Seven years ago, Larry Lubarsky was unemployed and $100,000 in debt. Today, he's a 38-year-old small business owner, running a company that brings in millions of dollars per year by selling thousands of different products on Amazon.
"I didn't have a career, I didn't have any money to my name," Lubarsky tells CNBC Make It. "I was living with my mom, I was severely in debt, I couldn't afford my phone, my car."
His business selling products on Amazon "saved my life financially," Lubarsky says.
Lubarsky buys a wide variety of products in bulk — from electronics and kids' toys to health and beauty supplies — and then he re-sells them on Amazon, all while trying to turn a tidy profit. He engages in a business model known as wholesale arbitrage, which sees him buying large quantities of products from wholesalers or large brands.
As Lubarsky previously told CNBC Make It, he might see a Nerf gun available for $10 each from a wholesaler, but the product is selling for $20 apiece on Amazon. In that case, he knows that he can make about $5 profit on each Nerf toy after paying the fees that Amazon charges its third-party sellers.
In 2017, Lubarsky's business pulled in roughly $18 million in revenue, including a net profit of $4 million, from selling products on Amazon. Lubarsky only launched the business in 2014, and he brought in more than $3 million in that first year, he tells CNBC Make It.
So, how does Lubarsky do it? Here are a few tips from Lubarsky that reveal the basics of how to be a third-party seller on Amazon.