Selling Groceries On Amazon - Who Knew?
Selling Groceries On Amazon - Who Knew?
Keep buying your milk, bread and eggs, but start selling the cereal, coffee and snacks. Say hello to your new Amazon business, Ready?
Keep buying your milk, bread and eggs, but start selling the cereal, coffee and snacks. Say hello to your new Amazon business, Ready? Read more
I know what you're probably thinking...who on earth would buy groceries on Amazon when they can just get them at their local store for a fraction of the price?
Well, I have my theories, but before we dive into them, let's look at just a few examples of a few gold nuggets I found off the clearance rack:
1) MUSCLE MAC
This is the little gem I mentioned in the video. I love the 2 for 99 cent specials because you buy a ton and make your money back usually in just one or 2 sales. Notice here that a 2 pack sells on Amazon for about 13 bucks. Not too shabby! Oh, but it gets better...
2) SABRETT ONIONS IN SAUCE
I love the hot dogs, love these onions even more. Hard to find in the south, and not as much name recognition as it does in the northeast - hence the clearance price you see here of 2 for $2.99. Now this involves creating a 2 pack, which does take a little leg work, but it's a quick sale in the range of $23 - 27. Not bad, even if you do need to use some bubble wrap and tape.
3) LUPOS SPIEDIE SAUCE
What's Spiedie Sauce you ask? Only the greatest meat marinade ever! It started in our hometown of Binghamton, NY and is now spreading to other markets. Of course local residents in the south don't know much about it, so they pass it by, which allows me to scoop it up for just over 50 cents a bottle!
This is a major reason why the grocery model works so well. People move to different areas, and feel nostalgic about the products they used to consume back home. That's why they're willing to pay a premium like the one you see here. At the time I bought this, it was selling on Amazon for $11.99 a bottle, but quickly went out of stock as indicated in the photo. Out of stock means you could be the only seller, and set your price at a premium!
Starting to get the idea?
People pay premiums for products on Amazon for a variety of other reasons, including:
- No transportation to the grocery store
- Live in rural areas where the nearest store is 50+ miles away
- College students using mom & dad's credit card
- More money than time
So why would anyone want to sell groceries on Amazon anyway?
I think the better question is, why wouldn't you want to sell on Amazon?
For the last 20 years, Amazon has posted double digit revenue growth. They are slowly but surely taking market share away from some of the world's largest retailers, and it's not showing any signs of slowing down. In fact, by 2020, one analyst is predicting that Amazon will sell 12.6 billion items a year.
Did you know that Amazon allows anyone to come along for the ride?
Almost half of the paid units on Amazon were sold be third party sellers, and you could be one of them.
Amazon is changing the face of e-commerce, and despite their astronomical growth, the trend is still in its infancy. With all of the transactions occurring online today, e-commerce is still less than 10% of all retail commerce.
This presents an opportunity unlike any other available today, on or offline. You too can benefit from this trend by becoming an Amazon seller. The customers are all there - you just need to provide the products, and that’s what this Kickstarter project is all about.
Whether you’re 17, 47 or 77, this is the type of business that can fit any lifestyle. By leveraging the power of Fulfillment By Amazon (FBA), you can build a business in your spare time with no warehouse, employees or costly overhead.
By partnering with Amazon, you get the following:
- A steady stream of customers ready to buy
- A fulfillment network of state-of-the-art warehouses to serve millions of customers worldwide
- A premier online brand that obliterates any risk of buying online
- A customer support team to quickly and efficiently handle any and all transaction issues
How much time and money would it take you to build that yourself?
With Amazon FBA, you are an enrollment form away from starting an online business of your very own. There’s no need to quit your job, drop out of school or radically change your existing lifestyle. There’s simply no better way to bring home an extra income with a minimal time investment.
That’s where the groceries come in. Since the grocery store is already a part of your daily routine, why not stock up on inventory while you’re there? You would be amazed at all of the unique items you can find that sell well on Amazon. You’ll find these gold nuggets on the clearance rack, or by leveraging store specials like BOGOs and discount coupons.
Of course some items sell better than others, and in the book I talk about strategies to help fine tune your sourcing skills. Like any business, there is a learning curve. The more you sell, the better you will get at spotting great opportunities.
Yes, you will find a few lemons that result in a break even or a loss, but that is a part of every business. With most grocery items selling for $5 or less, I guarantee it’s the cheapest education you will ever find!
When you first start your Amazon seller account, you will need to build up a transaction and feedback history. This will show Amazon that you have the knowledge and experience to start selling in more categories. In fact, before you can sell in the grocery category, you will need approval from Amazon. No worries though, I will walk you through the process in the book when the time is right. Yo get you started, I do have a super secret weapon when it comes to selling a lot of products on a small budget…
You would be absolutely amazed at what you can find at some of your neighborhood sales. These include moving sales, estate sales and even business liquidations. I show you how to locate these sales in your area, as well as what to buy and how to buy it!
