Making Money Through Amazon

Want to venture into the extravagant world of Amazon, where you will bathe in the golden waters of the mega empire?

For most of us, Amazon is a platform where we scroll through the listings while lying in bed, spending money on things that we don’t need but have the urge to want. However, for some sagacious minds, Amazon is a gold mine where to venture in search of riches beyond comprehension. Many people have become millionaires just by learning a few simple things about this magical, money-making realm. Making money through Amazon is without a doubt a hoot and a half, and in this article, we will tell you just how you can also venture into the gold mine of Amazon, becoming rich beyond your wildest dreams.

Table of Contents

Making Money through Amazon – An Introduction

Is your money spilling through your fingers like mere grains of sand? If so, have you ever thought about what would have once you run out of your money? How will you ever make your dreams come true? With the toxic job culture of today’s era, holding a job is not the only difficult part, the most difficult part is getting one. In today’s world, the rich and influential have also managed to snatch jobs away from us, kicking us to the streets of despair and poverty.

However, even though we are living in a touch era where the rich reign supreme, we sometimes forget that we are also living in a digitally empowered world, a world, where getting rich is at your fingertips, you just need to know how. One digital platform, where many played their hand, and came out clad in gold and riches is Amazon.

Types of Amazon Business Models – Making Money through Amazon

There are four types of Amazon business models:

Private Label
Wholesale
Dropshipping
Online Arbitrage

Private Label

Private label is an ideal business model for those who wish to do business from scratch and already have a lot of money in their pockets. If you are one who thinks that they can get their product manufactured, easily, have it branded, and sell it on Amazon, then private label is the way to go. So, if you have the money, you should definitely go for a private label, as it is a long-term model.

When it comes to private labels, from the manufacturing process to brand registry, all the tasks fall to you. however, if you want you can hire an Amazon assistant to do all the work for you. Once your product goes live on Amazon you can sell it either via FBM or FBA method.

Wholesale

Coming towards wholesale, what you do in this business model is that you pick a company like Belkin buy about 1000 pieces from the wholesaler, and get a certificate of purchase. Then you can get the products registered on Amazon and start selling. Many people on Amazon are following this model because it is an easy one neither you have to do the advertisement of the product, nor customization, or the product shoot, which means that wholesale saves you from a lot of technical problems. However, of course, where there is a pro there is a con, so of course, wholesale comes with its own package.

One major difference between private label and wholesale is that the hustle of private label is a lot less as compared to wholesale, even though in the beginning private label presents its own hustles in the beginning however once your product goes live, all you have to do is sit and eat. However, when it comes to wholesale, your hustle remains consistent throughout. You have to do product hunting again and again, moreover will have to face immense competition in the marketplace. In other words, the effort you put into wholesale the first day, you will have to put the same effort till the end. However, the risk on the wholesale model is less.

Dropshipping

Dropshipping is an ideal model for those who say they don’t want to spend lots of money, neither do they want to face any risks; however, they do want to do business and earn money. But this is not a model that is recommended by many as it is not reliable. Why? Well, let’s start from the beginning. You saw a product on Alibaba for $10, you listed the same product on Amazon for $20.

Your product will get listed, there is no doubt about that and if you work hard it will also sell, but the issue is that the product will arrive from China to America, now it will have to travel a lot of distance and go through international politics, international geos, and a few other hassles. This means that it will take a lot of time for your order to reach the USA about 30 days. Mostly, customers don’t wait that long to receive their orders. What will happen next is that the customer will give you bad reviews, and Amazon will suspend your order, therefore in other words Dropshipping is a failed model.

Online Arbitrage

Let’s start this discussion with an example, you are residing in America, you visit a sports shop, and you spot a gear or an apparel for say, $10. You list that product on Amazon for $20. Now you don’t have the product you only saw in the shop. When a customer places an order with you for said product, you buy the product from the shop, pack it, and then ship it to the customer. This is online arbitrage.

Similar to wholesale, your effort will remain consistent throughout the way. However, this is not a long-term model. If you are looking for long-term models, then they are private label and wholesale. When selecting the business, always take into consideration the amount of money and time you are willing to put into your work.

