I recently read about a twenty-something-year-old the other day who’s selling seven figures on Amazon. It was encouraging to hear how they were able to take their business to over $1 Million a year at such a young age.
You don’t have to be young to start an FBA business though. In fact, I was 37 when I started selling on Amazon. And it transformed my life for the better just months later.
So here’s my advice if you’re looking to create a seven-figure Amazon business in 2019:
1. Start slow, but move fast.
What I mean by that is, jump in and try things out every day, but don’t invest a lot of capital – Learning from what doesn’t work is often more important. Instead of looking at losses at this stage, realize it’s actually an investment in your training towards building a sustainable Amazon business.
2. If you’re Canadian, don’t wait to start selling in the US on .com
I realize it can be intimidating to sell in the US and the rules and requirements can be confusing. But it’s extremely difficult to create a seven-figure business on .ca only and likely will be a much slower process that’s often only achieved if you already have a product you’re selling elsewhere. My business literally took off once I focused on selling in the US and I’ve never looked back. You can read more on that here.
3. Start with used textbooks if you’re strapped for cash
Used textbooks offer the potential to make you a huge ROI, with very little capital required. For instance, you can often buy books for under $6 at local thrift stores and then sell them for upwards of $80 to sometimes $150 or more on Amazon! I’ve done this myself many times when I started out. In fact, on my best day sourcing, I came home with over $1,200 in profit for just a few hours of work. Here’s an article on used bookselling if you’d like to learn more.
4. Consider Arbitrage only as a temporary bridge to growth. It’s an unsustainable long-term business model.
Six months ago, my answer would have been different on this. However, the world has changed. Prices are more competitive between retailers and deals are harder to find. There’s also massive oversaturation with online arbitrage, due to mass adoption of sellers using software and tools to source online.
Brand and category restrictions, IP infringements and inauthentic claims also make arbitrage an exercise in frustration long term. That being said, you can certainly still find deals to sell on Amazon with arbitrage. Just don’t expect to make a living doing it (I know, there are exceptions but I think you can do far better using other models). I consider arbitrage a short-term strategy to grow capital and gain experience vs something to base your entire business around.
5. Focus on the Wholesale Model
Focus on learning wholesale as soon as possible. You’ll never look back, I promise! There are still hundreds of thousands of products that aren’t properly represented on Amazon. This creates a wonderful opportunity for you to capitalize on helping them grow their sales, and profit along the way too. It’s now my sole focus for business. I’m 100% wholesale now. And it’s also 90% hands off for me as well. Wholesale is a multi-faceted strategy, and there are multiple ways to approach it. You can also manage other companies Amazon accounts for them too, for either a fee of a share of the profits. No inventory purchasing required by you. I believe this is the best strategy for 2019 and will be sharing more with people on this next year. It’s not a quick process, however just one solid account could turn your Amazon business into a full-time income, so it’s well worth the effort. Ask me how I know! 🙂
If you’re ready to start a lucrative Amazon FBA business of your own, my Seller Academy gives you all of the tools you need. Click here for more information.
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