There is a land grab happening with Amazon FBA Australia. I’d suggest you get your piece sooner than later! These opportunities do not happen that often! I set up a seperate Facebook group so we can help each other with FBA.
TL;DR – Learn how to make money with Retail Arbitrage and Amazon FBA Australia. Buy from cheap manufacturing countries, sell in strong economic countries. Amazon FBA handle all the difficult stuff. Storing stock, sending to customers. refunds, questions. Basically … 80% of it!
How with sell with Amazon FBA Australia?
How to use Amazon FBA in Australia
- You choose what to sell on Amazon.
- You sign up and create your Amazon FBA Australia product listing. You print your labels (barcodes)
- You order your product from Alibaba, send them the labels and prepare the products, then ship to the Amazon warehouse in Australia.
- Amazon then accepts the delivery and checks and stores your products.
- Your product goes live.
- Your customer places an order
- Amazon picks, packs and ships your product to the customer
- The customer received the product within 2 days if they are a Prime member.
- Rinse and repeat with a new product
For the past few years I have been working online, the money I made from matched betting helped me get started. I made apps, sold ebooks, built websites and eventually discovered arbitrage betting and retail arbitrage.
Now that amazon has come to Australia I decided it is the perfect time to make this guide. Most of my readers are from Australia and I’m always on the lookout for a new way for somebody to become financially independent.
Let’s be honest, we’re lucky to have something like matched betting to get some cash without much effort. In fact is just sounds too good to be true, that’s why most people don’t look into it.
However, once you see how arbitrage opportunities can be easily leveraged to make profits, there is no turning back!
Let’s look at a new arbitrage opportunity that has just opened up for Australians, the idea is simple, but it takes real work to implement, this guide will hopefully cover anything you need for anybody looking to start an online business with Amazon FBA Australia in 2019 .
What is Retail Arbitrage?
Most here will be familiar with the concept of arbitrage, it is buying or acquiring something for a cheaper price and selling almost instantly for a higher price.
With matched betting we have been using the welcome bonus bets offered from the bookmakers and then selling the straight away on the betting exchange to other punters in the marketplace. So we take their $100 free bonus bet which costs us nothing and then sell that bet to a punter on the betting exchange for about $70.
This is a unique opportunity is only available to us because the gambling industry offers such large incentives for people to sign up to their company. Hoping they will gamble their lives away.
Retail arbitrage is the same concept. We will be acquiring an item from a country where manufacturing is extremely cheap (Asia) and selling the in an economy that is much stronger (Australia)
Now obviously this is not a new concept, however since amazon recently opened their doors with Amazon FBA Australia, we now have a golden opportunity.
People make huge profits in the UK and USA through Amazon FBA using this strategy already. A lot of categories are saturated now and competition is fierce.
However, as it is so new in Australia and we’re the early movers, there are lots of opportunities to make good money with amazon FBA in Australia!
A second type of Retail Arbitrage
I will do a separate Retail Arbitrage post about this later, but this entire idea of buying from china and using Amazon to sell stuff for full price in Australia can be done without importing anything.
If you find closing down sales for example, you can buy 20 pairs of Nike Trainers reduced by 70% as they need to clear stock for example. These are great opportunities as you just send them to Amazon and sell them full price for a monster profit.
Just because a shop is closing down in Sydney and need to clear the shelves does not mean the value of the trainers will be any less in Perth. This is retail arbitrage in all its glory!
What is Amazon FBA Australia?
We all know about Amazon and how they are by a huge margin the largest online retailer in the USA and Europe and now they have finally opened their doors in Australia. We’re not here to discuss if this or a good thing for Aussie retailers or not, we’re here because there is an opportunity.
