How to Make $4,000 PROFIT Each Month Selling on eBay and Amazon – Part 3
Transcribe of “How to Make $4,000 PROFIT Each Month Selling on eBay and Amazon – Part 3”
Tools are awesome if they do what they’re designed to do, which is to save you time and money. If they don’t do that, then don’t use them. So, as an example, you can use Scarcity Manager. Just click on eBay categories. This will cost you about 15 bucks a month. You can go to any category here, so like, take, for instance, snooker, pool, billiards. And you click on that and then you can go, it’ll show you in this category, so, going back, these are all the categories in eBay, right? Goes down and down and pages and pages and pages, I mentioned before you can never run out things to sell.
So choose any category
So choose any category. I chose snooker, pool and billiards. Click on it, bang! You now get this page. And you can see here, number of items sold. This one at the top for instance, has sold 2101 times. This is 1700, blah blah blah. Now this number here is really important. Every item on eBay has a 12 digit ID number. Same with Amazon. It also has, it’s called an asset number.
With eBay it’s a 12 digit number and that number there is a hyperlink
So, with eBay it’s a 12 digit number and that number there is a hyperlink. That’s the individual listing number on eBay. So you can click on it. I went to this one in the middle, new billiards, snooker, pool accessories. It’s sold 1497 times, at price sold for 167.99. That’s a hyperlink again, so you can click on it. I clicked on it. Bang, now I can see the name of the eBay seller. That’s selling those, as it says here, one, four, nine, seven. And of course now I can go and investigate what is the top selling items of that seller. I can go and see all their products they’ve sold. So this product might be their top selling item, it might not be. But you can go inside any eBay seller and find out they’re 80, 20. Yep.
Where do you find the Scarcity Manager?
– [Audience Member One] So where do you find the Scarcity Manager?
– Just scarcitymanager.com, www.scarcitymanager.com.
– [Audience Member One] Thank you.
– [Audience Member Two] Terapeak is some sort of--
– Yeah, Terapeak is a, it’s a Canadian program. Was started by two brothers in Canada and it was purchased last year by eBay. And that will do, if you want to go back past 90 days, Terapeak will do that for you. Terapeak won’t do you that thought what I just showed you.
Terapeak you’ve got to give up your data
– [Audience Member Three] Terapeak you’ve got to give up your data, like I think you get it for free now on eBay. If you’ve got to give up your data, you get everybody else’s, but they also take yours. So, you know, you’ve got to-
– Swings and roundabouts.
– [Audience Member Three] Yeah
– All right so any other questions on this? Good? All right, so now once you’ve found, like this particular item here, you found this, this billiard set, you go; Okay well, I want to buy it, and of course you want to obviously import it, from, you don’t really find…
We import from China, Malaysia, Vietnam
You might want to find an Australian source for it or you might want to import it, do you want to do importing? We import from China, Malaysia, Vietnam And we use Alibaba like I mentioned to find stuff. Which I’ll talk about in a sec. But this is how you find products, Alibaba, you put it in what you want here and just drill down like any other search engine like Google or whatever. Or you can go to get quotations now and put it in your, what you want and let all the suppliers come to you. Make sure though before you do that, that you set up a brand new email address. One that you do not want, because you’ll get spammed to death with it, all right. Anyone down that?
Hotmail account or whatever
– [Audience Member] Yeah, yes.
– All right, so it’s awesome but just use a, you know, a Hotmail account or whatever. And just on this, a lot of people think that Alibaba’s just for China. Beause it’s owned by Jack Mayer who’s Chinese but it’s not the case, you know, you guys can set up an account right now an Australian. Be an Australian seller. And there’s a huge market for that too you can sell back to China, massive, massive market you know, 250 million population. They love Australian products. If you’ve got access to Australian products worth, you know, honey, macadamias, alpaca wool, you know, baby formula. Remember that episode a couple years ago they love Australian products so if you have got access, you know you could be see on a gold mine.
Alibaba, it’s not exactly a small company, they sell more than eBay and Amazon combined
Okay Alibaba, it’s not exactly a small company, they sell more than eBay and Amazon combined. Huge, huge company, they also have, Jack Ma, also owns Team All, which is, like the equivalent of eBay or Amazon in China, massive company, when you start selling or importing from say Alibaba what you want to do is you might be worried about the quality of an item and if you are, then you can just go and find Inspection Service, through Alibaba and they’ll go inspect the goods for you.