Amazon Shipping Models – Making Money through Amazon

Amazon has two shipping models when it comes to private label and wholesale:

Amazon FBA or Fulfilled by Amazon
Amazon FBM or Fulfilled by Merchant

Amazon FBA

You might have heard the name Amazon FBA. Now what is FBA? Amazon FBA is that Amazon will provide you with its own storage, shipment, and subsystem, the only thing you have to do is deliver your product to Amazon warehouse. From there, Amazon is responsible for everything from its management and packing to shipment and tracking. However, all these perks don’t come for free. Amazon will charge you a fee for all these services.

An interesting fact for you here is that might have also heard about the Amazon Prime option, what’s interesting is that the sellers sitting behind this option are FBA sellers. This is because same-day or next delivery for FBA sellers is possible as Amazon is handling everything from packing to shipment.

Now, even though FBA is a very ideal model, if you aren’t careful you might end up not making any profit at all if you aren’t careful. Therefore, you have to keep two things in mind choose the easy way, but also make money from Amazon. If FBA cost is something that you can’t handle, then you should choose FBM. In the end, the choice of shipping models comes down to your budget.

Amazon FBM

In Amazon FBM you have to manage every order yourself. From storage, and packing the order, to tracking, to shipping, everything is your responsibility. If anything goes astray then the fault will be entirely yours.

How to Make an Account on Amazon? – Making Money through Amazon

Making an account on Amazon is very easy, now for instance you want to make an Amazon account in the United States, but you are not an American national, so what should you do? To do business in America the first thing you have to do is register a company in America, for this purpose you can get help from Doola or any other registration companies.

These companies will register your company in America for a cost of $250 to $300. Once your company gets registered, you can open an account on Amazon with the name of the registered company. Now when making an account you will see two options, personal and professional. A personal account does not come at a monthly fee; however, a professional account carries a professional fee of $39.99.

On a personal account, you can only sell up to 40 products. So, if you feel like you can live off easily by selling only 30 to 40 products, then you should opt for a personal account and enjoy. However, if you want to do a full-fledged business then you need to opt for a professional account. A professional account comes with unlimited sales, and a Vine program. Vine program is an Amazon program through which Amazon sends your products o to buyers and they leave an honest review on your listing.

Amazon Brand Registry

The next topic on the agenda is the Amazon brand registry. Now if you have a brand and are selling bespoke products, then in order to sell your bespoke products on Amazon you will have to get your brand registered on Amazon. You can do that by visiting a site known as Utopia, where you will register your brand and start selling your bespoke products on Amazon.

This entire process will cost you from $200 to $300. If you don’t want to do this process by yourself, you can hire an Amazon assistant from UpWork, Freelancer.com, or Fiverr. The assistant will ask for about $200 and do the entire procedure for you. Once you have registered your brand and have started selling your products, you can boost sales through CPC ads, etc.

Sales Boosting

To boost the sale, let’s talk about a few tips. If your product is outstanding and you are selling it at a competitive price, then your sales will definitely boost. Moreover, if you add SEO-optimized content and have added stunning photos of the products then your sales will also increase. However, you don’t have to worry about your products selling, as eventually they will sell, you just have to work hard.

Amazon Market – Making Money through Amazon

You have to clearly decide the market in which you want to sell your products. If you happen to select the wrong market not only, will you be wasting your time but also money. In some places, the Amazon marketplace is huge, while in countries like the UAE, as there are other marketplaces already in place, the Amazon marketplace is a bit small.

Moreover, you will also find that in some marketplaces, the competition is high, and customers are fewer, while in others both competition and customers might be high. So, you have to be careful when deciding on a marketplace. Your products also have an influence on the selection of the market. Furthermore, another thing you have to keep in mind when selecting the market is the taxes of the country where you wish to operate.

Also don’t dive into the world of Amazon blindly. Do your research, gain knowledge, and be ready to invest your energy, time, and money if you truly wish to succeed.