Find A Need on Amazon, Make 9 Figures

[nzerinto]

"C&A Marketing does "in the nine figures" in sales every year, Pikarski says, and grows at about 30% annually."

Just read this article - to me this epitomizes the Fastlane....find a need, fulfill it...!

http://feedly.com/k/17LDo88

 

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[AllenCrawley]

Read this article yesterday. I've heard of people doing this but not on this scale.

 

[Gymjunkie]

Mind=Blown

 

[TheJonno]

I am not surprised. They listened and what they heard were problems that needed solving to provide more value to consumers.

 

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[1step]

I just looked up the Hipe on Amazon and apparently it is shipped and sold by amazon. I imagine they now sell in bulk to amazon, not sure how this relationship works but Im sure it makes it a lot easier to make it to 9 figures!

 

[AllenCrawley]

I just looked up the Hipe on Amazon and apparently it is shipped and sold by amazon. I imagine they now sell in bulk to amazon, not sure how this relationship works but Im sure it makes it a lot easier to make it to 9 figures!

Roughly 25% of the reviews are 1 and 2 star mostly regarding the quality. Someone may come in behind them and manufacture a higher quality product.

 

[JackTripper]

I just looked up the Hipe on Amazon and apparently it is shipped and sold by amazon. I imagine they now sell in bulk to amazon, not sure how this relationship works but Im sure it makes it a lot easier to make it to 9 figures!

Yes amazon now has a fulfillment center, you can send all your products to them and they do the rest.

 

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[1step]

Yes amazon now has a fulfillment center, you can send all your products to them and they do the rest.

I know this but this is not what I was referring to. The key part of what I wrote was "sold" this is very different than fulfillment by Amazon which is what you are referring to.

 

[theag]

Thanks for sharing this. Really amazing. Have to read that site more often.

 

[Vigilante]

The paradigm has changed.

A 1 month old "company" can now compete head to head against 20 year marketshare players.

It's a value proposition play now.

I will show you next week. Stay tuned.

-Vigilante

 

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[Vigilante]

 

[nzerinto]

I know this but this is not what I was referring to. The key part of what I wrote was "sold" this is very different than fulfillment by Amazon which is what you are referring to.

Good spotting - that is interesting. I found this on the Amazon Sellers forum...looks like they likely struck a deal with Amazon, where Amazon buys directly from them.
Obviously they'll have lower margins doing this, but likely much larger volume in sales, since Amazon will always rank "it's" products higher than 3rd party retailers (and the buy box appears 100% of the time).

 

[MakeItHappen]

Good spotting - that is interesting. I found this on the Amazon Sellers forum...looks like they likely struck a deal with Amazon, where Amazon buys directly from them.
Obviously they'll have lower margins doing this, but likely much larger volume in sales, since Amazon will always rank "it's" products higher than 3rd party retailers (and the buy box appears 100% of the time).

Yeah I think that's is probably the best thing that can happen to a seller on amazon. But I guess you need to be the dominant player on amazon in your niche for them to even consider it, also your volume must be huge.

@Vigilante
Just wondering if amazon contacted you about buying your brand in bulk to sell them themselves?

 

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[Vigilante]

We do not direct sell them. We could, but probably never will. Here's why:

1. It's debatable as to if you get incremental sales in "sold by Amazon" vs. "fulfilled by Amazon." Keep in mind with Amazon FBA, they handle all shipments, all customer service, and even all returns. You interface with the customer zero. There's not a huge customer perception difference between Amazon FBA and Sold by Amazon, although Amazon would tell you differently. Because Amazon FBA uses Amazon Prime, their best customers know when they order an item that is shipped by Amazon, using Amazon prime, that it IS Amazon.

2. Consider the math.

Lets say an item retails for $49.99. If you are an Amazon FBA Marketplace seller selling your own item, after fees and shipping charges you might net $40 for argument's sake. Lets go to WORST case scenario and say you net $30 after all fees.

If you direct sell to Amazon the same item (Amazon is your customer), here's how it works :

1. You sell to Amazon at $20-$25 cost (using our $49.99 retail example)
2. You provide Amazon terms of between 30-90 days, depending on the category
3. You still pay freight in to Amazon, just like FBA
4. You take returns from Amazon, just like FBA
5. Amazon will hit you up for additional money for things like gold box promotions, etc...

and

6. Even though it seems like the liability in that scenario transfers to Amazon, it never really does. You still give them terms, and any time anyone owes you money, they have the leverage. You're never really done when you are a vendor to a retailer. You still own the customer experience, regardless of who "owns" the merchandise.

They would have to sell a HELL of a lot more to make selling them a better value proposition than being a marketplace vendor, which is why the marketplace is roughly 40% of all Amazon sales.

The FBA marketplace is GREAT for Amazon as they get to count the sales as top line revenue for Wal-Street, it is straight profit for them, it uses Amazon prime and UPS which helps both the Prime Program and their UPS shipping rates, and they have zero potential liability on up to 40% of their revenue.

In my opinion (as a former retail buyer) the value is being an FBA marketplace seller, not having Amazon sell your merchandise. Operationally there is zero difference to you, other than the fact that your margin is higher as the risk all stays on your side. Higher risk = higher reward.

