This seems pretty risky. --Plus he still needs to store the items, sell them, ship them, and deal with the customer service aspect.-- (Clarification: He doesn't actually have to do these things, but pay the FBA fees for Amazon to do them: https://services.amazon.com/fulfillment-by-amazon/pricing.ht...)
If his items happen to catch on and his supplier in China notices, there's also no real barrier to stop the suppliers (or friends of suppliers) from just cutting him out and creating duplicate product pages with slightly lower prices (which overseas suppliers have already succeeded at).
This is an experiment afterall, so it would still be interesting to see the results of a random person reselling items that aren't particularly unique and in a market with plenty of alternatives (handbags/accessories) with over sellers probably doing about the same thing.
Losers in this scenario: Chinese laborers, American "wantrepreneurs", and the environment.
It's rare that consumers win but most of my chinese made shit is way better than american, especially for the price.
I feel similarly, because as an American laborer doing basic customer service in a high cost of living area, my wage is not enough to afford literally any discretionary spending.
The common scenario in China is that if someone can get a factory job they go do it, and then they send as much money as they can back to their family, so that nobody starves.
But mostly, I am in this area for my girlfriend, who needs to be here for her very high paying job that is more niche and non-transferable to other cities I feel. One day our finances will maybe be linked, but for now I am content to just barely break even :)
What happens then is that either one brand becomes dominant or sales start to decline because there is a lot of confusion and reviews for the poorest version get mingled with the original.
Then there is the ultimate accolade, which happens from time to time, it becomes an amazonbasics product. The rest is history.
If you have a successful product, could you mitigate this by secretly creating an additional 4 or 5 FBA accounts yourself? The 4 or 5 FBA accounts would have different photos and slightly different descriptions, but would be selling the same product. The purpose of doing this:
- Since all your FBA accounts are selling the same thing, there is no risk of some of them being poor quality and getting bad reviews.
- You discourage other sellers from entering your market because the market looks crowded.
- You can set different prices on your 4 or 5 FBA accounts and thereby capture people who are willing to pay a premium and those looking for the cheapest price.
And as an added bonus, you get to pay $2 each to have your units destroyed or $2 each plus shipping to get them back. And by “plus shipping” that means the standard package rate non-Prime customers pay. So if all your units are on the same shelf (never happens because FBA strategically ships between fulfillment centers) then you pay for one big box. Otherwise you get one package at full price for whatever is on that shelf or bin that the picker pulls your merchandise from. Times however many shelves your stuff is on.
Also, different accounts might help you erase bad _Feedback_ but product reviews stay with the product listing regardless of who sold it.
Edit: I should have put destroyed in air quotes. I believe this is where the items that have the “Warehouse Deals” badging come from. No proof, just a suspicion.
And whose tax id will you use to meet the 1099-K requirements?
I asked Seller Support about this because I started consulting to help people sell on Amazon, and was concerned about getting caught in a dragnet over multiple accounts. They said as long as my clients didn’t sell the same items it probably would not be a problem.
Nah, he already missed the holiday selling. Even if it arrives on the 14th, he’s got 3-5 business days under normal conditions for FBA to scan the merchandise into shelves. Items are not sellable until that time. Also, since it’s the rush, count on 7-10 business days for that check-in to occur. And the last viable selling day is the 21st for Prime Customers.
Amazon’s guidance to merchants is to have merchandise arrive no later than mid-November for the holiday season, and to not count on restocking midstream.