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4 Reasons You Should Consider an Amazon Store Management Service

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If you’re interested in opening up an Amazon dropshipping store but don’t know where to start, working with an Amazon store management service may be the right path for you.

So, what exactly is an Amazon store management service? This type of service is essentially an investment. You have ownership of an Amazon store, but the management team takes care of everything, including the store’s setup, ongoing management, returns, customer service, and more. 

The management service runs the online store using the dropshipping automation business model, which means that the store owner does not need to purchase inventory until a customer places an order.

Some call it Amazon automation; others call it a reliable source of hands-free passive income through dropshipping. Since Henry Ford implemented division of labor in his industrial revolution-era factories, we have increasingly become aware of the power of automatization. 

The more automatic a business is, the higher the profit potential and the lower the costs. Automation causes a steep drop in time and costs for a company. 

Read on to hear about the benefits you can achieve working with the NextGen Strategic Investment’s Amazon store management team to automate your business.

1. Save Time & Lower Costs While Enjoying Profits

A person adding coins to a jar while using a calculator

With an Amazon store management service, you can streamline the process of running a successful store.

Experts online recommend that you spend at least three hours a day administering your dropshipping business. Beginners should also invest their time in taking courses on data analytics, product research, and trends.

Amazon store management is a way to go around all of that. If you invest in an Amazon store management team, all of these other “time costs” will plummet.

One way or the other, you will have to incur costs for your Amazon business. Scaling, for example, takes exponentially more work than remaining stagnant. To grow your business, you must accept the costs of hiring staff members and shoulder the additional burden on your time as well. 

Expanding your team with untrained personnel carries a risk. Even with a trained team, efficiently running this kind of business becomes a full-time job. That is why Amazon store management services are so valuable. 

NextGen streamlines the whole process by handling all of the time-consuming work of creating and operating your Amazon store. As a business owner, entrepreneur, or investor, you get to enjoy passive income.

Dropshipping costs without an Amazon store management service:

  • Staff members for fulfillment
  • Product research assistant (trickier to find than VAs)
  • Amazon ads
  • Social media ads
  • Customer service team
  • Courses
  • LLC designation

2. Work With Experts

A businessman working on a laptop at a desk

Investing in an Amazon store management service allows you to enjoy passive income.

When you work with an Amazon store management service, you’re not only investing in the store; you’re investing in an experienced team who knows just what to do to make your store profitable.

There are so many fine details involved in operating an eCommerce dropshipping store – especially on Amazon. Rules and guidelines are continually updated, and if you don’t implement these changes, it could negatively impact your store. These factors are where having an expert team pays off.

In addition to the points mentioned above, finding the right products and making your store stand out is another major challenge that a professional team can simplify for you.

3. Apply for Tax Exemptions Across States

A business person inputting numbers on a calculator while reading a document

Paying taxes is an inevitable and necessary part of running a store, regardless of where your customers are.

Small stores in the 20th century did not have to worry about international shipping and tax laws. Unfortunately, if you are starting a business on Amazon, this may be one of those tedious topics you just have to deal with whether you want to or not. 

First and foremost, know that you pay taxes in whatever country you live in, no matter your customers’ location.

Dropshippers are members of the new habitat called the Amazon marketplace. In this global ecosystem, most dropshippers opt to purchase their inventory from Chinese-based suppliers and sell to the world’s biggest markets in the U.S.A. 

When dropshipping on Amazon, you will have to pay two types of taxes. There is income tax, and the second is potentially sales tax. Income tax is a tax you pay on the profit your store makes in a year.

The good news is that you don’t have to pay income tax if you don’t make a profit. However, since June 21 of 2018, the USA Supreme Court ruled that states can collect dropshipping sales tax. That means American dropshippers must pay taxes even if they are operating at a loss. 

Sales tax is a tax a governing body imposed on goods and services sold within their jurisdiction. In many countries, this is only levied on a federal level, making it weaker overall. In the U.S, though, this is highly dependent on what state you live in. There are famously known states as tax havens (Delaware, Oregon, and New Hampshire). No one may pay or collect sales tax in these states. 

There used to be a law that only required you to pay taxes within a particular state if you have a “nexus with an estate.” That is legal-speak that means a sizeable investment in the state. 

If you don’t want to worry about these fiscal issues, hand your problems over to our experts. At NextGen, we handle your LLC formation and apply for your tax exemptions in all 50 states. 

The benefit of getting professional Amazon store management for your eCommerce store is that our finance experts can minimize the profits you end up handing over to the government.

4. It’s an Excellent Long Term Investment

A closed safe

Having a managed and automated Amazon store is an excellent and robust long-term investment.

One important aspect of Amazon store management services is that careful and professional management makes these robust investment instruments long-term. Online sales can also be as “recession-proof” as you want. If your brand dedicates itself to selling a little bit of everything, there is no way for you to go wrong. 

Amazon dropshipping is a sustained effort. You must begin with the investor mindset of expectations over time. Growing your business requires time, care, and careful monitoring before your store gets to the point where it will stand up on its own two feet. 

The beauty of Amazon automation is that it produces an income without requiring time from you. Our NextGen automation experts can ensure that you grow your hands-free passive income stream. 

Get Started With NextGen Strategic Investments

Trust our experts with the growth of your professional investment. Having an Amazon store management service like NextGen Strategic Investments ensures that customer service and review management are top-priority. Rather than trying to strategize ways to get your customers to leave reviews, you’ll allow experts in the Amazon game to manage the customer-service aspect of your store. 

Contact us today to schedule your free consultation, where you’ll learn more about how we work and create a profitable Amazon store for you.

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