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Competing with Amazon as an FBA Seller

November 25, 2014 By: Robin Cockrell1 Comment

When I first began selling as an Amazon FBA seller I was cautioned against competing with Amazon. If Amazon was selling an item I was told to stay far away from it. I have since discovered that there are times when it is okay and even profitable to be competing with Amazon. There are several factors of course to consider which I will cover below.

First Amazon does sell out. The product ranking is the key here as to how often Amazon will sell out of a particular item. If it is a high ranking item it’s probably not worth it. If it is a low ranking and hot selling item, I will always take a closer look. Lower ranking items sell fast. This is especially true for the toys and games category over the Holidays. Hundreds or even thousands of an item can ship in a day for hot low ranking items.

Let’s take a look at the following item that I just listed on Amazon. When I purchased it a week ago, Amazon was not listed as a seller. Today when I checked it, Amazon is now selling this item.

doc-Optimized-1

The rank on this item is around 17,000 which is pretty good. Though not a fly off the shelf item, it is a fast mover. Note also that Amazon only has 1 left in stock. They will probably sell out today, so what do?

I am going to click on where it says 20 sellers from $19.99 and see if I can position myself at the top of the page and still make a profit. Note, I bought this item for 12 bucks. When I click on this it shows me the following.

Doc 2-Optimized

If the ranking is on the higher end, I want to position myself in the top spot or one under it as long as I can still make a decent profit doing so. I put it in the Amazon Revenue Calculator that you can find here and if I sell it for the lowest price of $27.97 my profit will be about $8 bucks. That’s roughly about a 75% return on my investment (roi), so I can afford to compete with Amazon in this case.

Note since I began writing this article about 30 minutes ago, Amazon has already sold out.

If the next price in line or the prices in the first few spots on the first page would have been around $19 or $20 it would not have been to my benefit to be competing with Amazon. It’s simply not worth my time to do so for a 1 or 2 bucks.

If you want to learn more of the ins and outs and shortcuts for selling on Amazon, you can join us here and you will get lifetime access to our private facebook group where tips and experiences are shared every day.

About Robin Cockrell

My name is Robin Cockrell, aka Carolina Robin and I am the founder of all you see here at Pajama Affiliates. I'm a coach, a mentor and an affiliate marketing junkie who loves all things keywords and SEO.

I teach no-nosense courses here at Pajama Affiliates in blogging and affiliate marketing that will show you the real steps to success. This is NOT your get-rich-quick scheme bologna here, we get down to the meat and potatoes of how to make money online with a blog and affiliate marketing!  

Comments

  1. Lesley says

    December 21, 2014 at 2:05 am

    This is very good advice, Amazon is a tricky witch sometimes.

    Reply

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Pajama Affiliates was started in 2013 by Robin Cockrell as a no nonsense school for making money blogging. In 2021, she passed the torch to me, Lindsay Redd. I was one of her earliest students and what I learned changed my life. I now get to share everything I’ve learned in running my online business for the past 9 years. I will teach you all of the ways to make a full-time living online, with none of the BS.

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