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FAQ
The Most Commonly Asked Questions Regarding Activ8 Automations' Services
We offer both dropshipping stores and Amazon private label FBA
Dropshipping business model – we list items for sale on your Amazon store and only buy inventory from our suppliers after we make a sale on your store. This means that there is zero risk of buying inventory upfront and waiting for the sales to happen afterward. Our team will take care of getting the suppliers to do all the shipping to the customer, while also handling all of the customer support.
Amazon Private Label FBA model – we will launch your very own private label brand from A to Z. This involves very thorough data analysis and product research, supplier research, sourcing and negotiation, product design and Amazon approval, product listing and optimization, shipment and warehousing communications, running marketing campaigns and PPC. Our team of experts will do all the heavy lifting of building a highly profitable private-label branded product so that you won’t have to lift a finger.
Our business started from our family and friends, which is why, unlike other automation companies, we believe in explaining all the risks–realistically–upfront.
The single biggest risk is a dropshipping violation. If you read about the most common problems automation stores on guides or Reddit boards, this will be it. What Activ8 has done to reduce this is the single biggest differentiator from other companies. We have created new relationships and built out different verticals to prevent this from happening in the first place.
If the worst happens, then we have a dedicated appeals team that has spent years working with Amazon to get stores back up and running.
If all our preventive measures fail and our appeals team cannot get the store back up from an appeal then Activ8 will get our Client set up with a brand new store–totally free of charge.
We believe in the absolute satisfaction of our clients, and you will have multiple points of contact if you have any concerns–no ignored emails or missed phone calls.
Amazon awards sales to stores based on a number of variables. These can include (but are not necessarily limited to) price and various seller health metrics (Late Shipment Rate, Pre-fulfillment Cancel Rate, Valid Tracking Rate, and Order Defect Rate). During the first 90 days, Amazon applies a probationary period for every new store which limits the number of products we can list. During this 90-day period, we have to work at a slight loss (the only variable we can always control to win sales) to win sales. We then take those sales and build the other health metrics so that once we leave the probationary period, we will win a greater percentage of the buy box to increase sales volume.
Simply put, we sell anything that has a good profit margin and that Amazon allows on their marketplace. We have the unique ability to list thousands of products on your store, which increases as your store ages and has good health metrics. We have a sophisticated research team that utilizes software to analyze and generate ranking models to guide our product listing strategy.
With the dropshipping business model, there is no need to spend anything on advertising and SEO. Our product research team chooses products and well-known brands that already have incurred large marketing and SEO expenses to be top-selling brands. Therefore, the types of brands and products that we choose to sell already rank very highly on Amazon’s marketplace and sell well.
With the Amazon private label FBA model, marketing and listing optimization is a key step and catalyst in driving the success of any new brand or product on Amazon. In order to promote awareness of the new brand, we do allocate a marketing budget and run PPC campaigns to improve rankability.
There is not any inner competition between stores, because that’s not how Amazon is designed. Amazon is designed for there to be competition in the marketplace, as they aim to prevent any one brand or store from becoming a monopoly. Additionally, Amazon has over 200 million unique visitors per month. Nearly half of Amazon consists of third-party sellers like us.
Activ8 will send you an onboarding email right after the consulting agreement is fully executed and the upfront consultation fee is received. Your dedicated onboarding specialist will walk you through the process of getting your Amazon store up and running. The average amount of client’s time required to work through our onboarding process is 3 hours on the computer. The average time it takes for our clients to start their store and begin selling is under 30 days.
95% passive! At the end of the day, this is your business, and we’re the team that’s running it for you. The 5% that is required of you involves you managing your own finances and, rarely, communicating with Amazon as the store owner. The financial part includes the responsibility of paying off your credit card when Amazon deposits your funds and paying your invoice from our team. Communication with Amazon is sometimes required because at the end of the day this is your store. If we need you to do this we will provide you with all the information you will need during the communication.
Absolutely! We have some clients who have many stores and are generating multiple streams of passive income. If you are interested in starting multiple stores with us, we will walk you through our proprietary process and get you up and running in minimal time
- Create an LLC and Business Bank Account (we recommend incfile.com or LegalZoom)
- We set you up with our Client Services Onboarding Team who helps you set up an Amazon’s Seller Account and helps you get Tax Exempt