How Kraft Foods Made a Mortgage Payment for me in 2012

Some Amazon sellers are skeptical that groceries are a lucrative product to sell on Amazon, and rightly so. I discovered the grocery category to be quite profitable because of the consumable nature of food items. Buyers will purchase multiples of the same item, return to restock, and I am able to build my grocery business around what my local stores offer. I much prefer a product that I can restock for an indefinite time rather than having to discover new items each time I want to sell something. I can figure out a product once, replenish it hundreds of times, and create a steady stream of income. Furthermore, there is always something new and improved, a different flavor, scent, or product offering every time I go grocery shopping. Not only can I replenish what I already know is working, but it is very easy to find new products that will work based on what I have learned about selling other items.

The first mental stumbling block is the question, "Why would anyone even buy groceries on Amazon? Why not just go to the store and get them?" I certainly can't speak for every grocery buyer, but I have paid attention to feedback comments and shipping addresses and drawn a few conclusions. I notice that many grocery items go to large cities like Manhattan, New York, Chicago, Los Angeles, San Francisco, and Seattle. I believe the city dwellers enjoy the convenience (both time and physical effort) of having groceries shipped to their door. I also see larger multipacks (6-8 of an item bundled together) going to more remote locations in states like Wyoming, Utah, Colorado, and Alaska. I am wondering if these products that I can easily find are not so easy to find in other states. I have checked Google Maps to see where these products are being shipped, and many times it is a resort, game ranch, national forest, campground, or bed and breakfast. I am wondering if small businesses in these industries are using Amazon as their food supplier and taking advantage of the Prime shipping. Finally, about 35% of my grocery items go to APO/FPO addresses. Obviously, our military service personnel and their families enjoy their Prime accounts and like to order goodies from the USA. (Hint: Think microwaveable foods, items that won't spoil in the heat, and are portable in backpacks.) Bottom line: Don't assume everyone, everywhere has access to what you see every day in the grocery store.

I wanted to share my experience in 2012 selling a few grocery items and let you be the judge. Here are a few screen shots of some keyword searches I ran on my completed sales from Jan 1, 2012 - Dec 31, 2012.

I sold a variety of food products made by Kraft. The average profit per item is $5.35 (average cost per item is $2.86). This screen shot shows 184 orders, but actually 228 Kraft products sold because some of those orders included more than one unit. My total profit on grocery store items made by Kraft in 2012 was $1,219.80. My mortgage payment is $1,002 - so Kraft products paid my mortgage once plus $219 left to pay my car insurance one month.

I had 87 orders for grocery items with "vanilla" in the title. Many of these orders also contained multiple units.

I had 151 orders for grocery items with "cinnamon" in the title. Many of these orders also contained multiple units. Based on this information, I can deduce that cinnamon is a popular flavor and I am always on the lookout for more cinnamon flavored items that will work.

I had 174 orders for grocery items with "cake" in the title. Many of these orders also contained multiple units. And none of the cake items were Hostess products. I did not sell any Hostess products on either eBay or Amazon. (Hint: These items are not prepared cakes!)

I had 117 orders for grocery items with "cereal" in the title. Many of these orders also contained multiple units. I sell cereal in both single units and multipacks of 3-4 boxes. Cereal comes in about a million variations and is a very popular food product, so this category always presents opportunities.

I had 109 orders for grocery items with "salt" in the title. Many of these orders also contained multiple units. You can get more basic than salt, right?

On some of the Amazon selling groups, you will see sellers complaining or criticizing the sale of groceries. First, they can't believe buyers actually buy groceries online. I have just disproved that theory. One downside to selling food products is that buyers cannot return them if they are not happy with the purchase. Amazon does not accept food returns - so the refund is given to the customer and sellers do not get the food product back. I can live with that. I have no problem selling a $3 box of cereal for $12.50 for a profit of $6 - 100 times - and have to refund 2 or 3 buyers a month. The $600 profit is totally worth the loss of a few boxes of cereal. Works for me.

