Sam Carter, Blogger for Profit Runner
Last updated: 30th June 2024
Working from home is a dream for many people; no costly commute and increased spare time are just a few of the obvious perks. However, for some, working from home is a necessity, not a choice.
You might have small children, caring responsibilities, a disability that limits your access to specific jobs, or any other issue which makes holding down the traditional 9-5 damn near impossible. If so, then you will understand the struggle.
This blog will give you an honest insight into the realities of running an Amazon business, so you can decide if working from home selling on Amazon is really for you. We answer three common questions:
1. What does selling on Amazon involve?
2. Will working from home selling on Amazon suit me?
3. How do I start working from home selling on Amazon?
Spoiler alert: This is not a sales pitch.
Becoming an Amazon seller is a serious business not to be underestimated. This blog takes an unflinching look at the business of selling on Amazon.
Have you ever seen one of those YouTube videos about how to make £100,000 in sales on Amazon in one month? Yeah - about that - selling on Amazon is not a get-rich-quick scheme. It's not impossible, but it's certainly not the easy ride that tasty clickbait would have you believe.
Becoming an Amazon seller can be incredibly rewarding, personally and financially. But just like anything you hope to accomplish, it requires hard work, patience, consistency, resilience, and responsibility.
The exact nature of your Amazon business will determine how you spend your time. However, there are a few activities all Amazon sellers engage in. They include:
We've included a brief overview of each activity to help you decide if working from home and selling on Amazon is for you:
Finding products to sell is crucial for any Amazon seller!
From reselling low-priced items you find in shops to commissioning and producing products - product sourcing is the cornerstone of a successful Amazon business.
Different business models will require differing sourcing methods, but the one thing all Amazon sellers have in common is the need to provide customers with great products.
Communicating with Amazon, ensuring your details are kept up to date, answering customer queries, keeping purchase records, and paying taxes - are just a few of the administrative tasks required to keep your business in good order.
They aren't the sexiest jobs in the world, but you will struggle to succeed without good administrative skills.
It sounds overwhelming, but data analysis will become your bread and butter once you understand how it drives your Amazon business.
You might want to analyse upcoming trends, launch an Amazon advertising campaign, or discover how popular a particular product listed on the Amazon marketplace is.
All of these activities require data - and lots of it! Getting familiar with data and using it to make strategic decisions sounds scary, but once you understand it, you'll laugh all the way to the bank.
Taking the time to understand the Amazon platform and your particular business model requires persistence and a willingness to learn. But in the end, persistence pays.
So next time you see one of those videos explaining how you can make £10k in ten days, do yourself a favour and scroll on by. Earning that amount is not impossible, but if you're new to the game, please remember to take your time and go easy on yourself.
You're going to make mistakes, you're probably going to feel quite frustrated, and you're going to feel like giving up at some point. But with persistence and determination, you'd be amazed at what you can achieve.
Sadly we now know that Amazon will not make you an overnight millionaire. But it is a viable and potentially lucrative business, if you choose to commit to it.
So, let's get real and take some time to consider whether working from home selling on Amazon will suit you.
If you want to generate income from home, an Amazon business is definitely worth investigating.
Despite post-pandemic home-working, many still struggle to access employment on their terms with enough flexibility to suit.
Whatever your situation, an Amazon business could be a viable alternative for you. But like any job, you'll need a few specific qualities to ensure a good fit.
Starting your own Amazon business can help increase your earnings, maintain personal and financial independence, and be a fun challenge.
You can start your enterprise with a very modest amount of capital, and with enough persistence, hard work and time, you can build a very successful business.
If you're still reading, you might be serious about becoming an Amazon seller - so, what next?
Taking the time to research any new business venture is always prudent. Undertaking research before investing a penny of your hard-earned cash will prevent you from making critical errors early in your business journey and will stand you in good stead later.
The internet is awash with information on how to build an Amazon business - and this blog isn't too bad a place to start! But don't just take our word for it. There are plenty of great and free resources to help you get started.
From YouTube tutorials, Spotify podcasts, blogs, forums and even the Amazon website - you'll find a wealth of information at your fingertips, and much of it is free!
Read more: Check out our blog 30 Free Resources for Amazon Sellers.
Once you have completed the research, you must pick a business model. It sounds very official, but in reality, it's straightforward. A business model outlines how you intend to acquire and sell products to make a profit.
Retail arbitrage involves buying low-priced products from physical retail stores and selling them on the Amazon marketplace at a higher price.
Online arbitrage is the same as retail arbitrage. But instead of purchasing in physical stores, you will be sourcing inventory from online stores. (The clue is in the name!)
Wholesale arbitrage involves developing relationships with wholesalers, purchasing large quantities of products at trade prices and then reselling the stock on Amazon.
Learn more: Check out the Profit Runner blog on How to Start Selling Wholesale Products on Amazon.
Private label sellers commission their products from manufacturers. The manufacturer produces the goods, whilst the Amazon seller is responsible for liaising with the manufacturer and selling the goods on Amazon for profit.
Want to learn more about Amazon business models? We rate this helpful blog from Quiet Light, which explains each model and includes the pros and cons of each.
An essential step in your business journey - setting an investment budget and sticking to it.
To start any business, you'll need an amount of capital to get things started, and an Amazon business is no different. From purchasing products to paying your Amazon seller fees - it takes money to make money.
One of the many benefits of starting an Amazon business is that you can set up shop with a small amount of money.
But whether your initial investment is £500 or £50,000, sticking to your budget will allow you to test and measure your business effectively, preventing you from throwing good money after bad.
Top tip: If you are new to selling on Amazon and want to dip your toe into the marketplace, starting small is advisable and will minimise your capacity for loss whilst you learn the ropes.
Whichever business model you choose, many fantastic software programmes can help you on your quest for profit.
It's not impossible to turn a profit without software. But if you're looking to build long-term, repeatable and scalable success on the Amazon marketplace, software can help.
To find the perfect software partner for your business, you need a programme which best supports your chosen business model.
If you are considering retail, online or wholesale arbitrage, then Profit Runner might be a great fit.
Profit Runner will allow you to compare your purchase price with the selling price of any item on the Amazon marketplace. So if you want to calculate how much money you could make from selling an item on Amazon, Profit Runner will tell you in seconds.
Best of all, Profit Runner is budget-friendly and easy to use. Perfect if you're just getting started or have limited start-up capital.
Try it now: Check out Profit Runner's free tool. You can use it three times per day, with no need for an email address or credit card.
These tools (and many more) will provide you with more data than you can shake a stick at, helping you to make informed sourcing decisions..
To get the most out of any software, it must align with your business goals, practices and budget as closely as possible.
Hopefully, this blog has given you honest insight and actionable steps to help your work-from-home selling on Amazon venture.
Owning a business isn't for everyone, and it's not always the walk-in-the-park some would have you believe. But it can be one of the most personally and financially rewarding journeys you'll ever make!