3 Different Ways to Set Buying Criteria for Procuring New or Used Media Items

How to set buying criteria for procuring new or used media items

 Here are 3 different examples that show exactly how making money, sourcing inventory that I send into Amazon, for their fulfillment by amazon service.

Set the max amount that you are willing to spend.
select and narrow your search terms down to a subcategory.Use Amazon’s advanced search and enter that keyword

Filter by best selling

Peruse the results, looking for high amazon cover price and number of offers under 100. The few the merchant fulfilled offers, the fewer and higher priced you can offer your FBA fulfilled product.

Check the sales rank history using camel camel camel, keepa.com and any other software that analyzes amazon marketplace sales data. 

You want to keep your average sales rank below 1.5 million, for an item that shows its worth the wait.

  1. See where the lowest FBA offer is.
  2. Peruse others sites for the same ASIN or ISBN number. 
  3. If all of that check out, then you should buy the item.
  4. Resell it at a higher FBA price
  • The more you’re willing to spend per item, the greater the opportunity, and the more you can make per sale, which also lowers the number of items you need in your inventory cycle.
  • The lower returns you’re willing to accept, the greater the opportunity and the more sales you can potentially have.

Target Profit: $1,000 a month
Average profit per item: $15
Inventory Turnover Rate: 25% of items will sell the firs month. 

Target Monthly item Purchases: 270
Target weekly item purchases: 68 items a week.

Item arbitrage schedule
Average items per hour: 3
Average days per week: 5
Average hours per day: 4.5

So commit to 13 or 14 purchases per day, 5 days a week

Alternative breakdown

Having a willingness to pay more per item will increase hourly rate.

Bring your average profit from $15 to $30 or more per item.

Lowering your returns to 50% to 100%, to increase the hourly rate by 10
X.

Example buying higher priced items

New average profit per item: $30

Online item sourcing schedule
Average items per hour: 4
Average days per week: 5
Average hours per day: 1.5

Commit to 6 or 7 purchases per day, 5 days a week.

$10 $15 $20 $25 per items in this range.

Another Example with lower price average and buying more items in volume.

New average profit per item: $7

Online item sourcing schedule

Average items per hour: 10
Average days per week: 5
Average hours per day: 3

Commit to sourcing 30 items per day, 5 days a week.

After all of this, with both methods, you will still be in a cycle with 75% of your profit still to make, after receiving 25% profit for the month.

How to implement this using the cashflow Business Quadrant

Hire someone to search amazon for you via outsourcing website or automated software.

Source Peter Valley from FBA Mastery