Add-On status can hurt you if you are selling groceries, but there are workarounds. I have learned to make my bundles larger, and therefore more expensive, so they don't go into Add-On status. I have also learned to sit tight and wait if another seller's low price drags an item into Add-On status. They will get frustrated, drop their price lower and eventually sell out, and they usually don't return. Sometimes I am the only seller left on the listing and sales then resume at my original price point. (Learn more about Add-On status here.)

I want to encourage you to give grocery items a try on Amazon. Don't believe everything you read on networking groups - let's face it, a lot of people just go there to complain. You can get sucked in to all that negative drama, or you can follow others who make it work. I am proof that this works and you can make a good living doing it. In fact, I can't go to the grocery store anymore to pick up personal items for my family without either restocking or discovering new items to sell. It is almost too easy.

If you are interested in personal coaching to learn how to add grocery items to your Amazon inventory, contact me at eBaycoach @ yahoo.com for more information. I can teach you how to do this in just a few lessons over the phone. Once you discover how to make money selling groceries online, you won't mind running out for milk or bread anymore!

Sign up for my Amazon Grocery Class here and learn how to use the resources available in your area (grocery stores!) to make thousands of dollars on Amazon every month.

Happy selling!

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Hot Item to Sell on eBay - Today Contraceptive Sponges

Today Contraceptive Sponges. These are selling for 5 times the retail price, but are very hard to find. The company has temporarily stopped production as a result of a packaging change. Women love these and will pay big money for them - since they offer hormone-free, convenient birth control.

They have been found Rite Aid and Walgreens and other drug stores. Some have even been found marked down on clearance. They cost about $10 for a box of 3, or $20 for a box of six. Also look at flea markets. If you can find any, buy them and sell in a lot. Here are some recent completed listings:


Today Sponge Vaginal Contraceptive Box of 6 2010
That's right! One box of 6 sponges that costs $20 sold for $99!


6 ~ TODAY SPONGE Contraceptive New in Box Exp 6/10
Same thing, a $20 item sold for $99.95!


3 ~ TODAY SPONGE Contraceptive Exp 6/10 New in Box
Box of 3 sponges which cost $10 (or less) sold for $49.95.

Let me warn you, these are hard to come buy. But it never hurts to look if you are out and about and can drop by a drugstore and check. If you do decide to sell them, list them as a private listing. You will get more bids and buyers if the buyer's privacy is respected, because of the nature of the product. Click here for step by step instructions on how to create a private listing.

I had great luck with these last summer and fall, and have cleaned out most of the stores in Atlanta! Other sellers in my Facebook group reported finding the Today Sponges and making several hundred dollars.

Update September 2013: Since this post was written in 2009, I have become proficient in selling grocery items on Amazon, including "embarrassing products" like contraceptives. Personal items sell better online than in retail stores because of the privacy of buying online. In fact, I make between $150 - $200 selling condoms on Amazon every month. Learn more about selling grocery items by taking my class, "The ABCs of Selling Groceries on Amazon."

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New Online Class - How to Make Money Selling Groceries on Amazon

I am excited to offer live interactive e-classes! These classes are designed for the serious student who wants to grow their online business with the help of a live teacher in a small group interactive environment. Classes will be held via GoTo Training on a weekly or monthly basis. The grocery class is now available!

Amazon.com offers over 665,000 items in the grocery category, and millions of buyers shop on Amazon every day. Do you want to learn to make thousands of dollars a month selling grocery products on Amazon? Grocery items are consumable, plentiful, and many products are not available in all parts of the country but buyers look to Amazon as their online grocery supplier. The key to a successful grocery business is identifying products you can repeat for several weeks, months, or even years. Your work as a grocery seller is in restocking products that sell well and discovering new products along the way as you go out on weekly replenishing trips. You don't have to scan for hours and hours every time you go scouting. In fact, you don't have to go scouting at all. Now you can learn how to use your local grocery store to source profitable and repeatable products to sell on Amazon. 
 
