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Can’t Fail FBA Business Plan for Amazon Affiliate Website Owners

One of the “hottest” topics over the last year has been Amazon FBA. Until I saw a competitive edge/unique angle I was not going to participate.

Today’s post is about the unique angle I am planning to take and how it can be replicated to unleash some pretty wild numbers! The best part is if you are reading this website than you likely possess the skills to execute this strategy.

What is Private Label FBA (Fullfillment by Amazon) – Very briefly private label FBA is purchasing products from Alibaba(or similar) putting your logo on them, shipping them to Amazon, and listing them for sale on Amazon at a healthy markup. There is a lot more to it than that but that’s the basic idea. The best source of information I have found (and by coincidence a former customer of mine) is Scott Voelker TheAmazingSeller.com and a very cool tool for calculating freight costs is at Freightos. I will refer to his great 100+ podcasts and content throughout this post.

Basic FBA Idea:

So what is my unique angle? My strategy is to build/buy Amazon affiliate sites which are selling products that could be easily Private Labelled and become the seller of these products then rinse and repeat consistently.

Basic FBA Idea

Benefits:

There are 3 challenges people most commonly face when starting an FBA business…

  1. Identifying a product your can be confident will sell
  2. Generating sales for a newly listed product until Amazon organic sales take over
  3. Capital to invest in the inventory

This strategy solves number 1 and 2 (but makes number 3 (Capital) worse.

The key benefits of this strategy also alleviate 2 of the biggest stumbling blocks with getting started with FBA…

  1. Confirm a product is selling before investing in inventory and take all the “guess work” out of picking a winding product!
  2. Drive sales off the start without having to run any promotions simply by recommending your product from your Amazon Affiliate sites!

The key benefit for me is that I can use my existing skill set of building and growing Authority/Niche sites, creating processes and capital in my business.

The Process:

  1. Build/Buy Amazon Affiliate Site Selling a Product that could be sourced as a Private Label product. Building/buying an affiliate site for a vacuum cleaner would not work. EmpireFlippers.com are a great source for buying sites.
  2. Reviewing the sales data the site is driving identify a product that could be private labelled.
  3. Do everything recommended by Scott at TheAmazingSeller.com

The Process

My Amazon Affiliate Site + FBA Status

I have been working towards this strategy and last Friday decided to pull the trigger on executing it.

Here is what has been accomplished over the last week by my team…

  • Over the last year – Grew a website to sell 600 units of a product (not my six figure challenge site) making $1.5k income/month

Over the Last Week:

  • Purchased a website with similar traffic but worse conversions ($12k) at EmpireFlippers.com
  • Sourced product and got small sales/test lot sent (definitely didn’t do this properly) ($2k)
  • Set up retargeting cookies on my website(s) and email opt in to launch the product
  • Got approved into Amazon and am currently setting up listings

My aggressive goal for this project is to hit 50 units/day at $10 profit margin/unit within 3 months of pulling the trigger on this strategy. I need to move fast to catch the holiday bump and new years fitness bump. Luckily my wife is fully on board with this and will be helping execute.

Why The Numbers Get Crazy!

Again the downside to this strategy is the upfront investment and the even more complex skillset you need to bring to the table. It would be best to have 1 or both skillsets before starting this model(either Amazon Affiliate or FBA).

One of the downsides to my current online businesses is that I am not able to simply reinvest money at the same rate of return as I made it with. There are ways to reinvest and I do but it is not as simple as selecting to reinvest dividends on say a stock. This model has the potential to solve that problem.

Say you have $100k to invest and spend 50% of it on the purchase or growth of an affiliate website this is what the numbers could look like…

FBA-plus-Affiliate-Website-Income

I am sure many of these numbers will be wrong but it certainly shows that there is substantial potential.

Now I am getting carried away (but humour me) if this model was able to be repeated and both buyers of FBA business and Sellers of Affiliate Sites were readily available the rinse and repeat model would look like this…

wild number

 Always happy to hear what is wrong with this plan!

About the Author Jon

I am a 33 year old husband, father of 3, engineer and a huge fan of developing systems to build useful and profitable websites. The reason I build online businesses is to provide financial independence for my family and yours AND so I can spend time outside skiing and biking with my family.
Jon Gillham, Online Entrepreneur

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