Many people are in no hurry to start a business on Amazon, and there are reasons for this. Some are hesitant, others stick to their preconceptions, which they learned from business "experts", from friends or read in reviews about other people's unsuccessful experience. Let's break down 5 myths about the Online Arbitrage model on Amazon.
1. Online Arbitrage is a banned sales model on AmazonFalse
The essence of online arbitrage is to buy a batch of goods from a manufacturer and sell it on Amazon's platform at its own price.
The company is not only aware of the presence of such entrepreneurs on its platform, but is always ready to help. There is also a support service on the site, where you can contact with any questions or problems that arise. The main thing is to comply with the rules of the Amazon platform.
2. Favorable deals are very hard to find, there are almost none left
False
Deals do need to be found. The search process involves experience and certain skills. Beginning sellers sometimes need a lot of time to find the right products. While more experienced sellers can quickly evaluate different options and choose the most profitable ones.
3. Big competition
True
There is no competition only in "dead business". What to do?
Become competitive. For example, provide your customers with free gifts, develop unique product bundles (sets of products from several categories), offer guarantees and attractive terms.
Being better at something than your competitors.
4. On Amazon's long march to profitability
False
Unlike other methods, Amazon allows us to prepare the product, ship it to warehouses, and start selling from our account within 3-5 weeks.
Yes, it won't happen in one day! But what business can get up and running in a couple of days? If you know one, share in the comments, we don't know anything about it.
5. We need a lot of investment\
False
Of course, if you don't have any money at all, then you shouldn't start. Remember: you can only make money from money!
However, another question arises: how much? For the first batch of goods you will need 300-500$, and you can get from 20% - 40% profit from this amount. Then you will be able to increase your turnover.