Did you know that by the time you read this sentence, Amazon would have just delivered 105 items?
Crazy isn’t it?
There is no doubt that Amazon is the king of ecommerce and it generated sales of $232.88 billion in 2018.
But what if I told you that there is a way to be part of Amazon and you can make tons of money.
I’m not kidding…
You can make money on Amazon but the question is HOW?
This is where this guide comes in.
After researching 13 different ways, I found 6 avenues through which you can make money on Amazon. So by the end of this guide, you will have a broad concept and idea of each of these methods, and can easily start earning through Amazon.
I have categorized these methods into the following groups:
- How to Make Money on Amazon by Selling
- How to Make Money on Amazon without Stock
- How to Make Money on Amazon by Part-Time Work
So, without further ado, let’s start it.
How to Make Money on Amazon by Selling
Amazon FBA Program
The most prominent and fastest way to make money on Amazon is by selling its products.
If you want to make money as a side hustle without becoming a fulltime seller on Amazon, then Amazon FBA program is perfect to scale your business.
How FBA Works:
You can make money with the FBA program without getting into the trouble of customer support, shipping, manufacturing, and packing.
What’s so good about Amazon FBA?
- You do not need an ecommerce website to sell your product
- Just access the colossal Amazon market to sell a product with little investment
- Get rid of the hassle of logistics, procurement and customer support
Amazon will handle all the hassle of packing and shipping of the orders. All you need to do is send the product to Amazon Fulfillment center.
Before listing your product on Amazon, a little research is effective to know what is the most sought after product on Amazon.
Amazon Best Sellers – The list of Amazon most popular products.
Amazon Hot New Releases – The list of Amazon best-selling new and future releases. By this, you can forecast the future demand on Amazon.
Amazon Movers & Shakers – The list of trending product of last 24-hours.
Amazon Most Wished For – The list of product that people add to their wishlists, a perfect source to know what people want.
Amazon Gift Ideas – The list of most popular purchased gift items of the day.
These lists are updated on an hourly and daily basis.
Charges and Pieces:
Amazon charges on a per unit basis in its fulfillment program.
Recently Amazon made some changes in the policies of their fees, which came into effect on February 19, 2019.
Ways of Selling by FBA:
In the FBA program, you can sell your product with a private label – it is like outsourcing your product. In private label, you pick up a manufactured product and put your label on it.
The best part of selling on FBA through the private label is that you don’t need to give constant attention as you would give in dropshipping. There are also a higher profit margin and a possible passive income.
How to Choose Profitable Private Label Product:
- Always select the product with the highest demand. If the product has a high keyword rank and has low sales rank that means this product is likely to sell quickly.
- Try to avoid products with higher competition. Keep your search for products with low listing and good reviews.
You will need to find a reliable manufacturer who constantly sends you products anytime. You’d do better if you took some manufacturer on trial and then make your final decision.
However, there is also a con you need to look into.
There are high inventory costs when you plan to sell through the FBA program, especially if you need bulk inventory to put it up on your store. So before you start selling, make sure you have around $1000 in spare for cash flow and marketing.
In this method, you can buy the product on a lower amount with an intent to sell it at a higher margin. You do not need to create your own brand in retail arbitrage.
Retail Arbitrage is a quick way of making good money at a higher profit margin.
All you need is to find out products that you can buy in bulk at cheap rates. You can also buy them from retail stores like Walmart or Target. However, do make sure to select products that people actually want to buy.
In this process, the money is quick and easy but you need to keep on hunting down new product that you can sell for maximum profit.
An Example of earning quick money through retail arbitrage by selling Schlage Door Fixtures.
To figure out the fees charged by Amazon, what you can sell, and Amazon’s condition on a certain product, I would recommend using their app called FBA Revenue Calculator. It is a free app that you get when you get access to Amazon seller.
This app will allow you to scan barcodes through your phone’s camera and will give useful information such as Amazon fees and the recommended price to set on the item.
Retail arbitrage is an enticing prospect, but there are certain Amazon policies that you need to look into as few products have been banned on Amazon.
There is a forum as well on amazon where you can take suggestions from other sellers and get ideas about selling on Amazon.
It’s another way of making money through FBA. You can purchase products in wholesale from manufacturers and sell them on Amazon.
Wholesale gets the quality of both – private label and retail arbitrage. There is a chance that one of the brands might become your star product, like a private label.
However, there is a catch.
You might have a chance of getting a sustainable business but profit margin are quite low under the wholesale model.
Amazon handmade is similar to the business model of Etsy.
It encourages artisans who handmake their product like jewelry, clothing or accessories and sell them on Amazon.
You have the option to ship the products yourself or you can use FBA.
Check out some success stories of Amazon Handmade stores that used FBA:
But all of this would work if you’re a genuine artisan who actually can make creative handmade products. The reason why I say this is because Amazon has a very serious procedure to make sure of your credibility.
Amazon Handmade Fees:
Amazon provides the services of seller support, marketing, security, and payment process clearing.
It charges 15% referral fees on sales. Other than that, there are no monthly fees or setup fees.
If you are an artisan and think that you can make good money by selling handmade work, then you are good for this platform.
