Found a top selling product on Amazon that I can sell for less

[xabi]

So I have been looking at the top selling products on a particular Amazon category, I have been in touch with suppliers in China and can get the product delivered and sell at half the price of the current listing and still make a profit. The product from China is identical to the one for sale, the only difference is that the seller has his own branding on it. The current product sells fro 14.99, I can get for 6.99 and still make a tidy profit.

How can I list this product on Amazon and get mine on the first page? Any advice on how I can compete with them and take some of the share?

On a different topic, a local business is in need of an app for their customers, its just a simple restaurant app for making bookings and listing menus etc. If I build the app for them, can i get it on the Apple App Store easily?

 

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[KeepGoin]

So I have been looking at the top selling products on a particular Amazon category, I have been in touch with suppliers in China and can get the product delivered and sell at half the price of the current listing and still make a profit. The product from China is identical to the one for sale, the only difference is that the seller has his own branding on it. The current product sells fro 14.99, I can get for 6.99 and still make a tidy profit.

How can I list this product on Amazon and get mine on the first page? Any advice on how I can compete with them and take some of the share?

On a different topic, a local business is in need of an app for their customers, its just a simple restaurant app for making bookings and listing menus etc. If I build the app for them, can i get it on the Apple App Store easily?

Search for a thread on here about doing it the easy way vs the hard way when it comes to importing. That should answer your questions.

 

[Ronak]

So I have been looking at the top selling products on a particular Amazon category, I have been in touch with suppliers in China and can get the product delivered and sell at half the price of the current listing and still make a profit. The product from China is identical to the one for sale, the only difference is that the seller has his own branding on it. The current product sells fro 14.99, I can get for 6.99 and still make a tidy profit.

How can I list this product on Amazon and get mine on the first page? Any advice on how I can compete with them and take some of the share?

On a different topic, a local business is in need of an app for their customers, its just a simple restaurant app for making bookings and listing menus etc. If I build the app for them, can i get it on the Apple App Store easily?

1) It sells for $15 and you get it for $7, what do you plan on selling it for? Have you taken into to account your shipping costs inbound as well as to Amazon? What about their fees?

2) The larger issue-- even if you can supposedly source an item at lower cost, never compete only on price, it'll be a race to the bottom. Find something of value to add to the product that other's don't have, otherwise you're just another commodity with zero differentiation.

 

[xabi]

1) It sells for $15 and you get it for $7, what do you plan on selling it for? Have you taken into to account your shipping costs inbound as well as to Amazon? What about their fees?

2) The larger issue-- even if you can supposedly source an item at lower cost, never compete only on price, it'll be a race to the bottom. Find something of value to add to the product that other's don't have, otherwise you're just another commodity with zero differentiation.

Sorry, I can sell it for 7 with a profit, I can have it landed for less than 2.

 

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[Scot]

Sorry, I can sell it for 7 with a profit, I can have it landed for less than 2.

What @Ronak was trying to point out was to take into account the shipping to Amazon warehouse and the amount that Amazon will take if you use FBA (if you want first page, you'll most likely need FBA)

There are several gold threads about selling on Amazon. Here is the one you should start with.

GOLD - Ask me anything about eCommerce (2015+)

Every answer is in there.

 

[RMarques]

I retail stuff I get for .50 at $7 and there isn't much profit in it.
Good way to learn process but don't think you can go off and quit your job doing it.

 

[xabi]

I retail stuff I get for .50 at $7 and there isn't much profit in it.
Good way to learn process but don't think you can go off and quit your job doing it.

It's more of a way to learn the process, I don't expect this product to make millions, but it should give me a good understanding about the business.

 

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[Vigilante]

Better to focus on products that are NOT on Amazon, and get them on Amazon.

If I were the seller, I would drop the price to $5.99 and watch you bleed out.

 

[xabi]

I retail stuff I get for .50 at $7 and there isn't much profit in it.
Good way to learn process but don't think you can go off and quit your job doing it.

What's your profit on the 7

 

[Motley crue]

Like Ronak said, don't compete on price. If you undercut everyone on price they'll be forced to go lower than you, and you'll go lower than them until your all selling at wholesale. You're better off researching some more and finding a product with less competition.

 

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[xabi]

Like Ronak said, don't compete on price. If you undercut everyone on price they'll be forced to go lower than you, and you'll go lower than them until your all selling at wholesale. You're better off researching some more and finding a product with less competition.

That's the thing, this product is #1 best seller in its category, the same product isn't for sale elsewhere on Amazon, that I can find anyway. That's how I did my research, looked at best sellers for a number of categories and this one only has one seller. I'm sure he's buying from the supplier I have quotes from.

 

[Walter Hay]

That's the thing, this product is #1 best seller in its category, the same product isn't for sale elsewhere on Amazon, that I can find anyway. That's how I did my research, looked at best sellers for a number of categories and this one only has one seller. I'm sure he's buying from the supplier I have quotes from.

