Here’s a few of the most popular methods for Amazon FBA:
- Arbitrage Find low-priced items in retail stores or other online marketplaces to resell on Amazon at a higher value.
- Wholesale Buy bulk discount branded goods to resell on Amazon at a higher value.
- Used Book Sales Purchase used books at book sales, yard sales, or other places to resell on Amazon at a higher value.
- Private Label* Research and manufacture your own branded products to sell on Amazon FBA where you control every aspect of the product.
*Most successful Amazon FBA sellers are Private Label Sellers.
What is Private Label?
A private label product is manufactured by a contract or third-party manufacturer and sold under a retailer’s brand name. In other words, you take a product that already exists and manufacture it with your own brand and logo.
Why sell private label versus the other methods?
Private label offers a ton of advantages over the other methods. Here’s a few:
- Less work sourcing. You only have to source a single product in large quantities versus many small products like you would with arbitrage or used book sales.
- Price control. The Amazon listing for your product is under your control. Therefore, you don’t have to worry about underpricing your competition like you would with wholesale or arbitrage.
- Higher profits. In my experience, private label is the most profitable and predictable method of how to sell on Amazon FBA.
How much money can I make selling private label?
Of course, everyone’s success varies with private label. However, if you follow the basic steps to creating a private label product, this is roughly what you can expect to earn:
How much work does the private label method take?
Ever hear of the 4-hour Work Week by Tim Ferriss? It’s the idea that you can design the lifestyle that you want so long as you can put your income on autopilot.
And that’s pretty much what you’re learning when you learn how to sell on Amazon FBA. Once your product is created and live on Amazon, you don’t have to do anything else but check on your advertising and make sure your inventory is stocked.
Just 4-hours a week and you can earn an extra $3,000 per month!
How do I create my first private label product?
It can be done in just five easy steps:
- Research high-demand/low-competition products using our easy-to-use app called Scout.
- Source those products through Alibaba, a website that puts you in touch with 1000’s of manufacturers who are eager to do business with you.
- Create a brand new listing on Amazon. It’s so simple, you can do it in less than 40 minutes.
- Ship the products to an Amazon warehouse so it can be part of the Amazon FBA program and you won’t have to do all the back-breaking work.
- Launch and advertise your product using Amazon’s own advertising system which is as simple as clicking a few buttons.
Then, all you have to do after that is sit back and watch the profits roll in!
references: amazon, junglescout, alibaba