AMZ Seller Financing • April 16, 2018
Selling online on Amazon is a great way to earn some extra money, or even make a living. There are many great things about it, and one of the best is certainly the fact that you can work from the comfort of your own home. When you create an online shop on Amazon, you are your own boss, and it’s you pulling all the strings.
But, how does one start running an Amazon business from home? And how does it actually work? Let us take you through the basics of working from home while selling online.
How to Start an Amazon Business
1. Decide What You Sell on Amazon
This is one of the questions that pop up most often. And there are quite many people who encounter problems while starting out – simply because they don’t know what to sell.
The opportunities are endless, but you have to know where you are and where you want to go. Otherwise, you will get lost in no time. Generally speaking, there are three types of products you can sell on Amazon:
- original products (products that you make)
- wholesale products (products from suppliers)
- used products (second-hand goods)
It’s important to note here that every one of these is potentially lucrative. There are some who think that the only way to make a decent living on Amazon is through selling original products – but they forget that it’s really hard to be creative. It sounds nice, but it’s harder than it sounds.
Before even thinking about setting up your online store on Amazon, focus on the most important aspect – finding your niche. You don’t have to stick to only one niche forever, but you also cannot switch back and forth. Be sure to choose one niche and work within it for some time.
The best kind of product depends on three factors:
- your business goals
- your talents and abilities
- products you have access to
2. Choose an Order Fulfillment Method
Once you’ve decided on the type of products you want to sell, you need to figure out how these products will be delivered to your customers. This is a crucial step, so take it seriously. There should be no rushing when it comes to this; you need to have a clear idea about how this process will be run.
There are three basic options for you here:
- keeping the business in-house and sending the products yourself
- partnering with Amazon to dispatch orders on your behalf (Amazon FBA service)
- reaching an agreement with your wholesaler or manufacturer (drop shipping)
3. Start Small and Develop Gradually
If you’re a novice when it comes to online selling, the last thing you want is to start big. Big should be your goal, but be sure not to start this way. It may seem like you can handle the pressure of it all, but the reality will soon prove otherwise.
Here are the essential tips for starting out small:
- avoid big brands (don’t compete with the big cats at this stage)
- choose products that are light in weight and small in size (they’ll be less expensive to ship)
- go for reusable products (that can be bought multiple times, not just once)
- go for products high in demand (sought-after products on Amazon listings)
- focus on the products that are relatively inexpensive (affordable)
If you want to learn more, please check out the other articles in the blog section of our website. You will find a lot of useful information about selling on Amazon, including tips, advice and latest news. Follow us on Facebook, Twitter, and LinkedIn, and subscribe to our mailing list to get the latest news and offers!