How to Create an Automated Amazon Business (in 3 Basic Steps)

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female entrepreneurs discussing their Amazon business strategy

Maybe you’re finally ready to put your entrepreneurial spirit to good use. Or perhaps you’re just looking for a way to supplement your income. Either way, you’re interested in selling products on Amazon. And in that case, it’s worth learning how to create an automated Amazon business.

Here’s the thing…

Amazon can be a great place to launch a business, especially if you have limited experience, time, or capital. For starters, the retail giant is visited by roughly 214.8 million users every month, providing you with access to a massive pool of potential customers. But more than that, it gives you the opportunity to run a highly successful business with little participation on your part—as long as you put in the work beforehand.   

The Benefits of Having an Automated Amazon Business

Chances are you find the thought of having an automated Amazon business appealing. But what does it really mean for you? What can you expect when you create a virtually self-operating business? 

Well, if you set it up correctly, it basically means you get to kick back, relax, and watch the sales roll in! 

Of course, we understand this may sound too good to be true. Right now, you’re probably feeling a little skeptical. However, the reality is there’s ample opportunity to make money on Amazon without a lot of ongoing involvement. If you go about it the right way, you can reap countless benefits. 

For example…

You can free up time to focus on other activities.

One of the drawbacks of being a business owner is that it takes up a lot of time. Even in the eCommerce sphere, you have to dedicate a large part of every workday to making sure things are running smoothly. And oftentimes, you’re working well beyond normal hours just coming up with ideas and putting out fires.

The good news is having an automated Amazon business doesn’t require that kind of commitment. In fact, it allows you to take a hands-off approach. Instead of burning yourself out, you can rest easy knowing everything is in order. This leaves you with more time in your schedule so you can focus on other activities you enjoy, like spending time with friends and family.

You have greater flexibility to expand your offerings.

When you launch your own business, you tend to start off with just a few products. However, if you get to a point at which you want to expand your offerings, it can be a hassle. There are several things you need to consider when you’re handling everything on your own, such as shipping. As a result, diversifying your product line can become a complicated task.  

Creating an automated Amazon business means you can introduce new products with ease. There’s a lot more freedom when it comes to diversification. And although it’s best to focus on a single niche, you can offer customers a wider variety of options once you’ve established your business on Amazon.

You can earn impressive profits with minimal effort.

Typically, business owners must take a hands-on approach if they want to achieve greater profitability. That means looking for every opportunity to bring in new customers, reduce overhead, etc. Unsurprisingly, it can turn into a frustrating endeavor.  

And that brings us to the most noteworthy benefit of having an automated Amazon business: You can earn impressive profits with minimal effort on your part. After all, who wouldn’t want to make money in their sleep? That’s what you can look forward to when you use what Amazon has to offer and set up your business properly. 

Recommended Reading: How to Dropship on Amazon: A Beginner’s Guide

3 Steps to Putting Your Profits on Autopilot

Now that you know what you can expect from an automated Amazon business, you’re no doubt eager to start your own. Fortunately, it’s not nearly as complicated as you may think. In fact, the process can be reduced to just a few basic steps… 

So, let’s look at what you need to do to launch your business and put your profits on autopilot.  

1. Conduct in-depth research

A solid foundation is key to the success of any business. However, it’s especially important if you want to create a business on Amazon that basically runs itself. And to set that foundation, you need to start by conducting in-depth research. 

First, you need to select the appropriate product. You should focus on an area with high demand and low supply. And be sure to look at data rather than relying on your gut. 

Second, you need to choose the right supplier. If you’re not creating the products yourself, then you must find another source. Search for one that aims for quality, as your customers will pay more for a better product. 

Third, you need to analyze the market to determine how you can stand out from other sellers on Amazon. Think about how you could differentiate your offering(s). Ultimately, you want to provide customers with a better version of what’s already available. 

2. Take advantage of the FBA program

Amazon allows sellers to list, sell, and fulfill their orders through the Fulfilled by Merchant (FBM) program. However, if you truly want to set up your business to run with minimal involvement on your part, you should take advantage of the Fulfillment by Amazon (FBA) program. In doing so, you can shift most of the work to Amazon, including…

  • Storage
  • Packing
  • Shipping
  • Delivery
  • Customer service

All you have to do is select the product you want to sell, source it from a supplier, and send it to Amazon. The rest is handled for you! It’s easy to get started, and Amazon offers various resources for seller convenience. 

3. Perform regular maintenance

Once you’ve completed the steps above, your automated Amazon business can essentially run on its own. You just need to perform some regular (and very minor) maintenance. If you’ve set up your business properly, you’ll only need to spend roughly 5-10 minutes working on it.  

Here’s what you’ll need to do…

  • Check on your sales every morning. 

Given the difference in time zones (and customer buying preferences), people will likely end up buying from you overnight. So, it’s recommended that you check on your sales every morning. This is a good practice to ensure you’re keeping track. Plus, it can give you valuable insight into which offerings are best sellers. 

  • Answer general customer questions.

When you sign up for the FBA program, customer service is handled for you. If someone wants to make a return or an exchange, Amazon’s team has you covered. However, it’s still worth looking at whether anyone has asked a question about one of your products. If so, it’s worth taking the time to answer, as it gives potential customers a good impression of you as a seller. 

  • Replenish your inventory as needed.

Finally, you’ll need to replenish your inventory as needed. Just look at how many units are available and reorder from your supplier. This ties in with checking your sales regularly, as you want to be sure to reorder the products that are in high demand and scale back on those that aren’t doing well.   

Recommended Reading: 10 Steps to Financial Freedom This Year

Takeaway

There are major opportunities available on Amazon, which is why it’s worth creating your own automated Amazon business. In doing so, you can look forward to greater flexibility, more time, and higher profits. Best of all, the process of setting up your business is as easy as…

  • Conducting in-depth research
  • Taking advantage of the FBA program
  • Performing regular maintenance

So, if you’re ready to become the entrepreneur you’ve always wanted to be—or just want to bring in extra income—use the tips above to get started.

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