How to start an Amazon business with no money #amazonfba
What if there was a way to sell on Amazon that guaranteed you wouldn’t lose money?
No MOQs.
No maxing out credit cards.
No massive, up-front inventory purchases that make you wonder if you’ll ever make the money back.
This model DOES indeed exist.
And no, I have nothing to sell you in regards to this model. No dog in this fight. Amazon FBA private label works great, too. I’ll simply bring you this new business model and if you like it, try it out. If you have an existing PL or wholesale business, you can use this to supplement your existing revenue with zero additional cost. And add new SKUs faster than the competition.
Let’s talk about it.
It’s the Distributor Model.
Take existing brands that AREN’T on Amazon, and put them ON Amazon. Collect the revenue. Pay the brands biweekly on the sales made during the last 2 weeks. When something sells, the brands will fulfill the order to the Amazon customer via FBM. As SKUs become proven winners, move them to FBA. Do this for many SKUs. As we’ve discussed before, about 1:5 SKUs are winners (60 sec YouTube rundown here). Rinse and repeat until you have a roster of powerful best-sellers. You need to take at least 40% of topline revenue for this to work. For your supplying brands, it’s like having a wholesale account.
Done.
Pros: no money down. And you can roll out a bunch of new SKUs quickly.
Cons: requires some in-person selling and ability to overcome rejection.
It looks like this:
Google “farmers market near me”, or “craft show near me”. You’ll see local, in-person events where folks are selling their physical products.
Don’t approach the fresh food folks. Unless it’s something with a long shelf life, like jam 🍇
You’re looking for products that are S.E.A. (“sticky, expensive air” — vid here if you like). To elaborate:
– sticky: have repeat purchase potential
– expensive: priced higher than $30. The more the better
– air: physical light and small, to minimize FBA fees
I’m talkin’ your jewelry collections, your giftables, your non-seasonal apparel, your niche supplements, etc.
And, make sure the craftspeople can make the same SKU, reliably, over and over again.
As you walk booth-to-booth, you will face rejection. Some folks don’t like Amazon. Or don’t want to sell online. But some will! And those are the brands you can distribute for. They’ll love that you’re taking the “Amazon issue” off their plate.
I write these because I want to “solve the money problem” for more folks. It’s important for the world. And to that end, I’ll be back tomorrow. And the next day 🙂
If you’re running an Amazon business and want to increase your earnings (not just revenue), that’s something we can often help with using Amazon SEO and Amazon PPC. It’s a powerful combo.
To get a free, tailored plan on scaling your Amazon operation, feel free to book a call with my team here: