu-ray system. Apple products like the Macbook Air, the iPod Nano, and the iPod Touch are on the list again this year.

And old standards like candles, jewelry and vases are hot items. Plus, tickets to Broadway plays, sports events, and concerts are being given, too.

Other popular items include:

Men’s scarves

Tablets

Camcorders

Smartphones

Expresso Maker

Rings

Bracelets

Earrings

MLB Spring Training Tickets

While being able to sell these hot items will boost your sales, there are other tips that may help, as well. Offering gift-wrapping services will help you increase sales as well. Make sure your listings are clearly marked to show the additional services you are offering. Increase your sales by offering expedited shipping. This will help make your listings even more appealing to the last minute buyer.

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Free Kindle eBook - Barcode Booty

Today (January 19, 2012) this eBook is free for Kindle users. Learn how find bargain inventory anywhere including garage sales, grocery stores, Walmart, Target, drug stores, warehouse clubs, home improvement stores - anywhere you can buy merchandise. Learn about free apps and strategies for determining the potential selling price of an item. I read this book last year and it is very informative.

Click here to get your free download, today only!

Happy Selling!

Hot Item to Sell on eBay and Amazon – Baby Monitors

Image Courtesy of NewParent.com

Pay attention to your feedback comments on eBay and Amazon. You can glean valuable information about why consumers are buying your products, and learn how products are being used for other than their intended purposes. This information can help you market your products better, and discover product niches that you may not have thought of.

I learned this a few years ago when selling on eBay UK. One buyer clued me in that Preparation H ointment as a wrinkle treatment. (People keep it in the refrigerator and dab it around their eyes in the morning to reduce swelling.) Another buyer left a comment about using Swiffer Sweeper refills as anti-static packing material for computer parts. And yet another buyer informed me that Kool-Aid powder is used as a non-toxic hair dye, or for art projects. Finally, one customer left a feedback that said, “Can’t get this in UK because of health care system.” The product was toothpaste with peroxide – it was not available for purchase in the UK. After reading that comment, I listed almost every brand of toothpaste with peroxide for sale in my UK store, and toothpaste became one of my best sellers.

I recently received this comment after selling a baby monitor, “Great product- does just what I wanted without static. I use it with an elderly parent since I sleep upstairs.” Aha. I had purchased quite a few baby monitors and surveillance systems on clearance from Babies R Us last summer. They all sold well at at least $20 profit. Later I learned that people also use baby monitors to monitor their pets kept in another part of the house or basement.

The point I want to make here is to pay attention to the feedback comments your buyers leave. Listen to your customers so you can provide the products they want.

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