Deciding what’s right for you!
One of the main keys to remember prior to starting with Amazon FBA or on Amazon in general is understanding your capabilities, as well as your strengths. What I mean by that is, being able to differentiate between what you enjoy doing, what your purpose is, and how you feel is the best way to get there.
The truth is, there are tons of business models that you can undertake on Amazon. The hope is that you’re able to eventually utilize all or as many of them as possible. However, the reality is that most people don’t have the time OR the money to do it simultaneously. So, in my hopes to help as many people succeed with online business as possible, I hope to illustrate what is best for those that may not have as much capital to get started. It is my goal to help you turn your business into a powerhouse.
Shiny object syndrome is undoubtedly a big problem in the online space. There are brand new softwares and tools that come out seemingly daily, and no doubt many of which can have a hugely beneficial impact on your business and life. It is imperative however, that you maintain focus and at least initially, focus on that “One Thing.”
I’m referring to that one thing that will get you started and get you the initial capital you’ll need to move forward. So, with that in mind, here are some of my suggested options to achieve this:
Selling Books on Amazon
When it comes to high margin items, there are not to many that can compete with the allure of Used Books or in some cases, new ones as well. Books are an awesome starting point for a variety of reasons.
- Availability – Regardless of where you’re located, books will likely be a resource to you there. You can visit your local library, or libraries. You can visit booksalefinder.com to discover book sales, or you can use a site like e-Flip to purchase those books from Amazon for lower prices and resell them on Amazon for more.
- Price – Given the scalability of books throughout the world, and the fact that there are new editions that come out often, book prices often fall. That’s where sellers can capitalize. They can purchase the books at the dip price, and then resell when textbook season rolls around. It’s similar to the stock market, where you can buy stocks at their lowest, so you can then make money when the stock price goes up. The difference is, books are much less expensive than stocks are; at least less than penny stocks anyway! Well, there are books for pennies too, but I digress.
- Seasonality of Books – Textbook season comes twice a year, every year. This is the guaranteed times of year anyway. They are usually around August and around January/February. The reason for this, is that is when most people go back to school for the next semester and are told what books they’ll need for the course. Many instructors are okay with the students purchasing older versions of books, but because of so many new versions that come out, older versions eventually have limited availability, thus allowing you to command a much higher selling price as a result. It’s essentially the process of supply and demand at work. By the way, textbooks are normally the most popular types of books to sell.
- Availability of Resources – There are so many resources out there to learn how to sell books. Whether, it’s going on Youtube, Google, Udemy or the instructional videos within software like e-Flip, there is literally a never-ending supply of resources and ways to source books, and sell them. If there’s ever a question you may have, you’d be able to get it answered with the help of a facebook group or video!
It is for those reasons, that I feel selling used books is such an amazing opportunity for those people looking to build initial capital, with limited risk, so that they can reinvest further into their true passion, whatever that may be.
The Art of Retail Arbitrage
The next suggested practice I recommend for those looking to get into Amazon FBA on a budget is called “Retail Arbitrage”
This means going into retail stores, shops, outlets, thrift stores, goodwills, savers and similar other places; purchasing items at one price from the stores, and then reselling them on Amazon for more.
Here are some reasons this is a great place to start for newbie resellers:
- Local Opportunities – This business model is a great one for many reasons, but among them is the fact that, oftentimes the items that are located in one store, are not necessarily available in other stores, giving you an advantage over other sellers that may not have access to these products. Less supply on Amazon combined with your ability to source items, gives you a real competitive edge and potential for serious profits.
- Requires Limited Capital or Software – The beauty of this model is that all you essentially need is your smartphone – and the Amazon seller app. The Amazon app can be accessed through the App Store and contains a scanner. You can use the scanner to scan any barcode in stores, not to mention visual search as well (meaning you can scan the items themselves as well.) You don’t have to spend a fortune on products, and can literally scan every item in the store, which would show you the price on Amazon, and give you the insight you need to decide whether to purchase.
- Ability to List Items for Sale Immediately – You can literally list the item you’re buying for sale, while you’re checking out to purchase the items yourself. All you need is the Amazon seller app; what price you’re looking to sell it for relative to your competition, and the ability to then ship the item out. There have been thousands of times where people literally sell the item, before even having purchased it within the store. Imagine the possibilities.
- Can Definitely be Done Part-Time – This can be done anytime you have a spare moment, and can really start by scanning the items in your own home; or those on consignment from friends and family!
Online Arbitrage: From the Comfort of Your Home
The third suggestion for the purposes of generating initial capital to utilize on Amazon or various other platforms is Online Arbitrage!
This is the practice of going to online retailers, such as Wal-Mart, Target, Kohls and thousands of others and purchasing items from those retailers only to then resell them on Amazon. This practice, like retail arbitrage, can be done on Amazon, ebay and many other marketplaces as well, but we’ll stick to Amazon for now.
Here are the reasons for this suggestion:
- Ability to Work from Home – This is perhaps one of the strongest arguments in favor of online arbitrage. This is the ability to learn and “work” from home. You can purchase products from the comfort of your own home, with your computer, or for that matter even your phone.
- Multitude of Sources – The great thing about online arbitrage is the ability to source products from so many thousands of sources! You can purchase from walmart, target, kmart, or lesser known sites alike. If one source is out of stock of one item, another site may have it.
- Shipping to Home – The ability to have your items shipped to your house is an oft-overlooked one. The fact that you don’t need to spend time, waste gas, or go to a store is an extremely important consideration for many and another reason why online arbitrage is such a powerful option.
- Cash back rewards – This is perhaps one of the most important benefits to this business model. You can purchase discounted gift cards, obtain coupons from retailers, and get cash back rewards through reward sites, all for the same transaction. You can also get rewards using your credit card, so you can win not only on the profit you’d make off the items you’d sell, but also on the transaction itself.
The money comes from the initial buy. Think about it.
For this article, we’ll keep it to these three business model options. I hope that that it helps give you a jumpstart when it comes to selling on Amazon, or at least sparks an urge in you to find out more information. Please remember, the benefits mentioned above are just SOME of the many others available, but should definitely help guide you in the right direction in your hunt for financial freedom!
Please also remember that there are various softwares that would help you with sourcing; some for a fee, some for free! But remember, just learn the Keepa Chrome Extension, and you’re half way there!
If you ever need additional help – i’m here for you! Feel free to reach out via the contact form, and FOLLOW ME ON INSTAGRAM @FBAYOURWAY
Cheers to your success.