In the past two years, as a large number of new sellers continue to flood into Amazon, the competition on the platform has become increasingly fierce. In order to survive the sellers set off a price war. Many sellers in the industry said that the profits on the platform are constantly decreasing. From the previous 30%, it has dropped below 10%. Some sellers even push down the price in order to push new products or keep the product rankings. Someone else did not make any money.
Just when some sellers are caught in the quagmire of price wars, there is a couple of sellers who can be independent, operate in their own way, get high profits on Amazon, their profit margin can be as high as 40%, just ask you 6 6?
The couple are named Justin and Kristen Herbert from Arizona. They are currently running on Amazon, enjoying high profits and traveling with their children. In the future, they plan to use these profits to make charity and adoption and help more people in need.
Officially operated in Amazon in 2018, with a profit of 40%
In 2018, the couples of Justin and Kristen Herbert left the financial job in Los Angeles to find a more family-friendly lifestyle. They moved to Arizona with their children and started a new life for full-time Amazon sellers. They bought a house with a large garage to store the goods before shipment.
The couple searched for low-priced items in large stores (from Lowe’s to Target to Wal-Mart) and made huge profits at Amazon’s high price, never achieving their goal of fast arbitrage on Amazon. There is a lifestyle of Amazon sellers, officially known as “retail arbitrage.”
Before the couples of Justin and Kristen Herbert officially operated Amazon, they had worked part-time for several years. Justin said: “In 2018 their goal is to have more than seven figures in total sales.” So their sales must exceed $1 million.
For the 31-year-old husband and the 28-year-old wife, the ambition of the young couple is not small. It is a great effort to run Amazon for more than one million dollars a year! What’s even more surprising is that the couple’s total sales in 2018 are $1 million, and their profits will be between $300,000 and $400,000.
In the first year of full-time operation of Amazon, the profits were as high as 40%, which has to envy many sellers!
However, Justin and Kristen Herbert did both. Kristen said: “It is not impossible to get such a high profit, but it is a tough job to make enough money to get high profits.” .
Small couples share: How to get high profits on Amazon?
Talking about how to get high profits on Amazon? Justin and Kristen Herbert shared some of their business strategies.
In the few years when the couple worked part-time as Amazon, they continued to test and found out that = an effective purchasing, shipping and sales system, and already mastered some trading skills.
First, strictly calculate the profit rate from all aspects
They strictly follow Amazon’s guiding principles and have to spend a lot of time removing labels, repackaging and shipping their products.
From Amazon’s storage and sales costs, to the natural gas, taxes and fees that they use for smartphone apps, the cost will affect their profits.
So they used some software applications to understand store inventory and sales, as well as product prices and profit margins.
Second, strive to do their own work
The couples Justin and Kristen Herbert put a lot of time into the work, each working 40 or 50 hours a week, including shopping, packaging and shipping.
They also do wholesale business, buy products from manufacturers and distributors, and then conduct online bulk sales on Amazon, which has already achieved high profits.
Third, quickly clear the goods, take a light operation mode with less inventory
The goal of the couple is to find products that can be quickly sold and then quickly sell them through Amazon. They said frankly: “We don’t like to put money on the product, clear inventory as quickly as possible, and maintain a light operating model.”
On a recent Sunday, they plan to go to the Target store as much as possible to search for the two identified items they predicted. These two items are cleared at the mall, they are bought and sold at a higher price on Amazon.
Fourth, the selection must look at the profit
In terms of selection, the couple must first look at whether the product can make money, and must ensure that there is a certain profit in order to purchase.
They are looking for dozens of board games, selling $7 at Target. The game is priced at $18 on Amazon, so after taxes and fees, each product will receive a profit of $4.
The second product, the Contigo brand water bottle, is a bust. When they were at the store, the price of a similar Camelbak brand bottle had been halved, but after an inspection, Juston said the profit margin was still too small. And said that they will continue to observe the products, and then purchase them when they are cheaper, in order to obtain higher profits.
On a clearance shelf, they found the kids’ Aquaman costumes for $8. The price of the same clothing sold on Amazon after the check is about $31. So they made a purchase, and the after-tax profit of selling each product on Amazon was $13.
During a recent trip to Lowes, they found the Dyson vacuum cleaner for $129 each. The same vacuum cleaners are sold on Amazon for $340 each, with a post-tax charge of $142 each.
The couple will compare the price of the same product on Amazon at the time of discounting the product, and then purchase it. Of course, the process of purchasing is not the same for every discounted product. Once the purchase is complete, they will repackage at home and ship them to Amazon via UPS.
Fifth, the recognition of the platform
According to reports, more than 50% of Amazon’s total sales come from third-party sellers, such as the company of Justin and Kristen Herbert.
As an old seller of Amazon, they want to get more extra offers. The most important thing is to get a special license to sell top brands to Amazon.
How to get this license, Justin said: “Not every company can sell brands like Nike or Mattel. Without big brand blessing, you have to make sure you have enough credibility to get Amazon’s trust.”
I hope to help more people in the future.
After making great efforts on Amazon through their own efforts, the couple hopes to help more people in the future. For example, a mother lives with a disabled son and they share their business to help the mother make money on Amazon.
When they were running Amazon, two children accompanied them on a marathon shopping trip, and during the procurement process, they made some short trips in order to make the children happy.
Now, the couple are working hard to convert a $1,000 investment into a $50,000 profit for adopting some children without life support.
Justin and Kristen Herbert will also do their best to give back to their hometown. They buy a batch of toys when they are in the store and then donate them to the children’s hospital in their hometown.
When many Amazon sellers were caught in a price war, Justin and Kristen Herbert, the couple sellers, were operating in their own way, earning high profits.