Amazon’s gigantic online platform works with more than 2 million third-party partners. They sell almost everything: from mobile accessories to refrigerators and washing machines. Any person or company can become an Amazon partner. To do this, you need to register on sellercentral.amazon.com, answer questions, confirm your identity. With this scheme, you will sell goods from a third party – i.e. from the Amazon site itself, which charges you for each unit of goods sold (15% + delivery).
How much money is needed to purchase goods depends on the appetite of the seller and the chosen interaction strategy. There are three of them:
1. Dropshipping – direct delivery of goods from the supplier’s warehouse to the buyer.
Pros: you do not need a warehouse, you do not need to buy a batch of goods, you buy goods from the supplier after the customer has paid for the order.
Cons: a lot of handmade. You will have to constantly monitor the balance of goods and price changes at the supplier, for which you need to install special programs. You will also independently transmit information to the supplier for each purchase request.
The amount to start is from $ 1000.
2. Online arbitration – you buy in small batches of goods that are already sold in the USA and send them to Amazon’s American warehouses. Sales begin as soon as the goods appear in stock.
Pros: you do not need a warehouse, you do not need to manually process orders, you do not have to work with returns yourself.
Cons: conflicts with competitors and the fight against them. Competitors in the guise of a customer will write negative reviews, comments and messages, and you will have to spend time on complaints or comments.
The amount to start is from $ 2000.
3. Private label – you create your own brand, develop it from scratch, upgrade the product.
Pros: a promising business. Potentially, you can pick up a whole niche of products.
Cons: you need to engage in advertising, optimize product cards (listing), constantly communicate with customers and improve product quality.
The amount to start is from $ 7000.
I advise starting a business on Amazon with an online arbitrage strategy, as there is a small investment at the start, risks are minimized and high returns are minimized.