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How to Start Amazon FBA: The #1 Passive Income Opportunity

Written by Matt Clark | Jun 28, 2021 1:54:08 PM

Take control of your career and learn how to create an income stream that’s designed to last through any economic downturn.

COVID-19 has changed the world forever, in more ways than one — and business is no exception. Entire industries have suffered irreversible consequences and millions of Americans lost their jobs in 2020. And yet, despite these serious long-term impacts, other businesses flourished.

Companies like Amazon, Google, and Apple saw record-breaking profits during the first year of the pandemic. Even some small businesses and entrepreneurs found wealth during this time as well. But there’s a single business model that stands out because of its agility and explosive profit margins throughout 2020, and that’s the Amazon FBA business.

 
What is an Amazon FBA business?

With more than 300 million active customers and billions of sales every year, Amazon is the world’s most popular online e-commerce platform. This is exactly why Fortune 500 companies, small businesses, and entrepreneurs flock to Amazon every single day to sell their products and turn high profits. And each business starts with the same three-step process:

1. Choose a product to sell
2. Get an Amazon seller account
3. Create product listings

But if each seller follows the same start-up model, why are some more successful than others? The answer is simple and it lies in how companies approach order fulfillment.

There are two fulfillment choices when you sell on Amazon. You can fulfill each order yourself (merchant-fulfilled), or you can let Amazon do it for you for a reasonable fee (fulfillment by Amazon, also known as FBA). Let’s break down the differences between the two.

 
Merchant-fulfillment:

• You store your products
• You manage your inventory
• You pack products when an order is placed
• You ship products directly to the customer
• You have to understand and account for shipping rates for Prime members and non-members
• You address customer inquiries and complaints

 
Amazon FBA:

• Amazon stores your products in one of its 175 fulfillment centers
• Amazon packs your products when a customer places an order
• Amazon ships your product directly to the customer
• Amazon gives you shipping rate discounts
• Amazon makes your products automatically eligible for Prime shipping
• Amazon addresses customer inquiries and complaints

In short, Amazon FBA replaces a sophisticated logistics network in exchange for a fair percentage of your sales revenue. All you need to do is choose a product to sell or make, write compelling product listings, and let Amazon take care of the rest. And because you can make sales overnight or while you’re working on other projects, the Amazon FBA business model generates passive income.

If you want to be really successful on Amazon, you’ll need to invest some time and resources into marketing your product. But other than that, it’s truly this simple. This is why Amazon FBA is a powerful tool for new and/or small sellers to scale a passive income business fast.

 
How well do Amazon FBA businesses perform during economic anomalies like COVID-19?

Even before COVID-19 disrupted nearly every industry in the United States and across the world, brick-and-mortar retailers were struggling to compete with e-commerce. More and more shoppers were already relying on e-commerce kings like Amazon for basic goods, books, electronics, clothes, and so on. The lower prices, the convenience, and the incredibly fast shipping make the decision to shop online a no-brainer for millions of customers.

In fact, the year before COVID-19 hit, Amazon pulled in a net profit of $2.6 billion. And when the virus and political mandates forced storefronts to either close or limit capacity in 2020, retailers were destroyed — and customers bought even more off of Amazon than they did before. So much so that Amazon more than doubled its profits during this time — and Amazon FBA sellers followed suit. Clever sellers were able to build and scale their businesses even faster than they would have otherwise been able to because:

• Amazon was flooded with more customers than ever before
• Amazon FBA sets sellers up to scale rapidly
• FBA sellers have access to Amazon’s warehouses, manpower, and resources that other e-commerce and storefront sellers don’t

Sellers who chose to build their business around the FBA program scaled instantly, and sellers who chose to fulfill their own orders didn’t.

 
Will Amazon FBA businesses succeed in the post-COVID world?

Although some COVID-19 impacts are likely to fade in the short-term (e.g. social distancing, required face masks, and limited capacity), business as we know it has likely changed forever. Some changes that are here to stay include:

• More remote office environments
• Increased telehealth visits
• Online education and e-learning
• On-demand food and goods delivery
• Stronger supply chains (i.e. avoiding toilet paper shortages)

The last two points mentioned above are especially true for online shoppers — and therefore online sellers. Even more, customers are accustomed to the fast shipping and convenience of online shopping, and that’s not going away anytime soon (if ever).

The industries most negatively affected were those that couldn’t adapt quickly enough, or couldn’t adapt at all. So not only is e-commerce stronger than ever, but it’s also shown that it’s resilient in the face of devastating and unexpected events such as a global pandemic.

An astounding percentage of online sellers turned high profits amidst the height of the pandemic. But not all of them were able to keep up and grow, except for Amazon FBA sellers. This shows us that the Amazon FBA business model is a flexible and scalable way to generate passive income, regardless of the economy’s health.

 
How to build a recession-proof source of income with an Amazon FBA business

Amazon FBA is a revolutionary business model that has helped countless entrepreneurs escape the rat race of 9-5 living. Leveraging Amazon customers’ extensive buying power, you can create an income stream with unlimited earning potential — and it all starts with Amazing.com’s FREE eBook: Change Your Life With Passive Income.

It’s chock full of detailed information on how other entrepreneurs like yourself have built successful passive income streams — and why those business models will, or won’t, work for you.

The good news is that countless entrepreneurs have changed their lives and set themselves free with an Amazon FBA business. They’ve successfully created a stable form of passive income that:

• Can grow even during an economic downturn
• Is scalable and profitable
• Has unlimited earning potential
• Doubles as a valuable asset

We all want to make even more money and have the freedom of working for ourselves. You can do this with our eBook on how to change your life with passive income and learn about new ways people are making money online.

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