Amazon’s third party marketplace gives anybody the opportunity to offer products – either first hand or second hand – to the “organic” Amazon audience.
The reason this is important is because of how the Amazon behemoth has grown substantially over the past 10 years – becoming one of the most popular and trusted destinations in the e-commerce world.
The good news is that if you have the gumption to do it – you can piggyback the success of the company with your own products. This opportunity is currently being taken advantage of by millions of people around the world, from high-flying executives to mom-and-pop setups… the underpin of it all is that if you have a high tolerance for risk, you should be able to make significant progress with it.
Ultimately, if you know what you’re doing (with marketing), are assiduous in how you approach the challenge, and ultimately come out with a substantive product – you should be able to provide people with the ability to buy high quality items from you through the Amazon store.
This is the crucible of wealth, and lies at the core of all success stories.
However, understanding *how* to do it is by far more important than just following a simple checklist. This tutorial is going to divulge 3 strategies everyday people can use to take advantage of the Amazon marketplace to make their own money from – providing a substantive side income, if not a full time vocation for you…
1) Selling “In Demand” Products
The first – and probably most common – way to make money with Amazon is to sell “in demand” products which are already being purchased en masse.
It’s very easy to spot these – just look at the likes of JungleScout or even some of Amazon’s “Best Sellers” lists – in order to determine any products which may be being bought in significant numbers.
The trick here is that if you’re able to buy the same products either directly from the supplier / manufacturer, or from some other source, at a cheaper price than is listed on Amazon – you’ll essentially be able to buy in bulk quantities products that are popular, listing them for sale on the platform for a profit.
As mentioned, this is the most popular way that people enter the “Amazon” arena – with most people typically gravitating towards products they either know a lot about, or have access to (from their employment or similar). It’s quick and simple… but is not hugely profitable (very competitive), and typically requires decent capital investment up front.
2) Creating White Label Products
The next level-up for the world of Amazon is to create “white label” products.
These are basically where a company (particularly in China) will manufacture a product and then just apply another company’s logo/brand/stick to it. It’s called “White Labelling” because of how the manufacturer will simply create a “white label” on the box, allowing the third party client to apply their own branding as required.
The problem with white labelling is that it typically requires a significant MOQ (Minimum Order Quantity) to be purchased before the company is able to produce enough at a profit. This means that you will typically need a significant amount of capital ($10,000+) to get it going.
White labelling has a number of benefits over just selling “normal” products (as per step 1) – it allows you to build a “brand” off the back of latent demand, as well as ensuring that you are able to provide a tested product without any R&D. You’ll typically make a lot more money, because you’re able to buy the product directly from a manufacturer – not a middleman.
Most people typically progress into White Labelling after they’ve had some success with another product; typically as a way to solidify the gains they’ve had in that area. This means that if you’re looking at getting the most out of a market, it will give you the ability to take some market share without needing to completely design a new product from scratch.
3) Creating Your Own Products
Finally, you can create your own products. This is done *either* to cement a market position, or to create a new market. Whilst by far the most profitable, it’s also the most risky strategy listed here.
Not only do you need to ensure you have a “bulletproof” product (one that won’t infringe patents/trademarks etc), but you also need to be sure about being able to cultivate demand for said product.
The key with this step is that if you’re looking at introducing a new product into the market (be it Amazon or anywhere), you need to be able to cultivate a group of people already interested in buying it.
This initial audience will provide the basis onto which the bulk of the buyers are able to justify a purchase (as a “safe” investment) – which is where the momentum of the product will come from.
As mentioned, this method is by far the most rewarding, as you literally own the entire supply chain. However, it is obviously quite tenuous in the sense of how it will encourage users to sign up to the system.
Ultimately, Amazon is one of the biggest opportunities we have today. If you have a global audience, you’re basically able to attract 1,000’s of buyers from around the world. The key is understanding when to – and not to – invest.