Amazon is exactly as the name suggests. A fierce, dense jungle that will eat its inhabitants alive if you don’t stick to the trail, and bring your supplies! Many a young entrepreneur has jumped into the jungle, with the mindset of “I can conquer the world, all I need is a motivated mindset, with a side of hustle,and a guru to guide my way.”
Only to come crawling out of the brush a few months later, worn out, frustrated and strapped for cash! If you’re thinking, come on it can’t be all that bad, I know someone who is making $100,000 per month on Amazon. If they can do it so can I. However, no matter how motivated you are, you must take the time to plan. Before any intrepid explorer embarks on an expedition they will spend months physically, and mentally preparing themselves for the journey. They will map out their route, and make lists of supplies needed for each point on the track.
That is exactly what you need to do in order to successfully run an Amazon business. Below you will find the “dangerous trails” you can take when entering into the Amazon jungle!
1) The Retail Arbitrage Trail : Difficulty: Easy : Length – Few Months to a Few Years
Perhaps many are under the impression that RA (retail arbitrage) is an endangered species. While not completely extinct, this route is definitely not a scalable business model. However, it is a great way for newbies to get their feet wet and take a walk on the wild side while staying financially safe.
Pros of doing Retail Arbitrage or Online Arbitrage
The Challenges of The RA/ OA Route
Tip: Don’t be disheartened from taking the RA/OA trail. With careful planning a third-party seller can still have success with Amazon using retail arbitrage. For instance you may be able to make huge profit margins with discontinued items. As you can price them at 5 times their normal retail price!!
2) The Private Label Trail. Difficulty: Advanced : Length 2-3 years before exit.
Creating a private label Amazon business requires you to perhaps learn a whole new skill set. Negotiating skills are important when dealing with manufacturers and freight forwarders. Brand management skills are essential for creating a brand with purpose, that stands out from the competition. Data analysis will be needed when choosing a product, as well as evaluating profits and losses from advertising PPC etc.
Pros of The Private Label Trail:
The Challenges of Private Label Trail:
Tip: If your goal is to eventually sell your Amazon FBA business or specific products from your store, set up a separate company and get a separate bank account now to make sure you are ready.
3) The Wholesale Trail : Difficulty : Intermediate : Length : However Long You Decide!
Wholesale sourcing, it is the act of purchasing products directly from a manufacturer or a company. So on this trail you do not need to spend time building a brand, creating new listings or dealing with manufacturers. Although some good negotiating skills will definitely come in handy when getting down to business with wholesalers and getting their costs down.
The Pros of the Wholesale Trail:
The Challenges of Going the Wholesale Route
Tip: Try sourcing wholesale domestically instead of trying to source from a foreign supplier. When dealing with domestic suppliers there is no language barrier, and you already understand the business etiquette of the place. Plus, a label that says “made in Europe” is a great selling point for your product.
This guide is a very basic overview of the different trails you can take when entering the deep, dark, vast jungle called Amazon. In order to succeed against the fierce
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Sacha Gorelik is on a mission to optimize your Amazon store! Your listings, storefront and web pages are the 24/7 salesman of your business. If they don't say the right things, your potential customer is not going to stay. They just might get distracted, eat some cookies, check their Facebook, or pick up a crying baby. Sacha's career in product copywriting started in 2011. She started writing for e-commerce stores such as Walmart, Overstock and of course Amazon. In 2015 she began focusing solely on Amazon and has written about almost every product on the planet! Including dog frisbees, torque socket wrenches, muffin cups, lingerie, exercise cards and anything else you can think of! She believes the key to a successful listing is the combination of high converting keywords together with irresistible copy. Connecting with customers, and solving their problems is the number 1 way to increase those sales!