Collaborative Action Plan and Next Steps for Amazon FBM
Hello
I trust this message finds you in good spirits. With our mutual decision to collaborate, I’m pleased to outline our comprehensive plan of action:
**Facilitating Seller Central Access:**
We require access to your Seller Central account on -Contabo.com | vps- Identity Tracking Isolation for the Web, ensuring top-tier security. Additionally, we’ll need access to your Walmart.com buying account for tracking the progress shipments to prep. Please note we don’t need any private info or credit card information for our operations.
To begin, kindly provide access of:
- Seller Central user permission
- Walmart login ( www.walmart.com ) and business walmart ( Walmart Business | Save Time, Money and Hassle) . both we need . But we can start with a walmart.com buying account initially. BOTH VENDOR LOG IN SHOULD BE ON VPS. We do not log in any vendor account on our local ip or own pc to avoid order cancellation.
- Business Prime login (if not yet registered, please sign up here: Amazon Business Prime). Business prime is amazon’s wholesale site from where we can buy items at a discounted price. Please register on CONTABO VPS so that we can have access to the same ip.
**Order Management:**
All orders should be placed from On VPS ( where your walmart.com buying account should be logged in. This will help us to monitor the track of the orders and date of shipment). I am providing the details below on how to sign up for it. ) This is a great tool to keep a steady ip ( instead of your home ip) where we will be on the same network. This will prevent order cancellation most of the time.
Prevent order cancellations
We suggest placing a few orders to the same billing and shipping address for avoiding order cancellation and the order must be on vps. Successful deliveries to the same address will mitigate the risk of cancellations. Should issues arise, please contact Walmart support with the reference number provided by the support team.
Please save the reference number of the issue so that we can follow up later if further item cancellation happens. Once some orders successfully get shipped to your address, then we can start shipping to the prep center as we have established some successful delivery of orders.
**Shipping Protocol:**
We will share you a spreadsheet where you will see what to order along with the qty. You need to fill out the order number after placing orders. Again P the order needs to be placed on vps ( contabo) so that we can track the order status .
We’ll require your assistance in shipping the first few orders.We will provide you with shipping labels from Amazon seller central/ USPS or UPS wherever we find cheaper to maximize profitability. As we progress, we’ll transition to utilizing a prep center for receiving, storing, and shipping items. Just the first few orders we need your help to place and ship to customers to avoid order cancellations.if you have enough time to ship items- we do not need to use any prep center. This way we can save by not paying prep bills and our profit margin will be a little higher. Also this will give you an idea how the business works before transitioning to the prep center. Kindly note that prep center fees may vary based on item size and weight. It starts from $2.50 to $3.5 depending on the size and weight.
**Tax Exemption for Increased Profit:**
Ensure Walmart and Business Prime accounts are tax-exempt to optimize profitability. Instructions for tax exemption can be found in the tax exempt area of each respective website. We can help you to be tax exempt ( for a small fee ) if you provide us with a reseller permit .
**Next Steps After Store Access:**
We’ll initiate product research for your store. The first listing takes 3 to 5 days due to gated and ungated item checks.Please note – with brand new stores ( zero feedback), usually most of the popular items are unagated.
Most of the time the store does not have a featured offer eligibility/ buy box. You can read more about featured offers here – What Is The Amazon Featured Offer & How Can You Secure It? | Viral Launch (viral-launch.com) Just to give you an estimate, out of 100 brands or listings, we find one or 2 products are ungated. Secondly- most of the time customers do not trust a store having zero feedback as they fear scam or not on time delivery. They tend to buy from a seller with customer feedback.
Due to all of these facts, it takes time to generate sales initially. But you can expect sales in the first 7-10 days once we get the store’s child access. But everyone starts from somewhere . As we continue sales we will also gain a featured offer/ buy box, sales history and customer feedback. This will ungate more brand listings and sales.
What is gated and ungated
“Gated” and “ungated” refer to the permissions granted by Amazon regarding the listing of certain items on their platform:
- Gated Items: These are products for which we do not have permission to list on Amazon. This could be due to various reasons such as restricted categories, brand restrictions, or specific seller requirements. It means we are unable to list these items for sale.
- Ungated Items: Conversely, ungated items are those for which Amazon grants us permission to list and sell. However, for a new Amazon account with zero feedback, there are limitations on listing popular items. Out of a list of 100 brands or listings, only 1 or 2 may be ungated initially. This process requires patience as we navigate through the restrictions imposed on new accounts. Over time, as we establish sales and a positive track record, more items will become automatically ungated. Amazon’s cautious approach ensures that sellers can provide adequate customer care service before granting access to sell popular items. As our business grows and our performance improves, Amazon will progressively increase the number of items we can list and sell.
Sales Velocity
Refers to the rate at which sales are made over a specific period. Here’s what you can expect in terms of sales performance:
- First Month: Anticipate initial sales in the range of $4,000 – $8,000 depending on the buy box eligibility of the store. We maintain a positive velocity review of the store to ensure we do not pass Amazon’s certain sales figure threshold.This establishes a solid foundation for your business on Amazon. The profit margin (ROI) is anywhere between 18% -40%). Please note Initially it might be 20% but as we continue sales and after 2 months the ROI increases as the store gets ungated with popular items. The ROI is calculated based on whatever the items are sold and shipped.