 

[MakeItHappen]

Thanks a lot Vigilante.
That's an interesting insight!

 

[RHL]

This thread. This is why I facepalm when someone starts a thread "How do I spot needs/add value/get an idea." This entire business model looks like this:

1. Find popular product on Amazon with heavily supported critical review citing lack of quality/features.

2. Produce product that makes up said gap in quality/features.

???

Profit: Millions.

Anyone with some motivation could do this. If you can't find a place to get started into the Fastlane, it's really your fault. Sorry.

 

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[stefan]

It's amazing how Jewish people are so dominant in a wide variety of professions, especially within entrepreneurship (and Hollywood)!

 

[tafy]

It's amazing how Jewish people are so dominant in a wide variety of professions, especially within entrepreneurship (and Hollywood)!

Jewish people have the highest average IQ in the world (Hitler had small part in this apparently)
They also support their own and are very entrepreneurial (Chinese are very similar like this)

Oh and apparently Mexicans have the lowest avarage IQ, cant remember why but something to do with climate and access to food.

I think its amazing what they do, amazon really leveled the playing field for businesses like this.

 

[CommonCents]

and ebay has no product reviews. someone should be fired.

 

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[elliot]

This is great, how much would it cost to have a product made and imported (for people with low budgets?) so they can do the same?

 

[MakeItHappen]

This is great, how much would it cost to have a product made and imported (for people with low budgets?) so they can do the same?

You should check out one of the best threads on the fastlaneforum from Vigilante: https://www.thefastlaneforum.com/showthread.php/35694-Addicted-to-Passive-Income-Deposits

You have to become an INSIDERS to see it and it's definitely worth it to become on.

Vigilante has is own imported brand. He is the market leader in his niche and crushing competition. He talks about all the steps you have to take to get your own product/brand via improting from overseas.

Because of this thread I myself imported successfully from China.

 

[JAJT]

This is great, how much would it cost to have a product made and imported (for people with low budgets?) so they can do the same?

How long is a piece of string?

Seriously, there is no set answer here. Small things that are likely done within established frameworks (like changing a color or flavor) would likely cost almost nothing. The more you have to change and the more complicated the item, the more it likely costs.

 

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[bophisto]

Thanks for posting. Definitely an interesting business model. Smart guys for sure. Seems similar to what some in the fashion industry do such as Zara...especially creating products 'inspired' by other products.

 

[Tiger]

Google the name of the owner of that company and you'll find a long trail of pissed off people who have a thing or two to say about his business practices.

 

[jtmoniii]

We do not direct sell them. We could, but probably never will. Here's why:

1. It's debatable as to if you get incremental sales in "sold by Amazon" vs. "fulfilled by Amazon." Keep in mind with Amazon FBA, they handle all shipments, all customer service, and even all returns. You interface with the customer zero. There's not a huge customer perception difference between Amazon FBA and Sold by Amazon, although Amazon would tell you differently. Because Amazon FBA uses Amazon Prime, their best customers know when they order an item that is shipped by Amazon, using Amazon prime, that it IS Amazon.

2. Consider the math.

Lets say an item retails for $49.99. If you are an Amazon FBA Marketplace seller selling your own item, after fees and shipping charges you might net $40 for argument's sake. Lets go to WORST case scenario and say you net $30 after all fees.

If you direct sell to Amazon the same item (Amazon is your customer), here's how it works :

1. You sell to Amazon at $20-$25 cost (using our $49.99 retail example)
2. You provide Amazon terms of between 30-90 days, depending on the category
3. You still pay freight in to Amazon, just like FBA
4. You take returns from Amazon, just like FBA
5. Amazon will hit you up for additional money for things like gold box promotions, etc...

and

6. Even though it seems like the liability in that scenario transfers to Amazon, it never really does. You still give them terms, and any time anyone owes you money, they have the leverage. You're never really done when you are a vendor to a retailer. You still own the customer experience, regardless of who "owns" the merchandise.

They would have to sell a HELL of a lot more to make selling them a better value proposition than being a marketplace vendor, which is why the marketplace is roughly 40% of all Amazon sales.

The FBA marketplace is GREAT for Amazon as they get to count the sales as top line revenue for Wal-Street, it is straight profit for them, it uses Amazon prime and UPS which helps both the Prime Program and their UPS shipping rates, and they have zero potential liability on up to 40% of their revenue.

In my opinion (as a former retail buyer) the value is being an FBA marketplace seller, not having Amazon sell your merchandise. Operationally there is zero difference to you, other than the fact that your margin is higher as the risk all stays on your side. Higher risk = higher reward.

Completely agree with all of the above and just wanted to add my real personal example. I sell a $9.99 book on Amazon. They just sent me a PO for 3 books and a check for $13.75. ($4.33 per book) I then had to pay for to ship it there.

Why am I doing this? Simply to clear out inventory. I should probably just burn them. Owell.

 

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[csalvato]

Google the name of the owner of that company and you'll find a long trail of pissed off people who have a thing or two to say about his business practices.

which can be said about any successful person who has impacted millions. don't know anything about the guy, but just sayin