India is one of the world’s fastest-growing economies. It’s also one of the most rapidly urbanizing countries in the world. With explosive economic growth and more people moving to major cities, the time is ripe for opportunity to sell on Amazon India.
Just like selling on Amazon in other countries, making the most of your enterprise in India takes some special care and attention. Here are a few things to consider when looking to sell on Amazon India, and how to maximize your profits early.
Pick the Right Business Model
In general, there are three ways to sell on Amazon India: retail arbitrage, wholesale, and private label. Let’s break down each of these.
Retail arbitrage is when you buy things from a retail store and resell them on the Amazon India platform. For some, this may sound counterintuitive since retail stores are often blamed for selling things at higher prices than Amazon. In reality, strategic buying can help you turn a healthy profit, especially at a smaller scale. If you are just dipping your toes into Amazon India, this is a great way to start.
Wholesale is exactly what is sounds like: selling large quantities of items at deeper discounts since you make money off of selling a lot of something. Doing this means selling established brands, which you must contact before you sell their stuff. Once you pass that hurdle, however, you can stand to make a lot of money while keeping the different kinds of items you sell relatively manageable. This is also one of the most scalable way to make money selling on Amazon India. Private label is when you build your own private label to sell your products. This is one of the more labor-intensive setups but it truly lets you establish yourself as your own brand and company. You get to set everything, which requires careful planning and strategy, but you also get to keep all the profits. Many people consider this the most rewarding way to sell on Amazon.
Think About what You Want to Sell
Amazon India has over 30 product categories ranging from groceries and household basics to luxury items. Finding your niche can be challenging but it can also be your best way to make a fast profit when joining the platform. If you already sell on Amazon and are thinking about expanding into India, do some research on what people are demanding and what’s missing in the market. If you can find the sweet spot of things you already sell and things Indian consumers want, then your expansion could be fairly seamless.
If you are new to selling in general, be sure to look at any potential competitors before launching. If you can find something unique, then that’s great. If you can’t, then be sure you can be competitive in price and experience, or else someone else will corner that market.
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