Learning how to make money on Amazon can feel like a daunting journey. The thought of navigating the world's biggest online marketplace might have you feeling lost at sea.
But here's the thing...
Making money on Amazon is what separates the occasional online seller from the e-commerce entrepreneur.
Many are in the same boat, not knowing how to begin or expand their business. In fact, many are in your shoes right now.
If we jump in our time machine and zoom back to 1995, you'll find Jeff Bezos packing and shipping books that he's selling on his eCommerce website, Amazon.
Skip forward a little to the year 2000, and third party sellers are invited to sell on Amazon, which is now a multi-billion dollar company.
Jumping ahead to 2024, regular people from all over the world are making a full-time income with Amazon, in a huge number of ways.
In this article we're going to explore 17 ways that you can make money on Amazon in 2024 and beyond.
Amazon Affiliate Marketing
If you're aiming to generate income online, endorsing Amazon products on your website or social media outlets can be a financially rewarding choice.
The Amazon affiliate program, also known as the Amazon Associates Program, allows you to earn commissions by recommending products available on Amazon's platform.
Choosing the Right Niche for Affiliate Marketing
Selecting an appropriate niche is crucial in making money through this method. Your chosen area should align with your interests and expertise while having enough demand among consumers.
You'll need to research potential niches thoroughly before deciding which one will work best for your business model. Look at factors like competition level, profitability of items within that category, and audience interest levels.
How to Become an Amazon Associate
To start earning from the Amazon Associate program, first create an account. Provide your personal details, such as name, email address and bank information to create an account for the Amazon Associate program.
Once approved, you get access to tools necessary to generate unique referral links for embeddable site/blog posts/social media content.
Every time someone makes a purchase using these links, you earn a commission varying from 1-10% depending on the product type.
This way, the more traffic you drive towards Amazon via referrals, the higher chances of increasing earnings.
Ready to explore the next opportunity? Let's dive into the world of Merch By Amazon...
Amazon Influencer Program
Similar in nature to the Amazon Associates program, the Amazon influencer program was designed for people with large or engaged social media followings to monetize their audiences by reviewing and recommending products on Amazon.
The majority of influencers make money via their own Amazon storefront where they post video reviews of Amazon products. Influencers can also get their video reviews placed on Amazon product listings, which is what most influencers strive for because they can earn commissions whenever someone buys after watching their video.
There's a bit of an application process and a small learning curve involved, but the Amazon Influencer program is a great way to make money without even having to sell items on Amazon. It might even be one of the best ways to make passive income online.
If you want to pursue the Amazon Influencer program yourself, I'd love to invite you to check out the program I created along with Nate Mccallister and Liz Saunders.
Merch by Amazon
It appears to be called Amazon Merch on Demand now, but Merch by Amazon is a print-on-demand service which means you don't need to buy any merchandise or print anything yourself. You just need the designs to upload to the products and Amazon will do the rest, essentially.
This platform allows entrepreneurs like yourself to sell merchandise with no upfront cost, making it a great way for new and intermediate sellers alike to generate income.
Setting up your Merch by Amazon account
To get started, create an Amazon seller account.
You'll need some basic information about your business as well as tax identification details. Once the setup is complete, you can immediately begin to merchandise your products on this renowned e-commerce platform.
Tips for Success With Merch by Amazon
- Diversify: Offer different types of items such as t-shirts, hats or coffee mugs. The more variety in your store inventory increases chances of attracting various customer preferences thereby boosting sales potential .
- Niche Selection: Focus on specific niches that align with trends or interests of targeted customers which will make marketing efforts easier while increasing product relevance . This could be anything from sports teams , music bands even motivational quotes.
- Pricing Strategy : Make sure pricing competitive yet profitable considering costs involved including Amazon's fees . Researching what other similar products are priced at helps determine ideal price point without undervaluing overpricing goods being sold.
- Design Quality : Invest time effort creating high quality attractive designs differentiate stand out among multitude offerings available within amazon marketplace .
- Promotion Marketing : Utilize social media channels promote merchandise driving traffic listings consequently improving visibility enhancing sale prospects.
Sell Print on Demand Products on Amazon
Print on demand (POD) differs slightly to the Merch by Amazon program in that you need to integrate a third party POD provider who will fulfil your orders on your behalf.
