Making money on Amazon - 3 strategies

Making money on Amazon – 3 strategies

The giant online marketplace Amazon works with more than 2 million third-party partners. They sell almost everything from mobile accessories to refrigerators and washing machines. Anyone can become a seller, manufacture, or repurchase the product, no matter what country they live in. Pavel Shevchenko, Amazon entrepreneur and founder of the Proamazon training school, talked about how to become a business partner of Amazon and what income you can expect.

Any natural or legal person can become an Amazon partner. You need to register at sellercentral.amazon.com, answer the questions, confirm your identity and go. Under this scheme, you will sell goods from a third party, i.e., from Amazon itself, which charges you for each unit of goods sold (15% + shipping).

How much money you need to buy the goods depends on the seller’s appetite and the interaction strategy. There are three:

Making money on Amazon - 3 strategies

1 Dropshipping

direct delivery of goods from the supplier’s warehouse to the buyer.

Pros: you don’t need a warehouse, you don’t need to buy a batch of goods, you buy goods from the supplier after the client has paid for the order.

Cons: A lot of manual work. You will have to constantly monitor the balances and price changes with the supplier, for which you need to install special programs. You will also have to send the supplier information on each purchase request.

2 Online Arbitrage –

you buy small quantities of goods already being sold in the U.S. and send them to the U.S. Amazon warehouses. Sales start as soon as the product is in stock.

Pros: you don’t need a warehouse, you don’t need to process orders manually, and you don’t have to deal with returns yourself. Amazon can also send you inquiries about the origin of the goods and the availability of invoices. This can be solved by a good selection of suppliers and a careful check of their information.

Cons: conflicts with competitors and fighting them. Competitors will write negative reviews, comments, and messages under the guise of a customer, and you’ll have to spend time responding to complaints or comments.

Making money on Amazon - 3 strategies

3 Privat label

you create your brand, develop it from scratch, and upgrade the product.

Pros: a good business. You can potentially pick up an entire niche of products.

Cons: you need to engage in advertising, optimize product cards (listings), constantly communicate with customers, and improve product quality.

What strategy to choose

Each strategy has nuances. For example, in dropshipping, it may be – the lack of goods from the supplier after receiving the order from the client. It is solved with the help of programs to automate the control of balances. Amazon can also send you inquiries about the origin of the goods and the availability of invoices. This can be solved by a good selection of suppliers and a careful check of their information.

Making money on Amazon - 3 strategies

A characteristic downside to the online arbitrage strategy is the black practices of competitors, as mentioned above. Competitors can buy your product and leave a bad review; allegedly, the product doesn’t match the description. In this case, you would have to contact Amazon and prove that you are selling quality products. Customer service can remove such comments, stating that “the review is about the product, not the seller.” In my experience, any review can be removed in a month.

It’s hard to swing ads and get your first sales in a prime label strategy. The solution to the problem lies on a case-by-case basis. Somewhere you need to improve the photos of the product, somewhere to choose the right keywords, to work on getting the product to the keyword queries, somewhere to place video reviews, including American video bloggers.

I advise starting a business on Amazon with the online arbitrage strategy because there is a small investment at the start, the risks are minimized, and the returns are high.

What profit to count on

If we talk about dropshipping, by the third month of work, you can reach a profit of more than $ 1000. It all depends on the time spent searching for goods and processing customer requests.

If you choose online arbitrage, then the investment of $ 2,000 for two months of work can make a profit of $ 2,000 and increase it every month by searching for new products.

Making money on Amazon - 3 strategies

In the variant with private label, profit depends directly on the choice of product and niche, demand for it, and more on the efforts made and luck. Do not count on good earnings in the first two months. The real profit comes in 3-5 months of work. You can earn as much as $ 1000 and $ 20,000 per month. Amazon can also send you inquiries about the origin of the goods and the availability of invoices. This can be solved by a good selection of suppliers and a careful check of their information.

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