I’m thrilled to share a guest post by Keyshia Imani, who writes about personal growth and entrepreneurship at Aspiring Journey. Keyshia has also built a successful side hustle using Fulfillment by Amazon (FBA), where you send goods to Amazon’s fulfillment centers for handling instead of shipping them directly to customers.
I’ve talked about FBA before as a popular way to make money online, but I don’t have personal experience with it. So, it’s great to hear from someone who’s actually done it. Here’s Keyshia’s story:
In February 2019, I left my full-time job to become a full-time blogger, thinking I had everything figured out. I cut off all backup plans, but as the year went on, my savings dwindled, and my debt increased. Without reliable income, I started looking into side hustles.
One day, I read about a man who made millions flipping toys from Walmart on Amazon. Inspired and desperate, I decided to explore Amazon FBA.
Why Start on Amazon?
Amazon FBA is like the modern-day gold rush of e-commerce. It’s what eBay was in the 90s for sellers, but on a much bigger scale. Amazon accounts for over 50% of e-commerce sales, and an estimated 62% of households have Amazon Prime. People love the fast shipping—sometimes, I get my packages within a few hours or the next day.
So, how does this relate to making money? Over half of Amazon’s inventory is sold by third-party sellers. FBA, or Fulfillment by Amazon, allows people to make money by shipping their products to Amazon’s fulfillment centers, which then distribute the products across the country. This is why packages can arrive so quickly.
Different Selling Methods on Amazon
No matter how you choose to sell on Amazon, there’s an upfront investment. What’s great about Amazon FBA is that you can choose a method that fits your budget. Some methods have lower costs but higher competition and lower profit margins, while others require higher investment but offer higher profit margins and lower competition.
When I did Amazon FBA, I used retail and online arbitrage.
Retail Arbitrage
With retail arbitrage, you buy items on sale or clearance from retail stores like Walmart, Target, or Petsmart and then sell them on Amazon.
Online Arbitrage
Online arbitrage is similar to retail arbitrage, but you buy items online instead of in-store. I used this model, having items shipped to me and then reshipping them to Amazon’s fulfillment centers.
Wholesale
Wholesale involves buying products directly from manufacturers at wholesale prices and then shipping them to Amazon’s fulfillment centers.
Private Label
Private labeling means buying a product at a wholesale price and selling it under your own brand. The goal is to create a better listing than competitors, even if the product is the same.
How I Made $500 in a Month
I chose online and retail arbitrage because they fit my limited budget. If you can only invest $50-$100, these methods are your best bet. Wholesale and private labeling can get pricey and competitive.
I bought products that I knew would sell and make a profit, had them shipped to my house, repackaged them, and then shipped them to Amazon. The main challenge was researching which products were selling well on Amazon. Once my items were processed and listed, they sold quickly.
I bought and sold two items: a fish filter and Kat Von D makeup powders, buying as many as I could.
Things to Know Before Starting
I made a lot of money quickly because I bought items on sale and clearance, using coupons and cashback. I used a cashback credit card and cashback sites to maximize savings.
It’s crucial to do proper research before diving into Amazon FBA. There’s a lot of money to be made, but also a lot to lose. Amazon has restrictions on what you can sell. I lost $300 on a product because I wasn’t qualified to sell it due to Amazon’s restrictions, and I couldn’t return it.
The key is to ensure you’re qualified to sell certain items before purchasing them. If you decide to get involved in Amazon FBA, make sure to do thorough research.