Amazon FBA By Nate McCallister / a couple of years ago NOTESince this article was initial released, a new software has come to market that has made these groups less popular. The tool is Tactical Arbitrage and it is the absolute BEST way to find products to buy low and sell high on Amazon. Click here to read more about Tactical Arbitrage.Groups still have a place, but Tactical Arbitrage should be a part of every Amazon sellers software arsenal. The most successful sellers share a common problem: Finding enough product to spend their money on. To maximize your net profits, you need as much (good) inventory as you can get your hands on. You need to spend as much money as you can as long as it continues to produce marginal returns for you. Paid sourcing groups are a fantastic resource for bringing you more leads each day. This means more product to spend your budget on which means maximized net profits. The Group Directory The following is a list of the current product sourcing groups accepting members. The prices and group details are current at the time of this writing, but are always subject to change. I will do my best to keep them up to date. Please comment below if you see anything that is not accurate. Essential Daily Deals Cost Per Month: $149 Minimum ROI: 40% Minimum Net Profit: $5 Minimum Sales Rank: BSR<2% Group Member Cap: 100 Number of Deals: 10/Day Schedule: Monday-Friday Distributed Via: Email Inbox Categories Included: Various Check out: Essentialdailydeals.com Threads and Treads Cost Per Month: $100 Minimum ROI: 40% Minimum Net Profit: $5 Minimum Sales Rank: BSR<2% Group Member Cap: None Number of Deals: 10/Day Schedule: Monday-Friday Distributed Via: Private Group Categories Included: Clothing, Shoes, Luggage, Handbags and Jewelry Check out: Threads and Treads Elite Product Source (1) Basic VA Group (2) Clothing and Shoes Cost Per Month: (1) $100 (2) $200 Minimum ROI: 30% Minimum Net Profit: N/A Minimum Sales Rank: BSR<5% Group Member Cap: 15 Number of Deals: 15/Day + Bonus Admin Finds Schedule: Monday-Friday Distributed Via: Email Inbox Categories Included: (1) Various (2) Clothing and Shoes Check out: Elite Product Sourcing Great Deals Cost Per Month: $100 Minimum ROI: 50% Minimum Net Profit: $5.00 Minimum Sales Rank: BSR<3% Group Member Cap: 50 Number of Deals: 10/Day Schedule: Monday-Friday Distributed Via: N/A Categories Included: Various Check out: Great Deals Your Sourced Inventory Cost Per Month: $149 Minimum ROI: 50% Minimum Net Profit: N/A Minimum Sales Rank: BSR Shoes<30k BSR Clothing<75k Group Member Cap: 50 Number of Deals: 10/Day Schedule: Monday-Friday Distributed Via: Email Categories Included: Clothing and Shoes Check out: Your Sourced Inventory Retail Sourcing Team Cost Per Month: $79.95 Minimum ROI: 50% Minimum Net Profit: N/A Minimum Sales Rank: BSR<100K Group Member Cap: N/A Number of Deals: 190/Month Average Schedule: 7 Days a Week Distributed Via: Private FaceBook Group Categories Included: Various Check out: Retail Sourcing Team Affordable Approvals (1)Silver Level (2) Gold Level Cost Per Month: (1) $99 (2)$149 Minimum ROI: 50% Minimum Net Profit: N/A Minimum Sales Rank: BSR<50K Group Member Cap: N/A Number of Deals: 20/Day Schedule: (1) Monday, Wednesday and Friday (2) Monday-Friday Distributed Via: Email Inbox Categories Included: Shoes Check out: Affordable Approvals The List Cost Per Month: $220 Minimum ROI: 40% Minimum Net Profit: $5 Minimum Sales Rank: N/A Group Member Cap: 100 Number of Deals: 10/Day Schedule: Monday-Friday Distributed Via: N/A Categories Included: Various Check out: The List Share My VA Cost Per Month: $30,$50, $75, $99 Minimum ROI: 50% Minimum Net Profit: $5 Minimum Sales Rank: BSR<5% Group Member Cap: 40/Category Number of Deals: 5-10/day Schedule: Monday-Friday Distributed Via: N/A Categories Included: Toys, Home, Baby and/or Pets Check Out: Share My VA Split-A-VA Cost Per Month: $49 Minimum ROI: N/A Minimum Net Profit: N/ Minimum Sales Rank: N/A Group Member Cap: 12 Number of Deals: NA/ Schedule: Monday-Friday Distributed Via: N/A Categories Included: Various Check out: Split-A-VA Cyber Monkey Deals (1) CYBER MONKEY DEALS TOP 1%, (2) CYBER MONKEY DEALS TOP 3% (3) CYBER MONKEY DEALS TOP 5% (4) X25, CYBER MONKEY DEALS TOP 5% X10, (5) CYBER MONKEY DEALS OOS (Out of Stock) Cost Per Month: (1) $50 (2) $50 (3) $50 (4) $22 (5) $22 Minimum ROI: (1) 30% (2) 30% (3) 30% (4) 30% (5) 30% Minimum Net Profit: (1) $4 (2) $4 (3) $4 (4) $4 (5) $4 Minimum Sales Rank: (1) BSR < 1% (2) BSR < 3% (3) BSR < 5% (4) BSR < 5% (5) BSR < 5% Group Member Cap: N/A Number of Deals: (1) 5 (2) 10 (3) 25 (4) 10 (5) 10 Schedule: 7 Days a Week Distributed Via: Your Cyber Monkey Account Categories Included: Various Check Out: Cyber Monkey Deals Leads on Location Cost Per Month: $119 Minimum ROI: 40% Minimum Net Profit: $5 Minimum Sales Rank: BSR < 100K Group Member Cap: 50 Number of Deals: 50 Schedule: Monday-Friday Distributed Via: Private Facebook Group Categories Included: Various Check Out: Leads on Location Why Sourcing Groups Are Valuable Monthly sourcing groups are a fantastic way to generate product leads to help you spend your inventory budget. Even if you are already spending your inventory budget each month, more leads will give you more options which will mean better buys. If you can only spend $2,000/month for example, if you have an additional 200 leads per month to choose from, you can spend that $2,000 on the higher ROI, faster turning items. The video below should explain it better than I can in words. The Biggest Factors for Group Success The biggest downfall for groups is saturation. If a large number of people are seeing the same deals, you may be looking at a lot of competition on your leads. To limit this you should do the following: Consider Quantity Limits. Leads that have stock limits (per customer or total available) will