Tuesday, February 23, 2016

Turnover Tuesdays - Sourcing from Slickdeals Works but Everyone Else is Doing it too

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.

Conventional wisdom tells you that once something hits Slickdeals/FatWallet or any number of the deals sites, you should probably avoid that item from a resale perspective.  To be honest, for most people it is true.  If you are looking for a quick flip, this is not where you should be sourcing.  You can check them to avoid deals but there is so much competition looking at these sites that prices get punished very, very quickly.

That being said, I have had success checking Slickdeals on occasion.  You have to be even more patient than regular but it can work out.

Slickdeals pointed out that Canon was having an amazing deal on Photo Paper.  Stuff that is normally $99 each (I don't it ever really costs $99) was going for $12.50!

I bought 20 at this price.  $13.37 after tax.

Credit Card Points 

There are no special categories with Canon that I am aware of so I used my general merchandise card so about $0.26 a unit.

Shopping Portal

Ebates was 5% cashback from Canon so that's another $0.62 a unit

Loyalty Points

I did not earn any loyalty points.

Fulfillment by Amazon Fees

I bought the item on December 14th. They started selling on January 30th and I sold out through February 5th.  This one was pretty quick but there were a lot of sellers who sold out much faster and for lower prices.  There are other slickdeals ones I've done that I'm still holding out on months later to get my price.  I don't mind being patient if I think the price will rebound.

I sold all of them for $37.99 which has a steep fee of $13.90 (I very happily paid that fee though I wish it was lower).  That's about $23 each after FBA and shipping fees.

Cost was $13.37 so profit was about $9.60 for each one or about 70% ROI.  Not too shabby!

The Haul  

I paid $267.45 and I earned $460.  Very solid 70% ROI.

Here is how the numbers work
Cash = ~$9.6
Credit Card Points = $0.25
Portal Points = $0.60
Loyalty points = 0

I could have sold the units the first day they arrived at Amazon for about $26-$27 a unit.  Prices only dipped from there.  Instead, I waited a little bit and sold for much better profits.  In this case it took about a month but usually it is much longer than that.