Tuesday, December 5, 2017

A Lot Has Changed in 6 Months...

Massive Life Change

If you used to follow this site, you definitely would have noticed that I haven't posted in a bit more than 6 months and even then posting has been sporadic.

Just a few brief words of explanation.  There was a major upheaval in my life.  I moved out of America.  It's always been a life goal of mine to move to Israel and I was almost successful 2 summers ago.  It didn't happen then but in August I finally did it.  

Moving to another country is hard.  There was a ton of paperwork to fill out and meetings to go to before we left and getting everything set up once we arrived.  Government bureaucracy is not fun, especially when it is in a language that isn't your mother tongue.  Just ask any immigrant to talk about their first month in America and you'll probably get an ear full.  All the while I've been trying to keep the business afloat and successful.  So that's what's been happening and why I've been radio silent.

The fourth quarter can be stressful so I thought this might be a bit cathartic. 

Business from Out of Town is Different

You Aren't There at the Warehouse

Running an Amazon business when you aren't in the country and you aren't in the warehouse consistently is a big challenge.  You need to have perfect records and people you trust there. I rely on email, What'sApp and phone calls to communicate but I won't pretend that it's the same.  It's not.  It's different.

You are very much relying on your worker's paying attention, that they aren't stealing from you, that they notice if something came that was different from what you ordered and aren't just putting it in a box to send to Amazon because that's easier for them.  If there is something in the corner that hasn't been selling, they may not mention it to me but when I was there I would look around and see if there is product that has been unfairly ignored.  You just care more when it is your own business.

Social engineering is very important and for that reason I plan to somewhat regularly (2x a year?) come in, see what's going on at the warehouse, chat with everyone, take the manager to lunch, etc.  It's critical to keep lines of communication open.  They aren't going to keep doing a good job because they like their job, they are going to keep doing a good job because they like the manager, they like me and the manager likes me.

You Aren't There for Buying Either

I can't do retail arbitrage anymore unless I pay someone which I haven't had time to set up.  While I don't particularly like retail arbitrage, I had come to tolerate it.  It's so annoying that the margins tend to be even better.   I don't miss it at all, I mean at all, but the money was good.  Oh well, it's part of the process and until I get a buyer to go to stores for me it's not happening and I'll still live.

It's not just retail arbitrage.  I was close with a few neighbors and we would help each other out.  If there was a quantity limit on an item, I would have them purchase and it would show up at their door.  I'd go pick it up for them and take care of it.  There was almost nothing they had to do, just an order, and even that was highly profitable since they kept the portal bonuses and loyalty points.  I can't do that anymore.  That means that during my upcoming trip I will be moving things back and forth from friend's overflowing basements to the warehouse.  I've tried to pay them more to bring it themselves but they aren't interested.  Again, it's the new normal and something I knew going in.

The Business Has Changed

I'm amazed at how often the types of deals I'm interested in has changed over time.  I used to sell a lot of expensive electronics and I rarely sell them now (Q4 is a bit of an exception since it is easier to find great margins still).

I haven't had nearly as much time in the last six months to research deals as I would have liked but I've been able to keep everything going.  In fact, both sales and profits are up despite my time output being stagnant and many times less than years past and that's for two main reasons:

  • I have focused on replenishables.  I don't have to really think about those other than paying attention if there is a sale on them.  This allows for minimal time output while continually increasing sales as you increase your repertoire of replenishables.

  • I go bigger than I used to.  While I have always had the mantra of "Go Big or Go Home."  I have decided that I need to go even bigger.  If there is a good deal that earns $5 a unit and 60% ROI but I can only buy 2, guess what, I'm not buying it.  Even if I can buy 5-10 I'm probably not buying it.  Every SKU takes time for accounting and logistics and pricing.  It's not worth it for 2 of them.  My standard purchase is about 20-30 and during the fourth quarter my standard purchase is 50-100 to start.  If an item is a replenishable that has gone on sale, I might buy 400-500 if I can.  There are certainly times I get burned but that's happening less and less thankfully.

Move to Self Fulfillment

I have been trying to do more fulfillment on my own.  I'd like to sell more on Walmart which requires self fulfillment, in addition the more that I can sell on my own, the less reliant I am on Amazon in general.  There is also a lot fewer accounting nightmares trying to get all the product back that Amazon has borrowed permanently from me.  Even more critically, it allows you to sell before other sellers can because they are waiting for Amazon to receive their shipments and the eventual race to the bottom.

