Tips for sourcing products by business model

Private labelling

This consists of creating your own product or label, which is particularly popular among Home & Kitchen and Handmade categories. A guide to getting started with private labelling on Amazon.

Retail arbitrage

This consists of finding low-cost items in physical stores that you resell. This is popular among Apps & Games but not in Kitchen & Home or Industrial categories.

Online arbitrage

This is like the above but rather than shopping on the street, you find discount items online. Between ecommerce platforms is tricky and frowned upon – so beware. This is popular for Apps & Games and Video Games but not for Home & Kitchen or Sports & Outdoor. Top tips from a successful online arbitrage Amazon seller.

Wholesaling

This consists of buying in bulk and is popular among the Musical Instruments and Food categories, but less in Books, CDs & Vinyl. It’s not hard to find wholesale products to sell on Amazon.

Amazon’s sales platform is supported by more than 6 million third-party sellers worldwide. 26% sell products using a sales model called wholesale.

Wholesaling is an incredibly profitable business model for sellers who have the right expertise and experience. It can be used to sell your own products or resell other people’s products from your own inventory. Wholesaling is one of the most popular ways to make money on Amazon FBA because it has some built-in advantages that help you succeed:

Low startup costs — You don’t have to buy anything upfront or invest in inventory, so it’s a great way to get started selling on Amazon without risking too much money.

Easy scalability — As your business grows, it becomes easier and easier to grow along with it because there are no limits on how much you can sell or how many products you can offer for sale.

High profit margins — Because wholesalers don’t have to worry about advertising or marketing their products, they can focus on getting the best prices possible instead of spending money on marketing costs and overhead expenses like retail stores do.

Dropshipping

The model that consists of having no inventory at all, but rather fulfilling orders via the supplier. This happens a lot in the Computer, Collectibles, Fine Art and Electronics categories, and less among Luggage, Travel and Food.

Handmade selling

As the name suggests, these sellers create their own products. Help with starting an Amazon Handmade business.

How to Sell Items on Amazon (the Next Steps)

Once you have an idea of what you’d like to sell and your business model, your next focus is on how you’ll sell.

If you don’t have one yet, we highly recommend creating an Amazon FBA Business Plan.

Armed with this, you’ll have a better idea of where you want your business to go, and foundations to make informed decisions with the bigger picture in mind.

Prioritize Your Amazon Accounting Early

But succeeding in business depends on accurate accounting, so it’s worth knowing upfront what automation options exist to handle this for you.

There’s a lot to know when it comes to selling on Amazon. 

You can also find a wealth of other resources about selling on Amazon from SEO to Amazon sales tax, accounting, automation and growth strategies on our blog.