Tips to Earn Serious Money Selling with Amazon
The year to actually put into practice what you’ve been thinking of doing for ages – selling on Amazon’s Marketplace.
There really is no better time.
Take a look at these stats:
195 Million Monthly Unique Visitors (in the U.S. alone), 300 Million Active Customers in More than 20 Countries. Since Third-Party sellers Joined Amazon in 1999, they now account for 53% of the sellers.
Launching your business brand on Amazon does however take some thought and consideration. There is serious money to be made, but let’s do it right.
In this article, we are going to focus on the three key methods for finding items to sell on Amazon.
These three ways are:
1. Wholesale Route
2. Retail Arbitrage Route
3. White Label Route
Using one of these three methods are tools for discovering NEW products to sell.
The vast majority of purchasers on Amazon are looking to buy new items.
Let’s take a look at the three ways, so you can decide for yourself which strategy you’d like to adopt for your business.
The Wholesale Route
This route includes collaborating with brands that already are in existence, along with their distributors, to obtain volume orders of their items in order to sell them.
The Positives for the Wholesale Route
· The promising return on investment
· Minimal requirements on your time once you are off the ground
The Negatives for the Wholesale Route
· You need a lot of experience
· You need a lot of capital to start off on this route
The Retail Arbitrage Route
Okay, what is Retail Arbitrage?
Retail Arbitrage is a fairly easy to follow concept.
A retail store (such as Walmart, Target, etc.) sells a product (either online or in-store) for a specific price. You go ahead and buy that item, and then sell it for an elevated price yourself – ta da – profit!
The Positives for the Retail Arbitrage Route
· Straightforward – scan the product barcode in store into your phone
· Choose items with a specific profit margin, ensuring minimal effort and maximum certainty
· A clear journey to developing the experience and capital needed for wholesale, therefore in the future, you’ll be more experienced to develop your own brands
· Low initial investment
The Negatives for the Retail Arbitrage Route
· You need a lot of time on your hands initially, finding the right products to sell
· It can be tricky to control the condition and quality of the retail arbitrage products
The White-Label Route
Okay, what does White-Labelling products mean?
Amazon Private label (or white label) is a route for wannabe Amazon sellers to sell products that are manufactured with a bespoke business brand.
When you own a brand or label it creates an identity of its own which can benefit from lots of sales!
The Positives for the White-Label Route
· Low marketing and sales costs
· Long-established private labels on Amazon have the potential to drive recurring sales throughout the year.
The Negatives for the White-Label Route
· Sales add to your revenue, although not to you your brand equity
· Revenue margins are typically significantly less.
The following stats will give you some indication of the product categories that sell best on Amazon:
· Electronics and Media is the most relevant sector with a net sales share of over 50%
· Furniture and Appliances are the second more purchased item at 18.85%
· Food and Personal Care sits at 14%
· Toys , Bobbies & DIY generate 12.5%
· Fashion 3.4%
· Over 80% of net sales are generated in the United States
· 43.13% of Amazon’s traffic is direct
· 23.73% of Amazon’s traffic is through search
The Bottom Line
As you can see, selling products on Amazon’s marketplace, and making the (serious!) money selling is a very thorough process that requires a substantial amount of time to get your head around.
Most new businesses selling through Amazon enjoy return of investments in the initial three months since their first launch (and none of them have stopped selling ever since).
If selling on Amazon sounds good to you, why not give it a go?
The Amazon Marketplace is an exciting new chapter for your marketing and selling efforts. It’ll require substantial effort in the beginning, but the effort is more than likely to reap rewards.
You can try out the retail arbitrage strategies that are we’ve discussed in this article in just a few hours, and going through that process should give you a really good insight into how it all works.
How to Earn Your Money on Amazon – Top Selling Tips
1. Work to Continually Improve Your Performance
3. Follow Amazon’s Rules!
4. Identify the processes an Amazon order will follow.
5. Use Amazon reviews to your advantage
6. Practice makes perfect. Test, test, and test some more. Learn and implement new methods to help drives sales.
7. Manage your inventory effectively
8. Prioritise customer service