There is no easier, faster way to find products that you can buy for pennies on the dollar, and flip for big profits. I still go to sales just about every Saturday morning, and have yet to come home empty handed. What do I buy at these sales?
- Vintage Electronics
- Anything new and shrink wrapped
- Oddball items I can't identify
Books are listed #1 for a reason - you can literally purchase boxes of books for $10, $20 or $30. Some will even give you the books for free if you agree to haul them away. The beauty of the garage sale is that many people are simply looking to clean out areas of their homes. They see a lot of these items as trash to get rid of, and as they saying goes "One man's trash is another man's treasure".
Speaking of treasure, let me show you a few of my garage sale greatest hits:
Just the thought of this day makes me smile. I honestly didn't believe the gentleman when he told me that the red duffle bag on the ground was a true Ferrari cover. In fact, I left when he said he would take $10 for it. Then as I sat in my car thinking about it, I realized that it was worth a shot and gave him my last $10 before heading home. I got home and took everything out of the bag to unfold the monstrosity of a cover, and lo and behold, there on the carpet of my living room floor was a bonafide, full sized factory original Ferrari cover that was selling for $400 - $600 on eBay! Not only that, it had four seat covers and two steering wheel covers too. Those brought in another $350, bringing the total sales to about $850 - not too shabby for a $10 investment!
This was a box of brand new, sealed supplement packets from a brand I had never heard of. Following my rule of buying anything in its original shrink wrap for $5 or less, I asked the seller how much she wanted for it. "How about $1.00?" she replied. I promptly handed her the $1 and added it to the day's haul. It wasn't until I got home and scanned it that I say it was selling on Amazon for $125! It didn't take long - I sent it to the warehouse, and about a week later I had officially turned that dollar into $110 after fees. Not a bad day at the office!
This one was fairly recent. Kitchen appliances always sell well, and this was a brand new in the box Krups Espresso Machine. She asked for $10 and I offered the $10 if she threw in a few other items. I wasn't 100% sure if it was completely new or not, but how could I go wrong even if it was used? Got it home, opened the box carefully and found everything was still wrapped as new. So I tagged it, bagged it and sent to Amazon where it recently sold For $140. It was sold out when I sent mine to Amazon (as shown in the photo), so I had to research the price history to see what to charge. Since I was the only seller, I knew I could price it higher, and it worked!
This is where I want you to focus your time and energy most as you start selling. Why? Because of book finds like this one. It was a moving sale, and the gentleman was thrilled when I offered to take all of his books in one purchase. He sounded almost apologetic when he asked for $35 for everything, but I didn't blink.
A lot of the books were about vintage airplanes, and unique non-fiction books always tend to do well. Sure enough, after I got home I began scanning and listing them, and found one particular series of books went for good money, but had very high sales ranks. That just means they would take longer to sell, so I decided to just create a bundle with the entire series and sell it on eBay. Someone hit the Buy-It-Now button for $99.00, which made the rest of the 6 boxes of books pure profit from that point forward.
Not only are books highly profitable, but they establish your seller account history, boost your feedback and give you plenty of e-commerce practice without having to invest a lot of time or money. This is the key to giving your seller account the workout it needs to show Amazon you know what you're doing when you apply for the Grocery category.
All of the skills I teach are stepping stones to bigger and better things on Amazon. If your goal is to make an extra few hundred dollars a month part time, no problem! If you find yourself really loving the business, and would like to grow toward a full time operation, I would be happy to help point you in the right direction. Just remember, slow and steady wins the race. This is the furthest thing from a get rich quick scheme - you want to build a solid foundation before you start the second floor.
Your support will help me to create the newest version of my Selling Groceries and More on Amazon ebook. I also would have the opportunity to release it in two new formats - a hardcopy and audio book, which would allow the information to be consumed in a variety of ways.
I would also like to give the book cover and website a facelift, with a new logo and design. The server hosting the course videos would be upgraded to offer better streaming capabilities for anyone who chooses that reward level.
I am also looking forward to building a community around this business by launching a brand new Facebook Group. This group will allow us all to share our wins and losses, to learn and grow as a team. A book is a great way to start learning, but a supportive community is where the magic happens. This will be made available to all supporters.
1) At the base level of $1, your name will be forever etched in the thank you page of both the ebook and the hardcover. You will also be invited to join the new Facebook group to be built around this community.
The $5 level will get you the new and updated ebook. This will be delivered in the format of your choice - PDF, .mobi or .ebk
The $15 level will add the audiobook - a great option for learning while you walk, run or drive. What better way to transform a boring old commute into an education that might someday replace it!
