2. WHATS GOING ON IN THE MARKET?
• Amazon sales went from $24 BILLION in 2009 to $34 BILLION in 2010
• During the same time the market shrunk in most retail industries
• If Amazon sells what you sell the chances are you can’t compete
• The chance of Amazon having a better price than you is High
• The chance of Amazon beating eBay prices is high in many cases
• Amazon is the #1 online retailer according to 2011 Internet Retail Guide
• Amazon is the Online Walmart
3. WHAT IS A HEALTHY MARKET?
• Healthy = Where Amazon, eBay and the likes are not competing
• Specialty Items (Made to Order, Rare such as Natural Minerals)
• Custom Order Items (Dash Kits)
• Low Domestic Inventory (Wheels, Exhaust)
• Restoration Parts (Low Inventory)
• Heavy Items
• Very Expensive Items
• Overstock / Liquidation / FleaMarket (Liquidation.com)
• International Outbound Demand (Ship from US to Overseas)
• International Inbound Demand (Ship from Overseas into US)
• IF YOU ARE NOT IN A HEALTHY MARKET THERE IS A SOLUTION
4. WHY IS AMAZON WINNING?
• Go to Amazonservices.com
• Amazon doesn’t actually buy inventory – They act as a Fulfillment
– Yes that means your manufacturer who supposedly doesn’t compete with you is in fact
competing!
• Amazon has perks for their customers
– Free, Fast and Reliable Shipping EVERYTIME
– Free 2nd day shipping for members
– Money back with Amazon credit card
– One Click Checkout
– Great Return Policy, Review
– Lowest Prices
• Amazon only charges 12% no listing fees (eBay 16% + listing fee)
• Amazon business is model volume based
– 1% - 4% Margins
– Core Products, Memberships
5. EFFILIATE MARKETING
• Can’t Compete? – Funnel it through Amazon or eBay
– Amazon pays 4% - 8.5% Commission
– Simply turn on Effiliate Feature in SCE and your done
– eBay pays similar
• Generate sales for items you don’t even have
– Interviewed one entrepreneur who funneled over $1 MILLION in 2010 through
Amazon
– Instead of discontinuing products Funnel them
– Instead of not adding non-competitive products – Add & Funnel
– Bad Supplier? – Funnel
– Not reliable Supplier? – Funnel
– Not making money? – Funnel
– Chargeback, No Merchant Account, International? - Funnel
• You can still sell the products you make money on and funnels the others
6. WHY EFFILIATE MARKETING?
• Why Effiliate Marketing vs Affiliate Marketing?
– Affiliate Marketing = 100% Funnel / Usually Spamy Website
– Effiliate Marketing = Partial Funnel / Partial eCommerce / Non Spam Website
• Generate Traffic through Google with SCE and enjoy the same profits
– Lets face it – For you to be competitive with Amazon and still make more than 8% as a
drop shipper will never happen.
– Except there is LESS WORK!
• Pick out the products you didn’t have access to before
• You can actually use Terapeak to research sellers and specifically funnel traffic for
relevant items right into their BUYITNOW auctions
– There are sellers who do millions per month and they are IMPORTERS!
– There are manufacturers who do hundreds of thousands per month!
– DRIVE THEM TRAFFIC AND EARN COMMISSIONS USING POWER OF GOOGLE
• You can do a search for all relevant products on Amazon and add them to your
website
7. HOW TO DO BUSINESS NOW?
• Become a content provider to get return customers
• Do the research for your customers
– Amazon / eBay existed forever but people still go to Google to search (and still
find better deals sometimes elsewhere)
– People still go to Shopping Comparison Sites (where eBay/Amazon advertise)
– You can still have returning loyal customers (even though they might not buy
from you every time)
– Why? – because it’s a natural behavior to look for a better deal. SOLVE THAT
PROBLEM IN YOUR NICHE!
• Become a community using Ning.com
• Become a content creator using a Blog (Tumblr.com)
• Engage in heavy email marketing even if you have to funnel traffic
• Stop trying to be a fulfillment center as a drop shipper and concentrate on
content and gathering your community
8. HOW EASY IS IT TO SET UP
• Sign up with Amazon Associates and eBay Partner Program
• Inside Shopping Cart Elite choose what to Effiliate / Affiliate
• If you do Effiliate it will show a COMPARE PRICING WITH
• If you do Affiliate it will show that you MOVED YOUR INVENTORY
• Once you set it up, SCE will automatically find the most relevant items
from Amazon or eBay and display them either below or instead of the Add
to Cart Button
– You can also customize how each product will be found on Amazon/eBay
– You can customize it by seller if you know that a specific seller will always have
the best price or that seller has exclusive on that part
– You can customize the category and search terms
– You can see a sample of what comes up with our New Live Preview
