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#831: Turning your Amazon inventory sourcing approach upside down

Silent Sales Machine Radio · with Jeff Schick · May 8, 2024 · 44 min

Summary

This episode flips the script on Amazon inventory sourcing, urging sellers to first determine their desired profit margin and acquisition cost, then seek ASINs where that profitability is achievable. This "reverse sourcing" method, contrary to the common approach of chasing lower prices for existing Amazon listings, empowers sellers to proactively identify products with built-in profit potential. It provides a strategic framework for Amazon FBA businesses to make data-driven sourcing decisions and increase profitability.

Key takeaways

Themes

amazon & marketplacessupply chain & operationsfinance & fundraising

Topics covered

amazon fba inventory sourcingprofitability analysis for amazon sellersreverse sourcingasin analysisretail arbitragecost of goods sold calculationamazon pricing strategy

Episode description

Our newer ProvenAmazonCourse.com and coaching students often ask questions like, "Where can I find a source that allows me to sell items for a profit on Amazon?"   Typically these students are looking at the current or average recent buy box price on Amazon or the featured price and then setting about trying to find a "cheaper source".   While there's some potential in that model, there's far lower hanging fruit for you to explore and that's the topic of today's new podcast episode.   Today we turn the sourcing question upside down and ask this question instead:   "Now that I know my cost of acquiring this item, what price will I need to sell this item for on Amazon in order to make a profit?"   Next ask...   "Are there ASINs that make my profitable price a reasonable goal?"   Once you know how to look, the answer will be a resounding "YES" far more often that you might suspect!   Let's talk about it on today's episode. Watch it pn our YouTubbe channel here: https://youtu.be/EVuDWkWXmQA   Special guest at the conclusion of today's show, Jeff Schick of JeffSchick.com answers the question: What should I look for on a retail store receipt as a reseller on Amazon?    Show note LINKS:   SilentSalesMachine.com - Text the word "free" to 507-800-0090 to get a free copy of Jim's latest book in audio about building multiple income streams online or visit https://silentjim.com/free11   TheProvenConference.com - It's not too late to attend our May 2

Frequently asked about this episode

What does this episode say about amazon & marketplaces?
Instead of finding cheap sources for items currently selling well on Amazon, calculate your desired profitable selling price first, based on your acquisition cost.
What does this episode say about supply chain & operations?
Identify Amazon ASINs where your calculated profitable selling price is a realistic and achievable goal, rather than trying to compete on price with existing listings.
What does this episode say about finance & fundraising?
Retail store receipts can be a valuable sourcing tool; learn to identify key information on them for profitable Amazon reselling.
What does this episode say about amazon & marketplaces?
Shift your mindset from reactive sourcing (finding cheaper versions of popular products) to proactive, profit-driven sourcing (determining profitable prices first and then finding products that fit).

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