Wondering how to start an Amazon business? Keep reading for my best Amazon.com business ideas which are proven profitable and ready for you to launch today.
There’s a pretty good chance that you’ve been on the buyer’s end of Amazon. What you might not know is that you can actually make money with Amazon without being an employee in one of its warehouses. That’s right – Making money on Amazon from the comfort of your own home.
There are plenty of ways to start a profitable business on Amazon. You just have to choose a strategy that you can stick to. Some of the best ideas include retail arbitrage, Amazon Createspace, Fulfillment by Amazon, the Amazon affiliate program, white labeling, and Amazon Handmade.
Each of these has its own benefits. But, they might not all be a good fit for your business idea. So, let’s talk about what each of these six things is and how each can benefit you.
Retail Arbitrage
Have you ever noticed that a lot of items listed on Amazon are a lot cheaper than you can buy them in-store?
Well, that’s not always the case.
When the reverse is true, retail arbitrage is possible. Retail arbitrage involves buying items for cheap at stores like Walmart and then selling them for more money on sites like Amazon.
But, it’s not as easy as it sounds.
That’s because you’ll need to have a general idea of the current prices on Amazon as compared to in-store. You want to guarantee a profit.
This is very easy to check thanks to the Amazon Seller app. While you’re at a retail store, scan the barcode of an item and see what it can sell for right now on Amazon. Compare this to the store’s price tag and take a look at any fees that Amazon will charge with the sale.
Keep in mind that this is a lot harder than it sounds. So, you’ll probably spend a good amount of time in your Walmart or Target’s clearance aisle or scouring advertisements and keeping a close eye on upcoming deals.
Note: Amazon does have restrictions when it comes to what you can sell on the site. Some items require you to be pre-approved in the category to list your items.
Amazon Createspace (Kindle Direct Publishing)
It can be difficult to break into a career as an author. When you consider the fact that it might take years to even find a publisher, let alone actually have your book published, you might be discouraged and give up on your dreams.
That’s where Amazon Createspace, now known as Kindle Direct Publishing, comes into play.
This service actually allows you to publish your own eBooks and distribute them to interested readers via the Amazon Kindle. That means no more emails to publishers or visits to individual bookstores hoping somebody will enjoy your book.
What’s even better is that it costs you absolutely nothing to offer your book on this service. That’s a great deal of savings considering you might spend thousands to publish your book otherwise.
And, you will earn royalties on each copy you sell. This usually ranges between 35% and 70% of total sales (assuming you meet the list price requirements).
Fulfillment by Amazon
The problem with regular retail arbitrage on Amazon is that it’s hands-on for you. It’s your job to print the packing slip, purchase packaging materials, and ship it to the consumer.
This is a lot for you to do, especially if you have another job or are selling a ton of items.
Fulfillment by Amazon (FBA) helps you to cut some corners in this situation. Instead of shipping individual items as they sell, you’ll ship an entire lot of your items for sale to an Amazon fulfillment center instead.
Amazon will then store your items at the warehouse until they sell. At that point, they’ll ship directly to the consumer.
Just know that there are a few extra fees that come with using FBA instead of selling and shipping on your own through Amazon.
The actual fees will depend on the size of the item. But, you also need to consider the shipping fees of actually sending these products over to the Amazon warehouse for storage.
Fulfillment Resources
Amazon Affiliate Program
The Amazon Affiliate Program sometimes called the Amazon Associate Program, doesn’t require you to actually sell items like the ideas we just mentioned. All you have to do is advertise products on your website or social media platforms.
How you make money depends on how many people buy these products.
So, you make a post (maybe a review post) that talks about one or more products on the market today. You also include a link provided to you by Amazon that your readers can click directly from your website.
If a reader makes a purchase from one of your links, you get a cut of the sale.
In most cases, this is up to 10%. That means you’ll want to recruit more website visitors and consistent readers to generate better income. Learn about the best affiliate marketing niches in our report here.
White Labeling – Private Label Products
Have you recognized that a lot of products on Amazon from small-name companies look and sound exactly the same?
Well, that’s not exactly a coincidence.
This is exactly what white labeling is. Basically, a manufacturer will create a bulk amount of a specific product, and then another company will relabel this product as their own.
But, this is obviously not something you can do with well-known products from big-name brands. So, it wouldn’t make sense to slap your own company’s logo on a very obvious pair of Nike shoes.
This might sound a little shady at first, but it’s actually legal if you do it right.
Both your company and the manufacturer need to come into an agreement when it comes to pricing. The manufacturer’s job is to produce the item at a cheap rate while your job is to sell it under your name.
You are not just taping your logo onto a product and calling it your own.
Wholesale Resources
Amazon Handmade
You may have been wondering why you can’t seem to find handmade or homemade products on Amazon. That’s because you have to dig a little bit deeper and find your way onto Amazon Handmade.
Just like websites like Etsy, you’ll need to make your own shop or storefront on Amazon.
You can then list each of your handmade products and display them on the screens of those who truly appreciate handmade crafts. These products can be anything you’ve personally made, including handmade clothing, jewelry, and even beauty products.
Just keep in mind that you won’t take home 100% of your profits. Like everything you sell or do on Amazon, the company will take a decent cut of the fees.
In the case of Amazon Handmade, this fee is about 15% and has a minimum $1 fee. There are no listing fees for your homemade or handmade products.
What you do need to remember is that you’re the business owner here. That means you’re the one in charge when it comes to storing and shipping the items with each purchase, so factor this into your business budget.
Amazon is extremely convenient when you’re the one buying the items. But, you can actually reverse your roles and take on the role of a seller. The best part is that there are so many ways that you can do this.
You have unique options if you’re a writer or author, have a good understanding of business, or enjoy making homemade crafts. Choose a strategy that works best for you, and your profits are practically limitless.
More Business Idea Resources
Sources
- Seller Central Amazon: Restricted products
- Amazon KDP
- KDP: List Price Requirements
- Fulfillment by Amazon
- Amazon FBA: Let’s Talk Numbers
- Amazon Associates
- Associates Program Standard Fees Schedule
- Wikipedia: White Label Product
- Amazon Handmade: Referral Fees
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