Passive income has become a popular tactic for many smaller businesses and internet entrepreneurs, and Amazon has been pivotal in facilitating this popular online trend.
But what exactly is passive income, and how can this be achieved through Amazon?
What Is Passive Income?
Passive income is ‘unearned’ income that is attained through minimal effort and work. With regards to online income, passive income tends to be something that can be undertaken alongside a primary business/role, or alongside other ventures like ‘side hustles’.
Generally speaking, passive income tends to place emphasis on the ‘passive’ part of the term, wherein the individual earns a specific commission from their external involvement in a venture.
This might be revenue earned from a rented property, or indeed through some kind of promotional advertising for another seller’s products.
Either way, for it to be classified as ‘passive’ income, the individual needs to be loosely involved with directing customers to the product in question, but uninvolved with the day to day work that is involved.
Is Passive Income Profitable?
It certainly has the potential to be profitable, however in most cases passive income tends to represent a relatively small facet of the individual’s entire financial earnings.
However, depending on the scale of the investment, or indeed the number of passive income streams that a person has, the amount of revenue could certainly amount to a much larger chunk of the overall pot.
Passive Income & Amazon
Passive income is perhaps most associated with websites like Amazon, wherein individuals can act as third parties – often promoting other sellers and entities, thus drawing attention to their products, and earning a commission as a result.
This is known as affiliate marketing, but only represents a small portion of passive income attainment on the site.
The main way that people earn a passive income is through the selling of their own products.
Amazon has made it easier than ever to sell and ship goods to customers, and their logistical assistance has taken much of the associated hard work away from the whole process.
How To Make Passive Income On Amazon
If you are looking to Amazon as a source of potential passive income, then there are luckily many ways that you can go about making this dream a reality.
Entrepreneurial Drive
First and foremost, the seller needs to be ambitious – at least in the sense of having the necessary drive and determination to commit to this passive business model.
While hard tasks can be off putting, simplistic, labor friendly side hustles like Amazon selling can also be easy to neglect – especially when you are effectively your own boss, and thus exempt from any sort of punishment for not doing your job.
The right person will have a love for the game, a drive to achieve financial success, and will take pride in the fact that the business is working for them, rather than the other way around.
Identify Inventory
Of course, you also need to identify a product that you wish to sell. While seemingly a simple choice, the direction you take your business in could make all the difference when it comes to the amount of success (and passive income) you eventually attain.
The best way to choose good products to sell is to research popular market trends. See what the people actually want to buy, or indeed identify a gap in a current market, and then meet these needs by supplying the right product at the right time.
Once you have identified the product you wish to sell, you can then source a reliable supplier.
The products in question need to be cheap enough that you can make a profit when selling them, and alongside Amazon’s logistical tools, this chain of supply can effectively do all the work for you.
Set Up Your Storefront
Of course, to sell on Amazon, you need to set up your storefront as it were. This means creating a dedicated page where you can showcase your wares for potential customers.
To do this, you need to enroll in Amazon’s Brand Registry. Once you have completed a registration form, Amazon will review and get back to you – with a successful application giving you permission to establish your storefront ready for selling.
Use Amazon FBA
FBA stands for Fulfillment By Amazon, and is a specially designed program that sellers can use to tap into Amazon’s vast resources to receive help with everything from shipping to logistics.
Being part of this program also grants your products the Amazon Prime badge – making your products eligible for two day free shipping, thus making them more appealing to potential customers.
Monitor & Optimize
Once you have sourced products, established a storefront, and made the most of Amazon’s FBA, it is then time to sit back and monitor your sales performance and statistics.
There are many external websites you can use, however Amazon itself has all of these tools at hand to make the whole process easier.
Optimization is also important, and can be used to make a product the most attractive it can be. This involves keyword research – ensuring that your product appears in as many searches as possible.
Final Thoughts
And there we have it, everything you need to know about passive income, and the best ways to attain it through Amazon.
It’s true that Amazon has changed the game for both private sellers and large corporations alike, creating countless new streams of potential revenue that those with the inclination and means can soon get their hands on.
So, if you are looking for some sources of passive income, then why not try your hand at some of these? Something tells me you won’t be disappointed!
