What you need to know about running An Amazon Business – The various business models

There are many ways to run your Amazon Business. As long you can buy low, sell high on Amazon with a good velocity of sales.

Retail Arbitrage

This is a common starting point for most people. Basically, you start by going into the stores, and start scanning items to find profitable inventory. This works really well if you are physically located in the US.

Simply not feasible to send items from Singapore. Shipping is crazy!

Online Arbitrage

This works as a great starting point especially if you are located outside of the US and selling in the US. This was my starting point in Jan this year.

Basically, you source for profitable inventory online, buy and have them shipped to a US prep company.

The prep company will prep your items according to Amazon requirements and have them shipped to Amazon warehouses for you, at a nominal fee of course. I’m using EZ Prep and they charge $1 for each item they prep.


This is the model I’m using now. Basically, it’s no different from how brick and mortar stores deal with wholesalers.

However, as an Amazon seller, you may face some difficulties as some wholesalers only sell to those with a brick and mortar store. There are also some who do not deal with Amazon sellers as well. I encountered a few, and it’s not a big deal really. Just move on! There are so many other products out there!

Private Label

High risk, high gain model.

You basically find a manufacturer to manufacture products for you, under your own brand.

You can private label anything you want. To find a manufacturer from China, Alibaba will be your best bet.

To find a manufacturer from US, just google : “[Product] Private label Usa”

Recommended to get product liability insurance if you do this model.


Other models include liquidations, auctions, drop shipping, etc.

There are simply too many ways to run this business. Can’t wait to get started on the other models 😉

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