Selling through Amazon FBA

[Phil B]

26 minutes ago, Cravacor said:

I've been reading through this thread and Amazon's seller pages. I am an Amazon seller in good standing (of books).

Since Lego products are gated, is having the requisite dealer letter or invoices the only way to get approved to sell Lego FBA?

Plus paying the $1k fee IIRC.

[Cravacor]

Thanks for the replies Gents.

I got to the point in their application process where it asked for the invoices but didn't see the $1k fee, yikes!

[Phil B]

8 minutes ago, Cravacor said:

Thanks for the replies Gents.

I got to the point in their application process where it asked for the invoices but didn't see the $1k fee, yikes!

Maybe you don't see it if you already have a Professional selling account. I believe the fee was to open one of those. But I'm only quoting this from what I've read in this thread, not from personal experience, as I was grandfathered in.

[Achilles]

Speaking of gating - does anyone have any insight to the actual process that's used to decide what is gated? I find it maddening. Some Nerf stuff is gated, some ins't. Some Frozen stuff is gated, some isn't. Some My Little Pony Stuff is gated, some isn't. For those seeing the LEGO gate, is it the same? Some sets are, some sets aren't? How do they decide what is? Does a seller have to complain and request it?

 

[chrisynd]

13 minutes ago, Achilles said:

Speaking of gating - does anyone have any insight to the actual process that's used to decide what is gated? I find it maddening. Some Nerf stuff is gated, some ins't. Some Frozen stuff is gated, some isn't. Some My Little Pony Stuff is gated, some isn't. For those seeing the LEGO gate, is it the same? Some sets are, some sets aren't? How do they decide what is? Does a seller have to complain and request it?

 

Are you certain the brand for the un-gated listing(s) is literally "Nerf"? If it's an alt-listing under a different brand, that would be the reason. This is the case with LEGO as well, though it can be even more confusing as often LEGO items will be branded as Disney which has its own gate.

For example, this is the primary listing for 41062 - Elsa's Castle:

https://www.amazon.com/Disney-Princess-Elsas-Sparkling-Castle/dp/B00NHQGE04

This is the same item but an "alternative" listing:

https://www.amazon.com/Disney-Princess-Sparkling-Castle-41062/dp/B00NGJO9AO

If you can sell on Disney but not LEGO, you can list in the primary. If you can sell on LEGO but not Disney, you can list in the secondary. A few days ago, the secondary listing had some random non-existent brand and virtually anyone could sell on that listing.

Their catalog is a mess.

[asharerin]

1 hour ago, Achilles said:

Speaking of gating - does anyone have any insight to the actual process that's used to decide what is gated? I find it maddening. Some Nerf stuff is gated, some ins't. Some Frozen stuff is gated, some isn't. Some My Little Pony Stuff is gated, some isn't. For those seeing the LEGO gate, is it the same? Some sets are, some sets aren't? How do they decide what is? Does a seller have to complain and request it?

 

Sellers who cannot list in a gated listing will then make an alternate listing using a fake UPC and fake brand name. Other sellers who are gated out will then also piggyback on the alternate listings. Amazon is slowly sifting thru the catalog but the fake listings grow faster than the catalog team can correct. All lego sets should be under the brand LEGO. Some of the disney/star wars sets are incorrectly under DISNEY or STAR WARS brands, but you can easily get that corrected (just open a case with seller support and copy the link to the LEGO Shop at Home website for the item and they will update the brand to LEGO).

[Achilles]

Chisy, I'll give more details soon - but for both of you - Whenever I add a product, I try to use the UPC code directly. So are you saying that some UPC codes are tied into FAKE alternate listings?

 

[chrisynd]

5 minutes ago, Achilles said:

Chisy, I'll give more details soon - but for both of you - Whenever I add a product, I try to use the UPC code directly. So are you saying that some UPC codes are tied into FAKE alternate listings?

 

They often are - a single UPC can be tied to multiple listings. When you're adding a product and start with the UPC, be sure you're selecting the correct listing to sell under. Usually "correct" in this context would be the one with the most reviews/highest sales rank/most sellers. A big clue that the catalog might be a bit fuzzy for a particular UPC is if when you're adding it, Amazon requires seller labels (doesn't offer using the manufacturer UPC).

[Achilles]

So as a specific example - 

Take the Nerf Charmed Everfierce bow. If I search "Everfierce bow" 4 listings come up, the top 2 look legit. The first:

https://www.amazon.com/Nerf-Rebelle-Charmed-EverFierce-Bow/dp/B01C3I6UFA/ref=sr_1_1?s=toys-and-games&ie=UTF8&qid=1481655469&sr=1-1&keywords=everfierce+bow

The 2nd: 

https://www.amazon.com/Nerf-Rebelle-Charmed-Everfierce-Bow/dp/B014MVCN0C/ref=sr_1_2?s=toys-and-games&ie=UTF8&qid=1481655469&sr=1-2&keywords=everfierce+bow

BOTH are gated - "Selling application for Brand - You are requesting approval to sell Nerf brand items." - Need to supply dist receipts, $1000 etc.

