I love private label selling; it’s where creativity flies. Yet the riskiest Amazon strategies need highlighting, none of which I will ever recommend.
In today’s post, I’ll be covering just 4 of the most popular. Sure, you’ll discover how you can start a business for potentially cheaper and easier.
In my experience, there is simply no better profit margins and brand equity, than building a business through the private label method over 5 to 7 years.
Dropshipping
If you’ve been reading my blog for some time, you’ll instantly know that I’m not a fan of dropshipping. Not at all. There’s huge downsides including poor account metrics and real lack of brand equity.
This is where someone lists a product on eBay that they found on Amazon for a markup. When it sells on eBay, then simply go to Amazon and purchase it. But what if it’s out of stock on Amazon? Big problem. It’s not just merely refunding the customer, but taking a bit hit to your own seller account. There’s huge money in teaching dropshipping, and sure you can get started for pennies on the dollar, but the downsides outweight hte risks.
I’d rather focus my money into inventory and building up a solid Amazon account. One that has great feedback and metrics, leading to profits for years to come. Plus, I can sell my business at any time, since it’s stocked with real products, a real customer database paired with trademarks and patents.
Using debt to start an Amazon business
You simply shouldn’t be borrowing to start an Amazon business. You don’t want to start with a ball and chain wrapped around you. If all goes pear-shaped, then you’ve still got the debt without a business.
Have a personally borrowed in my Amazon businesses? Yes, 3 times in fact. This is after already starting and proving the concept with sales data. The bank isn’t going to lend me anything with blank financials.
I’ll never advocate that you borrow to start selling on Amazon, either for an Amazon course or inventory purchase. This journey is already stressful enough, without the burden of finance and interest charges.
Manipulating your brand feedback
Within the amazingly in-depth and often hard to read Amazon Terms of Service, there are guidelines that state that you can’t manipulate feedback. That is, you can’t ask for 5 star reviews. Doing so highly risks getting your account suspended, and indeed one of the most riskiest Amazon strategies for beginners.
Amazon can and does routinely track reviews and can validate if it’s a friend or family member who left you a review on one of your products. A little bit like big brother, but it does happen.
Also, you can’t ask customers to leave feedback in exchange for gifts, money, free items or future discounts. Whilst you may want to get product and account reviews in ASAP, you’ll have to wait for them to organically multiply just like the rest of us. Review services were banned officially a couple of years ago.
Learning Amazon through mistakes
In this industry, most beginners simply don’t have much money. So, they seek to find training courses for cheap or simply learn for free off YouTube.
It blows my mind. The most successful Amazon sellers I know went for the best and found the best results. That is, they sought out the best training courses in the world paired with strong communities.
Smart people back themselves with knowledge, unlike these people above. Through investing in their education, they were able to scale their FBA businesses significantly faster. Their education, therefore, was an investment.
Summarizing thoughts
I’m sure there are numerous people who would argue that some of these strategies work just fine. It’s great if it works for you, I just won’t advocate for those starting the Amazon journey to follow the most riskiest Amazon strategies.
I recommend starting your new Amazon FBA business with a solid plan. One that leads to long-term success and the desired 7 figure exit. That’s best achieved through playing the long game and investing through your own capital into education and high quality products.
