Amazon Returns to the Lone Star State

It was just a few years ago (2011) when Amazon closed its Dallas-based fulfillment center due to a disagreement over state taxes. Now it appears that Texas and Amazon have reconciled. Amazon has just announced that it will be opening three new fulfillment centers in Texas in the upcoming months.
Amazon has recently changed its opinion on state tax collection in other states (including New Jersey, California , and Pennsylvania). With the opportunity to move into these states, Amazon opened more than 20 new fulfillment centers in 2012. The three in Texas will add an additional 3.3 million square feet of warehouse space. The new locations will be:

• Schertz (near San Antonio)
1.2 Million square feet
Will handle large items

• Coppell (near Dallas)
1 Million square feet
Will handle large items

• Haslet (also near Dallas)
1.1 Million square feet
Will handle smaller items like books, small electronics and DVDs

Having more fulfillment centers helped Amazon dropping the amount of shipping costs within its yearly budget. In 2011, the shipping costs for the holiday season covered 5.4% of Amazon’s budget for that quarter. In 2012, the amount for that same time period was only 4.5%.

Not only will the state benefit from the taxes collected, the three locations are projecting to hire more than 1000 workers (and this number will most likely increase dramatically during the holiday seasons).

Around the world, Amazon currently operates 79 fulfillment centers.

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Peek Inside an Amazon Warehouse

Image courtesy of the ABC Broadcasting Network

With the holiday season upon us, we are in a unique situation. We are able to be a part of the retail market that seems to be booming this year. We are able to connect buyers with the items they want and some of us are fortunate enough to make a living do it!

If you sell on Amazon, I am sure you have wondered what happened after your carrier dropped off your boxes and they were checked into the designated warehouse. If you are like me, at some point you have probably wondered what an Amazon fulfillment center looks like. If you have, then you have to see this.

As Cyber Monday rolled around this year, the press seemed to be looking to Amazon to show just how busy Cyber Monday was. From news stories to photo galleries online, nearly every network was talking about Amazon.

Here are a few fun facts about Amazon that were revealed during news stories by Bloomberg TV, ABC News, CBS News, and NBC News:

• Currently, Amazon has about 80 fulfillment centers worldwide. About half of them are in the US.
• Items are not stored in categories. They go into a free space and are scanned to document its location in the warehouse.
• Amazon’s largest warehouse in Phoenix is the size of 28 football fields (1.2 million square feet).
• On Cyber Monday 2011, Amazon processed 200 orders per second.
• For the 2012 Holiday season, Amazon plans to hire 50,000 seasonal workers.
• Amazon employs 20,000 full-time fulfillment center employees.
• Amazon was the most visited retail site Thanksgiving weekend.
• Amazon uses people instead of robots to pick orders.
• Amazon order pickers walk miles each shift.
• The order picks may also use tricycles to pick orders that contain items that are not warehoused close together.

Online, many sites shared videos and photos from inside the fulfillment centers. To see what happens when an item is ordered by an Amazon customer, click here for the NBC News story or here for the ABC News story. To view pictures from inside an Amazon warehouse, click here. (Photos courtesy of Coed Magazine)

FBA Sellers, did you spot any items you sell or were you looking for new items to source in the pictures? Were you surprised by the setup shown?

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Amazon Plans New Fulfillment Centers for 2012

Image Courtesy of Google.com

With the growth of the sales of the Kindle Fire and with the increasing number of sellers using FBA, Amazon will add new fulfillment centers to reach more customers in a more efficient manner. The centers are planned for locations within Virginia, Tennessee and other states. With two new centers planned for Chesterfield and Dunwiddie counties, Virgina, the new centers are projected to bring approximately 1,350 jobs to that one state alone.

The growth is not focused on only US locations. Later this year, Amazon plans to open its first fulfillment center in Mumbai, India. In addition to the India location, Amazon will also add fulfillment centers in Nanning, China and in the cities of Koblenz and Pforzheim, Germany.

If you have ever wondered what the workings of an Amazon fulfillment center looks like, here is a YouTube video that will give you a peek:




The following are just a few of the new Amazon.com US fulfillment centers set to open in 2012:

• West Middletown, Delaware
• Spartanburg County, South Carolina
• Chattanooga, Tennessee (Opened 2/2/12)
• Lebanon, Tennessee
• Murfreesboro, Tennessee
• Dinwiddie, Virginia
• Meadowville, Virginia

What does this mean for the FBA seller? You may encounter additional shipping locations to forward your inventory. You may experience stock movement as inventory is transferred to other locations. While it may be a slight inconvenience to split your inventory, it is still a very efficient process. When you consider the time saved in shipping each item individually and warehousing your inventory, Amazon FBA is still a great alternative. Also, the additional centers shows the growth of Amazon.com. As the company reaches more consumers, so will your products.

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Hot Item to Sell on eBay and Amazon – Baby Monitors

Image Courtesy of NewParent.com

Pay attention to your feedback comments on eBay and Amazon. You can glean valuable information about why consumers are buying your products, and learn how products are being used for other than their intended purposes. This information can help you market your products better, and discover product niches that you may not have thought of.

