Whether you’re searching for a side hustle or a full-time gig, here’s how to make money on Amazon.
As Amazon has grown, so has the opportunity for everyday folks like me and you to make money through the e-commerce mega-power.
Much of Amazon’s immense success comes from its ability to create and host marketplaces and charging for its platform and services. While millions and millions of people will pay Amazon for products this year, you can instead use Amazon to make money.
No matter your background, resources, or time commitment, Amazon has a money-making proposition for you. To prove that, check out this list for 10 ways how you can make money on Amazon.
1. Start Your Own Private Label Business
Through the Fulfillment by Amazon (FBA) program, selling on Amazon remains a tremendous opportunity for those looking for high-upside, sustainable income. You’ve probably purchased plenty of products on Amazon, but did you know you might be buying from an independent seller not much different than yourself? Independent third-party sellers sell over half of the products sold on Amazon.
Private label refers to sellers who manufacture a product to be sold under a retailer’s brand. Third-party sellers are independent sellers who own a product to be sold. Thanks to the seller-friendly Amazon FBA program, starting your own online business has never been easier.
Enrolling in FBA gives you access to Amazon’s seemingly endless warehouse storage space, two-day Amazon Prime shipping service, and customer service team. These features eliminate the most challenging barriers of starting an online business while simultaneously placing your product on a platform with hundreds of millions of built-in customers.
The process for kickstarting an Amazon business is more simple than you’d think!
- Find a product to source and sell with help from a product research tool like Product Discovery. With access to sales data for product markets and customizable filters, you can efficiently perform data-driven research and dig deep to find a winning product.
- Once you’ve broken down the numbers and decided upon a product that is right for you, find a manufacturer. Sites like Alibaba specialize in manufacturing products for independent sellers.
- Sign up for FBA and ship your product to Amazon’s warehouse. Just complete your listing, and you’re ready to start generating sales. Your listing automatically is equipped with the Amazon Prime badge!
While selling on Amazon requires ongoing work in various business aspects, the startup is affordable and straightforward. With literally billions of dollars going to Amazon sellers, the prospect of selling on Amazon provides limitless potential for ongoing success.
2. Resell Goods Through Retail Arbitrage
Want to make money on Amazon without the cost or commitment of FBA? Retail arbitrage might be for you!
Retail arbitrage is the practice of buying an item from one marketplace and reselling it on another at a higher price. Recently, buying sports cards and collectibles at garage sales to resell online at a marked up price increased in popularity.
Because this often includes finding products on other websites (like eBay) or physically purchase products in stores, this option may not make sense for everyone. This makes scalability difficult but allows many to dip their toes into the water without diving in headfirst.
However, if you find a product you can reliably flip for a profit, it’s not much different than finding cash! Retail arbitrage is especially appealing for those who find joy in the hustle and grind.
3. Find A Wholesale Distributor and Sell Products from an Established Brand
Wouldn’t it be nice to skip building your own brand and sell products from name brands? If this sounds intriguing to you, wholesaling might be your route to success!
In a way, wholesale mixes of #1 and #2 on this list.
Wholesaling on Amazon typically involves buying products in bulk from an established company to resell for a profit. The process of finding an excellent wholesale product would be identical to private label until it’s time to purchase.
Once you’ve found a perfect product, you would go directly to the brand instead of sourcing from a manufacturer and slapping your logo on it. Instead, you’d purchase the inventory and ship it to Amazon’s warehouses under the brand name.
For example, Nike stopped shipping directly to Amazon in 2019, yet people still search for Nike gear. Hypothetically, you could research Nike’s wholesale policy and apply to become a wholesaler. If approved, you could sell a globally recognized brand that people are already looking to buy.
Of course, this is dependent upon their approval, your ability to gain the necessary certificates and documentation, and the negotiated prices that impact your profitability.
4. Start Dropshipping on Amazon
Similar to retail arbitrage, dropshipping features even less seller responsibility, although it often requires even more research and lower profit margins.
Dropshipping is an order fulfillment method in which the seller does not keep product in stock. Instead, the seller receives an order and passes it to a third-party supplier who ships and completes the order.
The appeal of dropshipping is apparent, you never touch or store the product, saving you a ton in manufacturing and inventory fees! However, the downside is equally prominent. Most of the money received will end up in the hands of the manufacturer, making it difficult to turn a profit.
For many dropshippers, it requires a high volume of sales for it to be worth the time and effort. Although it requires less
While there are plenty of pros and cons, dropshipping can be a winning method to making money on Amazon, or a way to give selling on Amazon without the long-term responsibility and fees of FBA.
5. Author Your Amazon Success Story with Kindle Direct Publishing
Amazon famously began as an online bookstore. Since then, it’s continued to look for ways to revolutionize bookstores.
In late 2007, Amazon launched the initial Kindle. While most of the emphasis centered around the way we read, Amazon also looked to revolutionize book publishing with the Kindle Direct Publishing (KDP) platform. KDP allows authors to publish their books directly to the Kindle Store independently.
Passionate writers no longer need to rely upon lengthy, expensive publishing companies for their words to reach the masses.
If you’re willing to give Amazon exclusivity to your e-book, you can earn even more money through KDP Select. Utilizing KDP Select makes your e-book “free” for anyone with Kindle Unlimited. Authors get paid per page read, which can be incredibly rewarding and makes it possible to earn money in perpetuity for your writing skills.
Now that I mention it, maybe this article would look better in an e-book…
6. Show Off Your Design Skills with Merch by Amazon
Merch by Amazon extends a golden opportunity to those with a passion for graphic design. And the best part? Selling on Merch by Amazon features zero upfront fees, making it completely risk-free!
To be a Merch designer, you must first submit an application stating your information and goals. Then, upload your artwork and click submit. Amazon takes care of the rest, placing your art on merchandise like shirts, phone cases, tote bags, and throw pillows. As orders come in for your artwork, you earn royalties for each item purchased with your design.
For designers selling goods, the issue of ordering the optimal amount of a product often presents problems. Make too many of an item, and your profits take a significant cut from excess inventory. Make too little and miss out on potential sales.
Merch by Amazon alleviates creators of any inventory concerns or other selling responsibilities, allowing designers to do what they do best.
7. Flex Your Marketing Muscle With Amazon Associates
Ask any seller on Amazon; visibility is the name of the game. With millions of product listings in the marketplace, sellers need to position their products for maximum visibility.
Enter Amazon Associates – an affiliate marketing program created to help influencers of all backgrounds monetize their audience.
Have you ever read something on the internet with a message like this?
Affiliate commissions are rapidly surging in popularity, from social media influencers to major publications to popular Facebook groups or other internet forums. And for a good reason.
Affiliate marketing commissions create continuous, recurring revenue. A written article, social media post, or video that drives continuously drives traffic can create a constant stream of passive income.
8. Monetize Your Large Following within the Amazon Influencer Platform
An extension of the Amazon Associates program, the Amazon Influencer Platform fits the specific needs of influencers.
To be accepted into the influencer program, Amazon requires a larger following than the Affiliates. Unfortunately, Amazon doesn’t state the magic number of followers for acceptance into the program.
But if you have a sizable following up to the program’s standards, it can be incredibly rewarding with little work!
However, being an Influencer gives you access not just to purchasable links but to an entire storefront. Add your storefront to your bio or high-visibility sections of your social media profile of choice and gain commissions as followers purchase from your curated list of favorites.
Just keep generating click-worthy content, build your following, and watch as your commissions pile up!
9. Be A Part of Amazon’s Revolutionary Fulfillment Process
In 2005, Amazon debuted Amazon Prime, its membership program boasting free two-day shipping, among other perks. As of January 2020, more than 150 million people are Prime members.
To fulfill the massive amount of orders, Amazon needs plenty of laborers in its warehouses and delivery network.
Amazon employs more than a million people, many of whom work in logistics at one of the company’s many warehouses. In the wake of COVID-19, Amazon added over 150,000 employees to handle the booming workload.
In late 2018, Amazon announced it raised the minimum wage for U.S. employees to $15 an hour, more than double the country’s minimum wage. For full-time workers, that comes out to $31,200 before taxes!
Unlike most retail businesses that open and close daily, Amazon is open 24/7, allowing for flexible scheduling for warehouse workers and delivery drivers. Whether looking for full-time or part-time work during the day or night, there’s a shift for you at Amazon.
While most of the other jobs are a little more unconventional, being a part of Amazon’s logistics team provides a safe, traditional way to earn money for your time.
10. Craft A Worldwide Business with Amazon Handmade
Amazon Handmade allows artisans to scale their business internationally. Amazon boasts creators from over 80 countries through Amazon Handmade.
In eight categories (Jewelry, Home Décor, Kitchen & Dining, Beauty & Grooming, Handbags & Totes, Stationery & Party Supplies, Clothing & Accessories, and Toys & Games), craftspersons can easily take their local business global.
Amazon Handmade presents another option for artisans, in addition to platforms such as Facebook Marketplace, Shopify stores, and Etsy shops. By adding Amazon Handmade to the mix, handcrafted items reach a larger audience than ever before. For business owners selling do-it-yourself crafts, maintaining a presence on these platforms can pay off exponentially.
Conclusion
As the leader in e-commerce, Amazon presents plenty of excellent ways for people of all walks of life to make money. Of course, there are more than 10 ways to make money Amazon, and likely, even more will spawn as Amazon continues its explosive growth.
Thanks to Amazon’s massive, far-reaching marketplace, anyone can get involved and find a way to make money on Amazon.
At Viral Launch, we’re constantly amazed at the diverse backgrounds and stories behind those utilizing Amazon in the pursuit of financial freedom. For instance, we’ve witnessed college students pay for school via dropshipping and grandparents starting an online business with hopes to pass it down for generations.
No matter who you are, Amazon offers a way for you to make money online. Click below to see how we can help boost your Amazon business.
