Do You Need a Budget for Selling Products on Amazon
Posted by on 12 May 2016 12:42 AM
There are a few different paths for Amazon sellers, and whether you need to layout money up front for products depends on which path you choose.

Retail (arbitrage) - buy low and sell high by finding items in other stores that are likely to sell on yours → this helps you understand categories and best-seller ranks (gives you a great introduction to what sells on Amazon).

Bundling - put together related products and sell them as a bundle. This really makes your listings stand out from other sellers. For example, if you have a birthday party bundle, you offer a listing on your store that sells “All-in-1-Birthday Pack” with hats, balloons, plates, cups, spoons, forks, candles, etc. You can source these individual items from sellers and either put packages together yourself to ship to customers (fewer items), or work with a fulfillment company that will do this for you (FBA Centers are one example).

  • PRO TIP: look for potential trends that you can bundle products for such as upcoming movies, fashion, world events, holidays, etc.

Wholesale - establish wholesale relationships with vendors on Amazon or Ali Express. You can also Google wholesaler + [YOUR ITEM NAME] and find companies willing to work with you.

  • PRO TIP: look for liquidations of stores in the real world where you can buy huge lots of items that would sell well on Amazon, especially in bundles

Earn while you learn - Amazon offers you the ability to “sell your knowledge” through digital courses and virtual learning. You can teach live or by video and get paid. Sell what you’ve learned to others and get paid.

Private Label - this is something you want to think about while you progress; what products are the best selling, trending, etc. that you could create a product around?

Amazon PPC - sponsored product ads that you can use to drive traffic to Amazon listings for other stores through ads. You would get paid on a PPC basis for items sold.

Partnering - find other Amazon Sellers to work with where you can leverage expertise and even trade services. For example, if you are good at generating traffic via PPC ads, you offer to do that for a Seller who will help you with Bundling.

  • PRO TIP: BOLO stands for “Be On the Lookout” and refers to a hard-to-find product that Sellers want to buy cheap and sell high. Certain Amazon products routinely fall into this category, and FBA Sellers can often work together to help notify each other if a BOLO item in their respective niches pops up. Having BOLO relationships and partners can be HUGE advantage to your Amazon store.

Consulting - helping others and getting a fee for helping them make money

  • PRO TIP: talk to your LOCAL stores and sell your services to local stores that could use help in selling on Amazon (get a fee or take a percentage).

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