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NAJMI NASARUDDIN AC0106787 & NUR ZAWANI AC0106554

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NAJMI NASARUDDIN AC0106787 & NUR ZAWANI AC0106554

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MUHD AFZA IRFAN AC0106654 & MUHD DANNIAL AC0106H50

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MUHD AFZA IRFAN AC0106654 & MUHD DANNIAL AC0106H50

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1) Dropship

- put up a website to take orders online without carrying inventory

-send orders to your vendors and they will be responsible for the shipping

Advantages: -no inventory, no order fulfilment, low start-up costs, simple to start, full control of you own website

Disadvantages: margins are super low, profit margin from 10%-30%, paid advertising, less pricing flexibility, not in control of product mix, managing inventory can be problematic, need to invest heavily in marketing.

Ease of launch: 8/10
Profit velocity: 3/10
Sustainability & risk: 6/10
Level of competition: 3/10

2) e-Bay / Amazon Arbitrage

-sell product from Amazon through e-Bay at higher price

-steal the images & the product copy from Amazon and post it at e-Bay

-usually people who shops on e-bay does not shop on amazon

Advantages: zero overhead cost, no website required, don’t need to find vendors, easy to start

Disadvantages: poor long term business potential, need to keep on track on product pricing, the brand itself can complaint about the copyright theft, e-bay could ban you from selling, basically an illegal business

Ease of launch: 10/10
Profit velocity: 2/10
Sustainability & risk: 1/10
Level of competition: 2/10

3) Retail Arbitrage

-liquidation stores often sell products far lower than amazon retail prices.

- by buying up all the clearance and liquidation merchandise such as Marshall and T.J Maxx, you can earn profit by selling these goods on amazon.

Advantages: doesn’t need a website, can leverage amazon huge marketplace for instant sales, few start-ups cost

Disadvantages: business depend at the mercy of amazon, very difficult to scale, high risk

Ease of launch: 8/10
Profit velocity: 5/10
Sustainability & risk: 2/10
Level of competition: 5/10

4) Drop shipping on Amazon

-similar with dropship on own website

-the difference is drop shipping directly to amazon customers

-must find the distributors on your behalf, list the item on amazon, contact the distributor when you get the sales, and they will ship your products to the customers

Advantages: no startup cost, doesn’t need website, easy to start, good profit potential

Disadvantages: extremely dangerous as amazon has strict requirement on certain quality and on time shipment, potential ban from amazon

Ease to launch: 8/10
Profit velocity: 7/10
Sustainability & risk: 1/10
Level of competition: 3/10

5) Selling provide label goods on Amazon

-the act of placing your own brand that you manufactured

-need to find manufacturer to produce your products in bulk

-when products are ready, then ship it to amazon FBA

Advantages: very attractive because you will own the brand, own the product, had the option to sell on your own website, sustainable way to making money on amazon

Disadvantages: too dependent on amazon, large upfront cost

Ease of launch: 6/10
Profit velocity: 10/10
Sustainability & risk: 7/10
Level of competition: 8/10

6) Selling wholesale goods on Amazon

-finds a distributor who offer a variety of product sale

- you can use online arbitrage tools to help in finding distributor

-buy those products and list them on amazon using FBA

Advantages: few barriers to entry, doesn’t require a website

Disadvantages: minimum order is $100, lead to eroding prices

Ease of launch: 7/10
Profit velocity: 7/10
Sustainability & risk: 3/10
Level of competition: 3/10

7) Selling wholesale on your own website

-the way it works is the margin are 50% range and sells with using your own website, handle your own inventory or use 3pl

Advantage: -can have excess to bunch of products right away without large upfront, you are in control of your own store brand

Disadvantage: -will be competing with other shops that sells the same products, the minimum order is $100

Ease of launch: 5/10
Profit velocity: 4/10
Sustainability & risk: 6/10
Level of competition: 5/10

8) Selling private label products on your own website

-can have control on everything such as pricing, define your product and will never get banned from anyone

-the most secure way to run e-commerce

-easily to get regular customer which equals to 36% annual revenues

Advantages: -highest long-term potential, greatest long-term sustainability, have complete control on your products

Disadvantages: -need high upfront capital and investment, need to find your own manufacturer

Ease of launch: 4/10

Profit velocity: 7/10
Sustainability & risk: 10/10
Level of competition: 9/10