ORBITA IX · Amazon project

An Amazon store launching in Mexico and Canada

We propose to launch a store that sells branded goods from Amazon suppliers to shoppers in Mexico and Canada, then expands to other marketplaces. Our team includes people who have already launched this model: a technical system pushes prices and stock every day, while the brands and account protection team opens brands and keeps the store in good standing.

Suppliers on Amazon our system MX Mexicoamazon.com.mx BR Brazilunder study CA Canadaamazon.ca
$13.8Min orders over 6 months at one store running this model, about $75K in orders per day
12,500orders per month at one of the competitors we studied
$15–40*estimated profit per item sold, depending on the item price

Order value shows how much shoppers ordered before purchasing costs, Amazon fees and shipping. It is not profit. *Profit per item depends on freight costs, which are set by logistics providers and are still being adjusted. Due to market fluctuations, the figures are indicative.

Sales models

How we sell on Amazon

We list well-known brands from Amazon suppliers and buy each item only after a shopper has ordered it. An intermediary warehouse is needed from day one: parcels arrive there, get repacked and are shipped to shoppers. We start with the model that brings the first sales and gradually add the ones with higher margins.

Launch · first sales in months 2–3

Joining existing listings

The product already has a listing on Amazon in that region, with photos, a description and reviews. We add our offer at our price, and the system keeps price and stock up to date every day. No content needs to be created, which is why this model brings the first sales right after the month of preparation.

Second stage

Creating new listings

We list products in regions where they are not yet available. For each listing we prepare content: we source or generate photos and write the title, description and specifications. A listing of our own faces less competition, and we set the price.

In parallel, after launch

Direct suppliers

×2…×5+margin

We negotiate better purchase prices directly with the suppliers of brands that already sell. The margin can be several times higher than at launch: 2, 3, 5 times or more, depending on the agreements and volumes.

The path of every product

Market analysis

We pick brands with demand and without unnecessary restrictions

Data collection

Prices, stock, photos and specifications from Amazon suppliers

Price

The brands team sets the rules, the system calculates: cost, shipping, fees, margin

Product listing

We join an existing listing or create a new one

Order

A shopper in Mexico or Canada pays for the item

Purchase and shipping

We buy the item; the intermediary warehouse repacks and ships it

Payout

Amazon transfers the funds 30+ days after the sale

brands and account protectiontechnical teampurchasing and deliveryAmazon
How it scales

The system and the team grow together

The system takes over the routine: it collects data, calculates prices and updates stock every day. But the more products and brands there are, the more people are needed so that each person controls their own area. The team grows with the catalogue and sales, and its growth is paid for by the store's profit.

Why these markets

Mexico and Canada first

This is where competitors already earn with this model: one of them makes 64% of its sales in Mexico. One Amazon seller account opens access to several marketplaces, so the next market does not require a new store from scratch. Brazil is still an open question: we are studying the restrictions currently in place there. Next we expand to other marketplaces: Amazon operates in almost twenty countries.

Market

Other companies already earn with this model

We studied competitors on these marketplaces: they have millions of products and thousands of orders every month. Our year-three target approaches the level of the largest of them.

Orders per month

Largest competitor9.1M products, 64% of sales in Mexico
12,500
Smaller competitor2.1M products, Mexico and Canada only
2,000
Our target, year 3capitalisation
up to 10,000
Our target, year 2scale
up to 3,000
Our target, year 1foundation
up to 300

Competitor figures are estimates from our market research. All rows use one scale.

What the market shows

Competitors grow by quantity, not quality

The largest competitor has more than 1.6M inactive or incomplete listings. The smaller competitor gets mass suspensions from adding products without a system. Both problems are solved with entry filters and daily control.

Our approach

Fewer products, better selection

We enter with brands checked for demand, trademarks and restrictions. Every listing passes a filter of banned words and categories. A healthy account lets us open new brands faster than competitors.

Earnings

How much can be earned

Profit is simple to calculate: the number of orders multiplied by the profit per item. Choose a price segment and a volume to see the monthly result.

Price segment
1,000orders
503001,0003,00010,000
Business plan stages
Monthly profit from sales$25,000
Per year$300,000
Monthly order value$40,000
Working capital$40,000

Profit is shown before team and system costs. Profit per item depends on freight costs set by logistics providers. Working capital means at least one month of purchases in advance, because Amazon pays out 30+ days after the sale. This money is not spent; it turns over in goods every month.

