How to Make Money on Amazon: Your Ultimate Guide to Dropshipping
There are hundreds of ways to make money online. Millions of resourceful people around the globe have learned how to make money on Amazon by dropshipping. Before we welcome you to this lucrative world of creativity and freedom, here are some of the best benefits of starting a dropshipping business.
- Low fulfillment cost
- No inventory
- Flexibility in products
Using the dropshipping business model, individuals with an online storefront can earn huge margins while eCommerce businesses can reach exponentially more people. It’s a win-win.
Get ready to learn how you can develop a reliable income stream without owning a single product or worrying about logistics. Execute orders while laying in a hammock at the beach. Join the hundreds of thousands of successful entrepreneurs who have activated their money and put it to work for them.
How to Make Money on Amazon, the World’s Second Trillion-Dollar Company
Did you know the world’s first trillion-dollar company was Apple? The second was Amazon. One thing that unites these behemoths is that both companies allow people like you and me to create monetized profiles on their platforms.
In the same way that apps on the Apple Store like Uber and Angry Birds will often have a formal organization behind them with a full team of customer support, human resources, operations, sales, and management, so too do many Amazon sellers. These companies rarely get as much media coverage as applications like Uber, but they can easily put just as much money in your pocket without relying on physical costs like car maintenance and gas.
Many Amazon sales start with a business model called dropshipping.
What is Dropshipping? (Long Answer Short, it’s a Passive Income Business Model)
Passive income is basically money that flows into your account without directly requiring that you work for it. Passive incomes do generally require work, but it is not directly associated with the amount of earnings you make. If you thought passive income did not require any work at all, ask a rental property owner how much time they spend dealing with their investment.
Regardless, passive incomes like dividends, interest, affiliate marketing, and dropshipping are a means by which the rich get richer. The popular wisdom surrounding millionaires and passive income is that millionaires average seven streams of passive income on top of their actual jobs!
Dropshipping is a business model that couples people with an online presence—i.e: owners of an Amazon product page, website, or Shopify page—with an eCommerce business capable of the actual order fulfillment.
What that means is that dropshipping involves selling someone else’s products or services for commission while investing next to nothing yourself.
These are the three big advantages of dropshipping:
- It costs very little
- You can travel anywhere while you do it
- Low risk; you don’t have to carry inventory
Physical retail has a hidden cost, storage. Finding where to keep your inventory before you actually sell it is not only a sunk cost in time and money – for providers with perishable products, inventory stored is also a ticking time bomb. Dropshipping has less upside than a complete ecommerce with fulfilment capabilities, but it has very little downside.
Like most forms of passive income, dropshipping includes the added benefit of location independence. This means that you can run your Amazon business from virtually anywhere. Many people who travel like this while making a professional living are doing so with the help of passive income streams.
These are the three catches of dropshipping:
- Starting requires knowledge of Amazon FBA
- Maintaining the product page can be time-consuming
- Analyzing the data can require special knowledge
The biggest strength of dropshipping is also its greatest weakness. Because it has such a low barrier to entry, dropshippers face stiff competition. Ecommerce businesses can be very choosy with whom they allow to sell their products. The process requires mutual trust. In order to inspire this trust, a dropshipper can employ various tactics.
One universal way to communicate trustworthiness to a company is by producing metrics, KPIs, and neat visual data that can easily prove to your professional relationships that your storefront gets results. To do this correctly, you might need skills such as keyword research and social media management or tools such as Survey Monkey or Asana.
How NextGen Can Help You Make Money on Amazon
Most people who use Amazon will never know just how much time and energy is put into each purchase. If you are interested in looking behind the screen to see just how to make money on Amazon, we’ll make it easy for you.
One surefire way to ensure the success of your dropshipping endeavors is to have your Amazon store managed by experts who have extensive experience in efficiently running a dropshipping business. NextGen Strategic Investments provides all these resources and more. We allow investors to profit for buy-in price, but with the immense benefit of not having to actually do any work themselves.
The dropshipping veterans at NextGen Investments have a full team of analysts, marketers, brand creators, sales consultants, operations, and customer service associates to help you build and manage the store initially and then to keep it going in an efficient manner. Our service goes beyond passive income. The value NextGen can provide for you is a totally hands-off passive income business model.
Reach out to our team to find out what the first steps are to create a fully-automated business for you.