This article will take you through the different Amazon businesses and help you decide which one is most profitable for you.
Which Amazon Business is Most Profitable: Amazon businesses can be profitable, but which ones are the most profitable? The answer to that question will depend on various factors, such as your Amazon business model, where you live, and your marketing skillset.
Which Amazon Business is Most Profitable?
In this article, we’ll go over the most profitable Amazon businesses you can start today based on your particular business needs.
Selling on Amazon
Is it worthwhile for you? Deciding whether to sell on Amazon can be a difficult choice. Yes, there’s no doubt that Amazon has become one of—if not THE—most effective channels for selling products online. With over $136 billion in sales in 2017, every vendor should be at least considering selling on Amazon.
That said, while you may think your product will do well just because it’s listed on an authoritative site like Amazon, that’s only part of the story. There are many factors to consider when choosing whether to sell on another platform or site—and that applies doubly if you’re thinking about making a move to (or onto) Amazon…such as: How competitive is my product category?
Dropshipping on Amazon
Dropshipping lets you sell products without having to stock and ship them yourself. You make money by charging a markup on items that are shipped directly from third-party sellers—or suppliers—to your customers. This way, if you’re selling a widget for $10, you don’t have to spend much to buy it from a supplier and then put it in an Amazon shipping box.
You can see why that would be appealing: no inventory, minimal overhead. But there are trade-offs. For one thing, dropshipping isn’t really scalable. In other words, it requires more work for additional sales—you have to source new products when your existing inventory runs out or risk losing sales by disappointing customers who want something in particular. And because you’re not storing your own inventory, you also lose some control over what sells well and what doesn’t.
Then again, many people start their business with just one product they know will sell well. Over time they can expand their line to include related items that do well as well. The key is doing the research before choosing a niche so you know whether it’s best suited for wholesale or retailing through Amazon FBA (fulfilled by Amazon).
Wholesale means buying directly from manufacturers; retailing means buying products at wholesale prices but keeping them in your own warehouse until they’re sold through Amazon FBA (and fulfilled by Amazon). Wholesale might seem like less of a hassle because you’re not dealing with customer service issues.
Wholesaling on Amazon
Buying at a lower price and selling at a higher price on Amazon can be a great way to make money. The first thing you’ll need to do, however, is to figure out where your inventory will come from. You have three main options: Buy from other people, buy from retailers directly or buy from wholesalers.
This guide helps explain how each works and what you should keep in mind when choosing between them. Wholesaling is an especially good option if you want to sell products that are harder to find on Amazon. For example, if there aren’t many sellers offering an item, it might be worth buying it wholesale and listing it yourself.
Setting up your own Shopify store
Shopify makes it very easy to set up your own online store and start selling products. This will allow you to test out multiple avenues in order to make a profit on Amazon. You can easily incorporate one or more of these platforms into your existing Shopify store for extra revenue.
All these services are fairly inexpensive, some even free so there’s no harm in trying them out before making a decision on which ones work best for you. Also, consider joining an affiliate program like ShareASale where you can get access to thousands of high-quality offers that will help you drive traffic and sales to your store.
Selling Bitcoin and other Cryptocurrencies
If you want to get into cryptocurrency, selling it can be a big way to do that. Cryptocurrency exchanges allow you to put your money (in any currency) into a virtual wallet and exchange it for other cryptocurrencies. This helps people new to cryptocurrency invest in more stable coins like Bitcoin or Ethereum, as well as find undervalued coins that have the potential for growth.
It’s important not only to buy low but also to sell high because if you just hold onto cryptocurrency when its value goes up, you are doing very little work (compared with buying low and selling high). Finding a good exchange is key here; some countries such as Japan have fewer options than others.
Exchanges are often easier to use than peer-to-peer platforms, so they might be a better option for beginners who aren’t familiar with crypto yet. Selling on an exchange requires registration while selling through P2P platforms doesn’t require much of anything besides knowing how to send crypto from one person’s address to another’s.
Merch by Amazon (Print on demand t-shirts)
In August of 2017, Merch by Amazon announced they had paid over $100 million to their designer community. While that seems like a ton of money, there are a few things you should know before quitting your day job to start a Merch by Amazon business.
First, you don’t see any money for about 3 months after your items go live for sale (this time can vary). This means there is cash flow up front, but it takes about 3 months for that cash flow to payout. Second, it doesn’t have to be a full-time job. Many entrepreneurs and side hustlers do well with M by A as a way to create passive income in their spare time or during lulls in their primary career.
Fulfilling orders for other sellers
You can earn money by fulfilling orders for other sellers. This isn’t a great way to get rich, but it can be an easy way to make extra cash. If you have any extra storage space, becoming a multi-channel fulfillment service (MCF) might be a good option for you. MCFs typically store and ship items sold by different sellers at a discount so that sellers don’t have to pay upfront shipping costs.
In exchange, they often take on additional costs like warehousing fees or charge a per-item fee. Get started today with Ezbuy and help sellers all over Singapore ship their products here at prices they set themselves. Read more here: Multi-Channel Fulfilment Service – Ebuy Guide. If you want to start an online business from home then check out my free course! It’s very detailed and will walk you through every step of starting your own business from home! Click Here To Check It Out!
Arbitrage with Merchant Fulfilled Prime (MFP)
One business model for sellers with inventory is to sell through two different channels on Amazon. For example, if you already own a retail store and want to expand your sales online, you could start by selling in-store through your existing website or eBay store and continue selling online via Amazon (either directly or through FBA).
This model might be an attractive option for sellers who do not want to deal with the fulfillment of orders on their own but also don’t have enough volume that they can use FBA as their primary sales channel. An advantage of selling via MFP versus FBA is that MFP products can qualify for Prime shipping.
Franchising
Is Franchising a Viable Option? Sure, it’s possible to set up your own business and operate independently of a franchisor (and some entrepreneurs do just that). You’ll have all of your eggs in one basket and will have to be extremely savvy about what you’re doing. However, franchises are becoming increasingly popular for good reason. Although there’s no guarantee that you’ll experience success by becoming part of a franchise.
The odds aren’t great—working with a brand can be an excellent way to get your foot in the door and learn how to run a business from those who know how best. If you’re a business owner looking to expand, you may be considering franchising your company. It’s an excellent opportunity to build upon an existing brand while also diversifying your income potential.
You can still retain overall control of your business without being directly involved in all its day-to-day operations. With franchising, you’ll have a proven model and support system in place that will help ensure both initial and long-term success. However, there are some pros and cons to consider before making any decisions.
Also Read: Which Product is Best to Sell On Amazon?
Conclusion
In an ideal world, your goal should be to create a diversified portfolio of businesses with different products and services that are aligned with your skills, interests, and strengths. This way you can maximize your chances of success while mitigating any risk you might face. The best thing you can do to diversify is to create multiple revenue streams.
Selling on Amazon allows you to do that because it provides many opportunities for revenue generation from a single storefront. As long as your product offering meets a consumer need, generates good traffic, and has little competition in its niche then there’s no limit on how much money you can make selling online via Amazon!
