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.
A private label product is manufactured by a contract or third-party manufacturer that is sold under a retailer’s brand name. As the retailer, you will specify everything about the product—how it’s packaged, what the label looks like, anything else that goes with it—you will pay the manufacturer to have it produced and delivered.
The opposite of this is buying other companies products (with their brand names on them) and reselling it, which is known as arbitrage.
Private label is mostly synonymous to a white label product. Where a white label product is a product or service produced by one company (known as the manufacturer or producer) and other companies (known as the marketers or entrepreneurs) rebrand the product as if they had made it. The only real difference is that with private labeling, you have more choice.