Tips For Making Money Selling Online

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