Amazon is a massive e-commerce platform where billions of customers shop for everything from the newest novel to pieces of stuff like hair clips every day. You can instantly start selling on Amazon, either your own products or sourcing from other suppliers, brands, or individuals. You can register yourself either as a professional or as an individual seller.
Millions of Amazon FBA sellers, and FBM sellers use various types of selling models to earn money.
The following are some of the most popular models:
1. Retail Arbitrage
This technique entails purchasing a product at a retail outlet for a fixed price and then reselling it for a profit on Amazon. It is basically taking advantage of the price difference in two e-commerce platforms.
- There isn’t any need to focus on brand recognition.
- Start-up Cost is simply concerned with the inventory.
- Your profit is mainly determined by your ability to bargain.
- Competition in the model is pretty high.
This concept involves purchasing things in bulk from suppliers or manufacturers at a discount and reselling them to retailers for a profit.Through this model, Amazon wholesale sellers take advantage of discounts from purchasing in bulk to make their prices competitive.
- Easy to source the products
- Because you’re selling a brand that’s already on the market, you’ll have more marketing options.
- There is tough competition in amazon wholesale business
- Finding a product that isn’t already on Amazon is a difficult task.
3. Private label
In this model, you purchase the products and sell them with your own branding. Like, Mr. A purchases a doorknob from china and sells them on amazon with his own brand name. One key advantage of this model is that, you will have your own brand.
- Instead of being bound by a company’s decisions, you get to pick how much to order or produce.
- You won’t have to pay brand-name prices, allowing you to compete on price and gain more clients.
- It will take a lot of your effort and money to start a private label because you have to do everything from logo design to negotiating with suppliers.
- You will not have complete control over product quality or pricing, even if your brand name will be on the goods.
4. Drop shipping
In this approach, when someone purchases the product from your listing in the Amazon store, you place an order on a second platform. And they sent the order to your customer with your label based on the earlier contract you had with the suppliers.
- There is no need to keep a product inventory.
- You could sell any items that the supplier has in stock or is ready to sell straight away.
- It’s challenging to locate a profitable product that meets your customer’s needs.
- The products could be damaged upon shipment, putting your E-commerce site and credibility at risk.
There are several contents out there on the internet related to these selling models. If you are really looking for a start to selling in amazon, zonbase blog posts could help you more, https://www.zonbase.com/blog/selling-wholesale-on-amazon/