help you understand how much saturation you may possibly be facing. Remember, it is unlikely everyone in your group will act on the same lead at the same time. Consider Timing. I don't like to make it seem like it is “member vs. member” in these groups, but the early bird will have a head start. Sales Rank. Obviously the anticipated sales velocity is a big deal. There are some products that sell so fast that overcrowding is not going to happen on the scale online sourcers are buying at. Additional Sales Channels. If you have a product you think is good but will be saturated because your whole group wants it, you may want to see if you can sell it somewhere else like eBay or Jet. Purchasing Gumroad Lists There is a growing community of lead finders who share lists on a regular (or semi-regular) basis. The lists are similar to the ones membership groups share but are sold on an “a la carte” basis. Pros: No commitment. Buy one or buy many at a time, that is up to you. Buy when you need leads and have time to buy. Many members have a difficult time acting on the leads they are provided each day from their monthly membership groups. Refund policies are flexible. If a list provider won't refund your purchase, you can report them to Gumroad (and you should). Variations to choose from. You can buy lists of different types. Retail arbitrage, online arbitrage, category specific, store specific. 24/7 access. Gumroad lists will be available immediately upon posting so you can buy them when you're ready. No waiting for leads to be emailed. There is always a list to buy at any given time. Some membership groups have their payment portals hosted on Gumroad, but the following sellers also share these one-time offers. Cons: Some inconsistency. You will find that some lists are better than others, so I recommend sampling some of the ones that interest you and compare and contrast them. Remember, list quality for all sellers varies, but the best sellers on Gumroad price the lists according to that day's quality. Also, a great seller on Gumroad won't post a list if it doesn't meet the standards of quality they have promised. Higher prices per lead. As with anything you buy, buying in bulk (like a membership) will cost you less on a per item basis. Amazon wholesalers, you know what I am talking about! If you decide you want lists every day, it may be time to consider a commitment into a membership group. If you want to join a community focused 100% of selling Gumroad leads, join my closed FaceBook Group Amazon FBA List Pushers. I made the group because I wanted the people who were interested in these leads to be able to see them and those who didn't, wouldn't. At least not as much. People to Follow on Gumroad Elite Product Sourcing – >Follow Here Your Sourced Inventory -> Follow Here Shawn Mayo -> Follow Here Seller Essentials -> Follow Here Patrick Rogers -> Follow Here Sourcing Simplifiers -> Follow Here FAQ for Paid Sourcing Leads Q: “What is keeping other sellers from sharing these leads?” A: Nothing. As with all things in life, there will be an opportunity for people to act unethically. The truth of the matter is that these people are really only hurting themselves. The measurement of whether this is happening enough to be worried is a consistent pattern of severe number of seller spikes and price drops on the items you buy via these lists. There will be some of course, but it shouldn't be a huge number. Q: “Where do these leads come from?” A: Most leads come from trained VAs employed by the list publisher. A good list publisher will always check these for correctness and validity. Some groups are more hands on and the leads are found by the list publishers themselves. Ask the list publisher/group manager where they get their leads. There are some lists that are merely compilations of OA Xray queries. OA Xray is one of my absolute favorite tools for online arbitrage, but buying lists made only via OA Xray is not ideal. You can still profit on these, but a list creator who only regurgitates OA Xray data is not putting in the work you deserve. You would be better off buying your own license of OA Xray (recommended). Q: “Can groups come together and fix prices so there is no race to the bottom?” A: NO!… I am not an attorney, but do some research on why this is felonious behaviour. See also the Sherman Antitrust Act. Never contact other sellers regarding pricing. If you are caught, the best case scenario is that Amazon suspends you, worst case, you are doing time or paying heavy fines. Just do not do this! Q: “Can I just make my own group and save some money by splitting the costs with others? A. Sure. This is how many groups start. However, there is a huge amount of responsibility that goes into managing a group. You have to: Hire a competent VA, train them and monitor their performance. I share all the information you could possibly need on this topic in my series “The Overseas Solution: How to Hire, Train and Retain a Product Sourcing Virtual Assistant.” The series is free, but if you'd like a copy of the audiobook, it is available for preorder on Gumroad now for $9.99. Gather payments from members and pay the VA. Manage tax liability. I am not an accountant, but I will tell you that you don't want it to look like you are making the total of all payments received to you by group members if you are paying that out to your VA in the name of the group. The profit (should you keep a profit) will be the difference between the fees collected and the wages paid to the VA. This is a fantastic opportunity to mess up your gross income for the year if you don't handle this appropriately. Ok that is all! If you know have a group or know of other groups I should include here, please fill out this brief survey. Please feel free to share this article with anyone you know who may be interested in finding more leads!