We do what’s called a one-in-10
We do what’s called a one-in-10, so if we, let’s say it’s 100 items they’ll inspect one in every 10 so they’ll randomly choose 10, inspect them, if all good, awesome, if they find a problem with any of them, they’ll inspect the whole lot and we will ask the supplier to foot the bill for inspecting the whole lot. These are all verified, don’t choose one, choose one round the area of where the manufacturer or the supplier is, so let’s say they’re in as an example at the top, find a an inspector up close to there and let’s say it’s an electrical product, get an inspector who’s authorized to do electrical because it’s like Australia, is a huge country so you don’t want to have someone in, you know, you’ve got one inspector in Sydney and then you’ve got another supplier in Perth you don’t want to fly them there you just go and get one in Perth.
Find an inspector up close to there
As you get, negotiate more and more and you sell more, don’t go for the jugular at the beginning, try to get the best price at the beginning, because Westerners we’ve all the reputation of doing that, get, build a relationship and gradually get lower prices, as you build a relationship, it’s all about relationships. Okay any quick, any questions on importing?
You looking for the exact product that you saw on eBay?
– [Audience Member] You looking for the exact product that you saw on eBay? Or something?
– Normally the exact, because look, everything has criteria, so for our import criteria, we only want items that sold, absolute rock bottom, minimum 15 times a month for the last 90 days. It must have at least 45 sales the last 90 days and it must be making at least 35 percent profit, for an import item and you can only compare oranges of course, with oranges. So, it has to be identical.
Has to be identical
– [Audience Member] And so unbranded?
– No, we did branded, but most stuff out of China you always, especially for new, you want to do unbranded, because if it’s branded, you can pretty much guarantee it’s a rip-off. Okay, so, Amazon product research, start at the very beginning and again, like Amazon you can go through all the child categories and then you can go through all the, so, parent categories is here, then there’s child categories, and I went to the home improvement category and within Amazon we found this little trick, this is a here for years but then they delete it, where you can see how many results were in any category. So, I’m in the beauty and personal care category here and I can see there’s 90000, now we used to have this data, then they deleted it, but what we found is a trick, to get around it, if you put in minors and some rubbish.
Amazon always tells you what number
Bingo, you can now see how many, how many are in each category and we use this a lot with Amazon because we want to know if there’s 90 thousand items in a category, Amazon always tells you what number, in that category this item is, so this item could be, number you know, 250 and you go okay, it’s number 250 well if you don’t know how many are in a category it’s irrelevant there could only be 250 in that category, which means it’s last, but if it’s 90 thousand, well that’s a pretty good result, ’cause we only want to sell something’s in the top 5%. Now to get the 5% of course we need to know those two numbers, we need to know what number is this, so if you click and then I’ll tell you, but we need that number and bingo that’s how you get, just by putting that minus sign.
Always know the best categories, in any category in Amazon
– [Audience Member] How’d you find that out?
– How’d you find a lot of stuff out? You just muck around and then, bingo, yeah.
– Minus something or other and then--
– Yeah well also we are developers too so we got the edge, we’re Amazon and eBay developers, so we get a lot of stuff from the programming as well. Okay, so, bestsellers. It’s, with Amazon, it shows you in any category, what the bestsellers are, in any category, so you can always know the best categories, in any category in Amazon. Note though, as it says here; the items are continually changing,every hour Amazon updates the algorithm and it looks at, what is the top sellers now, because something might have run out of stock, something a lot of had a promotion on that’s run out, all those zillions of factors so, if you press F5 an hour later, which is refresh, you might find the bestsellers have changed, they update every hour.
So bundling, bundling is, an awesome thing to get it it to
Now, so, Amazon best seller, as it says here, updated hourly. So bundling, bundling is, an awesome thing to get it it to and this answers all these questions that just came up, about how to get around the fact about, something that’s already hot seller, let’s say you got something on Amazon, it’s only got a thousand reviews and you want to try and sell that product, well good luck, unless you’ve got a really good price because with the way Amazon works you have this buy box up here and sometimes, down here and basically Amazon looks at your postcode, of where you are located, it looks at the postcode of the supplier, or it could be housed by Amazon, so looks at their postcode and take all these different factors into account and picks one seller and puts them in that buy box and that’s that buy box gets most of the business.