Similarly to Merch by Amazon though, users can upload their designs to various print on demand products and sell them on Amazon. These include items like coffee mugs, apparel, drinkware, wall art, and much more.
Some of the more popular POD providers that integrate with Amazon include Printify and Printful.
Dropship Products
Dropshipping involves ordering a product from your supplier when you make a sale on Amazon, and having them ship the order directly to your customer. This means you don't need to buy any inventory at all until you make a sale, but there are risks involved with this method.
You will need to ensure that you are identified as the seller on all packaging, so you can't just order from Walmart and have it sent to your customer, and you will need to handle all returns and customer queries yourself.
Online Arbitrage
If you want to earn some serious cash on Amazon, Online arbitrage might be your golden ticket. It's what I do and teach in the OA Challenge.
This business model involves buying products at a low price from one online retailer and selling them for a higher price on Amazon.
The Basics of Online Arbitrage
In essence, you're taking advantage of pricing discrepancies between different marketplaces.
You find profitable products listed cheaper elsewhere, buy these items in bulk and sell them via your amazon seller account. This is how many successful Amazon sellers make their income.
Finding Profitable Items for Resale
A key component to making money with this method lies in finding the right goods that will generate substantial profit margins when resold. But where do you start?
- Become familiar with popular product categories such as electronics or toys which often have significant markups.
- Use tools designed specifically for online arbitrage sellers that can help identify lucrative deals quickly - time is indeed money here. This includes buying online sourcing lists to help you quickly find profitable products.
- Paying attention to seasonal trends can also lead towards more profits- think holiday decorations or summer beach gear depending upon the season.
Making sure each item fits within Amazon's guidelines before listing it up for sale helps avoid potential hiccups down the line too.
To get started successfully, just remember: research diligently, invest wisely, list correctly. Work on your strategy to win the Amazon buy box too, that will boost your sales like crazy.
In our next section we'll delve into retail arbitrage - yet another exciting way to earn extra cash through Amazon.
Retail Arbitrage
If you don't mind getting out into the big box stores, you should consider retail arbitrage. Much the same as online arbitrage, you're purchasing items at a reduced cost from retail stores and reselling them for more on Amazon. The main difference is you are going from store to store in-person, rather than doing your sourcing online.
Understanding How Retail Arbitrage Works
The first step is finding items that are underpriced in local or chain stores. These could be clearance items, overstocked goods, or simply regular-priced merchandise with high demand and low availability online.
You purchase these products and list them as an Amazon seller. When you make sales, you earn extra money after deducting your initial investment and any fees charged by Amazon.
Identifying Best Places/Products for Retail Arbitrage
Your success in this business model largely depends on where you source your products. Look out for big box retailers like Walmart or Target who often have large clearance sections filled with potential bargains.
- Trending toys during holiday seasons can fetch great profits if bought early enough before they go out of stock everywhere else,
- Certain niche books not widely available elsewhere but sought-after by specific readership groups,
- Limited edition collectibles which tend to appreciate value over time due their rarity factor .
Remember though, while it seems straightforward process, there's still a lot of research involved ensuring product viability, market trends, and understanding to ensure maximum profitability.
Dropshipping on Amazon
Dropshipping is a method where you sell products online and only buy from the supplier once you make a sale, and they send the product directly to your customer.
It's possible to dropship with Amazon but it can be risky if you haven't read up on Amazon's dropship policy. Do things in a compliant manner and you will be fine to dropship on Amazon.
Getting Started With Drop Shipping
The first step in setting up your drop shipping operation involves creating an Amazon seller account.
Once you have created an Amazon seller account, you can start selling products directly from manufacturers or wholesalers who will handle the packaging and shipping of orders for you.
Amazon has a great blog article on dropshipping, which is worth a read!
Sourcing Reliable Suppliers
Finding reliable suppliers is crucial when it comes to making money through dropshipping.
You can use platforms like AliExpress where many wholesale sellers list their products at competitive prices, but be very wary. Test out supplies first to ensure the products are high quality and they're a reliable supplier.
The best way to dropship is to approach product suppliers in your country directly and building a relationship that way.
Transitioning into our next topic - have ever thought about publishing a book? Let's delve into how Kindle Direct Publishing could be another viable way for generating income.
