How to start an Amazon business?
What’s great about Amazon is that there’s no one way to start an Amazon business. From the business model you choose the products you decide to sell, there are many ways to succeed on the platform.
However, the steps required to get up and running on Amazon remain the same, regardless of the type of business model and the product you choose.
- First, start by deciding which business model you want to use
- Private Label: Private label is the process of a retailer rebranding/renaming a product that is already being manufactured on their own brand or label.
- Wholesale: Wholesaling is the practice of purchasing low-cost or discounted goods in bulk in order to sell as individual units in a retail marketplace.
- Online and/or Retail Arbitrage: Arbitrage is a method of finding low-cost or discount goods in brick-and-mortar retail stores (or on e-commerce sites) in order to resell them online.
- Dropshipping: Dropshipping is a business model where an Amazon seller does not keep their own product inventory, but instead, transfers their customers’ orders directly to the manufacturer or supplier.
- Handmade: Amazon’s handmade sellers are people who create their own products to (“by hand”) to sell on the Amazon marketplace. Examples include jewelry, accessories, home decor, and more.
- After you’ve landed on a business model, it’s time to decide which fulfillment method you’ll use
- Fulfillment by Amazon (FBA);
- Or Fulfillment by Merchant (FBM).
There are pros and cons for both methods, so make sure you look closely at both to determine which one will work best for your business.