You seem to have a fixation with this product and its #1 best seller rating, and that is blinding you to the good advice you have been receiving.

That advice is sound. You are heading for failure if you continue to ignore the advice you have asked for.

Walter

 

[AllenCrawley]

That's the thing, this product is #1 best seller in its category, the same product isn't for sale elsewhere on Amazon, that I can find anyway. That's how I did my research, looked at best sellers for a number of categories and this one only has one seller. I'm sure he's buying from the supplier I have quotes from.

Do yourself a favor and dive into the following threads by a pro who knows what he's taking about. Your answers are in there and you'll learn why you shouldn't go forward with this product.

GOLD - Do you want to do it the EASY way, or the HARD way?

GOLD - Ask me anything about eCommerce (2015+)

 

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[GoodluckChuck]

Better to focus on products that are NOT on Amazon, and get them on Amazon.

If I were the seller, I would drop the price to $5.99 and watch you bleed out.

If what you say is true OP and your competition is getting it from the same source, then this quote seems like a big risk to you.

 

[xabi]

sound advice, and thanks all, I will read the gold threads mentioned, should I stay clear of this product even if i only slightly undercut?

 

[Scot]

sound advice, and thanks all, I will read the gold threads mentioned, should I stay clear of this product even if i only slightly undercut?

Read. The. Gold. Thread.

 

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[MidwestLandlord]

sound advice, and thanks all, I will read the gold threads mentioned, should I stay clear of this product even if i only slightly undercut?

I'll chime in on price as the only differentiating value.

I sell a commoditized product through brick and mortar, not online, but I imagine it will translate well anyway.

In my business, price wins.

Here is what I do when a competitor moves in and tries to undercut me:

I go to my contacts at the manufacturer (there's only a few, so not hard to find who they buy from), and I ask "What is this new guy paying you?"

They usually just show me the new guy's contract that spells out exactly what he pays. They'll even tell me how much he is buying from them.

It's always higher than what I pay, with few exceptions. (the only exceptions I know of are the likes of Kroger, Cerberus Capital Brands, and Walmart/Sam's Club)

Then I price under their wholesale until the new guy either backs off or goes bankrupt.

Another strategy I use is to actually take my price UP and send my customers to him. Then when he builds up good momentum and is selling a lot of product, I'll cut below his wholesale. He follows my price down, and his high volume multiplied by his high negative margin kills him quick.

Trust me, you don't wanna play the price game. It's not fun.

 

[RMarques]

What's your profit on the 7

FBA fees take most of it.
Something that small is just an add on item that complements a main item that profits more.
Take the advice from these guys and read up.

 

[grindmode]

I'll chime in on price as the only differentiating value.

I sell a commoditized product through brick and mortar, not online, but I imagine it will translate well anyway.

In my business, price wins.

Here is what I do when a competitor moves in and tries to undercut me:

I go to my contacts at the manufacturer (there's only a few, so not hard to find who they buy from), and I ask "What is this new guy paying you?"

They usually just show me the new guy's contract that spells out exactly what he pays. They'll even tell me how much he is buying from them.

It's always higher than what I pay, with few exceptions. (the only exceptions I know of are the likes of Kroger, Cerberus Capital Brands, and Walmart/Sam's Club)

Then I price under their wholesale until the new guy either backs off or goes bankrupt.

Another strategy I use is to actually take my price UP and send my customers to him. Then when he builds up good momentum and is selling a lot of product, I'll cut below his wholesale. He follows my price down, and his high volume multiplied by his high negative margin kills him quick.

Trust me, you don't wanna play the price game. It's not fun.

Any advice on if you have a product which is ready to go but the problem I am trying to work out/find my way to the person in a "franchise" or larger company with MANY locations locally/nationally... Any advice on how to bypass the store manager which has no say in the "decision of new products potentially to carry or at least for myself to propose the product" to a shot caller? I've been stalking corporate names and leaving voicemails with MASS non copy-pasted email's but no responses yet... Any advice so on how to reach people in "high places" such as yourself who make these decisions?


Much appreciated...

 

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[Walter Hay]

I'll chime in on price as the only differentiating value.

I sell a commoditized product through brick and mortar, not online, but I imagine it will translate well anyway.

In my business, price wins.

Here is what I do when a competitor moves in and tries to undercut me:

I go to my contacts at the manufacturer (there's only a few, so not hard to find who they buy from), and I ask "What is this new guy paying you?"

They usually just show me the new guy's contract that spells out exactly what he pays. They'll even tell me how much he is buying from them.

It's always higher than what I pay, with few exceptions. (the only exceptions I know of are the likes of Kroger, Cerberus Capital Brands, and Walmart/Sam's Club)

Then I price under their wholesale until the new guy either backs off or goes bankrupt.