Kindle Direct Publishing (KDP)
Authors aiming to generate income online should consider Amazon's Kindle Direct Publishing as a viable option.
This platform gives writers the ability to publish their books without cost and access a huge audience via Amazon. Amazon KDP has transformed many writers into successful amazon sellers making substantial income from their work.
Navigating through KDP setup process
To begin your KDP journey, create an account on the website and provide some basic information about yourself or your publishing company. This requires some basic information about yourself or your publishing company if applicable.
You will then need to add new titles under 'Bookshelf' and provide necessary details like book title, description, keywords etc., which are crucial in helping potential readers find your book among millions of others on Amazon's platform.
Effective pricing strategies
Setting the cost for your book is important in determining how much you can make through this program. Books priced between $2.99 and $9.99 earn 70% royalties while those outside this range attract only 35%.
In addition, paperbacks have fixed royalty rate at 60%, but it comes after printing cost deduction.
A well-thought-out pricing strategy could be key factor determining whether customers buy products i.e.,your books or not; hence directly affecting overall earnings.
Wholesaling
Selling wholesale goods on Amazon can be a highly profitable venture, thanks to the presence of established brands that attract consumers who are already searching for these products.
The scalability of wholesaling makes it an appealing option. Rather than starting from scratch with your own brand, you spend time growing your business and making sales by leveraging existing ones.
Steps towards Wholesaling Success
To succeed in this field, start by setting up an Amazon seller account.
You'll need to find reliable suppliers offering competitive prices. This will provide you with the capacity to purchase goods at reduced costs and market them for a higher cost on Amazon's platform.
Scaling Wholesale Business
An important aspect is scaling up once initial success has been achieved. To do so effectively involves expanding product range or increasing order volumes for best sellers, where Amazon takes care of storage and shipping logistics could prove beneficial here.
Next we dive into another unique way handmade sellers generate income through their craft via the 'Handmade' category offered by Amazon.
Amazon Handmade
If you're a crafter, Amazon Handmade could be your golden ticket to making money online. Etsy was always the original handmade platform, but they've also evolved a lot and you can buy a heap more than just handmade on there.
It looks like Amazon Handmade was launched to complete with Etsy, so let's learn a little more about it.
Registering product under 'Handmade' category
To start selling unique handcrafted items on this platform, first register as an Amazon handmade seller.
The process involves providing details about yourself and the products you make. All items listed in this category must be handmade or created using suitable tools.
Crafting compelling product descriptions
A well-crafted description can set your item apart from others and attract potential buyers. Focus on highlighting what makes your item special - is it one-of-a-kind? Made using traditional techniques?
Showcase these elements in a clear, concise manner while incorporating relevant SEO keywords where possible for better visibility among amazon sellers make their listings stand out.
This way not only do you sell products but also build trust with customers which will result into more sales hence earn extra money through Amazon's platform.
Private Label FBA
If you're seeking a method to make money on Amazon, consider creating private label products. This means manufacturing your own products, or at least striking up a deal with a manufacturer to put your brand name on a product that they supply to you.
This approach can be very lucrative, but because it involves investing heavily into product creation and inventory, it does bring with it some risks.
Launching and Scaling Private Label Businesses
The process begins with identifying profitable niches within the Amazon platform.
You then source high-quality goods from reliable manufacturers and brand them as your own on your own Amazon storefront.
Different categories have varying levels of competition; some may be more suitable than others based on your resources and expertise.
Private Label with Fulfillment By Amazon (FBA)
A key advantage in this business model is utilizing Fulfillment by Amazon (FBA). With FBA, suppliers ship directly to an Amazon warehouse where inventory management, storage, packaging, shipping are all taken care of by Amazon.
Selling with Amazon FBA not only simplifies operations but also greatly increases profitability scope due less overhead costs associated handling these tasks personally. Plus, it provides prime badge boosting sales potential further.
Work From Home as Amazon Customer Service Associate
Believe it or not, Amazon has a huge Virtual Customer Service program where workers can support Amazon customers from the comfort of their own home. This type of remote role is fast becoming popular amongst students, stay at home parents, and those wanting to add a side hustle to their current occupation.
If you want to look at the current jobs for customer service associates on Amazon, take a look here.
