If you worry about these things, you’re probably over-thinking your Fulfillment by
I’m probably going to offend some people here, but I can’t help it.
You’ll hear a lot of frantic concern among
- These are not real problems.
- You’re focusing on the wrong things.
- It’s this kind of micro-managing that is the reason you’re not making that much money.
To be blunt: No one who makes a lot of money on
With each one of these five, there are a lot of people who are convinced they are a very big deal and deserve a looooot of attention and worry. I don’t mind stepping on a couple toes, as long as my message is understood.
And my message is:
It’s not that these don’t matter at all.
It’s that these things receive an inordinate amount of attention, and are an impediment to profits by sucking up time and attention when they really aren’t that important.
It’s a classic “80/20 rule” thing: 80% of your results will come from 20% of your efforts. And these five things are nowhere close to being in that 20%.
Here’s one thing I promise you: The mega-sellers making real money on
1) Packing Fulfillment by
Here’s how you do should it:
- Put items in boxes.
- Tape shut.
- Ship.
Here’s how many do it:
- Wrap each item individually and with great care, as though they were sending their first born on a cross-country train journey.
- Fit each item in the box with Tetris-like precision.
- Fill each square-millimeter with some shock-absorbing agent.
- Take an hour or more obsessively doing all of the above.
In other words: Make a giant production out of something that really isn’t that important.
By all means, if you’re sending something genuinely fragile, ensure it doesn’t arrive damaged by taking steps to package well. For example, if you’re sending in items made of glass, boxes of eggshells, or nitroglycerine.
But
I’ve sold tens of thousands of items via Fulfillment by
Nearly everything gets packed like this: Item in box —> tape shut —> ship.
Done.
2) Superstition about selling new books
Then there are those who talk themselves out of selling new books as “new.” Well of course you sell new books as new, so what am I talking about? I honestly don’t even know, you’ll have to ask them.
This is probably the weirdest one on this list, but if I had to guess, the concern centers around some vague superstition that any book with a previous owner can’t be sold as new.
This is just factually incorrect. If a book is by all appearances unread, and in cosmetically flawless condition, it is “new.” No genealogical survey of the book’s history is required.
There are even people who get upset and hostile that others sell new books on
If an item is new, you can always list it as new. Over-thinking this will cost you a lot of money.
3) Getting freaked out by sales tax
Of course you should comply with all state and federal laws, and so on and so on.
But if you’re letting internet chatter from other
If you’re that concerned, hire a professional to sort it out. But this is at worst just another part of doing business on
4) Insisting on using primitive equipment & software because the alternative is too “expensive”
I’m referring here to those who insist on using free apps that are slow and limited in their functions, versus spending $40 a month on robust software that will easily make them 10x that in their sleep.
This also extends to hardware, and other inefficient tools.
This is kind of a no-brainer. Anything you invest in as part of your business should be making you many times your investment. And nowhere is that more true than with scanning apps, using a bluetooth scanner versus scanning with a phone’s camera, and so on.
You will get out of your business what you invest in it. Being concerned about minor investments with a virtually guaranteed multiple return will guarantee your business remains stagnant and small. (i.e. the
5) Getting deterred by Fulfillment by
Bottom line: If
Storage fees are among the smallest and least significant expenses of operating an FBA business. They also offer among the highest returns. You get indefinite storage space for just about any item in the universe, and visibility in the biggest store in the world (
Let’s say you ship in 100 books with an average
The point is: Excluding the occasional multiple-unit, long-term storage fee disaster, it is virtually impossible to lose money on
Storage fees aren’t just a small factor in buying decisions, they should be no factor at all.
Feel free to start a fight with me in the comments below.
Also, claim your free book:
Peter – THANK you for posting this. Amazon forum/facebook group trolls – you know, the ones that spend more time berating other sellers than they do growing (or minding) their own business – have instilled fear for zero reason with zero logic. Your factual article here dispels all that. Thanks again.
Thanks man! Those people know who they are. And hopefully the rest of the world knows who (and what) they are too.
Bravo PV ! I hear applause in the background, finally somebody has the balls to say something.
I love your books – learned a TON of information – keep up the great work! ~Bob [grayelephantclub- books on Amazon]
Thanks!
I have fretted about ALL these things. No more! You make a lot of sense.
Live and learn. Or sell and learn.
Totally agree with your 5 points. I’m guilty with #4. More to do with not understanding the technology than with spending the money. Need to figure out what and how to put the technology to use. Waiting on your next book on technology use…LOL
Just want to say Peter, I have all your books and they have helped grow my business. Highly recommend them to anyone who is thinking of making the plunge.
How about return or disposal charges at FBA?
Another one for the list. Just another (small) cost of doing business.
Love your articles, always. They inform and they amuse! I agree with all your points except I’m guilty of shrinkwrapping my books before boxing up for FBA. Yes, yes, I know, it’s a time waster, I suppose. But I no longer worry about books banging around in the box and falling on Amazon’s warehouse floors, etc. And – a key piece of info – I only sell part-time so my shipments are quite small compared to yours and, probably, most of those of your other readers. So I have a little time while catching an NBA game to shrink and wrap and doodle around. 🙂
Thanks for the kick in the ass Peter!!! So you send all the books etc into FBA and let them label for you?
No, I do my labeling myself. As long as you’re listing anyway, it’s an extra 3 seconds per unit.
OK, I confess… we put every book in a poly bag. BUT – we call them “new” whenever possible. AND – we buy what we need to run our business. Including a new house in a new state with a 1200 sq. ft. out building! And, Peter, you are definitely one of the people who has made it possible for us to go into pre-retirement. That means we’re going to work our butts off for ourselves.
Hey, how do I get my picture to show up with my post? I’m not shy.
Peter, thanks for the reminder to focus on the important things, No.1 being massive sourcing. I have just upgraded to a database scanner, and its speeded things up already. Might I ask what is your scanning setup? Anyway, as always, your advice is great, and always cuts directly to the point. By the way, 4th month on FBA, & have built inventory of 2400. I heard you mention in an interview (a while back), that you were carrying an inventory of 5000 approx.so that is my next goal. Thanks for your inspiration. Ed
Thanks Ed.
Current setup: FBA Scan + Scanfob bluetooth scanner + older Galaxy S3. There are less expensive options for each, but I’m happy with my current setup.
Peter thank you for the article. I have just started selling books via fba after reading your book. I am guilty of worrying about sales tax. Do you have any advice on how you keep track of the accounting aspect of your business along with collecting sales tax? This is the part of my new business that worries me most as I do not have a system in place as of yet. I am printing out the monthly report straight out of Amazon at the end of each month and then keeping track of my monthly expenses on a separate sheet for expenses outside of Amazon. Thanks for your great advice!
I have a local CPA who I talk to, but here is what I would do if I were to start over;
Find someone who *specializes* in ecommerce and Amazon related tax issues (and has nothing to sell you). You might even hire a tax lawyer for an hour at https://www.upcounsel.com/
Get them to thoroughly and soberly explain the issues to you.
Don’t listen to anyone on the internet.
This may not be as complicated as you think.
Thank you so much!!
Great article Peter.
What would be your criteria to have a return or disposal order issued for certain high rank books on FBA. I have a quite a few books that are well over 3 million rank and have been listed for a while and there are so many low ball offers.
I’m good on all these EXCEPT #1. I’m afraid I’m a tetris packer…
I think one other thing that I’ve heard you mention elsewhere, but that deserves space here is sticker removal. I hear on other sites sooooo often people worrying about peeling off all the stickers on all their books. Huge waste of time.