25 Mar Do I have to do wholesale or Private Label to make money on Amazon?
Making a lot of money quickly on the internet is possible.
For example, with reselling you can sell things you own, but don’t use or wear like jewelry, used clothing, and even used eyeglasses. You can make a couple thousand dollars in a few weeks or less by selling your old stuff.
The problem is you’ll eventually sell everything you want to get rid of, so you’ll need more inventory.
Lately, I’m seeing a lot of ads on Youtube of marketers toting the immediate money making potential of selling wholesale or private label on Amazon.
These two are almost the same thing. With wholesale you buy a lot of cheap things made in China like earbuds, waterbottles, iPhone covers, sunglasses, or Tupperware containers. Then you resell these things on platforms like eBay and Amazon.
These aren’t high ticket items. But because you’re buying things in bulk from China, the idea is that you’ll be able to charge a high enough markup to make a profit. Even if the profit is only a couple dollars on each item, these small $2 sales add up.
Private label is basically the same thing. Except you add a logo to these cheap, massed things to make your own ‘brand’.
My sarcastic description is an obvious oversimplification of the process. And some people do indeed make millions of dollars on Amazon doing wholesale and private label.
But, the problem with these business ideas is that they require a lot of upfront capital. And you need to talk to Chinese companies to have them produce and transport the goods to an Amazon warehouse.
And if your things don’t sell you then have to deal with 1000 cheaply made American Flag themed iPhone cases.
The point is, most marketers touting wholesale are trying to sell you their course, or subscription based website, or book.
Now I’d do the same if I had a course to sell, but I don’t right now.
Though I’m releasing a guide in the next few weeks!
There are so many free ways to make money online that you should try before jumping straight into a big investment project like wholesale or private label.
Releasing Kindle ebooks is free. Listing up to 50 things on eBay is free. Uploading t shirt designs to Amazon Merch for royalties is free, creating an account on Upwork to do freelance writing or editing is free, and selling on Craigslist is free (and all cash)- These are just a few of the free ways to make money online.
And if you do decide to sell a high volume on Amazon, a better thing than wholesale on Amazon is selling used books.
Used books at thrift stores and Goodwills are usually only $1 or $2, the resale value can be high, and the market for used books is huge.
I got each of these books for $2 or less and they sold for $30 or more:
I look for profitable books that are ranked 1,000,000 or lower (the lower the rank the more popular it is). Besides toys, books are one of the deepest markets.
Some old-time book resellers complain that book flipping is nowhere as profitable as it used to be. With rising fees and more resellers entering the game, they’re probably right.
But reselling books is still one of the staples of my income:
Doing a riskier, but potentially high profitable pursuit like wholesale can make you a lot of money.
But they’re so many easier, more straightforward (and free) ways to make money online. It’s good to learn how to swim in the relatively calm pools of eBay and Kindle before jumping into the rapids of wholesale.