Exploring Side Gigs 101: Is Amazon FBA a Good Side Hustle?
Tired of stretching your paycheck to cover all your needs? Discover how Amazon FBA can turn that financial squeeze into a comfortable breeze. With its unique e-commerce approach, Amazon FBA can supercharge your sales and profits, making it an excellent side hustle option.
Curious? Let's uncover why it's the perfect side gig for you!
What is Amazon FBA?
In simple words, Amazon FBA, known as Fulfillment by Amazon, is a program that allows you to sell products online through Amazon without having to worry about the usual troubles of managing stock and shipping.
By becoming part of the Amazon FBA program, an Amazon seller can safely keep products in Amazon's warehouses. Once you send your items to Amazon's warehouses, they take over demanding tasks like storing, packing, and shipping.
This simple process removes the stress of handling logistics and gives you access to Amazon's massive customer base and its fast Prime delivery service.
You must set up an Amazon seller account to take the first step on your Amazon FBA journey. Once you’ve done so, you can access Amazon Seller Central, the control hub to manage your products, inventory, and orders.
What types of products can I sell through Amazon FBA?
Amazon sellers can sell almost anything on Amazon FBA. There are limitless possibilities, including technology, beauty basics, homemade crafts, and much more.
However, before you jump in and start selling private label products, which are products manufactured by a third party but sold under the brand name of another company, as explained by Shopify, there's an important step you shouldn't skip: checking out what people want.
What does this mean? It means doing product research. By researching what's popular, you can ensure your product meets customer demand, giving you a better chance at success.
Can I start an Amazon FBA business while working a full-time job?
Absolutely, you can! Starting an Amazon FBA business while holding down a full-time job is possible and a smart way to diversify your income streams.
While it might sound like a juggling act, it's entirely doable. With the FBA program, you can manage your Amazon business at night, on weekends, and in your spare time.
Remember that staying committed and managing your time effectively is vital to your success as a full-time worker and an Amazon FBA entrepreneur.
The Pros of Amazon FBA as a Side Hustle
The Amazon FBA program is a great side hustle to explore. In addition to being a profitable business that allows you to make extra money on the side, it also offers the opportunity to run your own online store and be your own boss. Let's take a closer look at why Amazon FBA might be a suitable option for you!
Here are the top benefits:
Amazon FBA provides round-the-clock support. With Amazon's global customer service network, handling customer inquiries, refunds, and returns will be a breeze. As stated on Amazon FBA's website, this service is provided at no extra charge to you!
You can count on their customer support team to be available 24 hours a day via phone or email to handle any issues your customers might have. While Amazon takes care of customer service and returns, you can focus on growing your business.
Amazon FBA strives to streamline operations: they handle packing, delivery, customer service, and returns.
Another noteworthy advantage is that with FBA, you can save up to 32% per unit compared to other significant carriers' slower shipping options. As a bonus, you get free shipping on eligible orders with Amazon Prime and FREE Two-Day Shipping.
Enhanced business growth
Amazon FBA's versatile fulfillment solutions can help you quickly grow your business while navigating logistical challenges. Their fulfillment centers are designed to meet inventory needs without requiring minimum product requirements.
To help you grow, Amazon offers the following services:
FBA small and light: Reduced fulfillment costs for small, lightweight inventory.
FBA subscribe & save: Offering discounts to repeat customers.
FBA export: Expand easily to over 100 countries, eliminating international complexities.
Multi-channel fulfillment: Streamlining the sale of products across multiple platforms.
Amazon global logistics: Deliver ocean cargo directly from China to Amazon fulfillment centers in the US, UK, and Europe.
Remote FBA: Ship to customers in Canada and Mexico with Prime shipping without sending inventory there.
Cons of Amazon FBA as a Side Hustle
Getting into Amazon FBA has a lot of benefits, as we've already explored. There are, however, a few things to keep in mind. By understanding the pros and cons of Amazon FBA, you can decide if it aligns with your side hustle goals.
Let's look at the cons of Amazon FBA so you can fairly weigh the pros and cons:
High initial costs
Amazon FBA doesn't necessarily have low startup costs. Apart from the expenses of selling wholesale, you've got to pay storage fees as well. While these fees are essential to Amazon's efficient fulfillment process, they can be a pain, especially for businesses trying to maintain healthy profit margins.
If you're considering Amazon FBA as a side gig, you should ensure their profit margins are sustainable despite the storage fees.
Continuous inventory management
As explained by BigCommerce, as part of Amazon FBA, you must meet Amazon's meticulous warehouse storage requirements. Packaging, labeling, and adherence to FBA's inventory and warehousing guidelines are all part of this process.
Therefore, all wholesale distributors of Amazon FBA must ensure their manufacturers follow these product specifications before going to Amazon's fulfillment centers. This can be stressful as well as time-consuming.
Tax implications to be mindful of
Dealing with sales tax is a challenge for Amazon FBA sellers, as they might run into different tax laws due to Amazon's vast reach across multiple states.
As a result, when selling on Amazon, you'll have to monitor, collect, and remit sales tax accurately, ensuring compliance with the diverse rules governing sales tax across jurisdictions.
How Much Can You Realistically Make with Amazon FBA?
According to a survey by Jungle Scout, private label sellers who join the Amazon FBA program can earn around $1,000 monthly in sales. However, other sellers with more experience and time in the business can make more than $100,000 a month.
Other Side Hustle Ideas to Maximize Your Income
While Amazon FBA can boost your income, there are other options to complement or serve as alternatives if FBA doesn't work for you. And the best part? You can make money from the comfort of your own home.
Here are some valuable alternatives to consider:
Engaging in paid online surveys presents a flexible and convenient way to earn extra money during your free time. Nowadays, many websites and apps compensate users for sharing their opinions through surveys, but ForthRight stands out as an excellent choice.
We recommend ForthRight for its user-friendly interface and reliable reputation. You can get started on this platform by filling out their signup form. Then you're ready to take surveys! Don't hesitate; join ForthRight today. Cash payments and exciting rewards await.
Selling data through browser extensions
Are you aware that you can earn some extra cash by installing reputable browser extensions on your devices? A company like SavvyConnect, for instance, collects valuable data from your online activities while ensuring your privacy and security.
The National Internet Observatory (NIO) is also a great place to sell passive data. This platform gives an extensive network of companies access to invaluable customer insights. Contributions are fairly compensated, and your data is always secure.
Participating in market research studies
Similar to the options above, programs like SJ Pulse gather actionable data through online surveys and phone usage information. SJ Pulse partners with Survey Junkie, a paid survey site that offers cash and various rewards.
The process involves collecting survey data and usage information through the app. This is an ideal option if you're comfortable sharing more specific details about your online behavior.
Money is Calling Your Name!
Are you ready to bid farewell to debt and say hello to financial freedom? With Amazon FBA, you can build a successful side business, make more money, and rewrite your financial story.
Keep reading our posts for more side hustle ideas, and let's turn your financial dreams into reality!