How to Make Money on Amazon without Stock:
If you want to earn good money on Amazon but do not want to get into the hassle of product manufacturing, stocking or even selling, then don’t worry!
You can still make money on Amazon.
Here are a couple of ways of doing that.
Merch by Amazon
It is a platform by Amazon that allows you to design and sell T-shirt along with other stuff without getting involved in stocking or inventory.
This is the most convenient and easiest way of making money making on Amazon. All you need to do is be as creative as possible.
To join Merch by Amazon, follow these steps;
- Come up with graphic design for the T-Shirt
- Upload that design on a T-shirt
- Choose the T-Shirt color and write a description
That’s it, your shirt is ready to sell on Amazon in a few hours.
Once you are done with the design and description, Amazon takes the command of printing, packaging, shipping and customer support service.
It sounds extremely easy and the best part is that you can join Merch by Amazon from any part of the world with a very low joining intrusion.
Now Amazon has increased the product offering included sweatshirts, hoodies, and PopSockets.
Check out the product and graphics specification below.
To acomplish this, it is not necessarily to be a photoshop expert. There are multiple free online designing software such as Canva and Gimp that can get the job done. You can make a classical design and amazing typography that looks cool on a t-shirt.
How Can You Earn
Amazon will pay you a royalty on every product sold. The payment will be based on products own purchase price, tax and Amazon’s cost (price, material, customer support, and after-sales services).
From January 30, 2019, Amazon has altered royalties on the product to optimize the manufacturing process and cost.
Check out the updated royalties here.
To join the Merch by Amazon, just go to their page and request an invitation.
To make sure your design looks good on a product, Amazon also provides some best practices. On its page, it will teach you everything about making the design look good, sizing of the design, types of design, bestselling design, and product testing.
There are also guidelines on promoting your merch. Check out here.
Amazon Affiliate Program:
It is similar to working on a commission on every Amazon product sold through your medium.
If you run your own blog or have a website or even have large social media community you can get into the Amazon affiliate program (also known as Amazon Associates).
Just upload the links of Amazon product on your website and earn referral commission up to 10% on any purchase. You can also review the product on YouTube or make a review blog and mention the affiliate link on your channel.
If your website visitor does not click to the feature ad on your website but still make a purchase within 24-hours, you will still get the commission.
The vast variety of offering on Amazon will definitely give some niche that you can easily promote on your platform.
Example of Affiliate Website
The Amazon affiliate website Wirecutter published product ads and make commissions. It is a product review website so they advertise electronic items that highly rely on its reviews.
So if you run a lifestyle blog or have large social media community based on the lifestyle, you can easily earn through Amazon Affiliate Program by advertising products of that niche.
How to Become an Amazon Associates:
To become an associate, you must have a website, YouTube channel or Facebook Community. If you have one any them you are good to go.
Just Visit Amazon Associate Homepage and click join for free and follow the further easy step and enter information.
Once you created the account, you will receive a personal associate homepage. You will get complete overview summary of your monthly income and CTR.
Kindle Direct Publishing
Are you a writer? Do you love to write? Then you can make money from Amazon.
Kindle direct publishing (KDP) allows you to publish your own book.
If you are fond of writing an ebook or short stories but did not have the time to go through the struggle of publishing the book.
You do not have to be a professional sci-fi writer or to write a mystery thriller. If you have knowledge about a particular topic you can write an ebook guide on it.
Just write a book and publish it on KDP – it just takes 5 minutes in publishing – and within a day or two, it will be listed on Kindle stores.
You can earn up to 70% royalties on the sales of your book. Before publishing the book, you have to make sure that it completes all the requirement set by Amazon.
KPD also offers a basic guide to publish and promote your book. Check it out here.
How to Make Money on Amazon by Working Part time
Work at Home by Amazon
Amazon offers a lot of opening to work from home, especially for the hiring of a call center customer service representative and technical support staff.
They offer home-based fulltime, part-time and seasonal jobs. If you possess any talent that can come handy, then you have chances to become an associate with the world’s biggest ecommerce giant.
Amazon Mechanical Turk
It’s another great opportunity by Amazon to earn some extra income in your free time.
Amazon made Mechanical Turk to outsource some of their jobs who can virtually perform these tasks. There are multiple tasks that offer such as data validation, research, content moderation etc.
Amazon started to cut down the time-consuming projects into micro-tasks to complete it faster.
The best thing is the flexibility you can work at any time you want and take the task as per your preference.
Just go to their page and click on to create a workers account and follow some easy procedure to join Mechanical Turk.
However, it is more beneficial for US citizens – they get their payment directly into their bank accounts. In other regions, they pay through Amazon gift cards.
Amazon is the 2nd largest US Company in terms of employee rate. There 24/7 working hour pattern made thousands of opportunities to make money, not only for US citizens but for people all over the world.
I hope that you learned how to make money from Amazon in any circumstances by reading this article.
Therefore, if you have any small business, then you can make money by using the platform offered by Amazon. So make the full out of your ideas!
And in case you have nothing to put on the table, you can still make money on Amazon by working or giving services for some hours.
All you need is the desire to make money and if you have it you surely can make money on Amazon by one way or another.