How To Make £100 A Day Selling On Amazon FBA If You’re Broke!
March 10, 2019
March 10, 2019
I myself didn’t start with just private label. Back then I mixed private label with a bit of wholesale arbitrage. Private label has its set of difficulties and if you’ve already seen some of the videos on my channel then you would have already seen some videos that guide people on how to deal with those. But there exists an easier business model which is a good way to get started selling on Amazon if you want to manage your risk, have a limited budget and also if you lack the knowledge of launching a private label product.
What I used to do back then is look through Costco for anything on sale and then check Amazon and see what the difference is as well as accounting for the fees and if the item is good enough I’ll consider purchasing some to add them to listings on Amazon.
As an example, this is a pair of earbuds that anybody can sell. Because this is a general branded item, you can hop in the list of sellers offering this exact item. This model allows you to target listings with good margins as well as those that make a lot of sales.
I found the exact same product on Costco for £69.99. And looking at the listing earlier we can see that it sells for £99.99 with prime shipping. Potentially, we can sell this product as well as prime so you only have to undercut the one person selling on prime to “win” the buy box.
So what will be your profit if you do sell this product? Running the AMZ Scout plugin I have we see that my fees in total will be around £17.22. Taking that away from the price I intend to sell this product I’ll have about £82-£83 with me each sale.
This is, again, an example that I found. But if you take in the time to do your research, you can potentially find a better product with more margin. What’s great about this model is that even though the margins may be small, it’ll improve over time if you put in enough effort to do your research. This also limits your risk compared to private label as you don’t have to buy hundreds of units in advance and instead just buy 5 or 10 just to test the waters a bit.
This method will also save you the headache of launching a product if you aren’t that knowledgeable about that aspect of Amazon selling. All you have to do is find a listing and try to “win” that the buy box in order to generate sales.
You can also use FBM instead of FBA to lessen your risk even more. That way when an order comes in you can just buy one unit of that product and then ship it.