Amazon Drop Shipping

Some useful words to remember:
FBA> Fulfillment by Amazon> Amazon Ships the products/items to customers
FBM> Fulfillment by Merchant> If an inventory is kept at one’s own warehouse, it is FBM.
PL > Private Label
WS> Whole Sale> where one can sell other’s products with the permission of that seller, it is done via FBA.
ASIN>  Amazon Standard Identification Number ( amazon product code)
ODR> Order Defect Ratio (Negative Feedbacks + A to Z claims + Charged Back Claims)
VTR>  Valid Tracking Ratio ( Amazon ignore only 2.5 %  or fewer Order Defects
UPC> Universal Product Code.
 
        
     Keep in mind the profit of 30% to 50% is sufficient
     Amazon New Seller Account is get paid in 15 days (approx.)
     Amazon deducts Commission+ Referral Charges+ withheld some amount because the purchaser may claim a refund.
     The cash flow runs around 15 day period.
     Drop shipping is FBM Model.
     For a new account holder, 15 days are very important for cash flow.
     Amazon New Account has much more chances of suspension in the first 6 months.
     Customer services are very important & keep an eye on account Health.
 
Account Sign-up
Amazon USA> is the best marketplace to start with> Sales Tax is deducted by Amazon itself.
Amazon gets 2 payment methods:
1.     Deposit method> where Amazon pay you profits.
2.     Charged Method> where Amazon charge you account keeping fees of $ 39.99 per month.
3.     It is better to sign up for professional, if possible with your company details.
PRODUCT HUNTING

AMAZON DROP SHIPPING

AMAZON DROPSHIPPING

DROP SHIPPING
 Dropshipping 
Product hunting formula:
1.     High demand
2.     Low competition
3.     Profitable
Key word> the customer search for a product using the word is called a keyword,
Short tail keywords: one or two words> for example drops/eye drops
Long tail keywords: three are more words e.g. safe eye drops/ kids eye drops.
The key word is searched more (Search Volume) has a high demand.
Product Search criteria:
     Product size: should be less than around 0.5 kg
     Dimension: Should be 5 inches to 6 inches
     Shouldn’t be fragile product> glass, electronics items, food items, a certificate is required (Kids items or foods items are required certification).
     Shouldn’t be a product with variation e.g. blue wallet, black wallet, red wallet (avoid) should be like (just) a wallet.
     The competitor rating should be 4.5 or higher.
     Should be Patent or IP (Intellectual Property) free.
     Avoid selling trendy products & seasonal products e.g. Christmas cards.
     Avoid selling fashion products, fashion can change rapidly.
     Avoid dangerous goods, liquids, Batteries etc.
     Must not be brand dominant. ( Cannon Camera)
     Avoid FBM-dominant products.
     If other sellers are selling a product as FBA, you should avoid FBM it might not be profitable.
     Avoid if a product is losing its value, it was listed at $ 20 but now has dropped to $ 9.
     Personnel items should be away, Women's products should be avoided, the women can change their minds sharply. An item for both men & women can be considered to sell.
     Check if the product has too many refund requests in its history (avoid).
     Keep away the electronics & garments products.
     25% to 35% is a good profit.
     Private label products: find a product which can be sold for 1 or 2 years.
     For drop shipping products must be for the short term.
     If you want to search for a product in a specific country, you must first change your IP or use VPN then desirable results can be attained. Change the postal address on the amazon website as well.
     The product should be lesser 10000 or less, this can be sold very quickly.
     Avoid choosing a product having 3 or fewer sellers try with more than 6 or more sellers.
     Buy Box can be granted by amazon where rating+++ plus Age of your account Plus orders received is higher.
     If a brand is selling by itself avoid this product.
     If Amazon is selling, id out of stock avoid this one as well.
     Don’t take part in Price War products.
     If 5 or more people are selling a product it is a drop shipping-friendly product, other products by the sellers can be taken a look at.
     Copy ASIN & add it to the list if amazon says “Sell This Product” avoid this product, if it says need approval, apply for approval this is a good product to sell as a drop shipper. Once you get approval it is 99.99% IP risk-free.
     Find a product which does not require special packaging, you can select a bottle of cooking oil.
 