However, you can search for "Rebelle Secret Agent" - which is another Nerf Rebelle bow, and it brings up 5-6 different listings. However, NONE of these are gated.

So that's what I mean wondering if it's all a bit arbitrary. And for what it's worth, the margins and storage space on these things don't exactly make them the most appealing investment.

[pete411]

Stumbled across this while checking up on my Star Wars listings on Amazon. What can we do to have Amazon take listings like this off their site?

https://www.amazon.com/Lego-Star-Compatible-Super-Destroyer/dp/B01LX6X9EZ/ref=sr_1_20?s=toys-and-games&ie=UTF8&qid=1481659926&sr=1-20&keywords=lego+star+destroyer

 

[chrisynd]

3 hours ago, Achilles said:

So as a specific example - 

Take the Nerf Charmed Everfierce bow. If I search "Everfierce bow" 4 listings come up, the top 2 look legit. The first:

https://www.amazon.com/Nerf-Rebelle-Charmed-EverFierce-Bow/dp/B01C3I6UFA/ref=sr_1_1?s=toys-and-games&ie=UTF8&qid=1481655469&sr=1-1&keywords=everfierce+bow

The 2nd: 

https://www.amazon.com/Nerf-Rebelle-Charmed-Everfierce-Bow/dp/B014MVCN0C/ref=sr_1_2?s=toys-and-games&ie=UTF8&qid=1481655469&sr=1-2&keywords=everfierce+bow

BOTH are gated - "Selling application for Brand - You are requesting approval to sell Nerf brand items." - Need to supply dist receipts, $1000 etc.

However, you can search for "Rebelle Secret Agent" - which is another Nerf Rebelle bow, and it brings up 5-6 different listings. However, NONE of these are gated.

So that's what I mean wondering if it's all a bit arbitrary. And for what it's worth, the margins and storage space on these things don't exactly make them the most appealing investment.

Again, "Nerf" - the brand - is what is gated. I know it seems similar, but those alt listings when you search "Rebelle Secret Agent" come up as other brands though similar. They mostly come up as "Nerf Rebelle". When I say brand, I am referring to the brand name listed under the product name on the product page. Here's the listing using the proper brand, "Nerf":

Here's an alternative listing:

The brand name that is gated is literally "Nerf". Not "Nerf Rebelle". Or "Nerf Guns". Or "Dart firing cool toys". Sellers can create product listings on Amazon and insert any product name they choose (I recently saw a LEGO product under a brand name "Constructive Playthings"). This is a catalog issue with Amazon, but to clarify, you (and just about everyone else) should be able to list under "Nerf Rebelle" while "Nerf" is the gated listings.

It's confusing and it sucks for consumers but that's how it works right now. I would imagine Amazon isn't pleased with people skirting the gating by using alternative listings under imaginary brands to sell duplicate products.

EDIT: I should also note that a competitor with Nerf selling rights could easily request to change that high volume "Nerf Rebelle" ASIN to the proper brand "Nerf" and gate lots of competition on it. It'll happen.

Edited December 13, 2016 by chrisynd

[chrisynd]

2 hours ago, pete411 said:

Stumbled across this while checking up on my Star Wars listings on Amazon. What can we do to have Amazon take listings like this off their site?

https://www.amazon.com/Lego-Star-Compatible-Super-Destroyer/dp/B01LX6X9EZ/ref=sr_1_20?s=toys-and-games&ie=UTF8&qid=1481659926&sr=1-20&keywords=lego+star+destroyer

 

The closest you're probably going to get is to hit that "report incorrect product information" link on the product page and trying to select an option that makes sense. Generally speaking, Amazon isn't going to do squat though if LEGO isn't the one attempting to enforce their IP copyright.

[Achilles]

3 hours ago, chrisynd said:

Again, "Nerf" - the brand - is what is gated. I know it seems similar, but those alt listings when you search "Rebelle Secret Agent" come up as other brands though similar. They mostly come up as "Nerf Rebelle". When I say brand, I am referring to the brand name listed under the product name on the product page. Here's the listing using the proper brand, "Nerf":

Here's an alternative listing:

The brand name that is gated is literally "Nerf". Not "Nerf Rebelle". Or "Nerf Guns". Or "Dart firing cool toys". Sellers can create product listings on Amazon and insert any product name they choose (I recently saw a LEGO product under a brand name "Constructive Playthings"). This is a catalog issue with Amazon, but to clarify, you (and just about everyone else) should be able to list under "Nerf Rebelle" while "Nerf" is the gated listings.

