In this Podcast we discuss “repricing to get the sale” AND when to Hold/Fold on old inventory. You may be surprised at how much our views differ on this subject. We have had some lively conversations about this subject over the past month… you will want to hear what we think works for each of our business models.
1 – What’s up with us this week
- Went thrifting on Wednesday to 3 stores.
- Found lots of new items and some without using any scanner.
- Had a $69 textbook returned – having it sent back to me to check.
- Processed more items to send in – 8 boxes out today.
- Repriced and got rid of items.
- Talked with Debra a LOT about pricing and removing inventory.
- Sales jump – Big load of inventory she sent in finally got to the warehouse.
- No thrifting this week (no car).
- Using JFJ Pro CD Cleaner and love it.
- Have spent some time repricing in Seller Central (more later).
- Update on using the Amazon Profits Spreadsheet.
- More Collectible Very Good games selling than other lesser conditions.
2 – Questions & Flips
- Writing and Reporting News textbook. http://www.amazon.com/gp/product/0534633331
Paid $0.50 (UVG) Sold $25 – 9 months to sell
- Stair Climber Plus VHS http://www.amazon.com/gp/product/B0044FAH1Y Paid $0.50 (New) Sold $49.99 – 7 months to sell.
- Seven Up – Evanovich book on audio cassette http://www.amazon.com/gp/product/1587885298 Paid $0.50 (UG) Sold $7.98 – 12 months to sell. After all fees made around $3
- That’s an example of something “dumped” – I had it at a higher price at first. I would have been better off pricing it to match the lowest FBA price from the beginning and flipping it quickly – instead of having it sit for 12 months.
- Infection Control In Ambulatory Care http://www.amazon.com/gp/product/0763731900
Paid $5 (UVG) Sold $113.16 4 months to sell (repriced to buy box) . Drove me crazy – in pending for 10 days!
- Ravensburger Dog Mania – 1000 Piece Puzzle http://www.amazon.com/gp/product/B00004TQKX Paid $4 NEW Sold “Magic $25” – Took 3 months to sell.. repriced recently from my original (I wish price).
- Castlevania: Lords of Shadow Official Strategy Guide http://www.amazon.com/gp/product/0744012597 Paid $3 (UG) Sold “Magic $25” in less than 1 day.
Note: Not familiar with the “Magic 25”? We did a podcast all about The” Magic 25″ that you can listen to here. And we wrote guest blog post on the Seller Engine Blog about “Why We Strive for the ‘Magic 25‘”
Want to hear about MORE GREAT FLIPS? We share flips often in our free Thrifting for Profit Facebook Group. Come join in the fun!
(note: this is a free group. To sign up just click here, then click on the “join” button and we’ll add you to the group ASAP.)
3 – Main Topic – How, When and Why to Dump/Remove Inventory
Beth’s “How, When, Why”
- What is “Long-Tail”?
- You are waiting for the RIGHT buyer to come along – it is not a “HOT” product.
- “means it’s not gonna sell the first week or maybe month or year it’s at Amazon” – from Beth C. in the chat room.
- GREAT article explaining Long-Tail HERE.
- long-tail for Beth vs. long-tail for Debra
- Hold a price or lower it?
- For Beth, 1 year is old inventory.
- Hanging onto inventory too long.
- “She who dies with the most inventory wins!” – NOT always!
- I have been spending more time “feeding the beast” than “cleaning up the crumbs“.
- Storage Fees – they do add up.
- Repricing to dump inventory vs. repricing to stay competitive and the “Magic 25“
- Inventory Rich, Cash Poor: How To Get More Sales blog post.
- Article aimed at getting that stale inventory moving and getting $$ back so you can reinvest it in better inventory – NOT meant to be used for general repricing guidelines – just to get inventory MOVING.
- Having items destroyed $0.15, Having items shipped back $0.50
Debra’s “How, When, Why”
- Repricing tool options.
- 5 months is old inventory.
- Having your money “work for you”.
- Article about “Hold or Fold Your Amazon FBA Inventory” from Debra’s retail arbitrage days.
- Looking for the right sale price.
- Pricing one-of items (like many thrift store finds).
- Pricing un-emotionally – just look at the numbers.
- Repricing to sell.
- Some products will NEVER sell! (not never-ever though).
4 – Other Topics We Discussed & Questions From the Chat Room
Questions about today’s main topic:
- If you find an item that Amazon sells but they are selling out, do you price for a quick sale before Amazon re-stocks? Or stick to the price you want?
- It “depends” (answered on air)
- How often do you reprice items? (answered on air)
- What about listing slow moving things on eBay and having Amazon ship to the customer when it sells on eBay? (answered on air)
- Multi-Channel Fulfilment info from Amazon.
- “Amazon’s Multi-Channel Fulfillment service enables you to fulfill orders from sales channels other than Amazon.com using the inventory that you have stored in an Amazon fulfillment center.”- Source: Amazon.com
- What are “penny books“?
- Books that sell for a penny plus shipping. No longer a good business model to follow.
- Chris Green wrote a great article about Penny Books HERE.
- Long Term Storage Fees are coming up mid-February. These will apply to anything you have in inventory with a quantity greater than one. Read more from Amazon about Long Term Storage Fees HERE.
- What is the oldest textbook you will buy? (answered on air).
- How much do you get charged for a UPS pick-up? (answered on air).
- Where do you find “pending” orders?
- From Seller Central click on “Orders” -> “Manage Orders” I have mine set to show a “Date Range” of 7 days. When I scroll down I come to orders that are grayed out and have “Pending” in the “Status” column.
- There’s been a few discussions about Pending Orders and what they are in our Facebook Group that you can find HERE and another HERE.
- If a DVD is in a cover box, do you need to seal it for FBA? (answered on air)
- Do you have Seller Engine Plus?
- Yes, Debra and Beth both use it. Learn more about it at http://sellerengine.com
- Why does Amazon have you send things to 4-5 different locations?
- Part of it is so the items go to where they can get to the customers the quickest.
- From Amazon:
Splitting products into multiple shipments
In some cases we require you to split your inventory into multiple shipments. Reasons may include one or more of the following:
Products in your shipment are distributed throughout Amazon’s fulfillment network to optimize ship-to-customer speeds and reduce delays caused by local or regional events. See Inventory Placement.
Products in your shipment have special storage or handling requirements.
Products in your shipment are processed differently at the fulfillment center.
- Favorite quote from the chat room about split shipments… “It cost so much to send a few items, it chaps my thrifty soul.” – Dianag
Do you have a question about Amazon FBA, Thrifting or any of the topics discussed in this podcast?
- Ask your question on our Free Facebook Group (once there, click the “Join” button) or leave us a comment below this post. We will get back to you ASAP!
Other Links & Resources:
- Our FREE Facebook Group: http://www.facebook.com/groups/thriftingforprofit/ – click on the “Join” button and we’ll add you to the group ASAP!
- Freebies & Guides from Debra & Beth to help you with your Amazon FBA business! http://thriftingforprofit.com/freebies-guides/
- Our Recommended Resources can be found here: http://thriftingforprofit.com/recommended-resources/
Listen live to the show Fridays, 2pm ET at http://thriftingforprofit.com/listen
You can find our archived podcasts here: http://thriftingforprofit.com/podcast