For the most part, I’ve profited from my pajamas.
Me, everyday this quarantine
My Business Model Took a Big Hit
I resell products on Amazon with the help of their FBA program. This eliminates lot of overhead for sellers in exchange for fees. My business uses FBA heavily because it allows upfront work for future income.
One of the most important aspects of reselling is sourcing products. I find most inventory from thrifts, retail stores and other physical means. All of these sourcing avenues were instantly cut off because of shutdowns.
Problem #1 – I can’t GET inventory
Of the products that I sell on Amazon, roughly 66% are books. In mid-March, Amazon announced restrictions on inbound inventory that was deemed “non-essential”.
Problem #2 – I can’t SELL My Inventory
This small hurdle was quickly overcome and it led to big things.
Turning a Negative to a Positive
In early Jan-Feb, I focused on sourcing products online instead of shopping individual thrifts. Learning how to easily find products online proved to be very useful in the coming months, I just didn’t know yet.
Besides FBA, sellers are also able to ship units themselves for less fees. This is called Amazon Merchant Fulfilled (MF). By not involving Amazon warehouses, units can be listed and sold faster. This also means getting paid faster.
Click for a FULL guide on Merchant Fulfilled and getting started
Of the inventory that was currently being held, it was mostly converted to MF.
Problem #2 is solved, but what about NEW inventory?
Getting Units Daily
Since I cannot find products physically, I hopped online and got to work. Using a mix of manual sourcing and programs like Tactical Arbitrage, I starting finding the gold.
For about 3-5 hours each day, I continually look and purchase products. For the most part, I’ve profited from my pajamas. After doing this for a week, the packs have been at my door every day.
Profiting from Convenience
Package delivery has seen huge amounts of stress as buyers flood online marketplaces. This has impacted Amazon’s usual 2-day Prime shipping. Some cases, orders wouldn’t arrive for 1+ month! MF sellers are able to offer much faster shipping times.
Without the need to price gouge to profit, there are thousands of everyday luxuries that have increased prices. This is simple supply and demand
Specialty Diet Foods (Keto, Paleo, etc.), Toys, Video Games are just a few great selling categories during this time.
Conclusion
I’m curious to see how the current events unfold and what will change. I can guarantee one thing – My business will prevail regardless.
In my next post, I’ll explain how beginners can dip into selling online and make money today.
Until then, stay safe and keep learning!
-David
