Why Amazon?
Amazon has made 344 billion US dollars gross market value on the online marketplace worldwide since it launched in 1994. No ecommerce site makes as much money. In 2017, sales on the Amazon Marketplace accounted for an estimated 20% of total ecommerce sales in retail.
Ways to make money on Amazon in 2023
There is money to be made on a variety of online shopping platforms, but Amazon beats out the rest as the biggest and arguably the most versatile option, whether you’re selling or generating income from products and services
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Amazon’s customer trust is exceptional. As many as 89% of US customers are more likely to buy products from Amazon than another ecommerce site. In its relatively long history as an online marketplace, Amazon has become a standard for building trust with its customers and growing long-term loyalty.
Make Money on Amazon in 2023 – Killer Methods
Ways to Make Money on Amazon
Amazon continues to add new ways to make money on their platform, meaning there is likely something available for anyone wanting to make a little extra money.
When it comes to making money on Amazon, there are plenty of options. Best of all, many of these can be done from home. Let’s walk through each method and go over how exactly to use these strategies to earn some cash
1 – Sell your own private label products on Amazon.
The best way to make money on Amazon in 2021 is still through private label sales using Amazon’s Fulfillment-by-Amazon (or FBA) network. Around 71% of all Amazon sellers run their business using the private label method.
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Private label is a process of manufacturing a pre-existing item (preferably, with product improvements), putting your branding and logos on it, and selling it to consumers. Sometimes it is referred to white-labeling or brand-creation. (The process has been around for years and is common in countless retail stores; Target’s Mainstays brand and Walmart’s Great Value are two examples of private label brands.)
Thanks to FBA, Amazon is able to deliver your products (typically in two days or fewer — what you likely know as Amazon Prime). This is how e-commerce business owners—like you and me— can list goods on Amazon and make money from the sales.
Amazon makes private labeling even easier thanks to a number of advantages:
First, you can use a tool like Jungle Scout — the all-in-one platform for selling on Amazon — to estimate the sales your product will make once it’s on Amazon.
Next, it’s easy to source and manufacture your products with the help of platforms like Alibaba or Jungle Scout’s Supplier Database.
Finally, after you’ve created your product, you can sell it on Amazon using FBA. You don’t even have to ship your own orders!
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How much money can I make selling private label products on Amazon?
Approximately $625 to $1,875 per month per product.
Over half (56%) of private-label sellers earn $5,000 or more in monthly sales, and nearly two-thirds (59%) have profit margins over 16%. Among private-label sellers who have more than a year of selling experience, 31% have earned over $50,000 in lifetime profits.
2 – Publish your own books on Kindle Direct Publishing.
Amazon Kindle Direct Publishing (KDP) allows you to publish your own books on Amazon, and this is my second favorite way to make money on Amazon. (But that’s probably because I’m a professional writer.)
Then again, in addition to digital format, you can print actual copies of your book too. Amazon’s CreateSpace prints on demand!
The only catch with this option is that you usually need to write somewhat prolifically in order to find success. Though it is possible to publish one or two wildly popular books, volume is the true name of the publishing game.
The more you write, the more you make.
How much money can I make writing for KDP?
Up to $40,000 per month.
I’ve heard that some authors make as much as $40,000 per month. These writers, however, tend to be prolific, and write topically to gain notice.
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3 – Sell wholesale goods on Amazon.
imilar to Private Label, selling wholesale involves purchasing bulk quantities of product to sell using Amazon’s FBA network.
The primary difference, however, is that you are selling other companies’ products. Therefore, you don’t have to worry about manufacturing and branding the products.
For a lot of sellers, it’s one of the most popular ways to make money on Amazon.
How much money can I make selling wholesale goods on Amazon?
Up to $3,000 – $4,000 per month.
While wholesaling on Amazon has become notoriously more difficult in the last few years, it’s still a great way to earn money.
Note that it is a lot more competitive than the private-label market—you won’t be the only one selling those products on Amazon. So it can sometimes be a “race to the bottom” on prices where the only “lever” sellers have to compete with each other is through lowering their price relative to their competitors.
Become an Affiliate
A simple way to make money on Amazon is to become an affiliate. If you run a blog, website, or even moderate a community, you already have an audience. By recommending interesting and high-quality products (found on Amazon) to your audience, you can earn a referral fee for your efforts.
