Scaling my busines

[Tom Davies]

Hey everyone!

I'm selling on Amazon and it's going OK but don't know how to grow it because the payment is delayed so cash flow is very tight

For example,

I'l spend x amount of money to purchase things, send to amazon and it sells
Amazon then pays me every 2 weeks!
So I need to wait 2 weeks to get my payment although I can request money they then only give you small amount.

This stops me in buying more items

Would appreciate your advice

Thanks

 

[Mr D]

If you started your amazon account since 15th August 2016 you are on the payment schedule you agreed to at the time. Which won't change.

So work out how to use amazon payments - at best you have a few weeks delay from sale to cash. Plan your cashflow.

Look at using other sites too such as ebay. Currently (though will change) payments are usually through paypal and you can access it immediately - after initial period for new sellers.

 

[The Byre]

As @Mr D said, you need to sell on every platform out there, ranging from on the telephone, own website, eBay, Gumtree, anything and everything. Just using Amazon is a basket and eggs situation.

 

[james_firmsites]

Hey everyone!

I'm selling on Amazon and it's going OK but don't know how to grow it because the payment is delayed so cash flow is very tight

For example,

I'l spend x amount of money to purchase things, send to amazon and it sells
Amazon then pays me every 2 weeks!
So I need to wait 2 weeks to get my payment although I can request money they then only give you small amount.

This stops me in buying more items

Would appreciate your advice

Thanks

Do you have a lot of repeat business? Or rather is your product type one that they would likely buy the same thing from you again or something similar?

If so I would advise setting up your own website with the same products (maybe at slight discount) then every time you sell via amazon include lots of promotional material for your own site and hope to lure customers there.

 

[Mr D]

Do you have a lot of repeat business? Or rather is your product type one that they would likely buy the same thing from you again or something similar?

If so I would advise setting up your own website with the same products (maybe at slight discount) then every time you sell via amazon include lots of promotional material for your own site and hope to lure customers there.

And if amazon catch you doing it then expect to lose the account.

 

[james_firmsites]

And if amazon catch you doing it then expect to lose the account.

I'm not saying make it obvious, but I have had most of my orders from the market place including some kind of packing slip which clearly gives the detail of that company. You're right though that it could pose a risk to the account so worth checking exactly what others get away with and how its worded.

 

[Scalingspace]

do you feel there is any risk involved in things that you do? if not then you need more risk. i think it is normal in most of businesses. more risk - bigger reward.
If you play safe, then you will simply move slower.

 

[Tom Davies]

I do Online Arbitrage so I basically gotta keep sending inventory in. But Cashflow is a problem at times. Thanks for your input guys.. I really appreciate it

 

[Mr D]

You can sell the same inventory on ebay.

I used to do it just with higher value items, not cost effective on low value where amazon hold it.

Retail arbitrage?

 

[Tom Davies]

Yes you can sell on eBay but the reason I'm doing FBA is because Amazon does all the work for me Lol.. Retail Arbitrage? Difficult whilst shopping with a 15 month old! Lol.. I tend to do RA when I'm out shopping

 

[Mr D]

Yes you can sell on eBay but the reason I'm doing FBA is because Amazon does all the work for me Lol.. Retail Arbitrage? Difficult whilst shopping with a 15 month old! Lol.. I tend to do RA when I'm out shopping

Yes, with all the work done (using software) and shipped out by amazon.
Or without software with you manually entering address on a fulfilment order at amazon from your inventory screen there. Amazon charge a fee for the fulfilment order but they don't charge a percentage.

Utilises some of your FBA stock on ebay.

 

[AW Swindon]

Hi Tom. Amazon FBA is not the only option for order fulfilment. You can still list on Amazon but get a fulfilment provider to store and ship your products for you. We have several customers that list on their owner websites, Ebay, Amazon etc... The orders come direct from the various sites and are processed in the same order processing software so they all look the same whichever market the customer has placed the order. Doing this you will be much more in control, and as the guys have said you can have one lot stock servicing all markets. Happy to help if you needed. Alan

 

[Tom Davies]

Thanks for the help guys!

Yes, with all the work done (using software) and shipped out by amazon.
Or without software with you manually entering address on a fulfilment order at amazon from your inventory screen there. Amazon charge a fee for the fulfilment order but they don't charge a percentage.

Utilises some of your FBA stock on ebay.

Do you mean Dropshipping.. So list the items on eBay and once they sell, create a Fulfillment order on Amazon?

 

[Mr D]

Thanks for the help guys!


Do you mean Dropshipping.. So list the items on eBay and once they sell, create a Fulfillment order on Amazon?

Well...... yes, if you want to class your own items being sent out by your picking & packing service as dropshipping. Test a fulfilment order for a UK address - without finalising it. You can see the fee that item will have for the shipment.
I'd keep any ebay listings of amazon stuff as UK only sales. EU sales are a lot higher fee and tey don't do outside the EU except to the channel islands.

I put on the ebay listing about how this item will be sent in an amazon box and how its our item, not amazon's.

There are other fulfilment companies operating around, with ability to send overseas better than FBA gives.
Something for the future.

 

[Tom Davies]

Thanks Mr D That's great advice- I never thought of that at all! Already getting awesome value from this group!

 

[Mr D]

I found it most effective for stuff with decent price - in my case £15 upwards. But work out what is suitable for your business - you know it best.
The one time I had an INR on an ebay order amazon had delivered I got a credit of full retail price same day from amazon.

 

[AW Swindon]

Tom, is there a specific reason you need FBA?
Its worth challenging if this is the best fulfilment strategy for you.
A simpler solution is to get "FB by someone else", they would store all your product, they will be able to receive all the orders directly from all the market place sites including Amazon. There would be no re-entry of anything, you would not even need to be involved. The orders would just get dispatched and the fulfilment company would send confirmation back to the market place for each of the orders, and then obviously the marketplace would trigger the customer confirmation. The choice of carriers would then be up to you. Alan