I've had a store on Amazon for almost a year now. It didn't become profitable until about 2 months ago. So I've actually lost money for about 8 consecutive months lol.
I knew it had potential I just had to figure out how to stop the bleeding!
So I wanted to post some tips for you all so that you can avoid the pain and start making money on amazon.
· You HAVE to find a product that is not plastered all over amazon. Most drop shippers have people already marketing their products. If more than one person has the same product it becomes a price war and both parties keep lowering their price to get the sale. Eventually it gets to the point where you're making $1 per sale. Definitely NOT worth it!
· Your drop shipper has to stand behind their product and pay for return shipment of damaged items. If they don't pay for it, YOU will. The last thing you want is an unhappy customer. Amazon will close your account really fast if you get complaints.
· Your drop shipper needs to be timely. I had a few shippers that would wait weeks to ship out their products. I ended up sending out a bunch of free items because people had to wait so long. Maybe I'm just a big softy.. but if they don't ship it, don't work for them!
· Don't stretch yourself too thin. I don't recommend having more than 200 products on Amazon. When I started I had 3,000 products on there because I thought Id make more. WRONG! With that many products you can't keep up with what the manufacturer has in stock. I got in trouble real fast because Id get a purchase and then find out there was not stock. If you cancel too many orders amazon will close you down. Not to mention, your clients won't be happy and you won't make money on amazon.
· When uploading your products double check EVERYTHING. I can't tell you how many times I lost money because I forgot to put a zero in or I just flat out put the wrong price in because I was in a hurry. Some clients got some REAL cheap stuff from me haha.
· If you make a mistake, you pay for it. The re-peat client is worth it and you'll feel better for doing the right thing.
· Create a website for each product line. Its free through amazon. Don't compile all your products onto one website. When I started I put all my 3000 products onto one website haha. Don't do it!
Well those are the main pointers! I have way more info but if Ii wrote it all out Id be writing a book. If you need help learning how to make money on amazon, just contact me through my website at www.oozlesinstruments.com.