Introduction
Amazon is the most popular online marketplace in the world and for many affluent people, it can be a great way to supplement their income - particularly when they are able to leverage automated systems. If you've ever debated whether or not investing in an automated Amazon store would be worth your time and money, then this blog post is here to provide all of the information you need.
The average millionaire has about seven streams of income. Yet, property and other common income streams can be challenging or involve a significant amount of upfront capital.
Amazon - Beyond Prime
First, investing in an automated Amazon store allows affluent individuals to take advantage of the immense popularity and reach of Amazon as a marketplace. With over 310 million active customer accounts worldwide, Amazon offers a vast and ever-growing customer base that’s ready to buy products. This huge potential pool of customers provides investors with an excellent opportunity to increase their sales and profits. Beyond being a convenient way to buy goods, Amazon is an extremely lucrative way to earn passive income. And the website continues to grow every day, drawing in business owners from all backgrounds and walks of life. Let’s look at some numbers. As of June 2022, Amazon was the most visited e-commerce site in the United States, with 2.45 billion monthly visits to Amazon.com. Amazon ships approximately 1.6 million packages a day. That’s more than sixty six thousand orders per hour.
The best part? It’s easy for new business owners to take advantage of the website’s popularity and potential. In fact, over half of the items purchased on Amazon are through small businesses. Additionally, 80k-100k businesses are making more than $1M per year just by selling on Amazon.
Convinced? Let’s talk beyond numbers and zoom in on why investing in an Amazon is not only lucrative, but easy.
You can Invest in an Amazon Store from Anywhere
For too long, individuals had to grow their wealth where they lived (a traditional 9-5). The best part about the explosion of e-commerce is that small business owners can create, manage, and optimize a store no matter where they are in the world. Having location freedom is ideal for those looking to travel or have more flexibility in their day to day.
Investing in an Amazon Store is Scalable
Before the Amazon days, investing in retail as an income stream was a risky bet. Finding locations, purchasing a building lease, hiring staff, and investing in the technology and hardware needed to process sales often meant being in the red before opening day. Luckily, Amazon stores allow investors and business owners to keep an extremely low overhead so they can find the best way to sell more, faster.
Inventory Concerns, No Problem
A question we hear quite often is “but what if no one wants to buy my product?” That is often a business owner’s worst nightmare; investing so much time, energy, and money into producing a product that nobody wants. Luckily, when going with a consultative service provider, you're using data to make sure you're investing in sellable goods from the jump. Plus with Amazon, there’s no huge inventory needed to turn a profit. Manufacturers will handle the production and shipment of your inventory straight to the fulfillment centers in small quantities while you start out.
Your Amazon Business is Sellable
Did you know that even if you grow, scale, and optimize your Amazon business that you’ve created a sellable asset? If you are profitable with “good standing” on the platform, a whole host of third party investors will buy your store for a good profit. Most well-managed stores can sell in about 2-4 years.
Amazon Businesses are Low Maintenance
In addition, automated Amazon stores are easy to set up and maintain. Investing in an automated Amazon store eliminates the need for a large staff of workers to oversee day-to-day operations. This can result in significant cost savings, which can be used to increase profits or reinvest into other areas of the business. Furthermore, Amazon’s easy-to-use tools and resources make it simple for investors to keep track of their store even from afar.
In Conclusion
In previous decades, affluent individuals needed to buy real estate or move massive amounts of money into the stock market to set up additional income streams. However, with the gold mine of Amazon and e-commerce buying behavior, investing in online stores is poised to be the new way to invest and grow wealth. For more information on FBA services, set up an appointment with Brent Stone with Stoneco.