Have you ever dreamed about finding a side hustle business that would eventually lead to full time work, allowing you to quit your job and be your own boss? You are not alone. So many people are looking for ways to turn their passion into profits. As a yard sale and garage sale enthusiast I’m willing to bet there are a few times where you’ve been able to turn a profit with your yard sale finds. Don’t you wish there was a way to turn all of that treasure hunting into a full time business? Good news…there is! Today we are discussing, what for many, has been the catalyst for leaving their job and being able to make a full time income online through the Amazon FBA program.
What is Amazon FBA?
Amazon Fulfillment by Amazon is a program which allows sellers to sell just about anything through Amazon’s website and unlike Ebay, where the seller is responsible for the shipment of the item to the end consumer, Amazon handles all of the shipping for your items.
How does Amazon FBA work?
Sellers procure goods for sale either through Retail Arbitrage, Private Label or thrifting or wholesale buying and then log each item into the Amazon seller platform. Amazon then provides the seller with a unique barcode for each of his/her items. Once the barcodes are affixed to each product, the seller can then box up the items and send them to the Amazon warehouses. Once the items reach the Amazon warehouse, the item is ready for sale on the website. Once a consumer purchases the item, Amazon ships it to the buyer and the seller gets the sale price minus Amazon fees.
How to get started with Amazon FBA
- The first thing you need to do is sign up for a Professional Seller Account on Amazon
- Source items to sell on the Amazon platform
- Ship items to Amazon
- Collect a check when your items sell
How do you find things to sell on Amazon FBA?
There are three primary ways that Amazon FBA sellers source inventory to sell: Retail Arbitrage, Private Label & Closeout/Thrifting purchasing
Retail Arbitrage is the act of purchasing items at a retail location at a deep discount and selling for a higher price at Amazon. For example, many Amazon FBA sellers scour the clearance aisles of stores like Target, Walmart & Walgreens and buy items at 50-75% off and then turn around and sell it for full retail price on Amazon.
Private Label is when sellers actually create a physical product to sell on Amazon. This involves coming up with a product idea, finding a manufacturer and production facility, and then shipping the items to Amazon for sale.
Thrift Stores & Secondhand shops Some sellers have great luck at finding vintage, retired or discounted items at thrift & secondhand stores which surprisingly do well on Amazon. One niche that does particularly well is older toys & games still in the package.
Interview with Benjamin Tyrell: Full Time Amazon FBA Seller
1. How did you get started with FBA?
I started researching Amazon FBA back in October 2015 when I was looking for ways to replace my 9-5 income through doing business online. I initially was considering starting a traditional e-commerce business, but didn’t like the idea of have to fulfill my internet orders, take them to the post office, and have to deal with customer service headaches. With Amazon FBA, Amazon fulfills your orders for you, creating a great passive income opportunity.
2. At what point did you quit your job to pursue FBA?
When we started Amazon FBA, our goal was to build a passive income stream that could replace my income in 8 months. Fortunately, we were able to see immediate success with selling on Amazon, and by the end of month two of selling on Amazon, I gave my notice at my job. Now Amazon FBA supplements our monthly income, and allows us the freedom to build our other businesses.
3. How many hours a week do you work on your Amazon business?
I typically spend about 2-3 hours a week managing my FBA businesses on average. However, product research is more time intensive and can add another 10-15 hours a week.
4. What tools do you use to keep your business running?
The Amazon Seller App and Amazon Seller Dashboard are my go to tools with managing my FBA business. These programs help me track my sales and communicate with customers (which is very minimal).
My business would be impossible without Jungle Scout! This amazing app helps me quickly search out potential products, track trend and so much more! If you are looking to dive into Amazon, this is a must, and can be used for both retail arbitrage and private label.
5. Thrift Flipping, Retail Arbitrage, or Private Label? Which do you prefer & why?
We actually do both Retail Arbitrage and Private Label. For us, private label works best with our family and financial goals, and focus more on that. The time you spend on creating and selling your Private Label product is substantially less than with Retail Arbitrage. Plus, I find that I can get better profit margins with my Private Label products. But we are constantly on the look out for great deals for Retail Arbitrage when we are out shopping. There’s nothing better than making money while you shop! 🙂
6. What advice would you give someone who is looking to get started with FBA?
First, do your research and learn all you can about selling on Amazon. I have created an online course that will take you step-by-step through the entire Amazon FBA process, from product selection to getting your products sold! I love watching people succeed and build their dreams, and it’s been fun to walk my students through this process and help them through their roadblocks. You can learn more about THE COMPLETE AMAZON FBA COURSE at www.amazonfbacourse.com. (Save 20% by using coupon code: YARDSALE)
Second, take massive action and just go for it! There is still tons of opportunity for growth within Amazon FBA, and NOW is the time to get in!
7. What are 3 things that potential FBAers should look for when sourcing items to sell on Amazon?
3. Get creative and niche down. Stay away from the obvious items, and look for products that serve a specific need. It always blows my mind what people buy on Amazon!
About Benjamin Tyrrell:
Benjamin Tyrrel is a full time entrepreneur, husband and father of 3 energetic kids living in one of the most beautiful cities in America. Having recently left behind a life in the nonprofit sector he is embracing the world of online business and striving to help others achieve the same freedom he has through his Amazon FBA course as well as other endeavors including coaching, marketing consultation,web design and more. In between trips to Disneyland or the beach you can find him working hard to inspire everyone around him to live their lives- fulfilled. You can learn more about Benjamin at www.benjamintyrrel.com