How To Source Walmart When RA Is Dead: A Case Study

I want to give an example of that thought process/techniques used to source a picked over Walmart and how to make money on a product that has too many other sellers ( and some hidden problems)

I start my sourcing with my laptop while sitting my LazyBoy. I use Brickseek to see what has gone on clearance at several Walmarts in the area.

I saw these phones with a sales rank of #24 in cordless phones. That means they are flying off the shelves at Amazon. They are selling for $24ish Prime, so without any app, I know that these are profitable ( probably at least $8-$12 profit each), so I want all I can get at $5.

Now you can’t always depend on Brickseek quantities being accurate. Sometimes stuff sells before you get there. Other times in is in the back/lost/stolen. You will find certain stores are almost right on the money and some are always off big time.

So here is what the AZ Sellers app says we can make on these

So I found these in the clearance section at Walmart.

 

As you can see, the price on the shelf says $15. This is why the competition has left them on the shelf ( about $2 profit on $15)

So I know that Brickseek says they are only $5 but I am not going to try to a price check scanner ( halfway across the store and a waste to time)

So I pull the Walmart and use the built in scanner to do a quick price check, which verifies that they are $5.

So this appears to be a good deal and a good product, but did you spot the problems?

You are probably saying that here are 94 sellers. Well that would be a problem is it wasn’t for it being ranked #24.

What real problem is that there is only 1 FBA seller ( Amazon). Now while the apps doesn’t say it is hazmat, I can almost guarantee these are or there would be some other FBA sellers. You are asking for nothing but trouble sending these into the warehouse.

Well crap. Do we just toss them back onto the shelf?
Nope! Not at #24 sales rank. We can MF these.

So FBA price is $24ish, so we need to be able to sell at a price low enough to get people to buy MF instead of FBA from Amazon.

My first thought is that in need to be like $2 or so less and at $22ish we can still make money. ( with free shipping)

These will fit in a Priority Padded envelope, so that is about $7.50.

So quick math in the store. $5 buy cost, $7.50 shipping and probably $2 fees, gives about $15 and if we sell for $23, we are looking at about $8 profit on a $5 investment.

Here are the actual fees/revenue

As you can see, I am fairly close. We obviously would make more FBA but I don’t want risk sending these in to the warehouse ( plus inbound shipping). I think these will quickly sell MF and still make a good profit.

Some would ask why free shipping or say “you will pay less fees if you price lower and charge more for shipping”. Well it doesn’t make that much difference on the fees to worry about and you will sell more and faster with free shipping. The real trick here is that it will fit into the Priority padded envelope which sort of limits our maximum postage cost. ( I would much rather it be First Class but these were a little too heavy)

My results?

I listed these MF and sold out in a few hours.

Another thing to consider is that these went on clearance all across the country at Walmart and there may be a ton of them coming into the warehouses ( if I am wrong about them being hazmat). This will drive the price down in a race to the bottom. The $12 might turn into a loss or break even thing ( yes I would love to make $12 instead of $8 but with 100 sellers on a product, I see it going down not up)

I have found that in the new selling environment on Amazon, you can make more selling fast or holding for a long period of time before sending into AZ. Once the herd sends all theirs in, you get stuck selling for a loss/break even or holding in the AZ warehouse for way too long and have long term storage fee issues.

So basically on these Walmart nationwide clearances, you have to either sell really quick ( either MF or get them in to FBA quickly and price to sell) or stick them on a shelf and hold for 6 months to a year.

****Hint, there were several stores that still have these for $24.40, so I have them marked as a “local alert” in Brickseek and will be alerted when the price drops, which I expect will be $15 at first and then $5 again

 

 

How To Source Video Games At Walmart Bins For Non Gaming Old Dudes (Or Dudettes)

So I haven’t played video games since Atari ( Atari 2600 , well actually we had the Sears version).

My kids grew up playing video games but I couldn’t tell you what they played, so I am really in the dark when it comes to being knowledgeable about video games.

What I do know, is that the there is a ton of money to be made from selling video games on Amazon and eBay. I have sold games in the past but never regularly.

In this post, I want to show how to find the deals in the bin of video games that seem to be at every Walmart.