 HELIUM 10
 
How to use Helium 10 software or what to find in it?
     Black Box> a product hunting tool. Click & find the following
     Product rating 4.5 or higher
     Review 500 or 600 or less
     Product price $ 20 to $ 30 (optional)
     Select a country, if selling in US local market Select the US as the country to find.
     Click on the product & find how many keywords & what is search volume, the higher the search volume is desirable.
     There is monthly revenue of products in the black box search bar.
     Install Helium 10 extension for Chrome explorer & click on the X-Ray, you can find the BSR rating in it.
MAGNET >  a keyword research tool.
     If customers search for a product, it has high demand (desirable).
 
CEREBRO
     Check, which keywords are indexed by your competitor.
     Which keyword has got an “Amazon Choice” Tag?
     This can also let you know that, do you need to give how many “giveaways” (to give customers for free).
 
PRODUCT  SOURCING
 
 
How to find a Wholesaler for product purchasing to use for drop shipping orders fulfilment?
 
     Must find at least 3 wholesalers.
     The wholesalers more often cancel orders for unknown reasons. However, you can secure your account suspension with 3 suppliers in hand.
     If an order is cancelled you go to the next seller to purchase the order items.
     You have to fulfil the order at every cost, amazon can forgive your order defect ratio up to only 2.5% or otherwise your account health is at risk.
     Amazon gets angry when more orders are cancelled.
     You need to get tracking no. by supplier & update at amazon against open orders in your seller central account.
     3 wholesalers are important for price control as well.
     You must have an account/signup with the supplier to purchase your order at an early stage (everyone knows this).
     You use your own address for billing address & use shipping addresses for your customer where you want to order get shipped. (This is with suppliers).
     Only use customer postal addresses & use your own email with the supplier.
     The sales tax is different from state to state, USA i.e. 8% to 16%. Keep in mind while you calculate the cost of a product.
     Customer support is important, always offer a refund if the customer has any concerns with the product.
     The product must be in Plain-box or with an Amazon sticker; you can use your own labels. If the supplier uses their own sticker/company name & meanwhile the customer complains to amazon it may result in your account suspension.
     When the supplier cancels your order for Unknown reasons, it may be possible that your credit/ debit card was declined. Be careful with the payment that must go through.
     The supplier must have a good standing/ good rating.
     Find suppliers before you list your product on amazon.
 
Product Listing at Amazon Central
 
https://sellercentral.amazon.com
     Drop shipping listing is very easy.
     You don’t need UPC for drop shipping, ASIN is required for listing the product.
     Products are already listed you use a trick to become one of the sellers.
     Go to the website https://sellercentral.amazon.com
     Click on the left side 3 lines > go add a product > in search bar past your already founded ASIN. Now you see the option SELL THIS PRODUCT avoid this product. Find a product which shows REQUIRED APPROVAL this product is the best; it would be IP free product. You will get a soft approval, if your request was not approved, find another product.
 
     When you have listed the product, go again left side 3 lines bar (options Bar) click on manage inventory & fix inventory, how many units do you want to sell, for example, if you are selling a pen you need to select the right quantity, 100 pens 1000 pen (whatever your budget is).
PRODUCT HUNTING WITHOUT ANY TOOL
 Go at> https://sellercentral.amazon.com
Click on the left side 3 lines > drop-down > select growth> click on product opportunity, here you can search & see ASIN Monthly selling, revenue & opportunity score 10/10 is the best.
     But the above features are activated after some time from your account signup at seller central.
Example results of Product hunted:
>search results = 4000
> search volume = 28000
> average price = 26$
> 3 sellers in the top 10 have less than 400 reviews
> Only 1 AMZ
> No brand dominancy
> Google trend frequency is more than 25 throughout
> No seasonality
> Rating is more than 4.2 stars
> Profit margin = 39%

> 9 out of the top 10 sellers have more than 7000$ revenue