This hasn't been quite as linear an experience as I would like but I do think I've been making progress.  Often I buy 50 of something I will leave 10 back at the warehouse for self fulfillment and send in the other 40.  That way I can sell off while prices are high and still be in stock until my FBA stock comes in.

This is a picture from shipstation for the last 30 days of all my self fulfillment but it is mostly from the major shopping days and I don't have too many self fulfillment sales outside of those.  As you can see, even in self fulfillment is by far the most.  Of the six I have to ship today, four of them are Amazon FBM.  Two are items that the FBA units are on their way for the first time and 1 is something that sold too fast for me to restock FBA in time so I will sell FBM until I'm in stock. 

At some point this year I would like to move into Seller Fulfilled Prime.  That will likely really ramp up my self fulfillment operations but you have to make sure you have a good system in place and that your team is ready for it..

Goals for 2018

I have not been happy with the inventory channel softwares available currently that aren't $500+ monthly.  My sales on other channels just can't justify that type of expense, though it might get closer if I had one.  My plan is to work with a developer to create my own that suits my needs.  I hope to have that done early in 2018.

Private labeling.  I haven't done it yet but the plans are already in the works.  I am in the testing phase now.  The thought of getting suspended for an Intellectual Property claim on someone else's product scares me a ton.  I would like to have a full line of my own products on Amazon (and maybe my own site?) at some point but I will start with one :)  In order to not spend a ton of money importing a product that I don't know I can sell I am starting to slowly build a listing from scratch and once I have proven I can do it, it will be time to go the overseas route.

I don't expect to write too often in the future but this was kind of nice.  I hope you enjoyed it too :-)

Monday, May 15, 2017

Using Consumer Arbitration with Amazon

Disclaimer:  Arbitration is not for everyone.  It is possible that Amazon may retaliate against those who file arbitration against them.  While easily identifiable retaliation will cause Amazon legal headaches, retaliation can come in more subtle ways that are hard/impossible to prove. For these reasons, arbitration against Amazon for active sellers may be a last case scenario (For example, someone who has been permanently suspended).

A bit of introduction: Alexender Bachuwa is a lawyer who has experience in consumer arbitration.  He writes a column for Frequent Miler called The Fine Print.  While Alex is a lawyer, the following is not legal advice.  Anyone who requires further information can contact Alex at his website.

As a points enthusiast and travel blogger, I am constantly seeking the most efficient strategies to accrue points. I learned about reselling from this and other blogs and was intrigued. That excitement quickly faded as I realized how much work it takes to be successful in this arena. As readers of this blog know, reselling is often a full-time job that can be both demanding and grueling. It is not for the lazy and it is not for those looking to get rich quick. On the other hand, those successful at mastering the art of reselling can earn a decent living. My appreciation for those engaged in reselling prompted my outrage when I learned of the number of complaints against Amazon, the reseller’s most used marketplace. 


The typical complaints against Amazon include the following:

1) Items lost or damaged in shipment to Amazon.  Resellers send in 10 units but Amazon’s accounting only shows 5. Amazon reimburses the reseller only after the seller asks.

2) Items lost or damaged in Amazon fulfillment centers or damaged via carrier. Most of the time will not reimburse you until you ask. 

3) Reimbursements are less than it should be. Sometimes Amazon will give you something standardized for a category, like $25 for an Apple watch.  Other times it is just less than it should be based on current sales price and/or sales history. You usually will get a higher reimbursement if you appeal

4) Accepting returns that violate return policies. It is one thing when Amazon does this with its own money, but it is entirely another to do it when Amazon is taking away from the seller’s money.  For example, accepting returns after 30 days or when there is no UPC is a typical complaint.

Fighting Back

a.    Audit Companies: Many resellers have no choice but to hire audit companies to hold Amazon accountable for its actions. These companies charge steep monthly fees or a percentage of recovery to remedy problems that should not occur in the first place. For sellers facing significant losses, these fees are chalked up as a necessary business expense. It should not come as a surprise that Amazon is looking to ban resellers who employee the service of these firms.

b.    Consumer arbitration: For those that read The Fine Print on Frequent Miler, you know that I am a big proponent of consumer arbitration. Consumer arbitration was invented by powerful corporations in order to put an end to costly class-action lawsuits. For that reason, many consumers have doubts as to the efficacy of the process. Those doubts are misguided. I have successfully filed claims against Citi, Dell, eBay, among others (see Case Results) using consumer arbitration as the mechanism to seek relief.