So there never seems to be any price tags on these games, but here is the secret : There are all sorts of deals to be had in these bins if you take the time to look through them, but more importantly the techniques I will show can make you tons of money even if you have lots of competition in your area.

The angle is simple. Most resellers are going to pass on scanning anything that doesn’t have a price on it ( or a price on the shelf for it) .

Most people aren’t going to take the products to the price check scanner station to check every product ( remember, time is money).  I know I personally wouldn’t do that.

So what are we to do?

Simple. Not everyone knows this but the Walmart app actually has a scanner built in that you can scan a product and will give you the price at that particular store.

Basically this is just like having the price checker scanner right in your hands.

***Hint, sometimes the lowest clearance price sticker isn’t the lowest price. You can sometimes find the price is lower and has been left on the shelf by other resellers. You can find this out with the Walmart app scanner.

So when I see this big bin of unpriced video games, I have no clue on what is worth something, so I have to do some old school scanning.

My approach is to use the Amazon Seller app to scan the video games. Sometimes the bin is sort of neatly packed so that you can sort of have a system to work through the box, sometimes it isn’t so easy.

So you have to have some sort of minimum selling price to investigate more and I generally use the $15 price point. The video game needs to be selling for more than $15 on Amazon or it gets tossed  back into the pile.

The common discounted prices are usually $3, $5, $7, $9 and $11, so the $15 baseline really only works on the $3 and $5, but you have to have something to sort with.

****** If you get a $.03 price, that is the code for them to destroy the product. My suggestion is to take that through self checkout or they won’t sell it to you. Sometimes you might get lucky taking it through a regular checkout but why chance it?

So once we find a video game that is selling over $15 on Amazon, then we switch to the Walmart app and scan it to see what the price is. Now this is a numbers game and most games will still be too high to make a profit ( I personally am looking for probably 70% + profit on the games but will take 50% if it is a very low sales rank)

Speaking of sale rank, what are we looking for?  Well that depends. In general, I am grabbing anything 5k ish and under. ( heck up to 10k doesn’t really worry me) Now if I see 25k or more, I might want to see why.  It could be that there just isn’t much supply or some crazy high priced ones on Amazon. This also depend on how much the profit is. First I am not going to waste a lot of time if it isn’t a very profitable game. Second it depends on the cost of the game. I am more willing to take a chance with a $3 game than say a $11 game. Also the number of copies I can buy.  I don’t want 25 copies of a 50k game but a copy or 2 is ok.

Now some pointer here:

First, you need to remember what you have scanned already.  There is no use in rescanning 10 copies of the same game. This goes for both good one and bad ones. If you see you have a copy in your cart, then just toss anymore of them you find into your cart.

Do be cautious because the same game on a different platform doesn’t mean they are both worth as much. On one platform it may be really valuable and the other platform it may be worthless.

So basically you just work your way through the bin like this. Not everything gets scanned with the Amazon seller app because if it was already a dud, you don’t rescan it and if it is already a winner, you don’t rescan it, you just toss it in your cart. So very few of the games need to be scanned with the Walmart app.

**** Hint, just because you wouldn’t send a video to Amazon with a slightly torn wrapper, doesn’t mean you can’t sell it on eBay, so don’t just automatically toss it back into the bin.

So now that you have all the valuable videos out of the Walmart bin, this isn’t the end of making money.  Having this games with the UPC codes available is like gold because we are going to us them to find more copies at other Walmarts.

***** Hint, this is actually the biggest takeaway you should get from this post ( that is if you don’t already know this)

For this, we are going to use Brickseek. When I am processing my shipments, I sign into my Brickseek account and us my hand scanner to scan in the UPC code.

Now this isn’t exactly the best time to be sourcing since I am busy processing, so I actually just take a casual glance at the results but I then I just add it to my local alerts so that it is saved back and I can come back and look at it later.

If you aren’t a Brickseek subscriber, you can simply open at Notepad document and if you scan the UPC, it should print it in the document. You could then add a quick note.

Hint***** You should be doing this with everything you source from Walmart!

Also if you are in the small Facebook group chats of other AZ sellers like I am in, then that is something you would share sometimes. That is how good relationship get formed and how you all make more money.  ( just don’t go posting stuff like this in public Facebook groups because it will tank your prices)

So this is the simple process I use to source video games from the Walmart bins.