Working from home using Amazon is a much better way to make faster and bigger profits, because Amazon has a customer base 100 times the size of eBay. But Amazon is also much more restrictive in its product categories. Amazon expects you to be a professional expert in the product categories you sell on Amazon. Amazon is also much less tolerant of errors. Where eBay is much more tolerant of mistakes. That’s why there are very few merchants selling on Amazon, which means there will be less competition. And the competition is further reduced if you apply and get approved to sell one of the closed categories like automotive, jewelry, luggage, clothing, etc…
AMAZON products:
First of all, most of the products sold on Amazon are sold by other online merchants, Amazon owns almost no products. Amazon simply provides an online platform for merchants from around the world to advertise and sell their products using Amazon’s website, while pocketing 7.5% to 15% commissions.
There are 2 ways to sell on Amazon:
1) Merchant Compliance it is where you ship your products from your store or from other WEB site fulfillment center such as: Walmart.com, eBay etc,… In this method you never have to handle any product, only your supplier does. . Using this method, you will first get your money and then buy the product for your customer. A much safer way to earn income. However, Amazon only pays every 2 weeks. So every 2 weeks you get your money back, plus the winnings. Compared to eBay, you get your money for that product right away, and when your order is fully fulfilled and delivered to your customer, the rest of that money is yours to keep as pure profit.
two) Fulfillment by Amazon (Fulfillment by Amazon) It’s where you look for Manufacturing or Manufacturers outlet stores to pick up new products for pennies on the dollar. In this method, you make the highest possible profit margins, so you buy for $1 or less, and then sell for $5 to $10 or more. Which ends up being 5-10 times what you bought it for, you then send it to Amazon’s warehouse and let Amazon advertise, sell, and ship the products to your customers for you. You don’t have to do anything other than keep inventory in stock on Amazon. A lot less work on your part, especially if you can have your manufacturer ship their products directly to Amazon’s warehouse for you and many do. Some will even put your brand label on that product for you for a small fee. In some cases, you can ship to your facility (or home) and then package that product, or a package of products to make one product. Then send that product to the Amazon warehouse. Bundling multiple products together as a single product makes it harder for your competition to copy your product exactly. Thus, further eliminating competition. For example, you can sell a set of pizza pans with a pizza cutter in a package.
Finding manufacturers is relatively easy, just look for the product’s UPC barcode on the product’s packaging (not the store’s barcode, which is usually an additional label with the UPC code affixed to the product’s packaging by the store) . Next to that barcode is the address and phone number of the manufacturer (or the manufacturer’s distributor). Just call that phone number and ask for the minimum order quantity and cost per unit. If you order directly from the manufacturer, you may need to buy in bulk, but remember that you’ll be buying these products for pennies on the dollar, so even if you have to buy 500 of them at 20 cents each, it’s only going to cost you $ 100, for example. And if you sell them for $10, you just made $5000 while spending just $100 on the products and $3 in Amazon commission fees + handling fees, you’re still pocketing $3400 in net sales profit.
Using manufacturer discount stores like Dollar Tree, Dollar General, 99 Cent Max, Five and Under, Topper Liquidator, etc., you can buy a small quantity of these products first and see how well they sell on Amazon through Fulfillment by Amazon. . And if they sell well, then order wholesale from the manufacturer. This way, you are only spending a few dollars to try marketing a product on Amazon. Much less than the $100 mentioned above. But the manufacturers outlet stores will cost a little more per product than the manufacturers cost. Usually around $1 or less each, sometimes more. Depending on which manufacturer outlet store you shop at.
Useful tools to acquire:
“ASINspector” is a valuable tool you can find online that will help you find products that are best sellers in a given category name on Amazon. But this tool also works on eBay, Walmart, and other online stores. The results will be compared with those of Amazon in terms of sales volume, prices and profit margins. This tool will even advise you on the best sources for a given specific product. In addition to other market studies such as sales trends in past and current times. This tool measures a large number of market parameters.
You can even sort and filter these sales volumes and gross profits in order from highest to lowest or lowest to highest. Using this tool, you may find that Amazon has the lowest prices and eBay sells the highest, so in which case you want to source from Amazon and sell on eBay. But if it sells lower on eBay and higher on Amazon, you want to source from eBay and sell on Amazon. But don’t always assume that eBay or Amazon will have the best prices, because sometimes Walmart or other online stores do.
