What is Amazon Automation Dropshipping?

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What do hedge fund managers and the world’s top YouTubers have in common? Both are experts at generating passive income. There’s a saying that the average millionaire has seven passive income streams on top of their actual job. Amazon automation dropshipping is only one of the hundreds of ways you can make a passive income online.

Other methods include affiliate marketing and selling courses. However, few passive income methods can affect your net worth as powerfully as a successful self-sustaining Amazon store. That is basically what Amazon automation dropshipping is. 

Entrepreneurs and professionals around the globe use this low-effort strategy to supplement their breadbasket. These are some of the benefits of implementing this business strategy: 

  • No physical store needed
  • Low fulfillment cost
  • No inventory
  • Flexibility in products

Read more to learn about a proven and profitable way to earn an additional stream of income passively. 

What is Amazon Automation Dropshipping?

Dropshipping is a business model that connects people with an online presence—i.e., owners of an Amazon product page or an online store—with an eCommerce business capable of fulfilling the order. 

That means that dropshipping involves selling someone else’s products or services while only purchasing inventory when a customer places an order. All you have to do is build and manage a website with listings that customers can click through. You do not handle the actual physical part of the sale. 

Dropshipping requires a little resourcefulness and some initial investment, but it quickly evolves into a self-sustaining business. Having an Amazon management service take care of your Amazon store’s set-up and maintenance not only allows you to make passive income, but you don’t need to deal with the technical details and headache of operating the store. For more information on how you can get results fast, contact our team for a free consultation.

History of Dropshipping

In 1999, Nick Swinmurn had an idea to sell sneakers. Ecommerce was in its infancy, but Nick had the idea to leverage this powerful new technology to his advantage. He could have chosen to do what was usual by investing in rent, inventory, machines, and employees, but instead, he did something novel.  

He went to an existing shoe store, took a couple of high-quality pictures of their best-selling shoes, and posted them online. People online bought order after order. Nick had begun building revenue for his business without paying for rent or even inventory. This story was the beginning of Zappos. 

What makes the Zappos story so interesting is that there was no initial upfront investment required for customers to purchase. Selling something you don’t own is not new, but the internet makes this process so streamlined that it is now possible to automate the business!

Generally, starting is the most challenging part. NextGen Strategic Investments helps you jumpstart your Amazon automation dropshipping business. We handle everything from your new LLC setup, applying for your federal tax ID number, and applying for tax exemptions in all 50 states. Plus, one of our experienced account managers will guide you step-by-step through the Amazon onboarding process.

Why You Should Start a Dropshipping Business 

Physical retail has many costs (both obvious and hidden) like storage, inventory, and logistics. Even things that seem simple, like finding where to keep your products before selling them, can be a ticking time bomb. 

As you can see from the Zappos example, dropshipping is a lot simpler than traditional sales. The main costs you have to assume are marketing and maintaining your online space. 

Dropshipping is one way to step into the world of eCommerce and digital marketing. This fascinating new world allows its sellers advantages that merchants in the 20th century could only have dreamed of. 

Four Pros of Amazon Automation Dropshipping:

  • Small startup cost compared to physical retail.
  • You can travel anywhere while working.
  • Low risk; you don’t have to carry inventory.
  • Low overhead cost.

Dropshippers use their platforms to sell the products of other brands. These platforms are usually sales-centric. Not every Amazon product page belongs to someone who owns the product. Dropshippers promote and “host” a product, while a reseller handles the heavy lifting. 

Dropshippers love Amazon. That is why people ask all the time if it is too late to get into this space. The answer is that it is not at all too late, but you have to choose your products carefully (which has always been the case). Most products that drop shippers sell out on are trending on Google or Amazon searches. 

eBay reported that after Netflix released a hit mini-series about a chess prodigy, Queen’s Gambit, sales of chess sets rose by 215%. Chess manufacturer Goliath Games reports that their total increase in chess set sales was upwards of 1000%. 

Finding the best products to sell is the kind of research that drop shippers must become intimately familiar with to be successful. That’s why many drop shippers invest in hiring an Amazon management service like NextGen to create a store that has profitable product categories and an efficient strategy.

How NextGen Can Help You Make Money on Amazon

A person typing on their laptop while working.

Photo via Unsplash

Creating a dropshipping Amazon store can be complicated, and the work involved to keep it profitable and thriving can be quite tedious. that’s why when you work with NextGen, you can be confident that your eCommerce store will be in good hands. Our team of experts creates, manages, and optimizes your store not only to be automated but to ensure optimum profitability.

We analyze each product before choosing it for your store. When maintaining your store, we mitigate chargebacks and handle all product reviews. If Amazon audits your store, we will absorb the cost and create a new store for you as many times as needed.

We also have a customer support team available 24/7 to answer your questions if support is needed. Ready to get started? Contact us today to find out how we can help you have a profitable dropshipping Amazon store that provides you with hands-free passive income.

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