I've been selling groceries on Amazon since 2011 and have learned how the Amazon grocery business works though over 2 years of trial and error. In this 90 minute online class, I will share:

Why groceries are profitable to sell

Basic grocery category rules

Types of items to sell

Types of items to avoid

How to discover products to sell without using a scouting tool

Pricing strategies

How to move away from the herd of Amazon FBA sellers

How to cut inventory costs

Creative sourcing techniques

How to use Amazon reports and other free resources to identify product opportunities

Pitfalls to avoid
  
Question and Answer session following presentation 

View a video about exactly what the course covers:






Update: This class is not an instant download. Purchase "The ABCs of Selling Groceries on Amazon" here and get started right away.

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Top 3 Grocery Items to Sell on Amazon

Selling groceries on Amazon has proven to be a profitable and interesting journey in my eCommerce career. I started selling groceries on Amazon in 2010 and quickly learned that the opportunities are endless. The most difficult concept about selling groceries for my clients to grasp is that not everyone is seeing the same grocery products that you are. Regional and specialty products continue to gain popularity on Amazon and it just takes some time and research to figure out how to make it all work.

I've noticed some patterns with my own grocery business that may be helpful to others looking to start selling grocery items on Amazon, or to expand your current product line and think outside the box a bit. So here is my top 3 list.

Coffee. According to Food Manufacturing.com, "Overall coffee consumption jumped by five percentage points this year, according to the NCA National Coffee Drinking Trends (NCDT) market research study. With this increase, 83% of the U.S. adult population now drinks coffee. At the same time, daily consumption remained strong and steady at 63%, while those who drink coffee at least once per week was up slightly to 75%." Coffee is an extremely diverse product line with many options. The variations range from brand, flavor, packaging, and caffeine level. Have you ever looked at how many different ways coffee is sold? Beans, ground, instant, pods, K-cups, discs, single serving packs, tea-bag style, capsules, and even ready-made beverages. Coffee usually has a long shelf life so you don't have to obsess over the expiration date, and it travels well, (no breakage). Amazon shows 62,000 offerings for coffee, only 8,200 are Prime Eligible - or 86% that are NOT Prime Eligible.  Remember, it is estimated that Amazon has over 10 million Prime customers - they are waiting for items to become Prime Eligible and purchase them. Lots of opportunity in this category.

Cereal.  Another diverse product line with many variations. There are 7,700 offers for cereal on Amazon, with only 1,675 of them Prime Eligible. In August 2012, The NPD Group reported that "Cereal has a penetration rate of about 90% in U.S. homes (97% in homes with kids)." It would be impossible for Amazon to stock every single option - there are just too many. Variations include hot vs. cold cereal, kids vs. adult cereal, regular size boxes vs. individual serving size, wheat / corn / rice / oat varieties, gluten-free, organic, Kosher, vegan, vegetarian, low fat, sugar-free, non-GMO, with or without dried fruit, the list goes on and on. Cereal travels well (no breakage) and it is a common household food in most American homes. My best tip here is to avoid selling cereal in single boxes because they can go into Add-On status and sales will stall. (Learned that the hard way.)

Nuts and Seeds. Amazon shows over 27,000 listings for nuts in the grocery and gourmet food category, but only 4,000 are Prime Eligible.That leaves a lot of room for FBA sellers to add these offerings to Prime Customers.  So let's talk nuts - another category with lots of variations - peanuts, almonds, pecans, pistachios, cashews, brazil nuts, hazelnuts, macadamia, walnuts, sunflower seeds, and pumpkin seeds. Nuts and seeds are sold in bags, cans, boxes, and single-serve packs. They travel well, usually have a long shelf life, and are a popular healthy snack.

When you consider the research, and how many products in the Grocery and Gourmet Food category that are already listed on Amazon and are not Prime Eligible - it just makes sense to make them available for Prime Buyers. What are you walking by in the grocery store every week that you could be selling over and over again on Amazon every month?

Check out my downloadable course, "The ABCs of Selling Groceries on Amazon" to learn more about this fun niche.

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eBay Changes Manufacturer's Coupon Policy

Did you know you can sell grocery coupons on eBay? Well, technically, you aren't able to sell the actual coupon, you are selling your time to find, clip, and mail the coupon for the buyer. eBay has had a pretty liberal policy for selling coupons, but recently a few things have changed due to the growing problem of grocery coupon fraud. Here are the new rules:

You may sell up to $100 or 25 valid, unexpired, original coupons per month.

