One of the most common questions I get from new sellers is, how much of an Amazon FBA investment do I need? Personally I started my Amazon business with a $300 investment. I know… its crazy… but it worked.
I had a lot more money to throw around than $300, the thing is that I don't like taking unknown risks. This is not a good or bad thing, but it has helped me a lot. I am always cautious before leaping into something, but at some point you have to dive straight in and commit a small amount of money.
Short Answer: Amazon FBA
Long Answer: It's complicated…
I have years of experience with both drop shipping (9+ years) and Amazon FBA (3+ years) and I can tell you that both are phenomenal business models and very empowering to be self-employed or make money as a side-gig.
During high school, I used to make about $2,000/mo PROFIT with drop shipping, and then people started to catch on. It is scalable, but you will always run into issues. The most likely problem is the rat race to the bottom; this is an endless pursuit where margins get slimmer and slimmer, since you don't control your product and there are always competitors.
The world is an amazing place today where the creative ways to earn an income are endless. Gone are the days where you need to work a 9-to-5 job to make an income. With Amazon FBA there is a huge opportunity to make additional income (or even replace an income). However, there is not a shortcut to success. In this post I will share with you the most important part of starting an Amazon FBA business.
The one segment of Amazon FBA that I am going to focus on is private labeling. This is where you will source a product (usually from China) and marketed it as your own brand (you usually put your brand name on it too). This way you don’t have to deal with the fierce buy box competition with other sellers, and you are actually creating a brand.