Amazon looks at your postcode, of where you are located
So, how do you get around that? You create a new code, you bundle. So this particular item, a Logitech laser pointer, will have a certain Amazon code, you can create a brand new Amazon code if you bundle, so you can add to this a battery, a cover, whatever and I’m going to show you how, you can actually find out exactly what to bundle, again, taking out all the guesswork because there should be no guesswork, here it is, Amazon tells you; customers who bought this item bought. So this particular item we’re selling here, it’s a Philips light bulb and it tells us here; customers also bought, these other items.
Amazon tells you; customers who bought this item bought
Bingo that’s huge information, so now we go back to Phillips and say; can we also buy some of these please as well and we bundle them. Bang, we got brand-new bundle codes, then we take the same information and we can sell the same items on eBay and on our web sites by bundling what this data, they’re already telling us what to bundle, it’s saying people bought this item but they also bought that at the same time.
– [Audience Member] What do you mean? That like bundled together?
– Together! Together, the same box, with a new code.
– [Audience Member] Just offer it as a package?
A new UPC code or NPN code
– Yes with a new code, a new UPC code or NPN code.
– [Audience Member] You were saying, selling Phillips bulbs, is that what you’re suggesting?
– No! This is one product, we sell, you know, this is one product, this is just an example.
– [Audience Member] Doesn’t Phillips have, the best price for--
– Yeah but it’s not the point, the point is; whatever you’re looking at, any product that you look at, Amazon will tell you what people other bought, so if you bought if you looked up this item you’ll see, people might have bought, you know, two energizer batteries with it. They might have bought a cover, they might have bought a whatever copy of PowerPoint or whatever, whatever it is, it’s all here and it’s telling you what to bundle.
It’s all here and it’s telling you what to bundle.
– [Audience Member] Nappies and nappy wipes.
– Exactly, exactly nappies and nappy wipes, so if he’s selling nappies he’ll say down here people also bought nappy wipes and they also bought, you know, a baby monitor and they bought this and that and so whatever product you look at on Amazon, it’s all the data’s there, there’s no guessing, you don’t guess that they bought that. That’s my point. Okay, so, Amazon is powered by reviews, like and eBay’s moving more to that as well, it’s got reviews on there, so don’t sell low quality non durable products.
Always check Amazon and eBay reviews or feedback
Okay, so, only sell quality items, always check Amazon and eBay reviews or feedback, there’s huge opportunities here if you read, if you look at Amazon reviews and see something that’s got a bad review, can you improve it? Can you fix it? For example, someone says this manuals useless, it’s written in Chin-glish, awesome, because you can just write a new manual and I’m not talking about some massive manual, I’m talking like maybe five pages maybe 10 pages, maybe just shoot a 30-second video on your iPhone and include a link to it, it’s not how…
Ruslan Kogan got started by re-writing manuals
This how Ruslan Kogan got started by re-writing manuals, in English, on televisions, every time you see something like that, that you can improve, you just found yourself an opportunity because there’s someone if your competitors got a 3.5 score out of 5 because it’s got, they’re getting this negative feedback about it, he fixed that problem you’ll go to 4, 4.5, 5 and you’ll beat them, for the same money and you’ll appear in the buy box, so reading reviews is awesome. Also, if you look at any new product, you want to see; is this product any good?
Just go to eBay and look at the feedback for that seller
Just go to eBay and look at the feedback for that seller look at their negative feedback, you can click on the negative feedback it’ll show all their negative feedback if nothing pops up about the product, awesome, if it does leave it alone.
So eBay and Amazon you can look at the feedback on any product, so you let the market do the product research for you and test the product for you so there’s no question if this is any good you don’t have to guess it, you just click on the feedback, yep, no negative feedback, it’s obviously a good product ’cause they’ve sold 75 of them does everyone understand what I’m getting at? Yep?
Some of these products are unbranded when you get them from China,
you’re looking at another seller, you know where he has got it from so, ho
– [Audience Member] Normally, some of these products are unbranded when you get them from China, you’re looking at another seller, you know where he has got it from so, how can you tell what they… You’re a seller so you have to do those inspections?
– Yeah absolutely unless it’s a brand name, it’s got the code on then it’s already tested, but if it’s brand new, yeah then you’ll need to get an inspector to inspect it first for you.
You’re a seller so you have to do those inspections?