Year 1 · foundation

70–300 orders per month

Orders per year
~2,500
Profit from sales
$62,500
Year 2 · scale

1,000–3,000 orders per month

Orders per year
~24,000
Profit from sales
$600,000
Year 3 · capitalisation

5,000–10,000+ orders per month

Orders per year
~90,000
Profit from sales
$2.25M

Bars show orders per year on one scale. Profit recalculates for the segment selected above. The pace between stages depends on the investment size and how fast brands are opened. By year three the store becomes a liquid asset that can be sold.

Launch

From preparation to the first sales

In the first month we prepare the company, the store, the intermediary warehouse, the system and the first brands. Then we check how the first products go through the whole path from order to delivery, and only after that do we scale.

Month 1Preparation
Intermediary or company owner
  • Company and tax profile registration
  • Opening the seller account and passing Amazon verification
  • Connecting payment systems for payouts

This is done by the person the company is registered to, or by an intermediary company that provides these services. For example, Western Bid opens a company in the USA. This is a one-time service; after that the same intermediary works as our warehouse. We prepare instructions and support the process.

Done by us
  • Market analysis: which brands are in demand now
  • Setting up the technical system
  • Lists of banned words, brands and categories
  • Submitting the first brands for approval
  • First products in the store
Months 2–3First sales

We test the model on real orders

  • First orders, purchasing and delivery to shoppers
  • Price tuning: where a product sells and where it does not
  • Opening new brands every week
  • Brand review on day 30: what stays, what goes
  • Launching ads inside Amazon
  • Agreeing terms with logistics partners
From month 4Scale

More brands, products and people

  • Strengthening the team as orders grow
  • Creating new listings in regions where the product is not yet available
  • Finding direct suppliers and working with them
  • Automated purchasing and account health alerts
  • More brands and suppliers in the system
  • Entering new markets and directions
Who does what

The technical team and the brands and account protection team

A system that pushes prices and stock for thousands of products every day stores large volumes of data and has to be configured and indexed properly. That is why the technical team has two people from day one: a team lead and a technical assistant, so everything runs without interruption seven days a week. Brands, legal matters and account health are handled by a separate team.

Technical team · lead and assistant

Data, listings, updates, access

01

Data collection from Amazon suppliers. Regularly collects prices, stock, photos and specifications for every product.

02

Data storage. The system stores millions of records on products and prices. It has to be configured and indexed properly to run fast.

03

Price calculation. Automatically calculates the price for each marketplace using the agreed pricing rules.

04

Filters. Technically checks every product against the lists of banned words, brands and categories.

05

Product listings. Joins offers to existing listings in bulk and creates new ones with prepared content through Amazon's programmatic access, and fixes upload errors.

06

Daily updates. Makes sure prices and stock in the store match the supplier every day. Otherwise orders get cancelled and items sell at a loss.

07

Access. Keeps the system's access to the accounts. Amazon programmatic access keys must be renewed every 180 days, otherwise the system stops.

Brands and account protection · team lead

Brands, legal support, account health

01

Market and brand analysis. Selects brands with demand by sales rank and checks restrictions and hazardous goods.

02

Opening brands. 5–10 new brands per week: trademark checks, invoice preparation, applications for approval to sell.

03

Pricing rules. Sets the pricing rules together with the technical team and decides which brands and products to list.

04

Restriction review. Reviews products awaiting approval every day. Opening a brand takes 7–10 days.

05

Account health. Checks the metrics twice a day. If the account health rating drops below 200, Amazon blocks opening new brands.

06

Legal support. Appeals against listing blocks, review of rights-holder complaints, trademarks, invoices and documents. If needed, a brand is paused temporarily.

07

Instructions and new markets. Prepares instructions for registering the company and the store and helps launch on each new marketplace.

Automations we are building

dailyPrice and stock collection

Supplier data from Amazon updated on a schedule

dailyPrice recalculation

A new price when cost, exchange rate or fees change

dailyStore sync

Prices and stock are sent to Amazon automatically

on uploadBanned word check

A product with a risky word or brand does not enter the store

weeklySales reports

What sells, what does not, which brands drive the store

every 180 daysAccess key renewal

Reminders and replacement of programmatic access keys

after 3 monthsPurchase orders

A new order immediately creates a purchasing task

after 3 monthsAccount health alerts

Notifications about new complaints, blocks, rating drops

Team

Four people at launch, then growth at the pace of orders

From day one each function is handled by a separate person: one person cannot do it all, and control is needed every day. Once the system runs and orders grow, we strengthen the team where hands are short.

