4 Top Types of Amazon Business Models

Are you considering starting an online business but don’t know where to go? A highly recommended option is to start a business on Amazon. Amazon is one of the largest ecommerce websites in the world today, with plenty of money-making opportunities for sellers. The platform offers huge profit potential. 

Many newbies begin their Amazon journey alone and find the process a bit daunting. But with proper guidance, you’d figure out how easy it is to build a successful business on Amazon. You may even quit your 9 – 5 job so you can focus on Amazon full time.

4 Top Types of Amazon Business Models

Prior to starting a business on Amazon, you need to know the right business model that works for you. Here are popular business models to consider


This plan is free. Instead of buying items in large quantities, you can try dropship. The company will take stock of your inventory and ship items to your customers when you make a sale. This model requires a small amount of capital. You can also begin for free with many Dropshipping suppliers. 

However, Amazon’s Dropshipping policy dictates that you are 100% responsible for the products. This can be an issue when you have no way of checking the products personally.

Retail or Online Arbitrage

Arbitrage involves buying products from an online store for reselling them on Amazon. There are many ways to get discounted products including local ads or following online stores to see your options. 

Have a little cash to splash? Then retail arbitrage is right for you. However, you need to be focused and invest more time into it, given the amount of regular research necessary. Starting at $100, this business model is a relatively low risk. 



Wholesalers buy products in large quantities directly from manufacturers. You can get these items at a cheaper rate than retail stores. However, there is a minimum order requirement for this. More so, you will be paying money in advance to get your orders fulfilled. 

Private Label Products

Need a product created with your brand name? The private label products business model has got you covered. It allows you to create a new version of existing products. Also, it allows you to trademark the products, resulting in less competition and more sales. However, you need to pick a product that people want. 

5 steps to follow to start selling on Amazon

  • Create and register a seller account on Amazon. Fill in all the required information correctly
  • Provide a list of products
  • Set your pricing
  • Provide shipping and storage information. You can opt to use Amazon’s fulfillment service, so Amazon will handle the shipping on your behalf
  • Add an account for receiving payment

6 Reasons Why Sell on Amazon

If you are just starting an online business and are looking for ways to increase awareness, Amazon’s global outreach can help. Here are some reasons why you should consider starting a business on Amazon

  • It gives your business more exposure. millions of online shoppers can find your products easily
  • You can sell across Europe in five marketplaces
  • You are dealing with a reputable e-commerce store 
  • All products featured on Amazon are protected by its security and fraud protection
  • No listing fees required
  • Amazon handles order fulfillment on your behalf if you so wish

20 trending products you can sell on Amazon?

  • Automotive
  • Baby
  • Books
  • Lawn and garden
  • Toys and games
  • Video
  • DVD and video games
  • PC
  • Shoes
  • Software
  • Sports
  • Business
  • Industry and science
  • Kitchen
  • Luggage
  • Amazon device accessories 
  • Office products
  • Electronics
  • Home
  • Home improvement

4 Products are Prohibited on Amazon?

  • Tobacco
  • Illegal products like guns, hard drugs, etc.
  • Prescription medicine
  • Lottery tickets

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