There is a decent possibility that you have used Amazon as a buyer. However, other than being a buyer, you might be surprised to learn that you can make money with Amazon without working in one of their warehouses. That’s right: you can work from home and make money on Amazon.
There are several strategies you can follow to launch a successful Amazon business. All you have to do is pick an approach you can follow, as each of them has a distinct set of advantages of its own. However, not all of them could be a good fit for your company plan, depending on your knowledge and resources.
Let’s now discuss each of these approaches in more detail and how they might help you start a prosperous Amazon business with a relatively small starting budget.
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Fulfillment By Amazon
Regular retail arbitrage on Amazon has the drawback of being labor-intensive for you. Printing the packing slip, getting the packaging supplies, and sending it to the customer is all your responsibility. You have a lot of work to complete, especially if you have two jobs or sell a lot of stuff.
In this circumstance, Fulfillment by Amazon (FBA) enables you to make some savings. When running an Amazon FBA business, you need to send a complete list of your products for sale to an Amazon fulfillment center as opposed to delivering individual items when they sell.
Following that, Amazon will keep your products in its warehouse until they are sold. They will then send the right item to the right customer. Just be aware that using FBA instead of selling and delivering on your own through Amazon entails a few more costs.
The real costs will be determined by the item’s size. However, you must also take into account the transportation costs associated with transporting these goods to the Amazon warehouse for storage.
Amazon Associate Program
The Amazon associate program, also known as the Amazon affiliate program, exempts you from having to make a sale of the products we just described. You only need to promote items on your website and social media accounts. How much money you make depends on how many people purchase these goods.
So you write a post—possibly a review post—that discusses one or more current goods on the market. Additionally, you add an Amazon link that readers may access immediately from your website.
You receive a portion of sales made by readers who use one of your links to make purchases. Typically, this can reach 10% of the product’s value. To increase your income, you’ll need to attract more frequent website visitors and readers.
Why handcrafted or handmade products don’t seem to be available on Amazon may have been a mystery to you. This is due to the fact that you need to look a little more to locate Amazon Handmade.
You’ll need to create your own shop or storefront on Amazon, just as on websites like Etsy. Then, you may list each of your handcrafted goods and show them to those who genuinely value fine handmade goods. These goods can be anything you’ve produced yourself, such as custom-made jewelry, clothes, or even cosmetics.
Just remember that you won’t receive all of your earnings. The corporation will keep a substantial portion of the costs, just like with whatever you sell or do on Amazon. This charge, which comes as a minimum of $1, in the case of Amazon Handmade, is around 15%. No listing costs apply to your homemade or handcrafted goods.
You must keep in mind that you are the company’s owner in this situation. This implies that you are responsible for handling the storage and delivery of each purchase, so account for this in your business budget.
When you are the one purchasing the goods, Amazon is really convenient. However, it is possible to switch positions and behave as a seller. The fact that there are so many options is the best part. If you appreciate creating homemade goods, have a strong grasp of business, or are a writer or novelist, you have several interesting possibilities. The potential revenue streams are nearly endless if you choose the Amazon selling method that works best for you.
Although challenging, starting an Amazon business on a shoestring budget is achievable. Many sellers have successfully launched their businesses with an initial capital of around $2,000 by choosing the proper product and company style.
Take advantage of the free services by creating a free seller account to prevent extra expenses. To prevent Amazon from overcharging you for storage costs while using FBA, you must make sure that your items’ sizes and measurements are accurate. Similar to this, you may save expenses by managing your inventory well.