The beauty about internet marketing is that it has always been possible to start a site with a limited budget and within 6 months to a year, have it producing enough income that your initial investment was recouped without too much work. All you needed was a hosting account, a copy of wordpress and an Amazon Affiliates or Adsense account and you were away.
Many people are attracted to Amazon’s FBA program because of the huge opportunity on offer. As online sales continue to boom in the USA and Europe, there are huge opportunities for internet marketers to jump on the physical products bandwagon. 7 figure incomes are not uncommon but the biggest barrier to entry was, and still is, capital.
In order to enter the FBA business you need a product to sell. Whether that is your own invention, a white label product, or someone else’s inventory. With all of these, an initial capital investment is required, which can run into the thousands of dollars.
Most people starting out in internet marketing don’t have that sort of cash floating about. However, there is a way to get started in FBA, without pumping a small fortune into your product launch.
The trick is to create a product, rather than buy one in. You may not think that you can create anything, but there are literally thousands of items available on Amazon which have been made in someone’s kitchen or workshop.
Just as an example, do the following:
Go onto Amazon and type in BBQ Rub and you will see lots of companies, with a decent sales rank who are shifting 100 of products a day that they have made themselves.
Killer Hogs BBQ rub, the best selling rub on Amazon is probably selling 10-20 units a day based on its sales rank. At nearly $14, their profit margin is probably 50-60% after fees. So each unit nets them $7 in gross profit. $70-$140 a day. Not bad right?
Now look at the ingredients on the back of the jar, sugar, paprika, spices, things you can pick up in your local supermarket. What is to stop you putting out a similar product and having a business like this in 6 months which could produce over $25k a year in gross profit!!
Remember, a successful business starts with the first sale. So, I could go out and buy all the ingredients required to make this product, as well as a jar and a printed label. All that will cost around $5, by the time I have set up my FBA account and paid for a pro membership as well as having a qualified individual sign off on my product to ensure its safe and legal, I should still have change out of less than $100, which I can invest into some Amazon Sponsored Ads to get my product in front of customers.
Once you have your first sale, re-invest the proceeds and scale.
There are plenty of categories where you can look for ideas on things to sell in FBA. I literally found 3 examples with less than 2 minutes research which would make great candidates for FBA products. In health, the teatox is a popular, in home and garden natural mouse repellent sells well and if you are the creative type charms have a huge following.
Go with what you know, the key is finding something you can produce yourself with limited investment. The examples above prove they are out there, they are tens of thousands more, it’s up to you to find them. Time and research are all it takes.
Now, this is not easy. If you are looking for the so called “passive income lifestyle”, you will not find it on FBA, but with a little bit of work and imagination, it really is not difficult to think of a product you can make yourself that Amazon’s thousands of customers would LOVE to buy.
You have to comply with the relevant laws and safety procedures when producing anything for human consumption, but this isn’t costly, it’s about being diligent and doing your homework.
Once you start selling, you will live and die by your product reviews, especially on Amazon so make sure you provide the best service possible to your customers to ensure they leave you with that coveted 5 star review!
This article was provided by the team at CatchTheRisingTide.com.au, a leading Melbourne financial planning company. Be sure to visit their website!