The Amazon Consumer Arbitration Clause 

Amazon has a consumer arbitration provision that reads as follows:

Any dispute relating in any way to your use of this or any other Amazon Services will be resolved by binding arbitration as described in this “Disputes” section, rather than in court. An arbitrator can award on an individual basis the same damages and relief as a court (including injunctive and declaratory relief or statutory damages), and must follow the provisions of these Terms of Use as a court would. 

Payment of all filing, administration and arbitrator fees will be governed by the AAA's rules. We will reimburse those fees for claims totaling less than $10,000 unless the arbitrator determines the claims are frivolous. Likewise, Amazon will not seek attorneys' fees and costs from you in arbitration unless the arbitrator determines the claims are frivolous.

The key takeaways from this clause is that Amazon will cover the expenses of the process and that the consumer can seek the same relief as he or she would in court.

The Solution

If you are a consumer whose livelihood depends on your reselling business or if you are consumer who casually resells to earn points, you have a right to hold Amazon accountable. And the way to do so is by filing a complaint in consumer arbitration.


Monday, April 24, 2017

Turn On Two Step Verification for Your Amazon Account

Lately, there have been a rash of hackings on Amazon accounts.  Once the hackers are in, they will change your bank account and siphon the money into their account.  In addition, many times they will start selling items that are bogus, make some quick money, siphon that, and then cause many problems to your account.   It becomes hard to get your money back and get your account reinstated.

Often, these are on dormant account.  An account will have it's last review in 2014 and then 5 bad reviews now saying never received item or item is fake.  That being said, it can happen to an active account too.

Last week I received this message from Amazon.


At Amazon we take your security and privacy very seriously. As part of our routine monitoring, we discovered a list of email addresses and passwords posted online. While the list was not Amazon-related, we know that many customers reuse their passwords on multiple websites. Since we believe your email addresses and passwords were on the list, we have assigned a temporary password to your Amazon.com account out of an abundance of caution.

You will need to reset your password when you return to the Amazon.com site. To reset your password, click "Your Account" at the top of any page on Amazon.com. On the Sign In page, click the "Forgot your password?" link to reach the Amazon.com Password Assistance page. After you enter your email or mobile phone number, you will receive an email containing a personalized link. Click the link from the email and follow the directions provided.

Your new password will be effective immediately. We recommend that you choose a password that you have never used with any website.

You can also enable Amazon's Two-Step Verification, a feature that adds an extra layer of security to your account. In addition to entering your password, Two-Step Verification requires you to enter a unique security code during sign in. To learn more about Two-Step Verification, go to Amazon.com Help, go to Managing Your Account, and click More in Managing Your Account, and then click More under Account Settings.



This e-mail was sent from an address that cannot accept incoming e-mail. To contact us, please visit the Help section of our website.

The solution is simple.  Turn on Two-Step notification.  I had resisted doing it but this email was enough for me.  All you need to do is go to Settings>Log in Settings from with in your account and you will find the instructions there

Once two step notification is on, you will need to receive a text message with a code in order to log in to your account.

You can set it so that on computers you recognize you don't need to keep doing that but it should keep hackers much further away from your account.

As always, stay safe out there!

Tuesday, April 4, 2017

FBA Temperature Sensitive Deadline Coming Up In May

Amazon warehouses can get up to 100 degrees in the summer so Amazon places restrictions on what can be sent to their warehouses from May 1st until September 30th.

If you have a lot temperature sensitive items at fulfillment centers now is the time to sell or place removal orders if you aren't able to sell by the end of the month.

You can't sell FBA from May through September but you can sell FBM and without the competition of FBA sellers, FBM can be extra lucrative during these months as long as you take shipping costs into account.

Doing well on Amazon is often about finding inefficiencies in the marketplace and exploiting them.  Sure this is more annoying and more work than FBA but use it to your advantage and you can sell a lot of chocolate. just make sure it doesn't melt on the way....