– [Audience Member] Because just going by sellers, because if it’s unbranded it’s difficult to tell--
– That’s right, so you get inspected. Okay, so, can you improve that product on that but just note that with reviews, less than 5% of buyers leave reviews, same with eBay, okay so narrow it down. There’s a route we’ll call the rule of sevens, there’s seven things that we want to check, to see if we can compete on a product, so I’m going to show you this manually, but then you can also just use software, which just doesn’t like that.
There’s seven things that we want to check, to see if we can compete on a product
Again, I’m not, you know I’m not trying to flog you software it’s just going to show you an easier way, so he searched for non-optimized listings and products, if you can find something that’s not optimized, you just found yourself an opportunity. Again there’s software that can just find them all for you. So with poor reviews, poor photos, not many photos, poor ad copy, no bullet points for instance, on Amazon you should always have a minimum of five bullet points, on eBay you should always have a minimum of 20 bullet points.
On Amazon you should always have a minimum of five bullet points, on eBay you should always have a minimum of 20 bullet points
No or few FBA sellers, this is a huge, huge thing, 95% of items on Amazon are not in an Amazon warehouse, so they’re not set up for FBA, so of course in order to be on FBA, it needs to be sent to an Amazon warehouse, over 95% of items are not sent to a warehouse, if you send an item to a warehouse it advocates on what’s called Amazon Prime and your listing gets bumped up higher, if it’s on an Amazon warehouse, so there’s 95% of items are not done that.
You can just use a probe like Egrow and automatically does that for you and it shows you a rating
So, like I mentioned before, you can do all this stuff manually or you can just use a probe like Egrow and automatically does that for you and it shows you a rating and you can just scroll down into any category and find the items with the low ratings. Bingo, you found an opportunity, obvious it’s got five out of five, you probably don’t want to touch that product ’cause it’s already optimized, but all the other ones, they’re all fair game. So and that works in Australia not a lot of software for Amazon works in Australia but this does work in Australia.
Reviews help you, to optimize your product
– [Audience Member] Reviews help you, to optimize your product?
– Yeah, thing is, if you got reviews on it, you get bumped up higher in the search results.
– [Audience Member] So you can do like, get free items for people and ask them--
– No. No don’t ever solicit reviews you’ll get shut down
– [Audience Member] They’ll find out.
– They’ll find out, a lot of Technology do that yeah?
– [Audience Member] It seems a bit risky though to, that they’re not proven products, so you talk about you know only selling proven products, these aren’t.
– Well they are proven, ’cause they’ve already got sales, so it shows you how much, shows the amount, number sales, 115, 172 to 304 sales.
So high sales and bad reviews
– [Audience Member] So high sales and bad reviews?
– Yes exactly high sales and a bad rating, because the rating takes into account all those other factors. Yeah yep?
– [Audience Member] How do you know, why they get bad ratings?
– Because you can look at the reviews.
– [Audience Member] Stars.
– Star, you can look at the stars and you can see it, like on eBay, eBay you can see two things, on eBay; you can see the stars and you can also go into the negative feedback.
Put the UPC code into eBay it’ll automatically take it together
– [Audience Member] So how do you know? How do you know how to map it, put this up on eBay, in such a way that you know, you don’t have that model like from the other sellers?
– [Audience Member] Yes.
– Well on eBay, well if it’s got a UPC code and you put the UPC code into eBay it’ll automatically take it together just like Amazon and ’cause it’s a bad about the product so if you want to go have it… Otherwise you’ve got to create a new product, with a new number.
This Logitech item has got a code and that’s it the codes set and so if this is a bad product or a good product
This Logitech item has got a code and that’s it the codes set and so if this is a bad product or a good product, it’ll get the stars accordingly. Okay if you want to know more about Egrow, there’s a free video there that shows you how to use it, it’s like a review video, which shows you all the features and benefits of E-grow and you can just, you can watch that at any time so I’m not going to go right into E-grow tonight, but again, if you want to know more about it; there’s a video, shows you all how to do it.
– [Audience Member] Question.
– [Audience Member] These apps the paid apps that provide big data, does it help?
– See, how long would it take you to compile that page?
– [Audience Member] All day.
Very limited data when you go to free websites but the paid websites
– [Audience Member] No. But this is very limited data when you go to free websites but the paid websites, I’ve tried some, it’s really, really big set of data.
– Most of these things have got 30 day trial so I reckon to calculate this out would what what take a whole morning, for this one page? So, longer? So time is money, so you got a question, you know how much time is your worth, you know. Okay, so, moving on, so let’s talk about drop shipping, for those who don’t know what drop shipping is, drop shipping is basically you get, you list an item, it sells, you get paid and then after you’ve been paid you order it and pay for it from your supplier and your supplier ships it direct your customer.
