I’m big on building businesses that generate passive income. Amazon is not a great way to generate passive income. Or is it? Lets explore.
For one, if I have to personally box and ship the items I’m selling, it’s not passive income. I don’t just want a “work from home job.” I don’t want to be home to have to get to work at all. I want to be; just about anywhere else. Tim Ferris style. If I have a laptop and a wifi signal, I can get some work done. Have you been wanting to learn how to sell on Amazon, but don’t want to personally ship products to your customer? The following are 3 easy steps to making this a reality using Amazon as a tool. A billion dollar money-making platforms right at your fingertips any time of day, anywhere in the world. If you’ve been looking for a “work from home job” to generate passive income and earn money from home, maybe this is the business model you’ve been looking for.
Step 1. Amazon FBA. (Fulfilled by Amazon) If you haven’t heard of this, you’re not alone. It’s still relatively new. I was introduced to it in December, 2014 (via the “smart passive income podcast”) In just a few short months, I’ve managed to make over $6,000 in profit. Here’s what you do. First, download the Amazon seller app. Second, go to stores with clearance items for sale. I like going to Costco, Home Depot, rite aid, etc. When you get to the clearance isle, whip out your smart-phone. Time to start using the bar code reader built into the Amazon seller app. Scan the items and see how they sell on Amazon. You can tell how well something sells by looking at it’s ranking. The lower the ranking number, the more often it sells. In general, I only choose items ranked under 1,000,000, depending on it’s category. Now, all you do is punch in the price you would pay for the item, and the app tells you how much profit you will make after all the fees are calculated. If you find a well-ranked item, and there’s a high profit margin I would buy the entire shelf.
Step 2. Take your products home, put them all in a big box, log into your Amazon seller account and ship it to the designated Amazon warehouse. When your items sell, Amazon packages them and ships them to your customer. Then you get an email conformation telling you that your item sold and shipped. If something goes wrong, and the customer is unsatisfied, Amazon takes care of all refunds and exchanges necessary to keep the customer happy. The result is a guaranty that you will always maintain 100% positive feedback, as long as Amazon takes care of the fulfillment process. Maintaining perfect feedback will allow you the luxury of not always having to have the lowest price to sell your items. Buyers will pay more for your product simply because they can trust that you are a great seller. That is called having the upper hand.
Step 3. Wash, rinse, repeat. Repeat step 1 over and over again. This isn’t a set it and forget it business. However, after a few months of accumulating product in the Amazon warehouse, feel free to take a break. Go on vacation as the work you’ve put in will continue to pay out real passive income for quite some time. Treat this business model like a new puppy. When you first get your puppy, he needs constant care and attention. A lot effort and behavior training will be needed. You will need to get to know your new puppy, and go through a lot of trial & error to get your puppy to become the well-balanced dog you’ve always wanted. One day your dog will be fully grown, but he still won’t be able to take care of and feed himself. He still relies on you for food and shelter. You also need to play around with him and keep finding new ways to challenge him. Your Amazon business should be cared for with the exact same long-term mindset. Your day-job is a means to an end. Your business is something you should care about forever. Something else you should keep in mind is that starting your Amazon business using FBA, opens the doors to building a successful drop-ship business. Drop-shipping is another great way to generate real passive income. Without you ever having to touch a single box or product with your own hands. More on how to build your drop-ship business coming soon.
Watch the following video for more information on how Amazon FBA works. https://www.youtube.com/watch?v=hMcW5jYl4dM
The following is a snapshot of my personal Amazon seller account. I had never sold a single thing on Amazon before December 2014.
To get more ideas on what product to sell please click here before making your eBay purchases…