Month 1Launch
4
  • Technical team: team lead and technical assistant
  • Brands and account protection: team lead
  • Purchasing: buying, correspondence, parcel tracking
Months 2–3Marketing
  • Ads inside Amazon: launched for products that already sell
  • At first without a dedicated person in this role
Months 4–6Strengthening
  • We look at how orders are going and add people where hands are short
  • If orders grow fast, we strengthen earlier so nothing falls behind
ScaleUp to 10 people
10
  • We redistribute roles to match the store's volume
  • Team growth is paid for by the store's own profit
technical teambrands and account protectionpurchasing and deliverynew role at this stage
Marketing

Ads bring many orders

The first sales come from well-chosen products and prices. Already in months two and three we launch ads inside Amazon for the products that sell and grow them together with the catalogue. That way every advertising dollar works on a proven product.

Access

Working with accounts without interruptions

The system and the team work with the account every day, so access is handed to the responsible people and maintained continuously. The technical team is responsible for programmatic access, the brands and account protection team for account health.

Delivery

From order to shopper

Delivery speed affects the store's rating. That is why from day one a separate person on our team handles purchasing: buys the item, makes sure it reaches the intermediary warehouse and is shipped to the shopper on time. The intermediary warehouse (for example, Western Bid in Miami) does not buy goods: it receives our parcel, repacks it and quickly ships it to Mexico, Canada or another market.

Order

The shopper pays for the item on Amazon; the purchasing manager receives the order.

Purchase

The manager buys the item from the supplier with delivery to the intermediary warehouse.

Warehouse

The intermediary warehouse receives our parcel, repacks and labels it without delay.

Shipping

The warehouse quickly ships the parcel to the shopper in Mexico, Canada or another market. The tracking number is passed to Amazon, and the manager monitors delivery.

Step-by-step growth plan

From arbitrage to direct suppliers

Arbitrage gives a fast start and shows which brands and directions actually sell. As arbitrage grows, we look for direct suppliers in exactly those directions and start working with them.

Step 1

Arbitrage

We buy from Amazon suppliers to order. No stock and no large purchases.

Step 2

Arbitrage growth

More brands, new listings, advertising. We see which directions bring the most orders.

Step 3

Direct suppliers

We negotiate better prices in the directions that sell. The margin can be several times higher.

Profit per item compared to arbitrage

ArbitrageDirect suppliers: depends on the agreements

The exact figure depends on the agreements with the supplier and sales volumes. The data is indicative: freight costs are set by logistics providers and are still being adjusted.

Calculate profit with direct suppliers

Margin compared to arbitrage
Price segment
1,000orders
503001,0003,00010,000
Monthly profit from sales$50,000
Per item$50
Per year$600,000
More than arbitrage+$25,000 / mo

Calculation: profit per item in arbitrage × margin multiplier × number of orders. The multiplier depends on the agreements with the supplier and can be higher than ×5. Profit is shown before team and system costs. The data is indicative: freight costs are set by logistics providers and are still being adjusted.

Risks

What can go wrong and how we handle it

RiskWhat happensHow we handle it
Cancelled ordersThe item ran out or got more expensive at the supplier while the store shows the old priceAutomatic daily updates of prices and stock
Rights-holder complaintsA brand complains about the sale of its productTrademark checks at entry, banned brand lists, invoices
Account restrictionsA drop in the health rating stops brand approvalsMetrics checked twice a day, appeals, a careful pace of adding products
Sales declineDemand for some brands falls or competition growsNew brands opened weekly, day-30 review, new listings, advertising
BrazilThe marketplace currently restricts some options for sellersWe launch in Mexico and Canada and study Brazil separately
Shipping costFreight costs are set by logistics providers and change with the marketWe compare logistics partners on the first orders, build a margin buffer into prices and move to direct suppliers
Payout delayAmazon transfers funds 30+ days laterWorking capital for one month of purchases, gradual volume growth
Next step

We launch the first store and prove the model on real sales

The first month goes to preparation; first sales come from the second. After the first products are tested, we scale the catalogue, the team and the markets.

Meeting

We answer questions and show how the system works.

Detailed plan

Budget, timeline and company structure for the investment size.

Launch

Registering the company, opening the store, setting up the system.

This document is indicative. Competitor figures are given to show the scale of the market. Profit from sales is calculated as the number of orders multiplied by the estimated profit per item, excluding team and system costs. Profit per item depends on freight costs, which are set by logistics providers and are still being adjusted. The first markets are Mexico and Canada; Brazil is still an open question while we study the restrictions in place there. A detailed budget is provided separately.

Contact

Let's discuss the project

Write or call: we will walk you through the model, show the figures and answer your questions.