May 2, 2022 7:04 am
Either you are a wholesaler, a trader or a retailer, you are in the business to make money!
We live tough days: post pandemic, Ukrainia- Russia war, recession, petrol prices skyrocketed, all with direct impact on end-user buying-behaviour and your business profitability!
You will have to shrink your margins, reduce costs and source better deals to survive and move on.
Customers become wiser in their purchases, looking for smaller prices and spending money only on necessary products.
What you should do:
!! Avoid purchasing from untrusting sources! There are a lot of scammers on the market! Check the reviews and their history!
!! Choose smartly the categories you will invest your money in! Maybe Apple phones are still selling – but the margins are tiny and the prices are very volatile!
!! Avoid China stock not because of poor quality but because the transport via containers is 30x higher than before!
!! If you buy returns because they are cheaper – you can have a lot of scrap so no use to pay less for nothing!
!! Don’t cut marketing expenses because promoting your business is as important as all the rest!
Choose Amazon lots sold by ARLL because:
They are in Europe and the transport will be cheaper – and we will use our volumes to negotiate better rates which we will transfer to you.
The product categories are wide and cover the basics necessities of the customers.
The price you pay is around 10% of Amazon retail price.
You get a manifest before, so you know what you spend money on – you do not pay for apples and get peanuts!
You pay against RRP and not by kilo!
You buy from a trusted source – we are on the market for 11 years and we have a clean & honest reputation in the market and plus we are the liquidators, not middlemen!
How to make money with Amazon Stock
A) If you are a retailer (online or offline)
You purchase a batch with 10% of RRP + transport cost – you will get your landing cost for 11% of RRP.
As the batch is very mixed, you will get both fast-selling items & medium/low speed selling ones, so the pricing policy will make the difference.
e.g. fast selling item
(Order 83 – B08S3SBQ85 – 159.99 euro Amazon Cost – your buying price 15.99 euro + let’s assume 2 euro transport= 17.99 euro landing cost)
You can re-sell easily for 60% Amazon Price – 107.99 euro!
Example of slow selling item:
(Order 83 – B0896Q87KB – 4.99 euro Amazon Cost – your buying price 0.49 euro + let’s assume 0.1 euro transport= 0.59 euro landing cost)
You can re-sell easily for 30% Amazon Price – 2.09 euro or even more if you promote it with the “story attached” – now many people adore DYI arts and you can get the videos from Amazon website and share it in your presentation so you “wake up” the desire in your customers minds. Is this a necessity purchase? Maybe not, but due to the low price comparing to the rest of the market & quality of the product – it will be an impulse shopping act – as many sales on Wish/AliExpress are – due to low price no matter the quality.
If you assume you paid 7,700 euro for lot 83 + 1500 euro transport = 9.200 euro landing cost ( RRP total of this lot – 75.000 euro)
And you will sell in average for 45% RRP you will make 33.750 euro!
Note: This is a scenario based on one lot – but all the lots are similar! If you want to sell it faster => you can practice lower prices – but still the profit potentiality is more attractive than in the case you buy by kilo faulty small domestic appliances – hoping to wash & clean & repair, etc.
We have a client that has a retail chain and he works on the daily dropping price structure counting on the “fear of missing out”. He lists the product on day 1 a price higher than Amazon one (120% AMZ price – also because the Amz price is lower than other websites + delivery) and he gradually reduces it with 10% every day till he clears the stock out -90% discount from price day one – which would be around 12% (his purchase price). But he will sell 90% of the stock in day 3-4 because the clients are fearing they will miss the deals, ending up with 400% margin! A profit that no deal with Apple stock or Samsung TVs will give to you!
B) If you are a wholesaler
You trade the stock further by pallets selling it to smaller clients doubling the investment. Keep in mind that Amazon sells just by mentioning the name or presenting the box – and there are a lot of companies reselling Amazon pallets from the few official AMZ liquidators. They either split it by categories or sell it by kilos – either way – they make serious money!
C) If you are none of the above but you want to start a new business
If you want an additional income – you get it a smaller batch 3K – and sell it one by one on websites as olx/gumtree/eBay/allegro or car boot sales and who knows maybe in short time you will become one of those from first 2 categories. Also, if you if you were selling something else – by now – I think it is a good idea to give it a try!
Get in touch with ARLL team as we have plenty of other deals perfect for you!