The Amazon FBA Program is one of my income streams… and a very good one, BTW. And it’s Bundles, selling a group of products together, that’s making me that money. Let me tell you more…
There are lots of ways to make money with Amazon and I’ve written about some of them here, but selling actual products, new or used, is one of top ways. As a merchant, you can self-fulfill those products or you can Amazon do that for you. That the Fulfilment By Amazon Program (FBA). While it comes at a price, it sure makes the selling process easier. There’s no need for an extra room to store your inventory or have to check your sales every day and make they get shipped.
But the method you use for sourcing your products is one of the first things you have to decide. And there are more ways than one.
Ways of Sourcing Product for the Amazon FBA Program
The first thing you need to know about selling on Amazon is that you can’t sell in every category… at least to start. Many of those categories are “gated” and you have to get approval from Amazon to sell. But there are many that you can sell in without the approval. And once you know the products you have to begin sourcing them, that is finding and buying the products you will be shipping to Amazon to sell. There are four methods to consider.
- Wholesale Sourcing – this method allows you to buy products are a reduced price and in quantity. It works well for items that sell repeatedly, but maybe have lots of competition so pricing needs to stay on the low side. Getting in with wholesalers can be difficult and cost more up front due to quantity minimums.
- Private Label Products – you can buy products and add your own brand to them. You’ll find to find a generic product and supplier. As with wholesaling, this method will take some upfront money as well as some extra work.
- Retail Arbitrage – this method is one many people have used to start and use as a stepping stone into the above two sourcing methods. Some people try to find products from discounters, while other retail products and look to lower their cost through sales and coupons. The biggest problem with this method is consistency because you’re always looking for new product.
- Handmade Products – this is a new category for Amazon who is trying to compete against Etsy. If you’re an artisan or crafters, it’s another good market that can capitalize on the Amazon brand.
- Used Products – books are the biggest used product category for Amazon FBA and one that is the first step for many sellers. But there are other products throughout the Amazon catalog that can be sold used. If you like selling on eBay, this is another good option to consider.
- Bundles – these are my favorite products to sell on Amazon and the way I make good money. Bundles are products that are bundled together for the buyer’s convenience. Good examples are shampoo and conditioners or a toothbrush, toothpaste and flossers. If you solve a problem or a need, you’ll find buyers are happy to pay a little extra.
Bundles Are A Poor Girl’s Private Lable Product
That what Kristin Ostrander from MommyIncome calls bundles. One of the biggest problems selling on the Amazon FBA Program is that for the most part, you never own the listing. If you’re selling that shampoo and conditioner bundle, another seller can hop onto the listing with the same products and then it can become a pricing war right to the bottom.
Making you bundle unique is the key to keeping the listing for yourself. So maybe the shampoo and conditioner above need a third product. One that still relates to the overall bundle, but is a little harder to find… maybe a small package of hair mask that isn’t as easy to find. When you find the right combination and sourcing, you can have a product that consistently sells. And that’s what you need to succeed at selling on Amazon FBA.
If you want to know more about selling bundles, then Kristin has a great course over at her site. Not only does she and her partner, Amy, teach about putting together great bundles, but they teach you how to do it using wholesale methods. Keeping your overall sourcing cost down is important to maximize your profits.
If you’ve been looking for a way to make money from home then the Amazon FBA Program is one of the best ways I know how to start generating income fast. And if you want a little extra advantage, then consider selling bundles.
That it for now so until next time,
Stay positive, stay awesome and reach for your goals,