Making money on Amazon is simple. All you need to do is sell an item for more than it cost you in the first place and voila, your Amazon business is operating profitably. Sometimes this principle is easy; selling bits and pieces that have been cluttering up your house for years for example, or finding a bargain in a charity shop. However once the clutter is cleared and the local car boot sales ransacked you might find it harder to know where to look for stock that can keep allowing you to make money on Amazon.
Just because something is difficult does not make it impossible however, and by working your way through a simple two step process you could be well on your way to discovering how to sell on Amazon step by step, no matter what the economic climate.
Step 1 – Consider your profit margins
This might sound like a strange statement; surely you just want your profits to be as high as possible after all? While that is true, it is important to consider your minimum profit per sale on any and all items that you wish to sell on Amazon. Consider this; if you set your minimum profit threshold to 1 per item and wish to start out making 50 a day then you will need to sell 50 items each and every day. Change that threshold to 5 however and suddenly you only need to make ten sales; a much more realistic target for someone just starting out with Amazon selling.
There are limits of course, insisting that you won’t sell anything unless you make at least 50 of profit per sale could be difficult (unless you are selling something particularly expensive and highly specialist). Be realistic but don’t sell yourself short; getting this right now will make the next step much easier.
Step 2 – Source your stock
It’s not hard to see that the world is a different place compared to ten, or even just five years ago. With each improvement to technology the world has effectively shrunk, making it easier to do our dealings across the world with a minimum of effort. Although you can certainly still source stock locally, there is now a world of possibilities in importing goods from wholesalers across the world.
If you, right at this moment, are considering how best to go about expanding your Amazon business then your first step really is researching your options. Look into the different options for sourcing stock within your niche market and compare the different prices at which you could get your hands on the goods you require.
Before making any purchases however it is important that you remember Step 1. If the price that a wholesaler, or any other provider, is offering will not allow you to bring in your minimum profit threshold then walk away from the deal. Spending too much money on your stock is a slippery slope; one that could leave you with a massive amount of goods that you simply can’t sell on for a profit.
With the right research into sources of stock and the right profit margin figure in mind you will soon be finding some great deals to help you make money on Amazon.