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Private Labeling on Amazon (11)

12-08-2014 01:03 PM #1 Didadel (Member)
Private Labeling on Amazon

Hey All-

So I am constantly being spammed for this "Amazing selling machine" course that is supposed to teach you how to drop ship from a vendor in China to Amazon.com. I found most of the course material on some other forum (oops) and most of it is common sense.

Has anyone had success with this business model? I would think that it is slower to build than paid traffic campaigns, but also a little more stable (once you have successfully selling products, they most likely won't flame out like a campaign can)

Thanks for any feedback and any insight into this area!

12-08-2014 02:17 PM #2 jennatalia (AMC Alumnus)

It works, but you need to be a bit more clever than simply buy low-sell high.

I assemble 'kits' and have them shipped via Amazon. Take something like a USB cable. I sell mine in lots of 5, so the customer pays less per cable, while I pay far less to amazon's per-product sales fee. Good ROI for a physical product, but not quite amazing.

Another kit is mixing an international transformer with a power strip. More convenient to travelers, and far cheaper than buying multiple transformers.

12-08-2014 05:06 PM #3 malachii (Member)

I helped a friend set up his furniture biz on Amazon. He hit 6 figures first year, but got shut down due to negative feedback. Amazon can be great, but no control over the platform.

Can you share where you got the course? I'd love to look it over.

12-08-2014 05:12 PM #4 cmdeal (Veteran Member)

There is no reason why it would not work, but it will still take a lot of work.

12-08-2014 06:05 PM #5 fishinseo ()

Keep in mind when going this route, you will need a biz license and Tax Reseller Id and most likely a Federal Tax ID number if you are in the States.

There is a lot of legwork needed to get started. If you are going to source from China for example, you first need to order samples to make sure they are legit and hings like that.

12-30-2014 09:47 PM #6 beatstreet (Member)

I looked into this business model in depth and I know people making xx,xxx - xxx,xxx / month from it. As an affiliate it's a logical next step having your own product. You let Amazon handle the delivery and it can be quite hands off.

Also after you push some initial sales you start ranking in Amazon keyword searches and categories, "customers who bought this also bought this..." and if you have a good rating (which you should always aim to) it becomes a self feeding ATM.

If you go the quality product route you can build a real business/asset. You can also start selling offline to chains and stores too (here you can leverage your good product standings on Amazon).

01-03-2015 12:41 AM #7 mark_from_michigan (Member)

I built a business on Amazon that did 250K in sales the first year. I started out drop-shipping items from overseas which led to late shipments, negative feedback etc. in many cases. Seller Performance warned me that drop-shipping was not an advisable business model for Amazon sellers and would only lead to further trouble. So, I started buying in bulk from my supplier and using FBA - fulfillment by Amazon. BAM! No more complaints or late shipments and the 5-star feedback was rolling in!!! Sales were BOOMING! I was on my way! ... Until about a year later when I got an email from Amazon telling me that my account and seller privileges had been suspended. They wouldn't give me a reason and all appeals were denied. Just like that I was out of business...

Amazon can be a GOLDMINE if have the right products but do not EVER rely on them as your only source of income/sales. EVER. Just do a quick Google search like "amazon suspended" and you'll find stories like mine all over the place. And no, I wasn't selling counterfeit goods or banned items.

Beware.

01-03-2015 02:11 AM #8 Nigel (Member)

Quote Originally Posted by mark_from_michigan View Post
I built a business on Amazon that did 250K in sales the first year. I started out drop-shipping items from overseas which led to late shipments, negative feedback etc. in many cases. Seller Performance warned me that drop-shipping was not an advisable business model for Amazon sellers and would only lead to further trouble. So, I started buying in bulk from my supplier and using FBA - fulfillment by Amazon. BAM! No more complaints or late shipments and the 5-star feedback was rolling in!!! Sales were BOOMING! I was on my way! ... Until about a year later when I got an email from Amazon telling me that my account and seller privileges had been suspended. They wouldn't give me a reason and all appeals were denied. Just like that I was out of business...

Amazon can be a GOLDMINE if have the right products but do not EVER rely on them as your only source of income/sales. EVER. Just do a quick Google search like "amazon suspended" and you'll find stories like mine all over the place. And no, I wasn't selling counterfeit goods or banned items.

Beware.
Did you build your own brand or were you selling stuffs that Amazon could step in and steal your entire business?

01-05-2015 01:09 PM #9 cmdeal (Veteran Member)

Quote Originally Posted by mark_from_michigan View Post
I built a business on Amazon that did 250K in sales the first year. I started out drop-shipping items from overseas which led to late shipments, negative feedback etc. in many cases. Seller Performance warned me that drop-shipping was not an advisable business model for Amazon sellers and would only lead to further trouble. So, I started buying in bulk from my supplier and using FBA - fulfillment by Amazon. BAM! No more complaints or late shipments and the 5-star feedback was rolling in!!! Sales were BOOMING! I was on my way! ... Until about a year later when I got an email from Amazon telling me that my account and seller privileges had been suspended. They wouldn't give me a reason and all appeals were denied. Just like that I was out of business...

Amazon can be a GOLDMINE if have the right products but do not EVER rely on them as your only source of income/sales. EVER. Just do a quick Google search like "amazon suspended" and you'll find stories like mine all over the place. And no, I wasn't selling counterfeit goods or banned items.

Beware.
Surely, they must have given you some reason? No?

05-25-2015 08:32 AM #10 yunghkim (Member)

Amazon will tell you what TOS you violated, otherwise how would you have even appealed their decision? If you were doing something shady, it's going to be pretty hard to appeal a suspension.

12-24-2018 04:54 AM #11 foremostwin (Member)

Is anyone here still doing this in 2018? I dabbled in it with one product but ended up being a bit of a dud, though a great learning process. I was tied up with other projects for the remainder of the year but getting back into this now and doing a few hours a day of product research.

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