Over the last decade Amazon has become a thorn in the side of department stores nationwide. For every job loss in the department store industry Amazon has picked up 2 new employees. Now that Amazon has built out such a robust infrastructure it is easier than ever to make good money on Amazon. Most people don’t know that nearly anyone can sell on Amazon. In fact, 3 million Americans participate in Amazon’s 3rd party seller program, and enrollment is now open to the public. The effect on Amazon’s bottom line is so robust that 3rd party sales on the site now account for 56% of total sales are growing at an astounding 52% per year!
Amazon: Practically No Barrier To Entry As A Seller
The truth of the matter is you don’t need your own factory or brand to sell on Amazon. You don’t need a private label, or high-tech equipment. You don’t even need to register a formal business entity if you don’t want to. (A sole-proprietorship will do just fine.) You don’t need massive amounts of startup capital either. You don’t need a dedicated office or a warehouse. This kind of business can be run from home and the time commitment is entirely scalable. You can make extra cash on Amazon in your spare time.
Amazon Provides Tools You Need to Get Started
What you will need is something to sell. Fortunately, Amazon makes this easy too. The Amazon Seller App is free on both Android or iOS smartphones. With this tool you will have the power of finding inventory anywhere you go. With your smartphone you can begin hunting for bargains, and when you find a deal you can list it for sale on Amazon. Common stores to look for discounted products are all over the country. Think Wal-Mart, CVS, Rite Aid, Walgreens, Ace Hardware, Home Depot, and Lowe’s as prime targets for hidden treasure. (Did you know a single Wal-Mart can carry over 100K different SKUs?) You’ll want to look for items that are small and lightweight. Check clearance sections for discontinued items that are heavily marked down. These can be some of the biggest winners. You could also consider checking places like Goodwill or other thrift stores but be wary about the condition of the products, and never list something on Amazon that is used as new. (Although you can sell used products as used, and this is a common tactic for books, DVDs and video games.)
Immense Earnings Potential On Amazon Marketplace
When you find something of interest, scan the UPC barcode using the Amazon Seller App and your phone’s camera. This will look the item up on the fly and tell you crucial details like the current selling price, and sales rank. From here you can compare to the price you’d pay for the item at the store, and then figure your profit to decide if you’ve got something you want to purchase for resale Just like this young teen who buys locally and sells on Amazon. He reported over $1.7 million in sales in 2020 following these kinds of methods. CNBC profiled another seller who said they sourced their products from Wal-Mart. He made well into 6-figures annually in net profit for himself. (He reported $6 million in gross sales and provided jobs for 10 employees.) These sorts of earnings are more common than you think. In fact, more than half of sellers make over $5,000 per month.
Fulfillment By Amazon (FBA) Allows For Savings Of Time and Money
Don’t want to ship your items out individually? You can save money, time and hassle by having Amazon handle the shipping and customer service for the items you sell. Enrollment in a popular Amazon program called FBA (Fulfillment By Amazon) may be for you, and it is open to all Amazon sellers. For a flate rate of $39.99 per month, you gain selling privileges at a flat rate and can take advantage of Amazon’s partnered carrier rates with UPS which allows you to ship your products to Amazon’s fulfillment centers for a fraction of what it would cost at retail. For example, you can ship a 25lb box for about $11, and subsequent boxes are lesser still. Once at Amazon, all the shipping and customer service for your product will be in their hands. You will not have to answer to customer emails, and when a buyer purchases an item of yours, Amazon will ship it to them directly on your behalf.
How To Save On Common Shipping Supplies
You can get boxes at Home Depot, Lowe’s, or U-Haul that are sturdy enough for shipping to Amazon. They cost about $1 or $2 dollars. (Small or medium boxes often work best.) You can buy big 110-yard rolls of tape from Amazon or eBay for about $2 per roll. You’ll need labels to cover the UPC of the items you ship to Amazon. These are $10-15 for a pack of 3,000.
Now is a Great Time To Make Extra Money With Amazon
With prices rising rapidly across the country, the American consumer is on the lookout for good deals. The need for lower prices creates a great opportunity to start selling on Amazon which CNBC’s Jim Cramer reports is one of the strongest deflationary forces on Earth. If you like shopping and need some extra money, now is a great time to start hunting for deals in your area. You can get started in your spare time and can commit as little or as much time as you want. The potential opportunity is nearly limitless.