Amazon did not grow this large on their own, it would be impossible for a company to sell this many products themselves. Instead they turned themselves into a selling platform
selling on amazon Australia
The simple Version
When you buy from Amazon you are likely buying from a 3rd party seller. This is basically an average Joe or a small brand who sends their products to amazons warehouses. This is why it’s called FBA. (Fulfilment by Amazon) The retailer (anybody with something to sell) simply sends there products to amazon and sets up an ad on their site, so if I want to sell anti-snoring mouthpieces for example, I will just send amazon 100 anti-snoring products and create an ad on their site.
Here you can see this product is not directly being sold by amazon, but by a 3rd party.
When somebody on amazon searches the term ‘stop snoring’ my ad will show up. If they buy it then amazon will pick it off their shelves and deliver it to the customer direct with their premium/free delivery options, they also deal with returns, and any customer support if needed.
For customers, they would not even notice the difference between buying direct from amazon or one of their 3rd party resellers. For the questions they can not answer about your product they will forward them on to you.
You can literally sell while you sleep.
The huge benefit of this is scalability, if you can sell 100 you can scale up to 1000 or 10,000 per month simply by sending them more stock. They will handle everything else. Your job is finding the right products, sending it to amazon and working on your sales pitch.
“The best part, you can do it from anywhere in the world. I have met guys making $20,000 a month over 5-6 different micro niche products, working from their laptops in Spain!”
Amazon obviously take a cut of the profits for this, but if you factor that into the profit margins of what you are selling then you will be happy to have somebody handle 90% of your business pains for a percentage of the profit.
The best way to leverage this opportunity will be discussed in more detail in the guide. Basically, we source specific types of products from countries where manfacturing is much cheaper.
2 Product Examples;
Ordering 100 units of these anti snoring devices selling on amazon in the image above for $12 will cost you about AUD$200 including delivery from the factory in China direct to Amazons warehouse in Australia.
That would put it at about $2 per unit. Selling all 100 through your Amazon ad would leave you with a gross profit of $1800 (You then need to minus taxes and amazon fees)
NOTE: Don’t buy from Alibaba until you know what you’re doing, at the very least finish the article 🙂 There are a lot of scammy factories there but there are ways to make sure they are legit and you are insured on your order. We’ll get to that later.
But you will still make a very nice profit, and even better, there are an infinite amount of products like these that you can decide to sell.
If you have a hobby you can start thinking about what is overvalued. an example in photography I found.
The shutter release remote controls are a simple bluetooth piece of plastic, it cost about $1.5 to manufacture with shipping from China to Amazon if you order about 100 of them. I paid about $40 for one of these is Dick Smith like a chump a few years back 🙁
Before You go making any purchases from Alibaba, read their info and safeguards to protect your purchase here.
How to Source Your Products From China
In Asia there is another monster retailer called Alibaba. Alibaba are actually the largest eCommerce company in the world. They function similar to amazon but instead of selling individual products they are a wholesale marketplace that connect you to the manufacturers and distributors directly. You just search for what you want and they will show you who already makes those products and ships the internationally.
Tip #1 Don’t get scammed!
There are a lot of low quality manufacturers out there and obviously some outright scams. Don’t worry though, just click these two boxes when searching and you will only get results for legit resellers.
Trade assurance –
When you check this, you are only searching suppliers that offer “A free service that protects your orders from payment to delivery.”
Verified Supplier –
When you check this box you will only get results from suppliers that have been checked out by Alibaba and have all the necessary paperwork and trust you need. Each seller will have a badge awarded by Alibaba to show how trustworthy the suppliers are.
With Alibaba coming online it has made the process of buying and shipping white labelled products of all sorts from the factories that make them in China and slapping you own brand on them easier than ever.
This is what high street retailers have been doing for years. Now the power to do it is just a click away.
This has obviously caused the Amazon marketplace to become saturated with certain products, especially in the UK and USA as people like me and you have taken advantage of this. However there is always plenty of niche products that you can source and even better, you can ask the factory to make slight modifications to improve upon them.
This is where the big money is, finding a product already selling and looking at the customers negative reviews.
