Tired of feeling strapped financially? Would you like to cut out your second job? Would you like to quit your job altogether? You are in the correct place!
I am sure you know of the website called Amazon. I want to talk about a new way to make money through Amazon. It is called the “Marketplace Model”.
So what is it? Here are the basic steps:
- Find products that are selling.
- Create your own branded version of the product.
- Find a supplier and test a small order.
- Take your product to Amazon.
- Finally, expand on Amazon Global Marketplace.
Let’s get into the meat and potatoes! Here we go!
Business Model to Start Selling Private Label Products
- Find a System- Find a proven model that works. Not everyone is going to give out their systems for free. There are enough basic tutorials on YouTube that you can piece one together. You could find a hidden gem though. Follow these models and you will get results.
- Product Research- You’ll spend a lot of time doing research. Find products that are popular. These will be the ones that sell.
- Raise Capital- The phrase it takes money to make money is true. Raising capital is the key to any sustainable business. Set a goal over a six month period. Save X amount of dollars a day. Or you can set aside a certain amount from your paychecks. $1,000-$3,000 is an ideal target.
- Invest- As soon as you hit your monetary target, it’s time to buy. Go buy your product. Start selling.
- Buy More Products- Since you are staying ahead of the curve, you’ll know what products are trending. Your first product is selling and you are bringing in money. Once you get your initial investment back, buy a new product. Wash, rinse, and repeat.
What Do I Sell on Amazon?
This is the biggest hurdle for most individuals. What do I buy? There is a method I read about called the “BEST Method”. Here it is:
- Boring
- Find an everyday boring product that sells. I know it’s not exciting or flashy. Remember the exciting part is the income. You need something that sells. Hand Soap and bottled water are good examples of this.
- Established
- Only sell items that are established. Remember your research is key here. This is going to be your own brand. So find those best selling boring items. You can’t go wrong here.
- Sustainable
- You want to buy and sell products that are sustainable. Things that are always going to be needed. I mean as you can see this toilet paper crisis we have faced is a perfect example. Bottled water is always going to be needed. Soap and Hand Sanitizer are not going anywhere.
- Tangible
- These items need to be tangible. It has to be something that your customers can hold and touch.
How Do I Create My Own Product?
Here is the beauty of this whole method. You do NOT have to create your own product. Find products that are already high in demand and selling. Once you find something, here is the magic.
The idea is to arbitrage these items. You are going to use popularity as leverage. Try thinking outside of the box here. The item is already selling, so find other ways to sell the item.
Ways of doing this would involve different sales packages. If there is an opportunity to change the size that’s a winner. You can even add a freebie into this. The goal here is to raise the price to where you are still getting a return on your investment.
All you do is set a price. Buy said products (off brands of them) including the freebie. Then let Amazon take care of the shipping and everything. It’s easy.
Monthly Costs
I already said the ideal investment cost here is $1,000-$3,000. There are some other monthly fees you will need to keep in mind. Here they are:
- Seller Subscription Fee
- $39/month
- FBA Fee
- Varies due to size, weight, market place, and category. This is your fulfillment (based on dimension and weight) and storage fees (cubic foot per month).
So there you go! These are the basic steps you need to start an Amazon business. I am hoping you have learned something. If you follow these basic steps you will be making money soon. ‘Till next time!
