I have been following Amazon for a while and now I have decided to start selling on Amazon in the UK. I have never sold on Amazon before. I need help to choose which business model to go for.
Can you please give me an idea of how much investment roughly I need for each business model?
In my opinion, Amazon is for the most seasoned sellers. Try settingnupmyour own website or selling on eBay first. After processing let’s say 1000 sales, then you can start on Amazon.
Wholesale is the easiest business model for beginners.
Here’s a quick breakdown of the main business models you can choose from in the UK, along with rough starting investment estimates:
Retail Arbitrage (RA) – Buying discounted products in local stores and reselling on Amazon. Investment: £500–£2,000. Low risk and good for learning, but not scalable long-term.
Online Arbitrage (OA) – Similar to RA but sourcing online. Investment: £1,000–£3,000. Scalable with software tools (e.g. SellerAmp, Keepa) but needs more time and consistency.
Wholesale – Buying branded products in bulk from authorised distributors. Investment: £2,000–£10,000+. Requires brand approval and invoices; margins are slimmer but sustainable.
Private Label (PL) – Creating your own branded product. Investment: £3,000–£10,000+. High risk/high reward. Involves sourcing from manufacturers (e.g. China), branding, and marketing (PPC).
Dropshipping – Selling products you don’t hold in stock. Investment: £500–£2,000. Not ideal for Amazon UK due to policy limitations and account risk.
For beginners, many start with Online Arbitrage to understand Amazon systems with lower risk. Once you’re confident, moving into Wholesale or Private Label gives more long-term potential.