Chapter 1
- To sell on Amazon, you simply need a product to sell, a seller account, and a means of getting your product to the customer.
Whether you have a product to sell or just want to get in the game but don’t yet know what to sell, there’s a business model that works for you to sell on Amazon to: Whether you have a product to sell or just want to get in the game but don’t yet know what to sell, there’s a business model that will work for you. We’ll review the many options and choices you have when building your business, and focus on one that has proven to be a profitable, scalable method: private label.
Amazon business models
- Private Label: Creating your own product label/brand
- Wholesale: Buying products in bulk directly from a brand or from distributors with extra stock in order to sell on Amazon
- Reselling/Arbitrage: Buying discounted products through retailers or online to resell on Amazon
- Dropshipping: Buying products directly from a manufacturer who fulfills the order and ships directly to the customer
- Handmade: Creating/crafting your own products to sell on Amazon
How to sell private label products on Amazon FBA:
With private label, you find or produce bulk products to sell under your own brand or label. This is the most common sales method — 71% of all Amazon sellers use it.
To sell on Amazon, you simply need a product to sell, a seller account, and a means of getting your product to the customer.
Whether you have a product to sell or just want to get in the game but don’t yet know what to sell, there’s a business model that works for you to sell on Amazon to: Whether you have a product to sell or just want to get in the game but don’t yet know what to sell, there’s a business model that will work for you. We’ll review the many options and choices you have when building your business, and focus on one that has proven to be a profitable, scalable method: private label.
What you do:
1. Product research: Research products that have high demand and low competition on Amazon to find the most profitable opportunity.
Research2.Product sourcing: Find a supplier or manufacturer to create your product at the right cost. The supplier can ship your products directly to Amazon’s warehouses.
Sourcing3.Product listing: Create listing(s) for your product within your Amazon seller account and brand your product.
Listing4.Promotion: Launch and advertise your product to stand out among Amazon’s catalog of millions of products and rank in the product search results.
Shipping5.Sales management: Monitor your inventory and sales, and scale your business to keep those profits coming in!
LaunchIn short, your job is to find the best product that will sell on Amazon. After a customer orders your product, Amazon takes over.
What Amazon does:
1.Amazon receives your products (from you or your supplier) and stores them in one or more of their million-acre fulfillment centers, which are massive warehouses run by robots and Amazon employees.
Your products are inventoried and sorted. (It’s in Amazon’s best interests to take good care of your products, but if they are somehow damaged in one of Amazon’s warehouses, Amazon will reimburse you the full retail price!)
2.When a customer places an order on Amazon for your product, Amazon processes the transaction automatically.
Your product is picked from its place on Amazon’s warehouse shelves, packed into an Amazon box, and shipped to the customer.
3.Amazon manages communications with the customer, including shipping notifications and tracking, reviews, and even returns.
In contrast, you can sell through Amazon Merchant-Fulfilled Network (aka Amazon’s Fulfillment-by-Merchant, or Amazon FBM), and you would be responsible for all fulfillment.
Chapter 1
Summary
Selling on Amazon is a great way to build a business and make money online. In this chapter, we explored various options for selling on Amazon and how you can get started now.
We learned:
- Amazon business models
- What is FBA
- How to sell private label