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Love to Shop? Why Not Make Living Doing It with Amazon FBA?
Do you love shopping? Believe it or not, you can make a great income by shopping. Who wouldn’t love to make money by shopping instead of saying goodbye to it? Sound too good to be true? Nope, Amazon FBA is how.
Before I get into Amazon FBA, first let me tell you that I love shopping. What I love even more is finding great deals on the things I buy. Many times I am even able to get them for free by using coupons and money saving apps combined with store sales.
Who would have thought that my thrifty bargain hunting skills could actually make money, much less turn into a home business? Yes, it is possible! I did and you can too by selling on Amazon FBA.
How to Make Money on Amazon
It all started when I was shopping on Amazon, pretty ironic huh? I don’t remember what I was shopping for but I stumbled upon a book called “Make Thousand on Amazon in 10 Hours a Week” by Cynthia Stine.
I know, I know, it sounded too good to be true. I’m not really sure why I thought that this would be worth buying, but I did. I am so glad I did, I read the book in one sitting and it seemed to make so much sense. But was it too good to be true?
Even though it seemed so, I decided to give it a shot but I didn’t want to invest any money in this until I knew if it would pay off or not. I had some items in my home from my couponing stockpile, I did my research to make sure I’d make a profit off those items and then sent in my first shipment to Amazon’s warehouse.
Then about 4 days later, I got an email letting me know my shipment had been received and the items were up for sale. Then a few hours later, I got another email letting me know that I made a sale!! Again, another email later on, then another!!
I was pretty blown away at how easy it was to sell on Amazon!
Amazon Seller Account
First of all, you need to sign up for an Amazon seller account which is free to do. Then you need to decide if you want to ship the items yourself or let Amazon handle everything which is known as FBA (fulfilled by Amazon).
Even though signing up for an Amazon seller account is free, you will pay fees when your products sell. You can find Amazon’s fee schedule here. You’ll need to know what the fees are to make sure you are getting a good profit margin on the items you are selling. Amazon also has this Fulfillment by Amazon Revenue Calculator to help you determine fees on products.
Amazon Seller Account
FBA was the way to go for me because all I needed to do is ship my items to Amazon’s warehouses and they would take care of the rest. They ship your products and take care of customer service. It’s truly hands-off, which is great!
Another benefit of selling on Amazon FBA is that you get more sales. Think about when you shop on Amazon, don’t you look for that “prime” logo to make sure you are getting free 2-day shipping? Yup, if you sell with Amazon FBA, your products have that little logo too!
Whichever option you choose to sell, you’ll have an option of signing up for a Pro Amazon Seller Account. If you opt for the Pro account, it’ll cost you $39.99 a month. But here is the kicker, you won’t have to pay the .99 cents per item fee that they charge you.
So if you are planning on selling more than 40 items a month, this will actually save you money in the long run. For example, if you sold 80 items, you would be charged $78.20 if you don’t have a Pro account. I started off with a regular account, to begin with just to test the waters, but it wasn’t long before I switched over to a Pro account.
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Start Selling On Amazon FBA
How to Find Products to Sell on Amazon FBA
There are many ways to find products to sell on Amazon FBA. Here are the most popular ways to find inventory to sell on Amazon.
Retail arbitrage is when you find products at retail stores and resell them on Amazon. This is how most people get started, including me. You can find products by shopping clearance sections at stores in your area and sell those products at the regular retail price on Amazon.
Think in terms of the end of season clearance sale items. Of course, after the Christmas season, you will find tons of toys, decor, gift sets and just about everything else on clearance for up to 90% off. Right? How about after July 4th? All the summer clothing, outdoor decor, furnishings, gardening supplies and much more are on clearance for great deals too.
As you can see, you can make a nice profit with retail arbitrage. Since I was an avid couponer, that was how I started out. I would combine sale items with coupons, rebate apps and store loyalty points to get the best deal possible on items I purchased to make the most profits.
Those bargain hunting skills really came in handy!!
Next, I started dabbling in liquidation. In my research of how to find profitable products to sell on Amazon, I came across a book called Liquidation Gold by The Selling Family. Since I had a liquidation store in my area, this was the perfect next step for me to take my business to the next level.
As you know, liquidation stores sell just about everything under the sun at rock bottom prices. All you need to do is figure out which products were the most profitable. This is what Liquidation Gold taught me.
One of my most profitable items I ever sold on Amazon was from a liquidation store. It was a product that had been discontinued from production. Which means it was no longer available on store shelves.
You’d be surprised at how people are so loyal to a particular product/brand. This product had been selling on store shelves for about $10 – $12 when it was available. I found the product for $4.88 cents at a liquidation store and they were selling for upwards of $65 each on Amazon!!!! That’s over 1300% profit, not too shabby huh???
If you are looking for a more hands-off approach to selling on Amazon, then wholesale is where you need to be. It does take time to research where to find profitable products that aren’t saturated with other FBA sellers on Amazon. Once you do, all you need to do is keep on reordering those products once your inventory gets low.
This is a great way to make more sales with less effort once you have a good amount of products that you can just keep reordering whenever you need too. Skip McGrath has an excellent book on how to get started in wholesaling products to sell on Amazon and eBay.
Private Label Products
Lastly, you can sell private label products. This is probably the hardest thing to do because it requires a big investment. Basically, private label products are items that you buy from a manufacturer and have them packaged with your brand and logo.
This is also the most lucrative because there is absolutely no competition to sell your products. Nobody can use your listing because it is your brand named product. I’ve been doing some research on finding products to sell through my own private label but haven’t pulled the trigger yet but you can see how this business model would do really well on Amazon FBA.
I’ve tried many different things to make extra money on the side and selling on Amazon is hands down the easiest and most profitable way that I’ve found. The best part about it is I only spend about 3 – 4 hours a week doing it and make good profits.
If you are looking to start earning a living by shopping then here are my recommendations to get started selling on Amazon FBA.
Did you know that there are more than 17 Ways to Make Money on Amazon?
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