- Second Month: Aim for increased revenue, targeting a range of $9,000 to $15,000. With the initial traction gained in the first month, we aim to build on this momentum and achieve higher sales figures.
- Third Month Onwards: As we progress, sales will continue to grow based on your investment capacity and the ongoing optimization of our strategies. Expect further growth and expansion in revenue generation beyond the second month.
These projections outline a trajectory for increasing sales and revenue over time, reflecting our commitment to maximizing your success on the Amazon platform.
**FBA Integration:**
In addition to FBM (Fulfillment by Merchant), if you want we’ll incorporate FBA (Fulfillment by Amazon) to strengthen account health and revenue generation. With FBA, amazon will take care of our shipping and customer service. We need to do this to strengthen account health.
**Team Communication:**
We’ll communicate preferably via WhatsApp for seamless coordination with the prep center and team. If you prefer we can add you to the prep group chat so that you can monitor the receiving and shipping items. Please leave your number so that I can open a group chat.
Payment release by Amazon :
Amazon releases payment every 21 days after uploading tracking to customers. Please note that they hold almost 30% of sold money on your balance on Amazon as a security purpose to cover the returns and refunds. The more sales the more funds Amazon keeps as balance on your amazon account. They will only release fund after 21 days ( only for the item that is sold and shipped )
To summarize,
What do we need to start :
A contract on Upwork with a $500 sign up fee for 30 days. The money you will release after 30 days via upwork once you are satisfied with our work and we bring sales as we promised on this proposal ( at least 4k to 8k sales ) in the first month depending on your budget capacity. Secondly, we will share a 35% profit split over the net profit we make for you each month. Wondering Why profit sharing? Well, this will push us to make more profit for you which means the more profit we make for you the more money we will be able to make for us. Profit sharing is the only way to keep the work continued. In this strategy- we will make you money first, then you will pay us. So basically you will pay us from the money we will make for you.
- VPS where your walmart and business prime will be logged in ( here is the guide how to sign up for a vps ) (67) how to subscribe to contabo VPS and log in to it – YouTube . download link for vps log in : Microsoft Remote Desktop
- Seller central permission ( to amazonworkstation376@gmail.com) . Please go to settings- user permission- put name -FBA Automation- and email. Then send the invitation. Once done, let us know so that we can accept the invitation. Once we receive an invitation please update the invitation to all views and edit. Please make sure to update global permission as well as this will allow us to control refund refunds.
- Vendors like Walmart and business prime need to be tax exempt to save taxes and maximize profit.
- You will place a test order on Walmart with the SAME billing and shipping address to get it ready. The test order is just to make sure that the vendor account is up and running . Before bringing sales, we want to make sure that the vendor account ( walmart or business prime ) is working perfectly .That test item can be a daily necessary item. This is just to get the account ready for purchase. The test order must be on VPS too.. We will update the prep address later on once a couple of successful orders are gone through in your address.
- We will share a spreadsheet of what to order as we bring sales.
- We need vps log in so that we can track order status and update customer service.
Common question:
Is your prep center trustworthy ?
Yes 100%. Please note- we do not stock any bulk amount of items in prep. When we sell something, we purchase the item and ship it to the prep center. Then we give shipping labels to prep centers and they ship to customers. Prep receives the item and forwards it to the shipping company on a daily basis. No items remain in stock in their warehouse.
Is my Buying account safe :
Of course. You will see the sold items vs purchased items from your buying account. Daily basis we update spreadsheets with full data. So there is no opportunity of discrepency.
Can I sell on other platforms and scale to 100k yearly profit ?
Absolutely. I have demonstrated to you the last 4 months our sales on a single store was $99k with ROI 3% on an average. Therefore it was around $34650 net profit ( before profit split with us). We hope to make 100k net profit this year with this account alone. All we need is your kind support and help us to materialize the plan of action that has been shared with this plan.
In addition to that, we can help you to sell on Walmart too and make a similar amount of revenue like Amazon. Although getting walmart seller central approval is very rare , we can help you to sell on walmart after a few months on Amazon. Why a few months? This is because Walmart requires that you are selling on an existing platform ( like Amazon or shopify) with a proven record . We can apply for Walmart after 3 to 4 months once we get at least 10 to 15 seller reviews as this will be enough to prove to Walmart that we are an established seller.
How to avoid deactivation of the account?
We are taking a range of actions to prevent account deactivation. First- we will use valid tracking, secondly, we will mitigate any customer issue before they escalate the issue to Amazon support. This will help us to make the business long lasting.
Please do not worry if any information above seems hard to understand. Just let me know which part you did not understand and I will clarify everything.
Please don’t hesitate to reach out with any questions or concerns. We’re eager to embark on this journey together and anticipate a fruitful collaboration.
Best regards,
AMJAD HOSSAIN
CEO OF AHM LLC AND AHM IT NETWORK LTD.
Portfolio – https://www.fiverr.com/users/seoexpert_amjad/portfolio?origin=seller_page