You can't sell more than 25 coupons in a single listing. The allowed 25 coupons per month include multi-quantity listings.

Make sure you clearly state in your description how many coupons you're selling. If eBay can't tell how many coupons are offered, the listing violates their policy.

Coupons for "free" products: You can't sell coupons for "free" items.

Electronic "scanned" coupons: All coupons sold through eBay must be physical coupons printed on paper, not coupons that can be sent electronically to the buyer to be printed.

Read the full eBay policy here.

Now, if you aren't a coupon seller, maybe you are a coupon buyer? You don't have to be a black belt couponer to reap the benefits of using grocery coupons for either personal or business purposes. I have purchased grocery coupons online for years, and coupons were a big part of my eBay UK health and beauty business. Now, I sell a lot of groceries on Amazon, most of which are repeatable and I replenish every week. (Check out my Amazon grocery class here.)

Think about it - if you are buying the same items over and over again, and you know in advance what you will be buying because you know what sells, why not plan for those purchases by stocking up on coupons to cut your costs? I can save about $50-$100 a week on my Amazon grocery purchases by planning ahead and keeping a well-stocked coupon stash with me when I go shopping.

Let's say I sell this Jergen's Glow Moisturizer on Amazon, and I sell 10 a month. I can get the coupon below for 15 cents from the Coupon Clipper site, and it saves me $1.25 on each unit.

My net savings after I redeem the coupon is $1.10 per unit, or $11 a month. Now multiply that effect with 20-30 different items and you can see the reduction in your inventory cost. So, buy planning ahead and buying coupons for items I already know sell, I can reduce my cost.

I purchase grocery coupons from eBay or from coupon sites such as The Coupon Clippers or Select Coupon. Resources for finding inventory, and reducing inventory cost are all around you!


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Strategy for Using Grocery Stores as a Source for Inventory

Grocery stores can be a gold mine for sourcing both eBay and Amazon inventory. And its not just about hitting the clearance section - there are other creative ways to find inventory that work for selling online. Grocery stores are a great way to find products that you can sell consistently with very little (or no) competition. It just takes some searching to find products that work.

When you use your regular grocery store to source products, you don't feel the pressure to over-buy like you might at Big Lots or a closeout store. These products will be available to you any time you need to restock. A grocery store can be like your own personal warehouse with thousands of items to choose from any time you want.

Did you realize that some stores flag items on the regular shelves with special closeout tags before moving them to the clearance area? If you are only checking the designated clearance aisle or kiosk, you won't find these deals - you are leaving many opportunities behind. Closeout products are offered at a reduced price because they may not be moving well at that particular store, the manufacturer may be doing a packaging change, the store may be resetting the shelves for a new season, or a number of other reasons. These markdowns happen every single week.

If you know what to look for, and use a scouting tool or have internet access on your phone, you can find these items (and check the online selling prices) as you do your regular grocery shopping. The photo above shows a closeout item on the regular cosmetics aisle at a local grocery store in my area - look at the price cut and look at how many items are available to purchase. Score!

You may not think selling groceries is very glamorous or profitable, but consider these points:

Not everyone has access to what you have in your stores or geographic area. This is the #1 assumption that causes sellers to walk right by profitable opportunities.

Groceries are consumables and buyers will purchase multiples - consumables are where you get those wonderful quantity buyers!

Grocery items are easy to find and abundant - grocery stores stock thousands of different items and are constantly adding new products.

More and more consumers are buying online - they like the convenience of having merchandise delivered to their door, they save time and gas by avoiding having to drive around, and Prime customers on Amazon get free shipping, so they utilize their membership whenever possible.

Baby Boomers are loving the convenience of online shopping, especially in the winter months - trips to the grocery store can be physically demanding.

Online shopping can be less expensive and is definitely less hassle than regular shopping.

Knowing what the shelf tags mean and how the store positions the items is crucial to finding these opportunities.