You’re cashflow positive ’cause you get paid first
So you’re cashflow positive ’cause you get paid first, as opposed to importing, where your pre-purchase inventory upfront, drop shipping you get paid first. So average sale price of drop shipping 100 dollars, average profit margin 15% because some people say okay but there’s more money in importing, because there’s a higher margins, well yeah, if you’ve got the finances and the resources to import all the stuff, if you don’t, then you can make more money drop shipping because you’re not limited by how many items you can list. how to make profit on eBay and amazon
With importing you’re limited by how much money you got, you’ve got to spend
Whereas with importing you’re limited by how much money you got, you’ve got to spend, yep.
– [Audience Member] So drop shipping you basically selling somebody else’s brand rather than--
– No you can, yeah, you don’t private label your own. Unless you’ve got a special relationship with a supplier, not me are just selling other proven products.
Private label on Amazon
– [Audience Member] But you private label on Amazon.
– Yeah we’ll talk about how to private label, drop ship items in a minute, okay, ’cause you can, just, I’ll answer that question in a second bit more, okay, so average product for sale 15 dollars, so to make four K a month, 15 dollars profit means you need to sell 267 items per month, 62 items per week or nine items per day.
So what is drop shipping? It’s a supply chain management it’s just like 3PL but instead of having your goods in a warehouse, you use the other products in another, suppliers warehouses could be multiple warehouses, so it’s exactly the same but using virtual inventory, not yours, so you get paid first, most drop ship sellers do not pre-purchase inventory, they transfer orders to suppliers and the suppliers ship direct to your customer.
It’s also in the industry it’s called virtual inventory just like virtual assistants but this is virtual inventory. So drop ship being like everything, has got pros and cons, pros are reduces cash flow issues because you don’t, you know, you don’t have to go and mortgage your house or whatever to come up with the finance to import.
No tying up cash pre-purchasing inventory, less than 100 bucks to get started, you can list more items than with importing, ’cause you’re not restricted by cash. There’s no, don’t have to pay the rent, insurances and security et cetera, of having your own warehouse, there’s no packing, no shipping to customers, no driving to the post office, anyone who does knows that’s a pain, can build it to literally any size, just add more products, no inventory in your house, no staff in your house, which is a big one for my wife. how to make profit on eBay and amazon
No local staff at all, which is awesome
No local staff at all, which is awesome. So you don’t have to have any local staff, at all in Australia and I know we’re supposed to, you know, support the local industry but, for those who have staff, anybody enjoy having staff that works for them? I actually don’t mind having staff now because our staff’s all virtual, so if they kick their toe and break it, they can’t sue me for quarter of a million dollars, which is a, you know, happy days. Well we are very nice to our staff, we look after them, we support them and stuff but, you know, but we don’t, you know, we don’t have to worry about that kind of stuff. No workers compensation et cetera, et cetera.
You can be 99% automated
You can be 99% automated, you can run it from almost anywhere on the planet, as long as you got internet connection, you’re online and you’re up and running. You can start import… Okay about this question about private labeling, you can start importing your top selling drop ship items. So there’s a lot of courses going around at the moment, which teach you to basically go find one product, basically go an’ order a gazillion of ’em, fill up a whole container, ship it to Australia and then hope like hell it sells, ’cause if it doesn’t you just got yourself a huge warehouse or a garage full of this stuff that you’re going to, you know, take to your grave.
Take your top selling drop ship item, and you have it shipped to your house then you slap your label on it
Instead of doing that strategy, here’s another strategy to think about; you take your top selling drop ship item, which you’re purchasing from Australia and you buy one off your supplier and you have it shipped to your house then you slap your label on it, your private label and you photograph it and you list it and if it sells awesome, then you can go and buy more from China if it doesn’t sell you peel the label back off again and resell it, it was already one of your top selling items, see if you made an absolute dogs breakfast of your private label, peel it off, re-sell it, you can sell it, it was already a top selling item, so it’s almost zero risk and that way you can test the strategy, yep.
– [Audience Member] I just want to ask you about the jacuzzi listings. ‘Cause I was selling a product, that it was drop shipped and then the supplier dumped it, and now they’ve brought it back and that listing, I had to take off ages ago and I didn’t save it and I’m like,
That was a good listing, so, do you keep your listings?
