I started selling products on Amazon FBA in January 2017 And had a pretty good year. Some products I could buy consistently, some were one-offs but all in all I felt good about the business.
Then came a low period whereby,
- I had some stock returned and refunds requested. Almost a whole batch was faulty and it took time and energy to sort this out.
- Then I would send in my products and within days the market was swamped with these same products and I was a small fish in a big pond.
So at the end of 2019 I decided to take a break and sell off all remaining stock without buying any more.
I was going to rethink my strategy, run some numbers and decide if it was really worth the trouble.
After reviewing the numbers, I still believe it is a worthwhile activity for me, but I am unsure if I will invest the same amount of money and time as I did in previous years.
But that said, I will continue using some online arbitrage, wholesale and bundling.
If you want an additional income and are interested in Amazon FBA as a possibility, where do you start?
There are 4 ways to go about buying stock for Amazon FBA:
- Retail/Online Arbitrage – Buy from stores online and locally
- Wholesale – Set up accounts with manufacturers or distributors of the products you are interested in and buy in bulk
- Private Label – Buy stock from manufacturers and set up your own private label to sell these.
- Bundling – Use a mixture of the above and bundle products together so you have a unique offering.
Me personally, I have tried model 1, 2 and 4, they work well, but can be labour intensive.
I follow a number of people that run their Amazon FBA businesses in the above ways, they offer valuable information for free and as always they have a paid course or eBook you can buy. I would advise you to sign up to newsletters for the ones you are interested in and try to absorb as much information as you can, then you can make the decision on which model, if any, is best for you and go from there.
Stephen Smotherman at Fulltime FBA
Jessica, Cliff & Aiden at The Selling Family
Dan Meadors & Dylan Frost’s The Wholesale Formula
Scott Voelker at The Amazing Seller
Kristin Ostrander & Amy Feierman from Mommy Income – Wholesale Bundle System
To learn everything you need about running an eCommerce selling website, check out Steve Chou at My Wife Quite Her Job