It's confusing and it sucks for consumers but that's how it works right now. I would imagine Amazon isn't pleased with people skirting the gating by using alternative listings under imaginary brands to sell duplicate products.

EDIT: I should also note that a competitor with Nerf selling rights could easily request to change that high volume "Nerf Rebelle" ASIN to the proper brand "Nerf" and gate lots of competition on it. It'll happen.

Perfect, that's exactly what I was hoping for explaination wise. Thanks for your time.

[IronManDan]

I am a FBA newbie.  I just received my first return notice on a Minecraft Mine.  I'm a bit unsure/concerned about this...

1- I doesn't seem to state the reason for the return.
2- If someone returns something, does it cost me money?
3- It seems that if they receive it back in new condition, they will add it back into inventory, but If it comes back opened, then what?
4- Is there any best practices to use to reduce returns?

Any help would be appreciated.  I'm a bit concerned with the 10 NES Classics I sold FBA.  Can anyone calm my fears?
 

[BrickLegacy]

I am a FBA newbie.  I just received my first return notice on a Minecraft Mine.  I'm a bit unsure/concerned about this...

1- I doesn't seem to state the reason for the return.
2- If someone returns something, does it cost me money?
3- It seems that if they receive it back in new condition, they will add it back into inventory, but If it comes back opened, then what?
4- Is there any best practices to use to reduce returns?
Any help would be appreciated.  I'm a bit concerned with the 10 NES Classics I sold FBA.  Can anyone calm my fears?
 

BA will but he might ask for a kidney and future royalties. He is drafting the terms of the agreement in his PJs right now. You should hear from him shortly.

[Bold-Arrow]

25 minutes ago, IronManDan said:

I am a FBA newbie.  I just received my first return notice on a Minecraft Mine.  I'm a bit unsure/concerned about this...

1- I doesn't seem to state the reason for the return.
2- If someone returns something, does it cost me money?
3- It seems that if they receive it back in new condition, they will add it back into inventory, but If it comes back opened, then what?
4- Is there any best practices to use to reduce returns?

Any help would be appreciated.  I'm a bit concerned with the 10 NES Classics I sold FBA.  Can anyone calm my fears?
 

1. The return reason won't be stated till Amazon receive it back ( if they do )

2. Yes , check financial detail for that order 

3. Recall it , assess condition , go from there 

4.not really . Make sure it is good condition and properly priced . But not much u can do 

 

[asharerin]

34 minutes ago, IronManDan said:

Any help would be appreciated.  I'm a bit concerned with the 10 NES Classics I sold FBA.  Can anyone calm my fears?
 

Just factor in the returns in your profit margins and have an avenue setup to liquidate any customer damaged returns (facebook groups, CL, local stores, ebay etc). Electronics always have a high rate of returns it is just the nature of the beast. Return costs and any loss in value due to customer damage are all tax deductible.

Edited December 14, 2016 by asharerin

[chrisynd]

40 minutes ago, IronManDan said:

I am a FBA newbie.  I just received my first return notice on a Minecraft Mine.  I'm a bit unsure/concerned about this...

1- I doesn't seem to state the reason for the return.
2- If someone returns something, does it cost me money?
3- It seems that if they receive it back in new condition, they will add it back into inventory, but If it comes back opened, then what?
4- Is there any best practices to use to reduce returns?

Any help would be appreciated.  I'm a bit concerned with the 10 NES Classics I sold FBA.  Can anyone calm my fears?
 

 

13 minutes ago, Bold-Arrow said:

1. The return reason won't be stated till Amazon receive it back ( if they do )

2. Yes , check financial detail for that order 

3. Recall it , assess condition , go from there 

4.not really . Make sure it is good condition and properly priced . But not much u can do 

 

 

For #1) go to Reports -> Fulfillment -> Customer Concessions / FBA customer returns. You won't find any results until Amazon receives the return, though. Basically, just check back there every few days and eventually it will (probably) pop-up once they receive the return. Usually this happens in under a week.

BA's steps/answers are unfortunately just how it works. The reason you were able to sell those 10 NES Classics at the significantly-over-MSRP rate you likely did is that Amazon allows for such an easy return policy. In turn, people abuse it. The return reason stated for your Minecraft Mine may be entirely untrue but the customer is practically selecting a reason at random and trying to avoid paying for the return costs, most likely. Now and again you'll get an item clearly opened, played with, and returned. If you want to sell on Amazon, unfortunately you have to eat the cost and attempt to recover some of the value by selling used/opened assuming everything is at least there. You can try to fight about it, but it's probably not worth the effort. I'm currently absorbing about 3-4 returns/day and it'll only rise after Christmas. There's a good chance one of your NES will be returned in January once stock is more available (if it's more available) and the only reason they return it is because of the price difference. Sucks, but it's part of the cost/risk of being a reseller. Be ready for it.