Depending on the item, you can get anywhere from 4 to 10 percent of the product’s price when someone makes a purchase through your affiliate link. Amazon lets you become an affiliate for just about anything. If you write in-depth reviews about books, for instance, you can include referral links for titles in the “Books” category on the Amazon marketplace.
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You can even include links to products that help enhance the reading experience, such as slippers and blankets for getting cozy.
Try Merch by Amazon
If you’re good at design, you may be able to generate a decent income by selling T-shirts and other similar things through Merch by Amazon. The platform allows you to sell your artwork as Amazon products at no cost to you.
Here’s how to use it:
Create an account via the Merch by Amazon webpage
Upload your design and set a price
Select a color and write a description
Once you’ve done all of that, your shirt will go live on the Amazon marketplace.
A benefit of using Merch by Amazon is that Amazon takes the responsibility of packaging, shipping, printing, and providing support to the customer.
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Earn Through KDP (Kindle Direct Publishing)
Another easy way to make money on Amazon is to publish your own digital books on the platform.
You can get up to 70 percent royalties on the overall sales. Also, you can print hard copies of your books through Amazon’s CreateSpace service.
The only barrier to making money with Amazon KDP is that you have to publish interesting books in a large volume. Although it’s possible to earn with a couple of best-sellers, volume is the key to success in the publishing game.
Moreover, don’t forget to consider the following aspects:
Book cover
End material
Independent landing page
You also need to be mentally prepared to endorse your book, as there’s no publisher or agent at your disposal.
Sell Merchandise
Have you ever thought about selling your own clothing? Well, the Merch by Amazon program lets you do just that.
How it works is, you create a design for a shirt or sweater and then upload it to the site. If someone buys your shirt Amazon will print it and send it to the customer. Because the platform works on a print-on-demand system you don’t have to buy or store any inventory. Your shirts are only created when someone orders them.
Resell Items You Find on Other Marketplaces
Lots of people think that in order to sell products on Amazon you need to know how to get inventory from wholesalers and manufacturers. This can be a bit intimidating and prevents some people from ever starting this kind of business.
However, you can actually resell items from other online marketplaces like eBay, AliExpress, Craigslist, Facebook Marketplace, and more. This is what’s known as online arbitrage.
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Sell Your Own Branded Products on Amazon
If you want to sell on Amazon and are looking for something that’s more profitable and scalable than online arbitrage, you might want to consider selling your own private label products. These are unique items that have your own branding on them.
The big advantage of selling private label products is that you’re the only one selling them. This means you face less competition and you don’t have to fight other sellers for the buy box.
Deliver Orders Through the Amazon Flex Program
The Amazon Flex program is similar to Uber, except instead of delivering people you deliver packages.
With this program, you use your own vehicle to deliver Amazon orders. Simply download the app, sign up, reserve a block of orders, pick them up at the depot, and deliver them to the specified addresses.
While this isn’t exactly a scalable business, it’s a great way to make some extra money. It’s worth noting that the Flex program isn’t currently available everywhere. They may also have enough drivers in your area, in which case there won’t be any openings.
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Complete Tasks on Amazon Mechanical Turk
Amazon Mechanical Turk (MTurk for short) is a program that allows businesses to hire people for simple virtual tasks.
The idea is that there are many things that humans still do more effectively than computers. This includes data validation, transcription, and research. There’s also the opportunity to take surveys.
Participating in the program is easy. Just sign up, pick the tasks you want to complete, and submit them for payment. There’s no set schedule, you can do these tasks on your own time.
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Sell Handmade Items
Are you someone who’s crafty, artistic, and likes to make their own goods? Then you might want to consider selling your products on Amazon.
Amazon Handmade sells items made by local artisans. This includes jewelry, mugs, toys, and beauty items. Chances are, if you can make it then you can sell it on Amazon.
Of course, the same rules apply here as they do for selling any type of product. You should make sure there’s actually a demand for what you’re selling before you put all your time and energy into making it. This is why it’s a good idea to do some research before getting started.
Sell Your Professional Services on Amazon
Amazon made their name by selling products, and now they’re moving into selling professional services as well.
This is different from the Mechanical Turk program, which focuses on unskilled tasks. With Amazon Home Services, you’ll be selling skilled labor. Currently, the program offers:
Product assembly
Product installation
Home theatre services
Handymen
And more
The services provided are based around requests by customers after they buy an item on the site. The program is meant to help customers get their products working or installed.
