Our recent search says everyday more and more people are intrigued by Passive Income models on internet. I mean, who doesn’t enjoy some extra money earned with much less effort. Well, if you are not yet aware about what a passive income model is, let’s brief you in the best possible way.
Surely, many of you enjoy shopping and I’m pretty sure about the ladies here. Especially, online shopping is a wonderful way to choose from the goodies and own the ones you like. What if this shopping loving nature of yours gives you an opportunity to earn from? Sounds cool, isn’t it? On Amazon, you can do some profitable online business via FBA. All you need to do is go to actual stores and purchase stuffs for cheap that sells for more on Amazon. You can ship the products to Amazon and Amazon will deliver those to their customers. So, if you’re a great deal finder, you may give this a try.
But is this passive income model really a profitable online business?
Now, if you are a beginner, you must remember that this kind of business largely depends on the online marketplace and obviously, the kind of product you are selling. You can sell your own product there that will also help you to establish your own label. The other way is what we mentioned earlier – you buy products from stores at lesser price, sell on Amazon for more, and earn profit. Every business needs its own time to offer profit, sometimes a few months or a year may be, you have to keep your patience. And yes, there are more offline things to do to sell your product online. Like, don’t forget about how much you invest. If you invest more, you make more. The moment you stop investing or reduce it, your sales figure will suffer. So, go for it, stay consistent, this business will surely give you profit.
While talking to one of the friends just came to know about an exact amount of investment and profit. I guess, this is just the right platform to share the info with you. This friend is in this business for a few months and he said that he exactly has invested 10,486.76 dollars. This covers the expense of 6 months. From the time he started it till the time I am writing this article. No wonder, I felt really curious. Now, when I asked this friend to give detail of their spending, he was kind enough to tell me so. As per him, 208.90 dollars went after food, (you need to eat also when you go out), 9969.50 dollars for inventory, as you need to store your stuff at a good place and 300 dollars for other things like paper boxes and few other essential tools.
Then when I asked him about the profit, he said it was exactly 10,584 dollars. Then I was a bit taken aback. Of course, that didn’t sound like much. But he explained that it all depends on your investment and consistency. There was a time, when they took a break or something, so as a result the sale suffered. He also shared with me that Amazon sends the payment every 2 weeks. If you have a direct deposit option, the deposit goes straight into your business account.
Now, let me tell you about another advantage of this online business. Everything you buy, doesn’t sell immediately when you put them for sale, right? And no one could really assure you when exactly they could get sold. It can take weeks, months, and years or even could get sold out in a day. But whatever does not get sold remains in the inventory. And, the good thing is, when you feel a bit relaxing, not in a mood for going out shopping, you know that you still have the potential for business. So, even you’re in a mood for holidaying, your stuff are there in the inventory and can get sold anytime, and the business goes on. Terrific, isn’t it?
I know what you guys are thinking right now, the earning amount didn’t really allure you. 10,584 dollars for 10,486.76 dollars is nothing big! But, as my friend said, it’s all about how much you’re putting in. The more time and money you invest, the more you get back. And if you just look at my friend’s sales figures on Amazon, he actually got back what he invested. With 0 loss he made the business running with minimum investment and made profit, no matter how much small you feel it is. I remember him saying that he did not spent more than 2-3hours a week after this. So, just imagine, if you invest more it’s surely going to be rewarding for you. This Amazon FBA Online Business is undoubtedly profitable. This is what passive income model is all about.
Now, let us just recall and know some really important facts that you need to remember before starting this online business. I call it the Fantastic Four!
Make intelligent decision about what to buy and what not to. This may take a bit time to catch, so follow the market demand, what people like to buy online etc. Otherwise, it could be a loss run. So your buying decision really matters.
Remember, the point about consistency. The more you put in the more you get back. And even if a give it a break, you know the inventory is there to support your business run. Yes, it may not be that much flourishing, but good enough to keep it going.
You may always have to carry the inventory expense. Whatever you put on sale is not going to be sold immediately. So, the cost for inventory maintenance would always remain in your investment.
It’s a fact that prices on Amazon do fluctuate and they go down. There’s lot of competition on the e-commerce sites nowadays. So, keep watching for it and if you are making decent profit then you are good to go with such things.
Are you thinking of following the passive income model as a side earning?