With the anti-snoring device a lot of people like it but some also complain that if does not fit comfortably in their mouth and is too big. This is a perfect chance to order the same product but instruct the factory to adjust the mold. Then when you create your sales brief, make sure you proudly advertise that your product fits comfortably in the mouth, you will quickly become a top seller for this item. You win and the customer wins, that’s a recipe for wealth!
Tips for ordering on Alibaba
- Negotiate – Make sure that you negotiate the price and contact several suppliers. They will usually budge on the price they initially offer.
- Unit price. It gets cheaper the more units you order. But never order more than $500 worth until you get comfortable with a manufacturer.
- Get a sample – If you’re customising an existing item, get a sample sent to you before committing to a full batch.
- Payment options – I only recommend Paypal or Escrow.
- MOQ – The minimum order quantity. This is self explanatory. They wont ship any less than a certain amount because it’s not worth the effort. Usually you can order a small batch at a higher cost until you are ready to place larger orders when you start actually selling the product.
- Production Time – How long it will take to manufacture, if it is a custom order.
Sample Email To Copy And Paste
My name is XXXX and I am with XXXX Company.
I’m interested in placing a first order for XXXX. However, I have a few quick questions:
- What is the minimum order quantity for first time delivery?
- What is the cost per unit and at what quantity do you offer discounts?
- What are your payment terms for new customers?
I would like to order a sample of XXXX before we place our full order. Can you please send me the cost for the sample including shipping to:
Sydney, NSW, Australia
Getting Your Order Sent From Alibaba To Amazon FBA Australia
How Freight Forwarding works?
The manufacturer sends the stock directly to the freight forwarder. (Flexport) The Freight forwarder ships and gets the stock into Australia and handles customs, taxes and any other paperwork.
All you need to do before this is set up your product through your Amazon account and send them to the manufacture before handing them over to Flexport. You can find out how to label your products and get barcodes here.
The Flexport freight forwarder gives Amazon partnered couriers your stock once it arrives in the country and then then send it straight to the amazon FBA Australia warehouse. It is really that simple!
You have two choices. Sending your stock by ship or plane.
A shipment from China to the Australia can take up 6-8 weeks. Getting it sent by plane will take a week or so, however will be way to expensive. Like 4-5 time more.
On your first order, I’d recommend you go with the shipping as it will dramatically reduce your costs and increase overall profit margins.
So a catch up on how to start an Amazon FBA Australia business.
- Choose a product to sell on Amazon FBA.
- Set up your account/product with labels.
- Contact suppliers on Alibaba
- Negotiate the price, pay with Paypal.
- Use somebody like Flexport to send from China to Amazon Australia FBA warehouse.
- Tweak your ad on Amazon and let them do the selling for you!
Creating your Amazon FBA Australia account
Once you activate your account and then place your order you will likely have a few weeks to get your ad placement on amazon in order.
The first this you will need to do is to set up an account with Amazon FBA Australia here
The fee to set up an Amazon FBA Australia account is $49 per month at time of writing. It might sound bad at first, but considering $49 month is all you really need to run an online business it is not too bad.
Before you order from Alibaba you will need to set up your Amazon FBA Australia account. Once you activate your account and then place your order with Alibaba you will likely have a few weeks to get your ad placement on amazon sorted.
Sign up to Amazon FBA Australia here. You will need to enter some basic details and add a new company name that will be displayed under your listing. If you have an ABN you can enter that business name or if you are just an individual you can just enter your own name.
Complete Your Amazon FBA Australia Seller Profile
Amazon charge $49 plus GST, fees are also included depending on what you intend on selling with them. The breakdown at time of writing is below.
You will then need to complete the steps here to set up your first product.
When you set up your first product you will be receive labels (barcodes) that you will need to send to the supplier to attach to each product before having them shipped.
Save these FNSKU labels as a pdf file and mail them to the manufacturer on Alibaba. They will put the barcodes on your products. Once they arrive with Amazon and they inspect them, your product will go live!