The Amazon FBA Side Hustle —Retail and Online Arbitrage vs Private Label

What is Amazon FBA?

Amazon is full of third-party sellers thousands of which have Amazon FBA as a side hustle. In 2022 third-party Amazon sellers account for over 50% of all the products sold on Amazon. People like you and me can open an Amazon seller account and list products to be sold on Amazon.

Amazon FBA Business Models:

There are many different ways to sell on Amazon FBA, below we will go into the two most popular business models and discuss the pros and cons of each side hustle.

Retail and online arbitrage vs private labeling

Private Label Products Business Model

  • Earning potential: £100,000+
  • Recommended Initial Capital Required: £1000-£5000
  • Minimum Initial Capital: £500
  • Complexity: Medium/Hard
  • Type Of Income: Passive Income (once setup)
Private labeling

Pros:

Higher Profit Margins:

Higher profit margins

Passive Income Once Setup Properly:

Passive income

Scaleable:

scaleable

It’s Your Own Brand Name

Own brand

Side Hustle Can Soon Become Full-Time Jobs

Full time job

Cons:

Upfront Cost:

Upfront cost

Private Label Product Research:

Private label product research

Reviews Can Make Or Break Your Product

Reviews

Retail Arbitrage & Online Arbitrage Business Model

  • Earning potential: £100,000+
  • Recommended Initial Capital Required: £500
  • Minimum Initial Capital: £50
  • Complexity: Easy
  • Type Of Income: Active Income (constantly need to be looking for products to sell)
  • Time Required: 1 Day A Week
Retail and Online Arbitrage — Buy low — sell high.

Pros:

Low Startup Costs:

Low startup costs

Great Entry To Selling On Amazon:

Great start to sell on Amazon

You Become Knowledgable Quickly

Knowledge

Can Find Some Great Deals:

Deals

Simple Process:

Simple process

The Same Strategy Can Be Used On Multiple Selling Websites

Multiple websites

Cons:

Slower Process:

Slower process

Hands-On:

Hands-on

You’re Not Building A Reputable Brand:

No brand

Can Be Competitive:

Competitive

Conclusion

So which is better?

  • How much time can I commit to starting and running my Amazon business?
  • Do I want to start my own brand or am I happy selling other brand’s products?
  • Do I want to sell on Amazon as a side hustle or full-time job?
  • Do I want to create a long-term business or just make money now as a nice side hustle?

How I Started On Amazon FBA

I started on Amazon FBA through retail arbitrage and online arbitrage, it was perfect for me as I didn’t have much money to buy thousands of units and I also had no clue what would sell and what wouldn’t. I just wanted a side hustle to make me some extra money.

Amazon Seller Tools & Software To Start With

I’m going to leave you with these two golden nuggets. These two tools in my opinion are essential to starting out on Amazon, they minimize mistakes and increase profit.

BuyBotPro

  • If you are eligible to sell the item (You will have previously synced your Amazon seller app)
  • If the item is HAZMAT (Hazardous material — deodorant for example)
  • Profit margins, profit and ROI
  • If Amazon themselves are selling the same product
  • A BuyBotPro score — BBP tells you if you should sell the item based on all its data
  • Estimated sales data (previous & current) months
  • Competitors analysis — stock levels etc

ProfitProtectorPro

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CryptoBen

Crypto/NFT | Founder of Notifi Me — Discord Notification Chrome Plugin