The Amazon Side Hustle : Business Models to Help You Add a Second Income
If you don't own a full-time job, you are unlikely to be successful on Amazon. The good news is that over half of Amazon sellers work part-time, while 37% have full-time employment. Perhaps you are looking to start an online business that will eventually allow you to work from home. Perhaps you are looking for a second income. Amazon offers many great opportunities for side businesses, regardless of your goals. It is important to choose the right business model for your Amazon side hustle. There are many ways to set up a side-business on Amazon. Some are easier and cheaper to start while others have greater long-term potential.
The retail arbitrage Amazon side hustle One of the most well-known side hustles online is retail arbitrage. This involves purchasing products in retail stores and then reselling them online to make a profit. Retail arbitrage sellers spend time looking at physical stores (often large-box retailers like Walmart and Target) to find deals that could translate into profits.
Let's suppose that your local Walmart puts lots of toys on clearance after Christmas in order to make way for new Disney merchandise. These toys can be purchased at a fraction of the price and sold on Amazon by retail arbitrage sellers. Sellers can use the Amazon Seller App (or a similar third-party tool) while on the move to assess product value in retail stores.
Should you try this Amazon side hustle? Retail arbitrage is a time- and money-saving model that can be easily incorporated into your schedule. Shopping for inventory can be done whenever you feel like it, or while you are already at a retailer. This sourcing process can also be very enjoyable for people who love to shop. There is always risk in reselling a product from another company. However, you can usually make a decent profit if you do your amazon product research properly. Amazon FBA makes it easy to outsource shipping and handling. Retail arbitrage is a long-term, scalable side hustle that provides consistent income. Retail arbitrage is difficult to scale, even though it can be a great way for people to make regular income.
The wholesale Amazon side hustle Wholesale business models involve buying bulk quantities of products from manufacturers and then reselling them on Amazon. You can either buy products directly from the manufacturer or from a wholesaler. You are essentially selling another brand's product, similar to retail arbitrage. You can purchase much more inventory from authorized distributors. This type of stock will allow you to drive consistent sales. Your supplier will determine your reliability and reputation as a seller. This Amazon side hustle revolves around building relationships with wholesale manufacturers or distributors who can supply you with quality goods on a timely basis. It is crucial to do thorough product research, as you will need to invest in order to have the required inventory. A wholesale model is used by 26% of Amazon sellers, making it the second most preferred business model.
Should you try Wholesale Amazon side hustle? Wholesale arbitrage is a step up from retail arbitrage. It requires more work upfront and is more expensive. While dealing with suppliers can be more difficult and involve additional research, it also offers greater potential for long-term benefits. Once you have established solid supplier relationships and your foundation, you will be able to reduce the amount of work involved. Amazon FBA allows you to have your supplier ship products directly into Amazon warehouses. Are you willing and able to take on risk? Willing to put in the work to establish relationships with suppliers? Wholesale is an Amazon side-hustle that you can do on weekends and eventually grow into a good income.
The private label Amazon side hustle Wholesale is very similar to private label, except that you are selling your products with your branding, and not the products of another manufacturer. This model can be used to rebrand generic products or create a new product. Private label sellers often buy generic products from wholesale distributors. This is different from the wholesale model in that you don't resell Converse sneakers but instead sell a generic high-top sneaker with your own brand (as shown in the below example). Some sellers do not even attach a label to the product. You own the Amazon product listing because you are selling a product that is unique to you, either because it was custom made or because your brand name. You are the only seller on the product page and no one else is competing for the Buy Box. Instead of competing for the default purchase option, your competition is limited to the SERP. Amazon sellers use the private-label model for 71 percent of their sales. This is a natural trend, as every brand that is well-known falls under the "private labels model".
Should you try private label Amazon side hustle? Private labels require the most money and upfront effort than any of the Amazon side hustles. You will also need to be more involved in marketing, branding management and customer support. It can be a side hustle but you must hustle hard to make it a success. However, there is a caveat. Some products are more difficult to design, make, and sell than others. Enamel pins, stickers, cards and other small crafty items are all easier to produce and sell privately labeled. These products reduce the initial capital required.
Private label is an Amazon side hustle that's easy to grow into a long term business. It has lower competition, higher profit margins and more control which makes it ideal for scaling up your business. You can expand your private label to other channels, even though you might start it on Amazon. It is not an easy task and requires a lot of time.
Choose your own adventure! You need to have both your heart and your head when you are trying to choose the right Amazon side business. Your head will tell if the idea is feasible within your budget and time. This is why it's called a hustle. To sustain yourself through hard work, your heart must be there. There are many resources available online that will help you get started if you love shopping and have the time to invest. Do you have a great product idea and want to own your own business? You can start your research, create a business plan and explore financing options for your small business.