11 Proven Ways on How to Make Money on Amazon
When it comes to starting an ecommerce business, you can’t go wrong with Amazon. Globally renowned both by sellers and customers alike, Amazon offers a myriad of avenues for both individuals and large businesses to generate income; with its vast customer base and advanced logistics network, Amazon isn’t just a retail platform, but a gateway to various money-making opportunities. So, what’s the best way to make money on Amazon? Let’s take a look!
Sell Products Using Fulfilment by Amazon (FBA)
One of the most popular methods to make money on Amazon is through Fulfilment by Amazon (FBA). This service allows sellers to store their products in Amazon's fulfilment centres, meaning that when a product is sold, Amazon takes care of the storage, packing, shipping, and customer service. This model is advantageous for sellers as it grants access to Amazon's extensive customer base and streamlines the logistical process - and you can even take a look at our best selling items for FBA if you’re stuck for inspiration! Furthermore, FBA products are eligible for Amazon Prime, which can significantly increase sales due to the customer preference for fast shipping.
Sell as an Individual or Professional
Amazon offers two distinct selling plans: Individual and Professional. The Individual plan is tailored for sellers who expect to sell fewer than 40 items per month, and it's a pay-as-you-go system with no monthly fee, making it an ideal starting point for new sellers. Conversely, the Professional plan is designed for higher volume sales, offering advanced selling tools for a monthly subscription fee. This plan is more suited to established sellers looking to scale their businesses and can be quite complex, so it’s always worthwhile getting help from an agency for Amazon if you’re looking to grow on the platform with this plan.
Retail Arbitrage and Online Arbitrage
Retail arbitrage involves buying products from retail stores and reselling them on Amazon for a profit, and while it might sound sketchy, it’s actually perfectly legal - but this method does require a keen eye for deals and an understanding of market demand. Online arbitrage follows a similar concept but involves sourcing products from other online retailers, and why each offers promising returns, both methods require careful consideration when it comes to product selection and pricing strategies.
Wholesale Partnerships and Bulk Selling
Engaging in wholesale partnerships and bulk selling can be another lucrative way to make money on Amazon; this approach involves purchasing products directly from manufacturers or distributors at discounted rates and selling them on Amazon. This method suits sellers who can invest in large quantities and manage inventory effectively, but a strong understanding of market trends and the ability to negotiate with suppliers are key to success in this domain.
Private Label Products
Creating private label products involves sourcing generic products and branding them as your own, aka creating your own small business on the platform. This method offers higher profit margins and allows sellers to build their brand on Amazon, although it does require an initial investment in product development and marketing.
Handmade and Crafts
While we might associate handmade goods with platforms like Etsy, you can also sell your crafts on Amazon! Amazon Handmade is a platform specifically for artisans to sell their unique, handcrafted goods, and this niche market caters to customers looking for one-of-a-kind items, in offering a personal touch that mass-produced products often lack. If you’ve got a crafting hobby, why not capitalise on it?
Merch by Amazon
Next up, merch! Merch by Amazon is a print-on-demand service that allows sellers to create and sell custom-designed merchandise with no upfront costs; this platform is ideal for artists and designers looking to monetize their creativity, whether it be through t-shirts, one-off novelty items or branded products.
Kindle Direct Publishing (KDP)
If you’re a keen wordsmith, you can even use Amazon to publish your written works! Yes, really - Kindle Direct Publishing allows authors and publishers to self-publish their books on the Amazon Kindle Store, providing little-known writers access to a global audience without the need for a traditional publishing house. While it might sound simple, the key to success in KDP is creating high-quality content and employing effective marketing and promotional strategies to increase visibility and sales.
Amazon Affiliate Marketing
If you’re not interested in selling physical or digital products on Amazon, you can still make money via the platform by partaking in Amazon's affiliate program, also known as Amazon Associates. This allows website owners and bloggers to earn commissions by referring customers to Amazon products within their websites - for example, linking a beauty product within a blog post about the best powders. By creating content that drives traffic to Amazon, affiliates can end up earning a percentage of the sales made through their referral links. While this is perhaps one of the easiest and most lucrative ways to make passive income on Amazon, you will need to have a robust online presence and the ability to create content that engages and informs potential buyers.
Amazon Mechanical Turk (MTurk)
Amazon Mechanical Turk (MTurk) presents a different facet of making money on Amazon, and is essentially a crowdsourcing marketplace that enables users to perform tasks that computers are currently unable to do efficiently. These tasks, known as HITs (Human Intelligence Tasks), can range from simple data entry and survey participation to more complex activities like content moderation. While the pay for individual tasks may be low, consistent participation can result in you accumulating a decent income over time.
For those who prefer a more active role, Amazon Flex offers an opportunity to earn money by delivering packages for Amazon. As a Flex driver, you can set your schedule and deliver packages using your vehicle - it’s a bit like Uber but for Amazon packages! This option is perfect if you’re looking for flexible work hours and the ability to earn money based on the time you can commit. Do note, however, that your earning potential varies based on the number of deliveries you’re able to offer, as well as your geographical location.
Amazon Home Services
Finally, Amazon Home Services opens up a realm for professionals in various fields like assembly, cleaning, and handyman services. When you sign up to Amazon Home Services as a skilled professional, you’re able to reach a broader audience and offer your services directly through Amazon. In short, if you have specific skills and you’re looking to expand your customer base without the overhead of traditional marketing, Amazon is the way to go!