The 3 Main Ways To Earn Money From Amazon
In this article, I am going to go over the three main ways to earn money from Amazon. Namely:
- Private Label
Each of those ways has a different definition for each industry.
What is the Private Label method? Essentially selling products with a Private Label includes finding products which sell well in Amazon, making their own package and logo and have better deals than what they compete against.
Step 1: Research and selection of a product:
This might be the most important and time-consuming step in the process. That is because the website publishes detailed lists for their top-selling products. Despite the lists being made for the purpose of giving the users an opportunity to view what is popular, you can use it to your own benefit as well.
The ranking of the bestsellers is essentially used to search for the product before posting it on the market. Instead of developing a product and testing it to make sure it sells well, you can start by making sure it does sell well and then decide if you want to post it for sale. Pick popular products that are used by everyone, like water bottles, silicon spatula or a flashlight – types of products that can be manufactured with your own brand and packaging. In other words – you don’t want to pick products with a famous brand (Nike shoes, iPhone products) because those are branded products that can not be labeled as private.
Step 2: Find and contact a supplier:
Research a few different suppliers. Depending on how thorough their lists are, you can usually see the minimal required quantity per order (MOQ), price range, time for completion and if they allow Private Label. Nevertheless, you need to e-mail the supplier to receive an exact offer. There is a place to discuss the prices. Just be confident!
Step 3: Your logo, design, and packaging
After you find a supplier that wishes to provide you with a Private Label of the product, you need to choose your marketing materials. Don’t worry though – you don’t need to create them yourselves. Use a website like Fiverr or Upwork to hire professional designers for a decent price.
Step 4: Use Fulfillment by Amazon
Thanks to the program Fulfillment by Amazon (FBA), you don’t have to manage the monotony of the orders for pick-up, packaging and shipment. Although FBA takes a small percentage of your profits, it is worth it for most sellers. Your shipment expenses are included in the fees and your products automatically become eligible for free shipment, which can help you realize more sales.
Step 5: Making your first sale
By lowering the price you attract people to make use of your product. You can also use the indoor advertising system by Amazon.
Wholesale from distributors and manufacturers. With this model, the purchase and sale have a 40%-50% difference which makes it quite profitable. Best Buy and Walmart use that method. In Bulgaria it is emag.
The wholesale suppliers purchase goods from a distributor and pass them over to a retailer so that they can be sold to the user. The wholesale suppliers research and receive the most cost effective products by selecting from a majority of manufacturers and distributors. Then the wholesalers deliver those products to the retailers for purchase.
This model became extremely popular lately. To sell without owning the product. This, I think, is the most universal way to start.
- You don’t need a large capital – probably the biggest advantage of dropshipping is that it is possible to start an online shop without having to invest thousands of dollars in the inventory. Traditionally, the retailers have to consume themselves with large quantities of inventory for purchase.
- It is easy to start – dropshipping is a lot easier when you don’t have to handle physical products. With dropshipping you don’t have to worry about :
– Storage management and payment;
-Packaging and shipment of your orders;
-Processing returns and incoming packages;
- Flexible location – the dropshipping business can be started from anywhere with an internet connection. You can easily communicate with suppliers and clients while managing your business.
- A wide selection of products – since you don’t have to purchase the products that you want to sell, you can offer a set of products for your potential clients.
All of these advantages make dropshipping very attractive as a model for beginners and advanced traders.
There will be a detailed article on each of these three methods SOON!
Check out videos that might interest you on my YouTube channel below:
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