Starting an Amazon business is easy and doesn’t require huge capital. However, running a successful Amazon business takes a ton of hard work, patience and perseverance. Certain business models are relatively easy to start, but may require some time to become profitable. On the other hand, other models generate money easily but take a steeper learning curve or upfront investment. It is necessary that you first learn the different Amazon business models pros and cons before you pick any Amazon business model.

So, this begs us to the question: what is the right Amazon business model to pursue? In today’s post, we’ll talk about the four most popular Amazon business models and the pros and cons of each.

Four Major Amazon Business Models Pros and Cons

Retail Arbitrage

Retail Arbitrage has become an increasingly popular business model in the last few years. With this model, you have to find extreme bargains one at a time and then resell them at a much higher price. While making a consistent living this way proves challenging, your profit for each transaction can be immense.

This model works for many sellers for three main reasons:

  • It doesn’t require a website.
  • It provides instant sales.