The $25 level gets you all of the formats - ebook, audiobook and hardcopy, to consume how and when you choose.
For those looking for a video course, the $50 level will provide an in-depth set of videos taking you through a shopping trip where I source the products, prepare the shipment and then review the sales. The entire process is laid out in great detail, for anyone who prefers the visual learning format.
There is a $100 level for anyone who would like to consult with me for one hour after reviewing all of the above materials. I always recommend creating a list of questions as you go along that we can address during the consultation.
For the ultimate immersion experience, the highest reward level of $500 will not only teach you through all of the above materials, but it will include a shopping trip with me. For an entire day, we will visit a series of stores in the Atlanta area, scanning and sourcing products across a wide variety of retail locations. We’ll even hit a few garage sales! All of the inventory sourced will be your own to resell as you see fit.
Fair warning: this section is long and poignant, and you may want to skip to the end.
Anyone who knows me will tell you that I have a passion for business. At a very young age, I was introduced to several different types of businesses, owned and operated by my immediate and extended family. I had several uncles who ran a variety of business, including:
- Convenience Store (with lots of candy!)
I grew up surrounded by commerce, and loved watching the transactions take place. It wasn’t just the transactions themselves, but the people behind them that captivated me. Customers were regulars, and everyone took the time to share a smile or talk about their day. Yes, money was being made, but there was value on both sides of the transaction. Whether it was a slice of pizza, a pack of gum or a piping hot loaf of bread, everyone left the transaction better off than they started.
So began my quest to find a business of my own, and it’s been a long and winding path. There have been some exciting wins, and some bruising losses, which I guarantee any business owner has experienced as well.
Over the years, I have started the following businesses:
- Computer Store
- Web/Software Developer
- CD-ROM Rentals
- Internet Vending Machines
- Salvage Cars
- eBay and Amazon Seller
- Digital Publisher
I learned a great deal from each and every one of these businesses, and they made me who I am today. Generally, when one business ended, another one began - sometimes by choice, other times out of necessity. Change is inevitable, and a big part of running any business is the ability to pivot when things don’t go according to plan.
Of all these businesses, the car business outlasted them all, but it also left the deepest scar when it ended. It started with a pivot when my computer business slowed to a crawl, and ended when our financing did - an extremely valuable lesson learned.
You see, I realized we never truly owned that business - the lenders did. When sales slowed down, they cut our line of credit overnight, which led to a painful downward spiral. I’ll never forget that powerless feeling when I watched a fleet of tow trucks rolling in and pulling every last car off our lot. I decided at that very moment that I would NEVER put the fate of my business in the hands of anyone else again.
The hardest part for me was the toll it took on my family. I uprooted my wife and kids from our families and secure home in New York to take a chance on the car business in Atlanta. In the beginning it seemed like a good bet, but now you know how it ended. My wife and kids never signed up for this, and it left us all scrambling to pick up the pieces. This weighed heavy on my soul, and sent me spiraling toward depression.
God intervened by presenting a job opportunity, that amazingly was offered by the only person that responded to any of my 50 or so inquiries, This person just happened to be one of the owners of a salvage auction that we purchased 80% of our inventory from when we started the business in Atlanta.
You can imagine how stunned we both were to learn how our paths had crossed. I was hired three days later and started an IT job that I now love, which began the long path to healing for me and my family. To get out of the huge financial hole I had created required more than a full time job - it was time to get back to the basics.
For me, back to basics was selling on eBay and Amazon. For years I sold on eBay and then pivoted to selling on Amazon. This was my comfort zone, where I felt like I was in control. Granted, eBay and Amazon both could terminate my account at any time, but I played by the rules and knew that my skill set could be used on any e-commerce platform.
I saw Amazon’s growth curve, and decided that I could leverage the FBA platform to keep my full time job, and still be able to create an additional part-time income. I hired a coach to teach me all about selling groceries on Amazon.
The rest, as they say, is history and led me here to present the same opportunity to you. Maybe your story is similar, maybe it’s different, but I know this information can help so many to build a valuable business while preserving the most important asset you will ever own - a loving, supportive family.
Let’s get started - shall we?
Risks and challenges
This project involves the creation of several media products - an ebook, paperback and audio book. I am solely responsible for the content, and am 100% committed to getting it completed and distributed on time.
The ebook creation process is completely under my control. The paperback will be published with Amazon Createspace, and that is subject to a review and proofing process that could take up to a week. Any snags in getting over these hurdles could slow the process, but not by more than a couple of weeks.
The audio book will be created using a professional service, and could also be delayed during the proofing process. I plan on having a backup service in case the first has extended delays.
I'm hoping everything goes smoothly, but should I encounter any of these types of delays, I will provide full details here in the updates section.Learn about accountability on Kickstarter
- (30 days)