Friday, March 31, 2017

Where Have I Been?

It's been about 4 weeks since I posted anything.  That's a really long time for me. I went almost 90 weeks straight with at least a Turnover Tuesdays post.  What happened?

I don't want this blog to be a job. 

I have been blogging for a long time, since the end of 2011.  Until recently I enjoyed blogging a lot.  It was a great outlet for me.  Instead of boring all the people around me I could bore everyone in cyberspace and no one had to offend me when they stopped reading. Win, win.

That changed with my Turnover Tuesdays series at some point.  I had to put out a post on Tuesday and I wanted it to be a more substantive post.  Many times I would only think of topic on Tuesday afternoon or Tuesday night and frantically put something (mildly) entertaining and substantive out there.   I also pretty much stopped posting any other idea because I thought I was wasting a Turnover Tuesdays opportunity.

I was starting to dread Tuesday and they don't pay me enough to be dreading my hobby so one Tuesday night I was about to write a post and then a business meeting happened suddenly and I didn't have time to put anything out there.

I feel liberated

I thought I would be disappointed to lose my streak but I didn't. I felt great about it.  It was such a load off my back.  It started to hit me that I stopped loving blogging and that was the biggest disappointment for me.

I'm a lot more busy than I used to be

As my Amazon business grows (and other parts of life grow too), I've had less time for non essential activities.  I would much rather have my blog fall by the wayside than my family.

I don't plan on stopping, at least not yet, but it has been great to take some time off.  Going forward, I hope to post randomly on stuff I enjoy.  Hopefully you enjoy it too.  Time to get back to basics!

Tuesday, February 28, 2017

Turnover Tuesdays - Walmart and eBay Are Not Going As Smoothly as I Would LIke

For those who are not familiar, I started a series a while back called Turnover Tuesdays. Every Tuesday I like to highlight one item that I have resold. This will include profitable and non profitable sales. I hope that there is always something to learn.

The previous posts in the series can be found at the bottom of this post.

Walmart Was Going Great

If you've been playing along at home, I was hoping to use eBay and Walmart (mostly Walmart) to increase my sales and at a minimum mitigate the increased rent that I've begun to pay to allow for more merchant fulfillment and decreased Amazon storage fees.  Walmart does not allow for multi channel fulfillment from Amazon so you must fulfill outside of your Amazon inventory.  That requires space and a team to fulfill orders (or more time from you).

For a while, I was very excited about Walmart.  For the first couple of months I was getting a lot of orders on Walmart's platform.  Not all were very profitable, in fact some were actually losses but at least I was selling old inventory that was much less profitable on Amazon at that point (I wish I had been willing to lower some of them more as the price on some have continued to tank).

I was also selling some items that had great profits.

I was sure that the future was bright.

eBay Never Really Did Great

Tuesday, February 21, 2017

Turnover Tuesdays - Why I Sell on Amazon

For those who are not familiar, I started a series a while back called Turnover Tuesdays. Every Tuesday I like to highlight one item that I have resold. This will include profitable and non profitable sales. I hope that there is always something to learn.

The previous posts in the series can be found at the bottom of this post.

Let's Reflect Together

Every once in a while you need to take a step back and reflect on why you started the path you chose and whether it is still meeting your needs.  I find it both interesting to write about, important to keep you motivated or pivot and hopefully others will share their stories in the comments too.

Tuesday, February 14, 2017

Turnover Tuesdays - Manage Inventory vs. Manage FBA Inventory

For those who are not familiar, I started a series a while back called Turnover Tuesdays. Every Tuesday I like to highlight one item that I have resold. This will include profitable and non profitable sales. I hope that there is always something to learn.

The previous posts in the series can be found at the bottom of this post.

Deciding Which Inventory Management Page to Use

There are two pages to choose from within Seller Central on how to manage your inventory.  One is Manage Inventory and the other is Manage FBA Inventory.  They both have pros and cons. Amazon is also rolling out a new beta Manage FBA Inventory with some "enhancements".   I'll also throw in one tip at the end to improve your Manage Inventory screen.  I've used Manage FBA Inventory since I've started but I'm now questioning that.

There are some things you can only see in one or the other so it's a bit of a mixed bag but it's good to know what each has so you can decide which one to use primarily and whether you need to go back and forth.