Ways on How to Make Money from Home

Selling on Amazon 2021

1. FBA (Fulfillment by Amazon)

Sell your own Private Label Products on Amazon.

The best way to make money on Amazon in 2021 is still through Private Label sales using Amazon’s Fulfillment-by-Amazon (or FBA) network. Majority of Amazon sellers run their business using the private label business model.

What is a Private Label Business Model?

Private label is a business model where a manufacturer of physical goods sells unbranded products to resellers who rebrand the products and sell them to end consumers.

  • Private label is a process of manufacturing a pre-existing item (preferably, with product improvements), putting your branding and logos on it, and selling it to consumers.
  • Sometimes it is referred to white-labeling or brand-creation.
  • The process has been around for years and is common in countless retail stores; Target’s Mainstays brand and Walmart’s Great Value are two examples of private label brands.

Through FBA Network, Amazon is able to deliver your products (normally in two days or less — what you likely know as Amazon Prime). This is how e-commerce business owners like you and me can list products on Amazon and make money from the sales.  

What are the Amazon Private Labeling Advantages?

Amazon makes Private Labeling even easier and here are a number of advantages:

  • First, you can use a tool like Jungle Scout — which is an all-in-one platform for selling on Amazon — to estimate the sales your product will make once it’s on Amazon.
  • Next, it’s easy to source and manufacture your products with the help of platforms like Aliexpress & Alibaba or Jungle Scout’s Supplier Database.
  • Finally, after you’ve created your product, you can sell it on Amazon using FBA. You don’t even have to ship your own orders!

What is the Earning Potential or Amazon FBA?

How much money you can make selling Private Label products on Amazon depends on many variables.

  • Approximately $625 to $1,875 per month per product. 
  • Consider that most sellers on Amazon sell products that result in 100 to 300 sales per month. The average third-party product sells for $25 with a gross profit margin of 25%. That adds up to $625 to $1,875 per month per product.

How you can Get Started with Amazon FBA?

How to Start Your Amazon FBA Business

These days the competition is far greater and for both longevity and to stand out from the crowd in any meaningful way you need to build a brand rather than just opt for a trending product.

Here is the main process for building your Amazon FBA business:

  • Choose a niche 
  • Find a popular product within your niche to sell 
  • Source a manufacturer or supplier of the product 
  • Brand the product 
  • Ship the product 
  • Sell it on Amazon (or rather Amazon sells it for us) 
  • Build your ‘off Amazon’ audience

2. FBM (Fulfillment by Merchant)

Amazon has also a service called FBM or Fulfilled by Merchant. It is also known as “Seller-Fulfilled”. 

  • Which means you sell on their platform but fulfill all orders yourself.
  • This works if you’re an existing company already selling all over the world with your own fulfillment centers.

Fulfillment By Merchant (FBM) is when the seller is in control of his entire handling and shipping process. Instead of paying a service fee and shipping inventory to Amazon to handle, the seller uses his or her own resources and sends the items directly to the buyer.

But if you’re just starting, FBA is highly recommended.

3. Retail Arbitrage

  • With Retail Arbitrage, you’re looking to “buy low, sell high.” And to find your “buy low” inventory, you’re simply looking for products at regular retail stores like Walmart, etc.
  • This is how a lot of folks find items to sell on Ebay, but Amazon has one big advantage. If you use their FBA program, Amazon will handle all of the fulfillment for you. That means you’re in charge of finding inventory to sell, but Amazon will take care of storing your items, shipping them to customers, and even handling customer service.

FBA program allows you to quickly grow a Retail Arbitrage reselling business on Amazon. There’s really no limit to how a Retail Arbitrage business can look. Some people just make some extra cash selling used books, thrift store finds, and liquidation items. Others do Retail Arbitrage to earn a full-time income.

It really all depends on how much time and money you have available to invest and how comfortable you are with shopping in different stores in your area. The good news is that it’s very affordable to start a Retail Arbitrage business.

4. Online Arbitrage

If you don’t have the time or energy to shop in retail stores locally, you might be interested in Online Arbitrage instead. Online Arbitrage is a lot like Retail Arbitrage. The only difference is that you buy your inventory from the websites of retail stores. There are great tools that can really automate a lot of the workflow.

And if you work with a prep center, this can become a fairly hands-off business model. For a fee, you can have your online shopping orders sent to a prep center. The prep center employees will process your inventory and ship it off to Amazon for you.

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