Do You Have a Preferred Amazon Business Model?


#1

Whether you’re an experienced Amazon seller or brand new, let us know what your preferred Amazon business model is and why you like it.

I personally enjoy the private label business model because I find it easier to scale and grow my business. The models I’ve thought about in the past are described in the post below, but feel free to tell us about anything else you may have tried.


#2

I have found arbitrage to be the most friendly to a new seller, for a few reasons

  1. It gives you a good feel of how the entire process works, so you are in a better position to make smart choices.
  2. Start up cost is much less a burden. You can quickly flip a few cheap items, while private labelling requires a steep (generally) start up cost.
  3. You may have the option to leverage good traffic if you piggyback on an existing listing.

For me, i have researched many of the ins and outs of the major processes for over a year well, and have just made the leap into selling arbitrage items. I got my first sale less than 2 weeks ago, but had to start small because of a limited budget. Overall, I am on course to making at least 25% of the cost that I invest in items, which I consider decent for a starter.
I do have a few private label items at home waiting to be shipped, but since I live outside the USA, shipping cost is MASSIVE. So it will have to wait until I have a bit more disposable income.


#3

@mjessimy,

Thanks for your post. I’ve always looked at it this way:

Models like arbitrage are a good low-risk way to get your feet wet with selling on Amazon, but it’s better for someone who has more modest goals. It’s not as easy to make a full-time income with part-time work. It can require a lot of time to source inventory, so you’ll end up hitting a point where it’s difficult to grow and scale your business.

Of course, there are exceptions to this as I know there are sellers who have been able to create significant full-time businesses using this model, but it seems that most are just continuing to trading time for money like a regular job.

Of course, I’m biased since I’m a private label seller and I know that works for me and others I speak with regularly, but I’d be curious to get your perspective on my comments above since you’re just getting started with the model. Is this a concern of yours?

Living overseas, how are you managing the logistics of an arbitrage model?


#4

I do only online arbitrage, since there’s no way I can do retail flipping for profit. I send ordered goods to a prep facility, where it’s labeled and then sent inbound to Amazon fc. I totally understand why you think it’s trading time for money, much like a full time job, but I think the way to scale is to make a sourcing team and let them do the footwork. Sure you’ll have to pay them, but I find it to be worth it that way. I will one day venture fully into Pl, but for the time it’s the best I got. Oh, and I also make a full time income from Kindle books- thanks to them I was able to leave my full time job 3 months ago. Multiple income streams :slight_smile:

Sent from Yahoo Mail on Android


#5

@mjessimy, part of the reason why I think it’s difficult to scale is because once you teach someone how to find inventory, there’s a very low barrier to entry for them to leave and compete against you.

Please don’t take these questions the wrong way. I’m not trying to pick on you, but these are reasons why I’ve had a hard time getting behind this kind of business model. I know you’re just starting with it yourself, so I don’t expect you to know the answers to how to scale the business. I’m interested in having an open discussion about the real pros/cons of all models, but if you don’t know the answer yet, that’s fine.


#6

Could you talk more about publishing Kindle Books?
I would like to do that .


#7

I prefer buying or establishing a new brand with a brand partner/investor using PL or contract manufacturing model but the strategy is to improve the brand if we brought it and or developing the new brand and associated products to the levels where investors become interested to buy at a higher price. Trademarks are very important and AZ Brand Registry.