Amazon FBA (fulfillment by Amazon) is one of the hottest side hustles going. It allows you to tap into Amazon’s massive audience of buyers on the front end, AND their world class logistics network on the back end.
Amazon FBA business models generally fall into one of two categories:
This model relies on finding undervalued merchandise locally or online, and flipping it for a profit on Amazon. It could be books, toys, tools, electronics, anything really.
It’s super easy to get started; all you need is a free Amazon seller account and to download their free seller app to your phone. Then, when you’re out shopping, stop by the clearance aisle to scan a few barcodes and see what the items are going for online.
The app will tell you your estimated profit after fees and also the sales rank of the item in the category. My general rule is if I can double my money and the sales rank is less than 100,000, I’ll go ahead and buy it.
I’ve made a few hundred dollars doing this in my spare time.
The next stage that many people get into with Amazon FBA is importing and private labeling their own products. This is a little more research intensive and capital intensive; you’ve got to have an eye for figuring out which products will sell and then have the cash to manufacture them.
Some friends and Side Hustle Show guests have built pretty serious businesses following this model, and I invite you to explore some of their stories and tips in the archives here.
Buying products for a low price and selling them for a higher price can be a quick way to multiply money, but what if you could find profit from the comfort of your home?
This is the promise of online arbitrage.
Online arbitrage is the process of buying inventory from one site to resell on another. It’s amazing to me that this is a thing, but it very much is.
“It was costing me money to go to my job,” Nate told me.
That was a year after Nate and Alysha Jackson started their Amazon FBA retail arbitrage business — with just a $100 investment.
Since then, the former public school teachers have sold over $1 million worth of products on Amazon!
In the e-commerce space, selling private label products on Amazon has been a popular side hustle for the last several years.
But is it still the best way to go?
Or is there a lower risk, higher reward way to turn your ideas into profits?
Do you enjoy hunting for bargains that you can buy low and sell high?
Charlie William does, and his book flipping business is proof that this business model still works.
He’s become a master deal-hunter, selling more than $9,000 worth of used books last month on Amazon.
The best part? Anyone with access to thrift stores, yard sales, and local charity shops can get started with this side hustle for just a few bucks a month.
Amy Feierman and Kristin Ostrander of MommyIncome.com have generated over $2 million in sales on Amazon over the last 12 months – not through retail arbitrage, not with FBA, but with a unique strategy that has high margins and lower costs per sale.
What are they selling on Amazon?
Bundles — Think shampoo and conditioner, peanut and butter, or any 2-6 products that compliment each other and provide some added value and convenience to the buyer.
Jessica Larrew and her husband of TheSellingFamily.com have sold more than a million dollars worth of stuff on Amazon.
The surprising – and I think exciting – way they’ve done this is by finding products to resell in nearby retail stores.
Mitch Davis is selling around $9,000 per month with private label products using the Amazon FBA platform as a side hustle from his day job.
This is impressive, but his story is a little different to the other FBA sellers I’ve had on the show.
Can you find Amazon FBA profit from the comfort of your couch?
Amit Desai of CreditCard101.us has built a business doing exactly that, and now he’s on track to sell $250k worth of stuff this year – all on the side from his day job.
Recently a friend of mine posted about how he sold his 2.5-year-old Amazon FBA business for over $400k, which I thought was incredible.
The twist was it turned out the buyer was a familiar face as well. Spencer Haws of NichePursuits.com was the seller, and Ace Chapman of AceChapman.com was the buyer.
They are both previous guests of the show. Spencer was on episodes 18 and 70 of The Side Hustle Show talking about niche sites and software, and Ace was a guest on episode 182, talking about investing in digital real estate.
It’s no secret that Amazon FBA is one of the hottest side hustles going right now, and it shows no signs of slowing down anytime soon.
FBA is Fulfillment by Amazon, the program that allows you to list your own products for sale on Amazon, tap into their giant audience of customers, and have them handle all the shipping when orders come in.
The trick is figuring out which which products to sell, and that’s where Greg Mercer comes in.
