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The Best Way to Sell on Amazon | Amazon Wholesale vs Private Label vs Arbitrage
Are you looking to start selling on Amazon but unsure which method is the best? In this video, Todd Welch discusses the three main ways people are currently selling on Amazon: Private Label, Arbitrage (Retail and Online), and Wholesale.
He explains why Private Label is getting harder due to increased competition and Chinese sellers flooding the market with knockoffs. He also highlights the limitations of Arbitrage and its challenges in scaling.
The video then delves into the underrated gem of Amazon Wholesale, explaining why it's the safest and most accessible way to start your Amazon journey. Discover the benefits of Wholesale and learn why it's a game-changer for Amazon sellers. Don't miss this insightful discussion!
Show Notes & Transcript: https://amazonseller.school/23
Facebook Page: https://amazonseller.school/facebook
All My Seller Resources: https://www.amazonseller.school/amazon-seller-resources/
Ask questions for future podcasts: https://www.amazonseller.school/ask-todd/
Get on the waitlist for small group coaching class: https://www.amazonseller.school/small-group-coaching-waitlist/
Download My Amazon Wholesale Email Templates: https://learn.amazonseller.school/wholesale-email-templates
Book 1-on-1 Coaching: https://www.amazonseller.school/consult/
FREE Amazon Wholesale Webinar: http://learn.amazonseller.school/webinar-registration-page
Private Label
Although many swear by it, private label is a tough gig – and even more so now. What is private label? Simply put, it's the process of choosing a category (i.e. dog products) and creating products within that category to sell on Amazon. Essentially, you must create your own brand from the ground up, a venture many are unprepared to tackle. Especially given the flux of Chinese sellers entering the marketplace with unbeatable prices and knockoff products popping up left and right.
Nevertheless, if you're sold on private label, check out Scott Voelker for some top-notch advice.
Bottom Line? Despite the success stories, private label remains the toughest avenue on Amazon to pursue.
Retail Arbitrage
Arbitrage is a great place to learn the ropes. What is arbitrage? Retail or online arbitrage involves buying products from local stores like Goodwill and Walmart (or online) and reselling them on Amazon. While it's a simple process, if you're caught in a liability rut, Amazon won't accept a receipt from Target as bail. While a great place to learn, Arbitrage is hard to scale and therefore tough to sustain.
Bottom Line? Arbitrage is a great place to start out, but don't stay for too long.
Wholesale
Out of the three entrances to Amazon, wholesale has the most opportunity. As private label and retail arbitrage get harder, wholesale stands above the rest. What is wholesale? In short, wholesale means buying established products from suppliers to resell on Amazon. Luckily you can find ways to predict a product's profitability. Not to mention, Amazon will always take receipts from brands and distributors if your account is ever flagged.
Selling wholesale requires a smaller investment and because you're typically buying products from your own country or the country you're selling in, you can get products in just two weeks.
Bottom Line? While not an "easy" path by any means, wholesale presents the least risk with a high return on investment.
Overall
Hopefully this helped to clear up your options in a time of uncertainty. If you commit to wholesale, Amazon Seller School is a great place to learn. As always, happy selling.
FIND GOLD PRODUCTS TO SELL: Amazon FBA Wholesale Mine & Refine Method: https://amazonseller.school/38
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