3 Simple Steps to Start Selling On Amazon With Little or No Money
In this article, I’m going to go over the 3 steps to start selling on Amazon with little or no money to start with. I completely understand that if you are starting a business on Amazon or just in general, you may be working on a shoestring budget, which leaves you with little to invest. So let’s go over how to overcome this obstacle.
The Big Misconception
Before I explain how you can start selling on Amazon with little to no money, I must call something out. There is a common, massive misconception among most teachers of Amazon, be it private label selling or other methods for selling online. That is that you have to invest, let’s say, at least $1,000 to get started selling on Amazon. This is a lot of upfront capital and investment to get going, and it’s one of the issues that will prevent a lot of people from starting to sell on Amazon.
Let me just tell you, though, that this is absolutely wrong. It is total and utter BS, and it’s actually astounding to me that this is something people still talk about.
I think one of the reasons people say this is because they use this against you to sell you other solutions, to convince you that their way of making money online is somehow superior to selling private label products on Amazon.
While there are many, many ways to make money online, I can honestly tell you that after more than five years in the business, I have never seen any method make more people wealthy and successful as quickly as selling private label products on Amazon. This is as true today as it was five years ago. So this claim that you have to invest a significant amount of money to start selling on Amazon is just ludicrous, and you really have to be a bit stupid, to be honest, not to see that you don’t have to spend a ton money upfront to private label.
So, there are three steps to start selling private label products with little or no money on Amazon, and I’m going to show you what those are right now.
Step #1: Identify A Great Opportunity Through Validated Product Research
Let me first say that I have mentioned our proprietary methodology for doing product research on Amazon in other videos on our YouTube channel in which you can see how we do this, so make sure you check that out after this article.
Basically, our methods almost guarantee your success because you are going to find products that are proven and backed by data to be good, hot opportunities for you right now, so the first step is not to guess and waste your time, energy, and money on something that isn’t almost guaranteed to succeed.
Step #2: Source A Hybrid Product, Not A Full Private Label Product, To Start
A hybrid private label product simply means that you will find inventory that is already made and is unbranded to put your brand on and sell. The classic full private label approach is to have a factory run a new production for you and create the products from scratch, putting your logo and branding on the actual product.
The only problem with this is that this does indeed have a minimum investment, which can be rather steep for someone just starting out.
This is because the factory must run an entirely new production for you, and that costs them a bit of money. To simply turn on the machine and run it does cost a bit of money, so for it to make sense and be profitable for the factory to do this for you they need a minimum order from you, which is often times around 300 units.
Since I live here in China, I know this firsthand, and it is not the factory’s fault. It’s really just their business model, but there is a very easy way around this. First of all, the only reason you’d want the factory to run a new production for you is if you’re customizing the product, or if you really want your logo or branding on the unit itself. This is not something that is required to start selling private label products.
So if you remove that need, everything changes. You see, most factories will carry some unbranded inventory and there’s a ton of companies in China, for example, that will carry products that are already made, and they are happy to sell even five units of that to start.
Creating Private Label Products
For almost any product you can find unbranded inventory through suppliers or sites like AliExpress or Alibaba, and what you will simply do when you find that inventory is ask the company, the factory, the trading company, or whoever you’re dealing with to put stickers on the product or put them inside a bag with a simple note in or sticker that bag. You can even do this yourself if you want to see the units and have them shipped to your home first. This is literally all you need to create a private label product on Amazon.
Trust me, as long as the product is of high enough quality, the customer will not care. They really will care about the product itself. Yes, it is not as good for building brand loyalty and wowing and impressing the customer, but people will generally have no problem with this.
If you have bought products on Amazon, you’ll see that a lot of products actually arrive like this and it’s because the biggest sellers know this. The biggest sellers do not fully private label products before they’re proven to sell. Logically, they would much rather source 100 different products like this and start with 5-10 or 25 units of each product and simply follow the strategy: set it up on Amazon and then scale the winners.
This is much more profitable and much more efficient, and there is no reason for you not to do this. So again, for any product you want to sell, you can reach out to someone with unbranded inventory and get this done for as little as one unit as the lowest amount you want to start with.
So let’s recap the first two steps to starting the selling process on Amazon with little or no money. You could start with, let’s say, five units of a product, which might cost you around 50 bucks, and you’ll simply put each item into a bag with a sticker on it, which costs next to nothing. If you do not have 50 bucks to start your Amazon business, you are not being completely honest, in my opinion.
And no offense, but I think anyone and everyone can manage to put that kind of money together. Now, I’m not saying it’s the ideal situation necessarily to only start with five units, but 20 to 25 units is more than enough. Now, what you’ll do next leads us to step number three.
Step #3: Scale The Product With Your Profits
If you did step number one right and you found a great opportunity, you will be profitable on even five units, so with those five units you will now have more money when you sell them. Now you can reinvest those profits to buy more inventory, and rinse and repeat. Yes, it might take you some time if you start with just five units and you only reinvest the profits from those, but it can be done.
And I kid you not that my very first private label order on Amazon was just over $200, because I was a student paying loans, working in a bowling alley to get by. That’s all I had to start, but from there, only from that little amount of money, I reinvested it and grew to selling products for tens of thousands a month within just a couple of months. Eventually, I built a team of more than 50 people working for me on this business.
It all started with just $200, so yes, you can make this happen too.
If you don’t believe me, here’s the actual invoice for my very first private label product order ever on Amazon:
So that’s it. It’s really that simple. Remember that choosing to avoid selling private label products on Amazon because you do not believe you have enough money to do so is one of two things:
[+] A, it a BS excuse and you need to work on your mindset. I did not let that stop me and neither should you. If you’re letting that stop you, again trust me, start by working on your mindset so you can believe it and then make it happen. Even if it takes some time, it’s going to be well worth it, and it’s definitely better than sitting around and not doing anything.
[+] Or, B, it is someone telling you this to try to sell you something else. To be honest with you, a lot of online marketers will tell you that other models do not work because of X, Y, and Z, and often times that’s complete nonsense, it’s just to sell you something else. This is one reason I’ve heard given many times for why private label selling on Amazon isn’t ideal or the best way to start a business.
But as I’ve just shown you, that’s simply not true, and in fact I believe it is the best business model for someone new to start making money online, so please do not listen to other people’s opinions on this, fears, false beliefs, marketing gimmicks, etc..
Do not listen to that part of yourself that wants to tell you that you can’t do something. You can. I’ve done it, and many, many, many others have done it too. I believe in you, and you can be next.
I hope you’ve enjoyed this article. Just know that you can learn more about this topic and many others in my Free Amazon Crash Course, fill with proprietary methods that will guide you in the process of selling private label products on Amazon, from start to finish. The mini course is really a step-by-step blueprint for success. Check it out here (it takes just a few seconds to sign up!).
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