– [Audience Member] that was a good listing, so, do you keep your listings? Like that’s like a jacuzzi you’ve got all of your data saved somewhere?
– [Audience Member] So that you can come back to that.
– Yeah, so what you’re talking about, is you lost all your sales history, so you’ve got, you know, one sale, 10 sale, 50 sale, however many and you lost all the sales
– [Audience Member] Yeah well I had to do that because they dumped that particular product.
– Yeah well you got, it’s a tough one and you know, if you know there’s no way on earth you’re ever going to get this product again, of course, you end your listing.
– [Audience Member] Well I don’t know, I didn’t know that they we’re going to resurrect it. It’s been probably like 12 months.
We use Magento so we can always go back and just instantly restore it
– Yeah well, we use Magento so we can always go back and just instantly restore it but, you don’t want to lose your sales history, which unfortunately you’ve lost. The only reason you shut down a listing is, if you’re running out of free listings, as you get bigger you’ll eventually get what’s called an anchor store--
– [Audience Member] Sorry to interrupt there. But are you saying that like your not penalized, I wondered if your penalized by having like a listing with zero and you can just keep that listing with zero items?
I wondered if your penalized by having like a listing with zero and you can just keep that listing with zero items?
– Yeah you can but only for two months and then eBay will end it, automatically, but if you were in there and you added one and then, oh God no that was a mistake and you put it back to zero you just got, you bought another two months.
– [Audience Member] But if eBay ends it, it’s been there at zero, let’s say a scarcity managers knocked it down to zero it’s sitting there, eBay ends it because it’s been zero for two months--
– Two months correct.
– [Audience Member] but you still have it, in your let’s say you had listing Software Inc abroad or one of those things, you still have a record of so you can just put it back up.
– If you’re using a third party listing program yes, yeah, you have.
Something that stores it somewhere
– [Audience Member] Something that stores it somewhere.
– Yeah if you using a third party program, yeah Ink Frog, Magento, Neto or whatever, yeah okay so, you can start it, yeah so that was about how to private label. So I think I finished was everyone clear on that? How to… All right so you can do this all over the world, so you can build these drop ship businesses, all over the, literally all over the world, doesn’t matter, in 37 countries. how to make profit on ebay and amazon
Obviously it’s a lot easier in the English speaking countries, you can sell the businesses and you can also sell the niches, which I’ll talk about shortly. Private label, we’ve done that, so cons; requires supply inventory checking, seven days a week.
So if you’ve got items listed on eBay or Amazon, you need to be have something in place to make sure that they’re in stock
So if you’ve got items listed on eBay or Amazon, from a supply, you need to be have something in place to make sure that they’re in stock, so when you’re starting off you need to manually, be checking it, preferably at least twice a day, seven days a week, but of course you can fully automate this you can use the VAs or you can just use software, like I says he’s like scarcity manager, which will do it automatically for you but you got to have some methodology in place so you do not run out of stock and over sell items. It requires ordering seven days a week. So when you first start off; download the the app, from eBay and Amazon and your phone will go cha-ching,
When items sell and then that’s your trigger then to go and order the item. as you get bigger, you can employ a VA
Then of course, as you get bigger, you can employ a VA you don’t have to employ a VA for you know 40 hours a week, you just get a X amount you know once a day or whatever and they can do that for you. Okay so we drop ship the big advantage of drop ship, of course is the low overhead, for us when we started up, drop ship was the Holy Grail, but it wasn’t on the table because we didn’t have the ability to purchase from suppliers, with what’s called dynamic websites, they didn’t exist and dynamic websites are sites that automatically show if items are in stock, they simply weren’t available. Dynamic websites have only been coming into play, the last four or five years, so there wasn’t even an option.
So drop shipping is virtual inventory and it’s virtual staff
So drop shipping is virtual inventory and it’s virtual staff. Okay, so, how to get staff? Where to get them and how to train them, again, there’s a free link here there’s a whole video, showing you how, answers all those questions, exactly where to get them, how to train them. It’s a free video, you can watch it anytime you like and again for the people came in last, all these slides will be available for you, I’ll give you a link tonight, you can watch them, anytime you like.
So drop shipping is much easier to scale than importing
So drop shipping is much easier to scale than importing the reason why, if you increase an import business by five. You’ve got to increase your purchasing of product by five, which is, you know, if you already got you know, 50 thousand dollars out there, you want to go up by five, you’re now up to 250 K. If you’re all ready up to 250 K, you’re now up to 1.25 K, or 1.25 mill out. So it’s, you don’t have those issues with drop shipping, Most the extra work when you grow drop ship business is blunted by your suppliers ’cause they’re the ones that get all the extra orders, they’re the ones going to pack it, pick it, pack and wrap and ship it. Not you.
Why does drop shipping work?
So, question comes up is; how, why does drop shipping work? You know, why does somebody pay more money when they could have just gone to the supplier and bought it themselves? Like for instance, like Kmart, why would somebody go and don’t get me wrong, I’m not saying to use Kmart as a supplier. how to make profit on ebay and amazon
I’m saying do not use Kmart but a lot of drop ship sellers use Kmart, but don’t get me wrong I’ll repeat it; do not use Kmart as a supplier. But what, this is an example, Kmart 189, someone’s selling this, currently, and let’s see how much you can buy this one Kmart for 189, on eBay seven sold, 291 dollars. Why did they buy it from, why didn’t they just go to Kmart and buy it?
People are lazy
– [Audience Member] People are lazy.
– [Audience Member] Yeah they don’t like going there.
– Another example drop ship zone, in Melbourne, this item one for 157.3. It sold on eBay, they sold 10 at 229, why didn’t they just go to drop ship zone and buy it themselves? Well, another way of looking at this, is for our import business in Australia, 9% not 90 but zero nine percent as in, just one under 10%, of everything that we sell, we sell to overseas people, who from overseas buy it from us and if you think about it, no one should be buying anything from us. how to make profit on eBay and amazon
We all live on this island in the middle of nowhere it costs a fortune to ship off this island, an absolute fortune, anyone who does it does it professionally they know, a box this big, it’s like 60 bucks. So we should not… I know eBay’s out there all the time saying oh, you got to do global shipping, global shipping, wake up everyone we live on this island that costs a fortune and everything that we import, is available in every other country, like so, why is someone from the US buying these off us?
We must have had some different keywords
You can’t tell me they’re not available in the US, if we import them from China, they almost certainly are, but the reality is, we must have had some different keywords or whatever and they found our listing and they bought it but they did more research they would have found out it was cheaper in the US and they wouldn’t have had to pay a fortune for shipping, so nine percent of people do it. Anyway so, I hope that answers the question.
We got some software, which we check listings with
So and this listing, by the way, I’ve ran it through a, we got some software, which we check listings with and it’s not even mobile optimized which is crazy because, over 70% of our listings are purchased by people with smart devices, whether it’s a phone, or if it’s a tablet, over 70%. This listing, it’s not even optimized, doesn’t work on mobile, but they still got 10 sales, and they’re on the last of the third--
– [Audience Member] You said 9% of people--
– 0-9 Yes.
– [Audience Member] Do the research
Drop shipping is a whole night
– No I’m just saying that 9% of our sales, we ship overseas. Okay, so if you want to know more about drop shipping, I can’t spend the whole night, ’cause drop shipping is a whole night, so if you want to know more about drop shipping there’s another free workshop which will show you, how to find suppliers for drop shippers, yep.
– [Audience Member] I just have a question concerning the drop shipping orders. So what if someone returns your product?
So what if someone returns your product?
– We can return it straight back to the supplier.
– [Audience Member] They wouldn’t accept that?
– Not all of them but a lot of them will.
– [Audience Member] One more problem with drop shipping is it takes, delivery times are more than two weeks--
– No, there are four criteria for suppliers and one of those criteria is you only use suppliers who can ship and dispatch within two business days. It’s one the criteria, another criterion is you only use suppliers in your own country i.e. Australia. All right so can a new person compete selling on eBay and Amazon today?
Another questioning, exactly, so how to compete, over 90% of sellers just use what we call; best guess marketing, don’t guess it, use data, I’ve shown you a lot of data tonight on how to get just use the data, you don’t have to guess anything again, if you got VAs working for you and they guess, there’s a greater than 50% chance they’ll screw it up.
If you got VAs working for you and they guess, there’s a greater than 50% chance they’ll screw it up
No guessing. Today really is the glory days, you don’t need to guess anything at all. We good for time? We’re kind of pushin’ it. Okay no need to guess, no capital required, outsource local services from a dollar an hour, easy to automate and like I mentioned before, the tools and the software which is available today, like, two years ago, no a year ago Egrow wasn’t available for Australia, it just was not available, today it’s available. Drop shipping four years ago, we couldn’t, the amount of suppliers that have direct websites, they weren’t there, even just tody more and more sites, every day, are getting more with their dynamic.