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Amazon Grocery Course Now an Instant Download

By popular demand, the ABC's of Selling Groceries on Amazon is now an instant download. You'll receive:


8 Videos containing 2 hours worth of content

120-Page eBook

My personal insights about how to succeed in the grocery niche

Cost is $149 - one or two payment option available.

Get the details and order here.

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Amazon Success Story - 5 Years Later

I received this email a couple of weeks ago from a client I worked with in 2010 (5 years ago). His story is inspiring and shows that with hard work and a commitment to success, anything can be achieved. Am so proud of you Jorge and for what you have accomplished.

"Hello, Suzanne.  I can't recall ever taking this long to reply, but I am going to look at things on the bright side and say that it's  'better late than never.'  With many apologies included, of course :)

How could I summarize almost 5 years in a single email?  It makes sense to start from where I am today and go back.

I have over 10,000 transactions under my belt selling on Amazon, mostly from DVD orders fulfilled by Amazon.  Amazingly enough, I have been able to maintain 100% positive feedback, though it's been no easy task.  I have had plenty of customer service issues to deal with, but fortunately I've been able to resolve all but one (and that one doesn't bring me under 99.5% positive so it rounds out to 100%).

I have been making a living selling on Amazon since October of 2012, when I was able to quit the 9 to 5.  It hasn't always been smooth sailing, but I have maintained gross profits above the minimum desired level for going on 3 years now.

I am now at a crossroads, again.  I have recently resumed working on getting approval to sell DVDs with MSRPs over $25.  I worked on getting approval full time between September and November of last year (selling on Amazon became part time, but with full time pay luckily).

After the new policy took effect in mid November, I then started working on getting back up to where I was when I could sell the newly restricted DVDs.  My profits dropped 50% in December of 2014 compared to the prior year, and January of this year was also a bit rough.  But then I was back up to speed in February, and since March I have actually doing better than I had been in prior years.  So far my sales are up around 25% compared to the year to date numbers in 2013 and 2014, and YTD gross profits are even higher compared to 2013 and 2014.

So what was once an oversight is now my core business.  If I could get approval for the over $25 MSRP DVDs and could apply the newly acquired sourcing techniques, I could comfortably triple what I was averaging in 2013 and 2014.

That, in a nutshell, is what has been going on with my business.  There are plenty more details naturally, but it is certainly not my intention to give you an overwhelming account of what's happened in the past few years.  If you would like to know some more specifics out of curiosity or if you feel you might find some of these details useful, then please let me know and I would be happy to share anything you would like to know.

Can't say so long for now without thanking you again for having made all of this possible.  Your coaching gave me the foundation for everything I am currently doing in my business.  I remember that you even covered flipping eBay items, though at the time I had no idea that would become my primary sourcing method.

It would be nice to know how you are doing, time permitting of course.  I imagine you might be as busy as you were before or possibly more so.  I remember back in 2010 you were involved in a number of different things.  I just do one thing and that definitely keeps me quite occupied.

I look forward to hearing from you,

Jorge"

I am honored to be a part of helping someone build their business and love getting emails like this.
Visit Jorge's Amazon store here and see for yourself what can be done with hard work and commitment.

If you are ready to make a commitment and need a mentor to help you get there, let's talk about how I can help you reach your goals. Set up an phone consultation here and start growing your ecommerce business today.

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5 Myths About Selling Groceries on Amazon

Selling groceries on Amazon seems to be a hot topic right now around the blogosphere and on seller networking groups. Unfortunately, much of the advice being dispensed is really not the best advice for sellers, nor are the people offering the advice really very experienced in this niche. I'd like to take a moment to shed some light on some bad information floating around so that other sellers really can be successful.

I've been selling consumable grocery, baby, and health and beauty items online since 2007. I started this venture selling on eBay UK. Several eBay sellers offered consumable grocery, baby, and health and beauty items as order fillers. In other words, we created listings for products we could buy at regular retail from Costco, Sams, Wal-Mart, Target, CVS, Walgreens, and other stores. About twice a week, I would make the rounds to purchase items that had been ordered on eBay and ship them. This business model was great because I was able to use the customer's money to buy product and there weren't a whole lot of other sellers doing it so we didn't see the "race to the bottom" on pricing. (Click here to see posts about my eBay UK selling experience and how it worked back in the old days.)