This opportunity isn’t for everyone, as you need to have the skills required to perform these tasks. But if you think you’d be a good fit then you should definitely look into it.
Work for Amazon
Amazon is one of the world’s largest companies, which means they have millions of jobs available all around the world. If you’re interested in working for Amazon there are plenty of opportunities to explore.
You can see their available jobs at Amazon.jobs. Some typical jobs offered by the company include:
- Administration
- Customer support
- Design
- Human resources
- Legal
- Marketing
- Software development
- Warehouse worker
There are plenty of roles within the company, so check out the site and see if there’s a position that suits your skills.
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Become a blogger.
Ever wanted to start a lifestyle blog, publish how-to videos or recipes, or otherwise get your thoughts and ideas published? You can make money from Amazon while doing that!
Picture this. You find a cool product on Amazon, send your friends the link, and–if they buy it–you get paid a commission. On your blog (or social media page or even in email), that link goes out to quite a few more folks, so you can make quite a bit more money in commissions.
That’s how Amazon’s Associates program works.
Flip store-bought products with retail arbitrage.
If you used to watch the U.S. version of “The Office,” you might remember the episode where Dwight bought up all the Princess Unicorn dolls around Christmas time. His plan was to sell them for $200 (or more) to last-minute shoppers.
And that, in a nutshell, is how retail arbitrage works.
Basically, for arbitrage, you go to a retail store like Walmart, Target, Barnes & Noble, etc. to find and buy discounted products. Then, you resell those items on Amazon at a mark-up.
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How much money can I make doing retail arbitrage on Amazon?
Anywhere from $300 to $2,000 per month.
Like wholesaling, retail arbitrage has lost a lot of its luster over the last few years, as Amazon continues to make selling popular brands more difficult.
Regardless, retail arbitrage sellers can expect to make a few hundred to a couple thousand per month selling flipped products on Amazon.
Retail arbitrage is extremely competitive and difficult to scale. Many times, retail arbitrage sellers can spend the better part of a day or weekend searching retail stores for products only to come up empty-handed.
Buy on Ebay to sell on Amazon (online arbitrage).
Frankly, I’ve never been a huge fan of retail arbitrage. It feels like a lot of work for very little return.
However, I do enjoy online arbitrage, which is very similar to retail arbitrage.
What’s different is that online arbitrage means you’re buying products to flip on Amazon from other e-commerce stores.
And, in my opinion, Ebay is the best place to find those products.
How much money can I make on Amazon with online arbitrage?
Approximately $200 – $500 per month.
Online arbitrage, while easier than retail arbitrage, suffers from the same major issues that its retail counterpart does:
You’re very limited in options;
There is a lot of competition;
And it’s hard to scale.
Sell your own shirts, hats, coffee mugs and more through Merch by Amazon.
Have a clever idea for a shirt or coffee mug, but don’t want to spend the money to create hundreds of them?
Then Merch by Amazon is for you.
Merch is a print-on-demand service that allows you to upload designs into Amazon’s database. Then, those designs can appear on shirts, tote bags, coffee mugs, hats–whatever you want!
When a sale is made, Amazon creates the item for you, ships it, and you make money.
How much money can I make on Amazon through Merch by Amazon?
This money-making method varies greatly in its returns.
According to Merch by Amazon expert, Merchantpreneur, a seller can expect to make $1.50 per product they have listed through the Merch platform.
Unfortunately, Amazon has limited the number of Merch products that sellers can carry at any given time to 50 designs.
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Amazon Dropshipping
If you like to sell stuff with zero investment then Amazon dropshipping is the best option you have out there. Many people confuse Amazon dropshipping with Amazon FBA – that’s not the same.
With Amazon FBA, you need to deliver the products to Amazon fulfillment centers in bulk quantity whereas in dropshipping you do not buy anything in bulk.
What is dropshipping?
The seller displays the supplier’s products on their store and when a customer orders from the store, the supplier delivers the product and you get the difference as profit.
To do Amazon dropshipping, you need to select the option of fulfillment by the merchant, which means you (the seller) are responsible for fulfillment.
Here’s how you can perform dropshipping on Amazon without any investment.
First, select a trending product to sell on Amazon.
