How to Make Passive Income on Amazon: Top 4 Tips
People in the 1950s dreamt of this, a time when people could all afford to live on Easy Street with the help of a robust machine workforce taking care of grunt work in factories, fast food places, and furnaces. Our grandparents’ dreams might not be the first thought to come to mind when we contemplate starting a side-gig in tech, but making a passive income on Amazon is only possible as a result of many generations’ work toward this dream.
Let’s take a look at the top 4 tips for making passive income on Amazon. But first, let’s go over what passive income is.
What is Passive Income?
It is when you make money on autopilot. It is the secret commonality that unites most rich people worldwide.
As recently as 1980, few outside the 1% even knew what passive income was. Those in the middle class who were aware of it did not do much about it due to not physically having the resources needed to create a self-sustaining income like wealthy one-percenters. That obstacle has been steamrolled into a crepe by the internet.
Think about it. What automatic business could you have started without the internet? Read on to discover how you can use Amazon to build wealth.
TIP #1: Think of Your Passive Income Venture as a Seed
When you launch an Amazon store, you are planting a seed. Planting your seed is reflected in the initial effort of sourcing your product, distinguishing it from the competition, and organizing the logistics.
Once you have made this initial effort of planting the seed, it will require careful monitoring, attention, and care before you get to the stage where it is self-sustaining.
That’s why many business owners and investors choose to opt for an Amazon store management service that fully automates the process. Essentially, you invest in the store, but the management team handles the setup, management, and operations, which allows you to focus on your other businesses and rake in passive income from the profits.
TIP #2: Prioritize Good Reviews on Amazon
Keyword research is one of the most important skills you can invest in when you begin your quest to become an eCommerce pro. Before you have reviews, keywords are pretty much the only tool you have to tell Amazon what you are selling and to whom.
However, reviews are where the real money is. Without buyer feedback and good customer service, it becomes difficult to grow your Amazon store and retain customers.
There are tricks to furnishing your store with good reviews that you must hone over years of practice. However, 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.
Tip #3: Understand How the Logistics Work
How much do you know about getting returned items back from a dissatisfied customer and turning him or her into a positive ambassador for your brand?
As the owner of an Amazon store, there are different options available when it comes to logistics. You can choose to have Amazon handle the shipping and returns for you, manage the inventory yourself, or you can use a dropshipping model (where you don’t hold on to any merchandise and only purchase the products when your customer places an order).
When it comes to making passive income on Amazon, many choose to use dropshipping. It does not require purchasing inventory upfront, and the supplier handles the logistics for the most part. If you have a management service like NextGen operating the store for you, logistics is something you don’t need to worry about it. Products, orders, shipping, and returns are taken care of by NextGen, so you can sit back and relax while your store grows and becomes more successful.
Tip #4: Use an Amazon Store Management Service to Maximize Your Return on Investment
As the idea of passive income is to generate wealth without having to do much work, managing an Amazon store on your own may not be as useful if you want to make money in this way. As mentioned in the tips above, there is more to an Amazon store than merely listing products, packing them, and shipping them out. eCommerce is a competitive industry, and regardless of what type of item you’re selling, you’ll find a large number of sellers for each category.
Not only do you need to find products that will perform well, but you’ll also need to differentiate yourself, maintain a good reputation with your customers, and ensure that the shipping process goes smoothly. When you consider the setup process of opening a business on Amazon (forming your company, setting up your store’s backend, getting verified) and the day-to-day operations of your store, it quickly turns into a full-time commitment.
When you work with NextGen Strategic Investments, you enjoy a hands-off form of passive income that allows you to focus on other business ventures while you profit from your investment. We handle everything from the formation of your LLC to applying for tax exemptions in all 50 states. Our team of analysts finds the most profitable products to list and manages the operations, customer service, and optimization of your Amazon business.
Are you interested in learning more about how we work? See examples of real results from our clients, and contact us today to see how you can start earning passive income with a lucrative and proven investment.