I've learned a lot about selling locally-sourced consumables online since 2007. My philosophy has always been to make money as efficiently as possible and to find items that can be easily replenished that sell with an acceptable profit margin. Why reinvent the wheel every time, right? Figure out a product, sell it over and over again until it becomes unavailable or the market no longer supports the desired profit margin. So I come to you with this list of 5 myths about selling groceries on Amazon with a pretty informed and experienced perspective.

Myth #1 - You Should Sell Heavily Advertised Seasonal Food Products.
This is the absolute worst advice out there. Right now the heavily advertised seasonal foods are Easter items - marshmallow Peeps, brightly colored M&Ms, cake and cupcake mixes with spring colors, Pop-Tarts, Hershey kisses, Oreos with pastel colored icing, etc. If you see a big display of any of this kind of stuff at Wal-Mart, Target, or your grocery store as soon as you walk in - GUESS WHAT? So are hundreds of other Amazon sellers. What might look good now will be impossible to sell in a few weeks. A bunch of sellers will send in those products, the market will be flooded, and no one can make any money. This strategy used to work, but now too many people are getting into this business, the newbies flock to the seasonal foods on the big obvious displays, and the products are covered up with FBA sellers very quickly. There are plenty of opportunities elsewhere. Leave the Peeps and M&Ms to the people who don't know any better.

Myth #2 - You Can't Find Any Groceries to Sell on Amazon at Wal-Mart.
I wish I had a dollar for every time I have read this comment on a message board. The problem is not Wal-Mart, it is the seller making the buying decision. May sellers are much to focused on sales rank and they pass over items that will absolutely work. About 50% of the grocery items I sell come from Wal-Mart and they are NOT national brands, and they are NOT on sale. Sellers have become too rigid in their decision-making process and are passing by opportunities right and left. See this video, Amazon FBA Smarter Scouting Tips.

Myth #3 - You Should Sell Items on the Amazon Movers and Shakers Reports.
No, no, no! The Movers and Shakers reports show the top 100 gainers in sales rank in the last 24 hours. Most of the items are sold by Amazon (whose price you cannot beat most of the time), or they are covered up with FBA sellers. Remember, the more sellers on a product, the more opportunities to be out-priced and the more likely you will lose money or your product will expire waiting for sales . Use these reports to study and identify product trends, but don't try to sell the exact items. You will be frustrated, disappointed, and lose money.

Myth #4 - You Have to Buy on Clearance to Make Money Selling Groceries on Amazon.
Referring back to myth #2, most of you are looking for items on sale. I guarantee there are products out there you can buy at regular retail 100% of the time and make a good profit. For example, I sold this lemon tuna for a year before my grocery store stopped carrying it. My cost was $36 and it sold for $67.97 for a profit of $17.53 per unit. Here is a sales snapshot:

I sold 50 orders over the course of a year (some customers bought 2 sets), and total profit was $1,034.27, on a single product sourced at regular retail. And guess what? This came in other flavors and I sold those, too. That tuna was a good friend and I was sad to see it go away. This is only one product that I sourced at regular retail - so imagine this scenario multiplied 10 or 20 times a month.

Myth#5 - You Have to Live in a Big City to Make Money Selling Groceries on Amazon.
I hear this one a lot, because I live in Atlanta and people like to make excuses for my success. There are many other ways to source groceries other than standing in a store scanning like a robot all day. I am not talking about ordering from huge grocery wholesalers or ordering junk from China. You don't have to travel to trade shows or go to scary bad neighborhoods to shop at liquidation stores. There are many other ways to source groceries and consumables that are convenient, safe, and only require some time at the computer.

I hope these ideas will give you a new perspective about what is possible. There are huge opportunities in the grocery niche and enough room for anyone who wants to play. Check out my course, The ABCs of  Selling Groceries on Amazon for more in-depth information about all of these concepts and many more strategies about making money in the grocery niche.



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