Deliver Packages with Amazon Flex
Think of Amazon Flex as a Uber-style service, but instead of transporting people around your city, you're transporting packages.
Run through the Amazon Flex App, this program is great for those that want to make money using their own vehicle to deliver Amazon packages around town.
Offer Your Services Through Amazon Home Services
Services like Thumbtack and HomeAdvisor are well known services connecting home service providers with customers. Amazon Home Services is a similar service where customers can engage service providers to carry out tasks such as product delivery, assembly, installation, and more.
The services available on Amazon Home Services are generally in-line with the types of services Amazon customers need when they purchase goods from the marketplace.
If you want to become part of the Amazon Home Services program, there is an application process and you will need to have relevant licenses and accreditations for the services you are providing.
Take on Tasks with Amazon Mechanical Turk
Amazon Mechanical Turk is a freelancer marketplace, similar to the likes of Fiverr (but with some differences). If you're familiar with Fiverr, you'll know its a great place to get logos, graphics, video editing and other creative tasks completed.
Mechanical Turk focuses more on repetitive tasks like data entry and research. They call these tasks Human Intelligence Tasks (HITs) because they are generally tasks that cannot be performed by a computer, hence requiring human intelligence to complete the work.
Write Reviews for Amazon Vine Program
At the time of writing, Amazon Vine is an invitation only program. To explain how it works in a nutshell, product reviewers are called Vine Voices. If you're fortunate enough to become a Vine Voice, you get to order items free of charge in exchange for your review.
To add a bit of a caveat, you do not get paid to share your review as a Vine Voice, but you do get items for free. So while you technically don't earn money with the Amazon Vine, you're also recieving items for free which is a big money saver, and you could even resell those items on Amazon or another marketplace.
What is the Best Way to Make Money on on Amazon?
Well, my opinion on this might be biased but there's a lot of people who will agree with me when I say that using Amazon FBA to sell with Online Arbitrage is the top way to make money on Amazon.
Why?
For starters, you can source products to sell online from the comfort of your own home. And you don't even have to do all the heavy lifting yourself, you can use a software like Tactical Arbitrage to do this for you.
Then once you've found profitable products to sell on Amazon, you need to order them and ship them to Amazon once they arrive at your home. But here's the kicker, you cant eliminate this part of the process too.
You can use an Amazon Prep Center to receive your goods and they will package them up and ship them to Amazon.
You literally do not need to lay a hand on a single product. You will most likely start out small, however, and just buy a few products online and ship them in to the FBA warehouse yourself to get used to the process. This is fine, and it's what I recommend. This way you'll understand how it all works.
If you want to learn about Online Arbitrage then I highly recommend you take a look at the OA Challenge, hosted by yours truly! It has changed a lot of lives and it covers everything you need to know about Online Arbitrage with Amazon.
FAQ - How to Make Money on Amazon
Can you realistically make money on Amazon?
Yes, many individuals and businesses earn substantial income through various methods such as affiliate marketing, retail arbitrage, dropshipping, and selling private label products.
How to generate income from Amazon?
You can generate income by becoming an Amazon Associate, selling physical or digital products directly on the platform or via Merch by Amazon. Kindle Direct Publishing is another option for authors.
Is it easy to make money on Amazon FBA?
Making money with Fulfillment By Amazon (FBA) requires careful planning and execution but it simplifies operations like storage and shipping which can increase profitability.
How to make money on Amazon without investment?
Affiliate marketing (Amazon Associates) is a low-cost way of making money where you promote other's products. Also, Merch by Amazon is a good way to start selling merchandise without too many upfront costs.
Conclusion
Exploring Amazon's vast potential is a lucrative opportunity, and now you've learned the ropes of affiliate marketing, merchandising, and online arbitrage.
Retail arbitrage has been demystified, dropshipping decoded, and Kindle Direct Publishing uncovered!
The art of wholesaling on Amazon? You're now familiar with it. Handmade products and private label FBA are no longer foreign concepts in your lexicon.
All these strategies can be harnessed to make money on Amazon. The path may seem daunting but remember - every journey begins with a single step.
If you're ready to take that leap into the world of e-commerce entrepreneurship on Amazon, feel free to join my email list below. I send out weekly tips on how to make money on amazon, I'd love to see you on there!
Thanks for reading!