Another strategy I use is to actually take my price UP and send my customers to him. Then when he builds up good momentum and is selling a lot of product, I'll cut below his wholesale. He follows my price down, and his high volume multiplied by his high negative margin kills him quick.

Trust me, you don't wanna play the price game. It's not fun.

In my first B2B business price was not a factor. I charged what I thought the market would bear, and because the product greatly outperformed the obsolete competition products, the customers paid what I asked.

After gaining a near monopoly on the market, I was faced with an attack by a company that had wanted to buy me out, but I had refused. After I refused, they launched a campaign offering a product at 50% of the price I was charging. Many of my customers called me to let me know, and a number of them offered to get samples for me to compare.

As it transpired, the competitor was flogging the same old dead horse that I had already beaten so soundly. I reported my findings to all of my customers, warning them against reverting to the obsolete technology. I lost one customer.

Within a year they came back cap in hand, asking me to fix the problem caused by that obsolete product.

MidwestLandlord has loyalty from his suppliers, and I had loyalty from my customers. In his case price is the main factor, but in my case even a 50% price reduction would not sway my customers. I'm glad I didn't supply retailers.

Walter
P.S. Service counts too. I once had a customer's huge factory about to grind to a halt due to a union blockade. The only item they were running low on was mine, so, wearing suit and tie, I ran the gauntlet and delivered to them in my European car, with the trunk packed full, right under the noses of the blockaders. Production continued and the union went back to negotiation.

 

[100speed]

I'll chime in on price as the only differentiating value.

I sell a commoditized product through brick and mortar, not online, but I imagine it will translate well anyway.

In my business, price wins.

Here is what I do when a competitor moves in and tries to undercut me:

I go to my contacts at the manufacturer (there's only a few, so not hard to find who they buy from), and I ask "What is this new guy paying you?"

They usually just show me the new guy's contract that spells out exactly what he pays. They'll even tell me how much he is buying from them.

It's always higher than what I pay, with few exceptions. (the only exceptions I know of are the likes of Kroger, Cerberus Capital Brands, and Walmart/Sam's Club)

Then I price under their wholesale until the new guy either backs off or goes bankrupt.

Another strategy I use is to actually take my price UP and send my customers to him. Then when he builds up good momentum and is selling a lot of product, I'll cut below his wholesale. He follows my price down, and his high volume multiplied by his high negative margin kills him quick.

Trust me, you don't wanna play the price game. It's not fun.

If Im not mistaken is that not illegal, as it is classified as predatory pricing?

 

[amp0193]

Better to focus on products that are NOT on Amazon, and get them on Amazon.

If I were the seller, I would drop the price to $5.99 and watch you bleed out.

I've lived this scenario. Watching $30 profits a unit shrink to $5 in the course of 3-4 months.

Not worth your time Op. Move on to something else.

 

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[MidwestLandlord]

If Im not mistaken is that not illegal, as it is classified as predatory pricing?

It's only illegal in Minnesota. (seriously)

 

[100speed]

It's only illegal in Minnesota. (seriously)

And the EU lol, which is where Im based.

 

[Almantas]

Instead of chasing shadows there's a more practical way to earn experience and make €.

If I were you I would source a niche product that is as light and as small as possible and that could be placed at €10-20. By doing so, your product would more likely rank high on Amazon without any sweat and tears and make a reasonable profit, if you find a proper supplier.

However, depending upon a single niche item is dangerous. When you find your niche product, rinse and repeat, because:

• You're likely to attract competition and price wars will begin, unless you put a unique twist to your product that isn't going to be easily replicated by others.
• You're gonna make a lot more money by selling multiple niche products instead of blowing all your capital on a single niche product.

P.S. I have no direct E-commerce experience, so take my advice with the grain of salt.

 

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[Roli]

sound advice, and thanks all, I will read the gold threads mentioned, should I stay clear of this product even if i only slightly undercut?

The point is don't undercut; it will just end up in a race to the bottom, with him undercutting you and then you him, until neither of you have any margin left. Especially if this competitor is importing in volume. There is nothing wrong with listing exactly the same product at around the same price. If the product is a seller, then you will sell; perhaps when your competitor is out of stock, and perhaps at the same time as them.

As somebody pointed out above, look to add value to the product, is there something you can pair with it to make it more attractive to buy from you. I'm with the people above, competing on price only is not the way to go when you're a newbie small fry.

Check out the FBA calculator, and really think hard about all costs, taxes, deliveries, packaging, etc.

Also consider that your competitor could also be importing from China, perhaps there is a reason why they aren't dealing with the manufacturer you have found.

Read those threads and good luck.

 

[biophase]

Sorry, I can sell it for 7 with a profit, I can have it landed for less than 2.

LOL, there is no profit in a $7 product that is landed at $2. You will break even at that price. The guy selling at $15 is probably making $5-$7. If you pursue this product you will be posting a thread titled "How do I get rid of 500 units of bad inventory at Amazon without losing money."