Many people have turned to the world of e-commerce to help themselves build a secondary (or even tertiary) stream of income, only to later realize how involved the process can be. However, with the help of an Amazon management company like Ecom Authority, the process of starting and growing an e-commerce business through Amazon’s Fulfillment by Amazon (FBA) program can be a simple way to form passive income.
Amazon management companies like Ecom Authority help entrepreneurs purchase and manage the inventory they need to successfully operate their e-commerce business. By partnering with a management company, entrepreneurs can rest assured their new partner will handle the back end until Amazon’s automation for fulfillment takes over in their warehouses.
How Ecom Authority’s business model works
Thanks to the relationships Ecom Authority has formed with distributors, as well as the immense purchasing power they represent every month, they can achieve deeply discounted wholesale prices for name-brand products. Stocking name-brand products that consumers actually buy and use means Ecom Authority can better prime their partners’ stores for success by giving them the best opportunity to turn over the inventory in their FBA accounts.
In fact, Ecom Authority is so confident in its ability to help its partners move products that the company even offers an inventory buyback guarantee. “If your inventory doesn’t sell within 90 days of arriving in your FBA account, we can buy it back or replace it with different inventory to best turn over your working capital in revenue,” asserts Dawson Gant, Head of Store Partnerships at Ecom Authority.
After the partner store makes an inventory purchase, Ecom Authority sends the inventory to the store’s FBA account. In other words, the inventory changes hands from Ecom Authority’s warehouses to Amazon’s warehouses, and Amazon handles the rest of the sale — shipping the product to the customer.
At this point in the process, all the operators of Ecom Authority’s partner stores need to do is sit back, watch the sales come in, and collect distributions from their FBA account. Of course, when inventory begins to run low in their FBA account, partners will have to re-order, setting off the cycle again.
However, the team at Ecom Authority explains that this is not a complicated, time-intensive process. In their team’s experience, most partners spend a mere 3 to 6 hours a month on running their business.
Creating passive income with Ecom Authority
Because of this streamlined workflow, combining Ecom Authority’s intuitive FBA business model with the back-end automation of Amazon’s warehouses, creating a partner store with Ecom Authority is a perfect fit for busy entrepreneurs wanting to create a successful e-commerce store.
Still, Ecom Authority is transparent that starting an FBA partner store is not the right fit for everyone. Between start-up fees and initial inventory costs, success in e-commerce requires substantial upfront investment. Ecom Authority also reminds new partners not to expect overnight success. After all, it takes time for any store — be it e-commerce or brick-and-mortar — to ramp up to the optimal levels of sales and inventory for their success.
For those who don’t see the success they were hoping for from their FBA e-commerce business after investing the proper amount of time and money into it, Ecom Authority offers a “store buyback program.” If a partner doesn’t make their initial investment back in 18-24 months, Ecom Authority will buy back the store for the difference between what the partner paid in their initial investment and the profits they have earned to date.
The store buyback program and inventory buyback guarantee are part of Ecom Authority’s white glove service provided to each of their partner stores. “For many Amazon management companies, once they have your initial payment and set up your store, you won’t be able to get in touch with anyone when things go wrong,” Gant explains. “At Ecom Authority, we have readily available concierge support to provide a nearly hands-off service for our partners, empowering busy people to earn a secondary or tertiary stream of income without added work hours.”
A true ally for e-commerce success
Part of what allows Ecom Authority to deliver such an extraordinary level of service to its partners is the company’s large staff. Between their different teams — from sourcing to warehousing, operations, executive, marketing, sales, and more — Ecom Authority has over 100 staff at the disposal of their partners to help deliver results through product sourcing and store health management.
Ecom Authority’s partner stores are treated as equal collaborators, meaning they only make a profit after their partners do (aside from the start-up fee). Once the store is set up, Ecom Authority helps manage the FTA store to achieve maximum profitability. Only after the store has become profitable does Ecom Authority start its revenue split. Even after this point, partners can keep most of their profits, depending on the tier of the store they select.
Managing an e-commerce store for FBA can be a significant amount of work, unless you partner with a company like Ecom Authority to help manage your inventory. With a business model designed to help busy entrepreneurs successfully launch and operate their e-commerce businesses without significant time commitment, Ecom Authority is opening the door for people to build their extra stream of income reliably and easily.