There are a lot of ways to make money on Amazon. In fact, Third Party Amazon Sellers Represented 58% of Amazon's $141.92 Billion in 2018 Sales. So there are a lot of people making money on Amazon but, What's The Best Way To Make Money On Amazon?
In a recent YouTube video, Bob Schneck - ALGO Amazon Business Expert, explained the different ways people make money on Amazon and what the best method for making money on Amazon is.
Retail Arbitrage (the way to make a quick buck on Amazon)
What Is Retail Arbitrage on Amazon - Buying stuff in small quantities from close out racks, retail stores, and unauthorized re-sellers.
The Good Part About Retail Arbitrage on Amazon - Quick way to start with little money.
The Challenge With Retail Arbitrage on Amazon - You can't scale this model into a business because it requires a lot of ongoing work and time. You can also get suspended on Amazon because you're not buying from authorized suppliers.
Private Labeling (the most expensive way to make money on Amazon)
What is Private Labeling on Amazon - Creating your own brand, marketing your product, getting your product manufactured, and then selling it online.
The Good Part About White Labeling on Amazon - You can build a big business and a valuable brand. Once the brand is built, there is value in the brand and it is difficult for others to copy.
The Challenge With Private Label on Amazon - Requires a lot of money to start ($10k-100K+). You also need serious marketing skills to grow a brand and it takes a lot of time to build a brand (1-2 year process).
Drop Shipping (the riskiest way to make money on Amazon)
What Is Drop Shipping on Amazon - Listing products that you haven't purchased yet for sale online. Once your customer buys the product, you buy the product from your supplier and have it sent to your customer.
The Good Part About Drop Shipping on Amazon - You can do it with no money.
The Bad Part About Drop Shipping on Amazon - More people get suspended from Amazon for doing this than anything else. You run the risk of selling stuff only to find out your supplier no longer has the product or can't ship it.
What is Wholesaling on Amazon - Buy well known brand name products in bulk from authorized US based suppliers. Ship those products to Amazon FBA warehouses (so they can warehouse, ship, and do customer support for you) and sell the products on the brand's primary Amazon listing.
The Good Part About Wholesaling on Amazon - It's proven and scalable. This is the method retailers (like Walmart, Target, and others) have been using for thousands of years to build their fortunes for their owners. You can also quickly expand because you have zero marketing cost, no warehouse, no employees, and no overhead.
The Challenge With Wholesaling on Amazon - You need to know what you're doing and follow all of Amazon's rules precisely.
Click here to watch: What's The Best Way To Make Money On Amazon
Do you want to learn how to build a Wholesale business on Amazon? Curious about exactly how to find authorized US suppliers or Amazon's rules for selling? If you answered yes, you need to join Bob for an in-depth online workshop where he will explain exactly how to start and grow your Amazon business the right way.
Bob is hosting a FREE online workshop within the next 7 days!