Amazon FBA - Private Label VS Arbitrage (HONEST Comparison)

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  • Опубликовано: 5 ноя 2024

Комментарии • 7

  • @FBA-Elite
    @FBA-Elite  Год назад +3

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  • @amzelite
    @amzelite Год назад +4

    I agree and disagree on certain points. My case was different. In 2013, I found a European Union brand of nail varnishes and never had to do any further research for 10 years. I got approved as a hazmat pilot and never had any competitors who could do FBA on this listing (I was constantly the most expensive and always winning the Buy Box). I bought goods from one source - the brand's retail website. Sometimes they had ongoing deals, but usually, I maintained a profit margin of around 30-40%. I ordered goods every 4-5 weeks, and it took 3 days for them to arrive in London. Typically, I received 500 pieces in a small carton since nail varnishes are small and light. On the day of arrival, I simply attached 500 FNSKU labels and sent them over to Amazon. I didn't require a third-party logistics provider, prep services, or shelves in my flat.
    In fact, I was also the first to create product listings on Amazon, and I used EAN codes purchased on eBay for £5. These listings are still active. Regarding PPC, I checked yesterday and found that I ran some Sponsored Ads for one month in 2017, achieving a 168 ROAS (200 items sold). I don't remember why I started PPC or why I stopped.
    I ran this business for 9 years but stopped in 2022 due to Brexit problems, the brand taking over ownership of the listing, and hijackers changing the title of some products (for example, from 15ml to 150ml) that I couldn't revert as I wasn't the brand owner.
    I also remember attempting to sell MAC brand (a famous cosmetics brand) and thanks to my successful sales with the other brand for 5 years, I was automatically approved. It seems that proving you sell a lot of one product in a specific category opens up opportunities for other brands within that category.
    Was it risky? Not really, but times were different. Was it worth it? I couldn't scale as there was a specific demand on Amazon, but I managed to generate £1500 in after-tax profit per month for 9 years, working on this product for only 4-5 hours per month.
    Later, I also ventured into wholesale (which was actually very similar to OA) with great success. I learned so much about the product and its weaknesses that I eventually launched my own brand. I now own two private label brands, but I think using OA is a nice way to learn about a product, especially if it's an up-and-coming brand, make money, see what customers like or dislike, and create your own brand if it's viable. (My RUclips nickname was chosen independently. I was surprised when I found you here last year.) Great channel...

  • @theb1gbear
    @theb1gbear Год назад

    Hi Darren.
    Appreciate the video - this answered many of my questions...
    QTN - if i were to look at OA and PL, would it be best to use one seller central account and combine the products, or would it be best to have an OA account and a PL account? My concern is that an IP complaint from the brand owner on OA, could suspend the account and jeorpardise my PL business.
    Thanks once more - keep up the great work.

  • @standardprocedure7017
    @standardprocedure7017 Месяц назад

    The "very high" competition for arbitrage is devastating.

  • @lewm1427
    @lewm1427 Год назад +1

    What about wholesale? Can you make a video on this

  • @snappyfish
    @snappyfish Год назад

    Great advice again Darren, thids channels and a couple of others the only ones that seem geniune. Thanks