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    HomeMoneyAmazon Turn £200 intp £100k Challenge

    Amazon Turn £200 intp £100k Challenge


    Nicola Kelly


    4th Jan 2024

    It feels like an not possible dream – turning £200 into £100k, but that’s the challenge a civil servant from Brighton set himself in a bid to beat the fee of living. 

    Dez, 43, and a father of 4, was frustrated that despite he and his wife having above average salaries, they were still struggling to pay for the occasional meal out or a family holiday so he decided to tackle a second job. 

    Like a lot of us who’ve used Amazon, the world’s biggest shop, he decided to spend his spare time searching for bargains after which sell them for a profit on the location. 

    He’s coy about his figures but in an interview last October he admitted that since he began in September 2022, he’s made well over £17,000. 

    Calling himself goodbyepoor_hellorich he began charting his success on Tik Tok `and has greater than 70,000 followers. Others have gone on to do the identical and are calling it the “£200 to £100K challenge”. So how is he doing it and will you do the identical? 

    Here’s MoneyMagpie’s guide to becoming an e-commerce entrepreneur. 

    Dez uses Amazon arbitrage, a selling method where you source products from different market places to sell on the location.  For instance finding a t-shirt for £10 in a neighborhood store that sells for £20 on Amazon.  You purchase the product, sell it on Amazon and keep the difference as profit, that is often known as retail arbitrage. 

    The opposite method is online arbitrage, sourcing products from sites like marketplace, ebay and facebook. 


     

    The skill is in analysing demand and finding items for lower than the Amazon price.  The benefits, especially if it’s a second job, are that with online you possibly can source products from home in your spare time.  It’s a low price approach to sell.  The items will arrive to you safely packaged and you possibly can then re-use them to sell on to your Amazon buyer. 

    There are literally thousands of online retail stores where you’ll find profitable inventory and should you find an ideal deal online you might, if you’ve got enough financial resources, have the option to purchase in larger quantities and potentially make greater profits. 

    You should use Fulfilment by Amazon (FBA) to handle packaging, shipping and customer support.

    The downside of arbitrage is that there may be a variety of competition with more resellers online than shopping at physical retail stores.  It might probably be time-consuming and it will possibly be hard to calculate profit. 

    For retail arbitrage there are Amazon seller scanner apps you possibly can download to your smartphone to assist find profitable products to resell.  The Amazon seller app is free should you are a registered seller.  

    In response to a JungleScout survey, in2021, 52% of sellers reported profit margins of between 16-50% which worked out at between £2000 – £5000, annually.

    It’s perfectly legal to resell a product so long as it’s unchanged and sold in its latest condition.  Nonetheless, some brands may prohibit you from selling their products on Amazon with online arbitrage – Nike and Lego don’t allow third party sellers on the platform.  

    What other methods are there for retail arbitrage? 

     

    Private Label – that is if you create your personal product label or brand, often by modifying an existing product.  It’s essentially the most common approach to selling on amazon and could be incredibly profitable but it’s good to really know your markets and experts suggest it’s good to be willing to risk as much as £5,000 because you may not get it right first time. 


     

    Wholesale – Buying products in bulk directly from a brand or from distributors to sell on Amazon.  this, like private labelling, requires begin money.  As a business model it’s more sustainable because you possibly can replace orders every month and also you aren’t searching masses of web sites searching for products.  But demand for products can change and you possibly can be left with an investment you can’t shift.  There may be also the matter of storage.  Unless you’ve got masses of spare space at home, you possibly can end up over-run with boxes. 


     

    Dropshipping – In 2023, about 23% of all online sales were fulfilled via dropshipping and the figure looks set to grow since it is certainly one of the simplest and quickest ways to begin a business, 

    You list products in your site or storefront but don’t even have them in your possession.  You act because the middleman between the client and the supplier, which suggests you don’t have the headache of finding space for storing and keeping on top of your inventory management. 

    The client makes a purchase order, you process the order and transfer it to a third-party supplier (either a wholesaler or manufacturer).  The third party then prepares and ships the order in your behalf and the shopper receives their order. 

    It’s easy to run, there are low begin and overhead costs, you’ve got a versatile work location and there are multiple selling opportunities from establishing our own domain to opening a storefront on places like Amazon and Etsy. 

    To start find just a few products from an industry you realize and position yourself as an authority in a specialised area.  Do loads of market research to gauge the competition, find a high quality supplier with a superb popularity, discover where your target market is and select your selling platform accordingly. 

    You’ll have to adapt your sales approach and never be afraid to alter products that aren’t working.  

    It’s also essential to keep in mind that with low overheads and costs comes low returns.  Experts suggest a profit margin of 15-20% is absolutely the maximum you possibly can achieve with dropshipping.  

    Dez admits he tried several things before choosing Amazon arbitrage, and has diversified along the best way. 

    ‘I began making videos about my progress and realised that folks were regarding what I used to be doing.  it isn’t a get wealthy quick scheme, you’ve got to construct it slowly’. 

    He also hopes that as he builds his media presence, he’ll receives a commission more by platforms like YouTube. 

    So should you fancy a side hustle in 2024, give it a go and allow us to know the way you get on. Read our guide to other lucrative side hustles here.



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