We are often asked how long it takes to develop a business on Amazon and whether it can become a passive way of earning money. That’s why we decided to dedicate this article to all the “timing issues”:
❓how many months it takes to start from scratch;
❓how many hours a day you will have to devote to the project;
❓when the business will become self-sustaining and start generating income.
However, it is important to understand that every situation is unique, and the success of an Amazon business depends on a combination of dozens of factors. Patience, flexibility, and readiness to adapt are key aspects on the way to profitability.
Starting from scratch: research, design, and setup
Time: 1 to 6 months
At the initial stage of starting a business on Amazon, you will need a significant amount of time for research and preparation.
In our opinion, the most difficult part is finding a supplier. But this is not the only time-consuming process. Equally important are: market analysis, niche selection, competitor research, and familiarisation with Amazon’s requirements and policies. At this stage, you will also create a seller account, set up listings, take photos of products, and develop a pricing and delivery strategy.
At the same time, you shouldn’t forget about the legal aspects: registering a company and a trademark, opening a bank account, choosing a jurisdiction, resolving tax issues, etc.
How to reduce time costs? The best solution is to outsource some of the tasks to specialists.
It is theoretically possible to complete all the stages on your own, but almost impossible in practice. Rarely does a novice entrepreneur know how to develop a business from scratch and have sufficient experience and competence in everything from commercial photography to negotiations with foreign suppliers and logistics.
Nexus has all the specialists you need. We are ready to launch your business on a turnkey basis or help you with individual tasks. Contact us in any convenient way to discuss the details.
Ensuring business performance: listing and inventory management, customer service, marketing
Time: 2 to 10 hours per day
Creating listings and launching sales is just the beginning. Regularly updating and optimising listings, including keywords, descriptions, and images, requires constant attention.
In addition, inventory management is an important aspect of a successful business. You have to closely monitor their level, order new products, track the popularity of goods, and respond to changes in demand. All of this together requires a huge investment of time.
You need to promptly answer customers’ questions, solve problems, and monitor feedback. In addition, effective marketing strategies, such as in-app advertising, can take time to set up and analyse the results.
As your business grows, you will be able to consider expanding your product range and entering new markets. This also involves time to research and create strategies.
How to reduce time costs? Many processes can be automated, while others can be optimised through proper planning and resource allocation.
However, delegation is also the best solution. Most of the routine tasks can be transferred to an account manager, and then you, as the owner, will only have to make strategic decisions.
Business on Amazon cannot be called “passive” in the classical sense. However, having a close-knit team of good specialists will allow you to work on the project only a few hours a week.
When does the business start generating income?
The time it takes for an Amazon business to start paying off can vary significantly and depends on many factors. Here are some of the key ones:
- product type and niche (+ level of competition);
- experience of the seller (knowledge of e-commerce and Amazon can reduce the time required for a successful start);
- the effectiveness of the chosen marketing strategy (high-quality advertising within Amazon will help speed up the process of attracting customers and generating revenue);
- quality of customer service (the more positive reviews and higher rating a store has, the easier it is to attract new customers);
- start-up budget and resources (having sufficient funds for purchasing goods, marketing, and operations can significantly affect how quickly you start generating income).
On average, many entrepreneurs report that the first few months can be challenging, as it takes time to optimise listings, attract customers and build a brand. However, with an effective strategy and hard work, some businesses start making a profit in 6-12 months.
In our practice, there are cases of revenue generation in 3-4 months from the launch date. But again, it’s difficult to talk about anything specific, because the result depends on the factors listed above.