Selling niches and listings, is a huge market now
Selling niches and listings, is a huge market now, when I was, I don’t know what age I was I think I was probably about 16 or 17 someone think I was about 16 and I was looking at finding ways, like most kids do, to try and make some more money so they can, you know, go and do stuff and chase girls and do whatever they like doing at 16 and I had this idea.
Which I did for a little while, of doing people’s lawnmower things as well I’m at school and so I put an ad in a local newspaper and I got a few runs and but I noticed this other guy was doing it and he always had these ads in there, then I also noticed that he had, in the businesses for sale section of the paper, he was selling runs, so what he was doing, is he’d get all these runs, so he then once he get up to like a hundred runs, of people’s lawns, he would then take out 25 or 50 of them and sell them off as a business,
Why don’t we do that with our online businesses?
I thought, what a cool concept and it sat on my mind, for a long time then I realized, why don’t we do that with our online businesses? Why don’t we just take a whole lot of listings stick em’ in another account and sell off the listings. So we started doing this many many years ago, one of the last ones we sold was to, it was American operation and the guy had bought it, it was an American was living in Abu Dhabi and he flew me first class that’s one of the photos there in Etihad to Abu Dhabi to train him for a few days, there’s a lot of money in buying, selling businesses, because people, the average person that buys them, is your average archetype, is someone who’s, they’re in their 50s, maybe older and often a lot older and they’ve worked a corporate all their life, they’re used to following manuals they’ve had the the golden handshake, house is paid off, kids have flown the nest and they’re bored and they want an online business.
They’re not entrepreneurs they want to follow a manual
They’re not entrepreneurs they want to follow a manual, so if you can give them a business that is already running, completely running by itself with videos et cetera. They’ll pay very, very, very good money for it, average time one to four times annual your profit but I hear some business being sold at over eight times. I think it’s bit unrealistic but there’s a big demand. So what you do is you allocate 10% of your profits, to outsource services, staff, which is why I’ve been harping on this tonight, to build a business that runs completely and utterly without you and grows completely utterly without you. Your business should not just run by itself, it, you need to demonstrate it grows by itself, without you, absolutely important.
Choose one strategy, you choose one, get in place the methodology to find one item
So I mentioned at the beginning it’s all about one item, I’ve gone through many strategies tonight, choose one strategy, you choose one, get in place the methodology to find one item, to research and find one proven item, sell the one proven item and if you can repeat that process you’ve got it cracked, you just double down, you crunch the numbers one listing, double it, get to ten, get to a hundred, then outsource it, once you’ve got a hundred items listed to spend 10% of your profits and just keep going, outsourcing.
‘Cause if you do the numbers, double 10s 20, double 40s 80, 160 next things you know you got over ten thousand listings that’s all we’ve done we just double down and continually improved, improved, improved and tuned them, but basically, double down on what’s already working. So crunch the numbers, you’ve got a partner, go and sit down with them and figure out, okay, if we make X amount dollars on this one item, if we have two, if we have five, we have 10, 100.
What do you want to achieve in your life?
What do you want to achieve in your life? Because we got to figure out how many items to list, proven items to list. Not just items that you think you going to sell, things that are already selling, which are not optimized, that you can beat your competitor. And but how will it affect your life? You know, what do you want to achieve? What’s the part? For us it was freedom. We wanted to move out of Sydney, we wanted to have a farm and we wanted to spend more time you know with the kids and all that kind of stuff, we didn’t want to have to go to an office ’cause I’ve done that in my previous marriage and that marriage failed because I was at work so much. I didn’t want to repeat that process again.
You don’t have to get it right, just got to get going
So a few favorite quotes before we wrap up tonight; you don’t have to get it right, just got to get going. Another one is; done is better than perfect because a lot of people don’t do anything until they get everything perfect, all the Ts are crossed and the Is are dotted.
No, 80% is good enough, if you can 80% percent good enough you’ll have a 10 X your business. And of course, it’s all about little tiny, tiny, tiny, baby steps. And the other big thing about it is; to win the game, you just got to stay in the game long enough to win it. Okay, so thanks coming and see you guys next time. Thank you. Thank you. Thank you.
Please leave me a comment below and let me know what you think.
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