I learned this a few years ago when selling on eBay UK. One buyer clued me in that Preparation H ointment as a wrinkle treatment. (People keep it in the refrigerator and dab it around their eyes in the morning to reduce swelling.) Another buyer left a comment about using Swiffer Sweeper refills as anti-static packing material for computer parts. And yet another buyer informed me that Kool-Aid powder is used as a non-toxic hair dye, or for art projects. Finally, one customer left a feedback that said, “Can’t get this in UK because of health care system.” The product was toothpaste with peroxide – it was not available for purchase in the UK. After reading that comment, I listed almost every brand of toothpaste with peroxide for sale in my UK store, and toothpaste became one of my best sellers.

I recently received this comment after selling a baby monitor, “Great product- does just what I wanted without static. I use it with an elderly parent since I sleep upstairs.” Aha. I had purchased quite a few baby monitors and surveillance systems on clearance from Babies R Us last summer. They all sold well at at least $20 profit. Later I learned that people also use baby monitors to monitor their pets kept in another part of the house or basement.

The point I want to make here is to pay attention to the feedback comments your buyers leave. Listen to your customers so you can provide the products they want.

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Amazon FAQ – What if an Item Has No Sales Rank?

Here is another common question I have received from my clients and see on message boards. Part of the decision making process when determining whether or not an item is a good fit for Amazon is sales rank. But what if an item does not have a rank, or the rank is zero?

No sales rank. We (experienced Amazon sellers) believe this means that the item has sold at least once in the past but a long time period has passed. It could have been months or even years since a sale.

Zero rank. The item has recently been listed and no sales has occurred yet.

So, your next question is, what do I do if there is not a rank, or the rank is zero?

Here is how I approach a zero rank situation. If I have a gut feeling about a product, based on my own experience with a brand name or type of product, I will watch the item and see what happens. Eventually a ranking will appear when some are sold. My feeling is that someone obviously knows enough to have taken the time to list the product and do all the work. If I don’t have enough experience to make the call, I can take advantage of another seller’s initiative and pay attention to the situation.

I also pay attention to the seller who listed the item. I look at these factors:

1. Does the seller have a lot of feedback – meaning are they experienced?


2. Does the seller have a large product offering?


3. Does the seller specialize in a certain category, such as toys or health and beauty?


4. Does the seller have a lot of products with a zero ranking, which would indicate that they experiment regularly?

If you don’t have the experience or knowledge to understand whether a zero ranked product is worth listing, watch other more experienced sellers.

Also, a note about zero ranks. I have experimented with products with a zero rank and sold maybe 25-30 of the product before a ranking showed up on the listing or FBA Scout. So, although the rank may show as zero, and it APPEARS that no sales have occurred, you can’t always make that assumption.

My best advice on zero ranked products is to go with your gut. If your inner voice is telling you that the item will sell, you know the brand name is a good seller, or you yourself use the product and like it, follow that instinct. Buy a couple and see what happens. You may discover a situation where the item sells and the ranking stays a zero for a few months. Competitors will look at the item thinking none have sold yet. And you will be laughing all the way to the bank!

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What Should I Sell on Amazon, and Where do I find It?

I receive this question daily from both readers and clients. There are infinite answers to this question depending on many different factors. I wanted to share a few items that I was successful selling on Amazon this holiday season, just to show how diverse your product line can be. Also keep in mind that I am a real person out there selling, just like you, every day.

K-Y Touch Massage Variety Pack. I found this on clearance at grocery stores last summer. My cost was between $5 and $9. This item sold on Amazon for between $29 and $32. I sold 50 of these between August 1 and December 31:


Here is the info on my last sale, so you can see the selling price:


I was also able to find this item online and bought out the seller. (Not on Amazon, another site.) This product is now discontinued. I was the only seller for most of the 4 months I offered this item for sale. Profit on this item averaged $13. Total profit $13 x 50 = $650. You can click here to see that this item is currently unavailable on Amazon.



Sonic Scrubber Power Cleaning Tool. I found these on clearance at grocery stores, hardware stores, and home improvement stores for between $6 and $13. Selling price was up to $44.95. I sold 45 of them between August 1 and October 31:


Here is the info on my last sale, so you can see the selling price:

My average profit on this item was $24. Total profit was $24 x 45 = $1,080. You can click here to see that this item is currently unavailable on Amazon. This product has been discontinued which explains the exorbitant price buyers paid.

Black and Decker Rechargeable Spotlight. I found these last fall at Tuesday Morning for $14.99. These were in the "boring automotive section," but because the brand is Black and Decker, I took a chance. Selling price was between $42 and $46. I sold 13 of them between September 1 and December 31:


Here is the info on my last sale, so you can see the selling price:


Average profit per item was $24. Total profit $24 x 13 = $312. This product has not been discontinued and you can find it on Amazon here.

So as you can see, selling on Amazon FBA is much more than just selling books or selling items from Big Lots and competing against other sellers for a few dollars profit. My profit on these 3 items alone was $2,042 over a 4 month period - and this is just 3 items! In fact, these 3 products paid my mortgage for 2 months. That is how exciting selling on Amazon can be!

Open your mind, experiment, and take some risks in 2012 - Amazon is waiting for you!

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