EDIT: Just to give you a vague sense of what to expect, here's my received returns from the last 24 hours:

Edited December 14, 2016 by chrisynd
Screenshot

[Darth_Raichu]

So, basically I should not count on any profit from FBA sales until after the return season ends on 1/31/17 ???

[chrisynd]

1 minute ago, Darth_Raichu said:

So, basically I should not count on any profit from FBA sales until after the return season ends on 1/31/17 ???

Basically ?

As @asharerin pointed out, at least you can count those 2017 returns against your 2017 profits - if there are any!  I have the pleasure of counting all of 2015's Christmas returns against this year's profits.

If you're not still selling in volumes that will cover the Returnuary January returns, you might even have the pleasure of getting a bill from FBA for your returns!

[Bold-Arrow]

4 minutes ago, Darth_Raichu said:

So, basically I should not count on any profit from FBA sales until after the return season ends on 1/31/17 ???

In my experience the return rate only slightly ticks up . It is just that I sells more volume during Christmas then I see more units refunded , but overall margins are better . 

[Loghamel]

19 minutes ago, chrisynd said:

There's a good chance one of your NES will be returned in January once stock is more available (if it's more available) and the only reason they return it is because of the price difference.

 

This is why I don't touch things like NES and Hatchimals.  If I had kids that wanted a HOT item, I couldn't care less what the markup is.  I can buy a Hatchimal from Amazon for $400, let them open and play with it for Christmas, and grab one off the shelf from Walmart in January and take it straight to the post office and mail it as a return to Amazon.  I try to sell mostly LEGO sets that the ain't going to see on the shelves again, so they can't pull this with my stuff.

[asharerin]

26 minutes ago, Loghamel said:

This is why I don't touch things like NES and Hatchimals.  If I had kids that wanted a HOT item, I couldn't care less what the markup is.  I can buy a Hatchimal from Amazon for $400, let them open and play with it for Christmas, and grab one off the shelf from Walmart in January and take it straight to the post office and mail it as a return to Amazon.  I try to sell mostly LEGO sets that the ain't going to see on the shelves again, so they can't pull this with my stuff.

Sure this can happen but I have not experienced it on any kind of scale that would turn us away from the good profits from selling the hotter toys FBA at christmas time. Our return rates on the usual toys are around 1%. ROI averaging 185% this year on those non-lego toys. In our experience prime members generally want convenience, not the hassle of spending valuable time to perpetrate return fraud. 

[landphieran]

32 minutes ago, Loghamel said:

This is why I don't touch things like NES and Hatchimals.  If I had kids that wanted a HOT item, I couldn't care less what the markup is.  I can buy a Hatchimal from Amazon for $400, let them open and play with it for Christmas, and grab one off the shelf from Walmart in January and take it straight to the post office and mail it as a return to Amazon.  I try to sell mostly LEGO sets that the ain't going to see on the shelves again, so they can't pull this with my stuff.

Until they open the set, build it, keep there favorite mini-figure and send it back in plastic bag saying it was damaged/opened/w.e.

[redcell]

1 hour ago, IronManDan said:

I am a FBA newbie.  I just received my first return notice on a Minecraft Mine.  I'm a bit unsure/concerned about this...

1- I doesn't seem to state the reason for the return.
2- If someone returns something, does it cost me money?
3- It seems that if they receive it back in new condition, they will add it back into inventory, but If it comes back opened, then what?
4- Is there any best practices to use to reduce returns?

Any help would be appreciated.  I'm a bit concerned with the 10 NES Classics I sold FBA.  Can anyone calm my fears?
 

1.  The reason for the return really doesn't matter.  There is very little to nothing that you can do about FBA returns.

2.  Yes.  Amazon does not refund the FBA fees so you lose those.

3.  It will be marked as "Customer Damaged" and categorized as unfulfillable.  You'll have to remove it.

4.  No.  The only thing that you can do to avoid some of the hassle with returns is to not use stickerless commingled inventory.  That would cut down on you getting a return because someone else sent in a crappy box or a box that had been opened and resealed, etc.

Returns are an inherent aspect of selling on Amazon, particularly FBA.  You have to treat them as a cost of doing business and not get stressed out about them.  The return rate tends to be fairly low, but they happen.  You just have to hope that they don't happen on larger and more expensive items that then get categorized as unfulfillable.  

1 hour ago, Bold-Arrow said:

In my experience the return rate only slightly ticks up . It is just that I sells more volume during Christmas then I see more units refunded , but overall margins are better . 

And the number of sets that get categorized as customer damaged tends to be fairly low.  I've only had 4 returns this season marked as Customer Damaged.