How to Make Money on Amazon

When most people think about Amazon they think of somewhere you go to spend money. But actually, there are many different ways you can earn money on the platform. In this post, I will be sharing with you ways on how to make money on Amazon.

In addition to selling products to consumers all around the world, the company also offers full-time and part-time work, and the opportunity to grow your own business.

Ways to make money from Amazon include promoting products via affiliate links, selling your own items on the platform, self-publishing e-books, or working for the company at one of their corporate offices or fulfillment centers.

Amazon is truly a powerhouse in the e-commerce space, and there are tons of ways for you to get a piece of that pie.

This guide provides a comprehensive list of ways to make money on Amazon, complete with tips to help you uncover the strategy that’s best for you.


What is Amazon?

Amazon is a company that sells products directly to consumers around the world. The service was started in 1995 by Jeff Bezos. The company offers over 2 million products that are available for free shipping.

About Selling Products on Amazon: Amazon pays sellers based on their volume of sales. This is known as a percentage of the purchase price of your product. In 2017, the company paid about $4 billion in commissions.

Sellers can set up their own Amazon Business page. Once set up, the page is managed and monitored by the company.

You can then set up an Amazon seller account and begin selling products to Amazon customers. The average commission rate for Amazon sellers is $1.44 for each sale.

Amazon started as an online book store in 1995, but it soon grew into an e-commerce giant. The company also offers other major brands on the platform, including toys, electronics, apparel, and beauty and wellness products.

You can even buy and sell used items on the platform, like used cars, since it sells some off of its own inventory.

According to the Amazon website, the company was founded in July 1995 in a garage as a way to sell books from start-ups. In 1997 it sold its first product, a roasting pot, and started Amazon.com. The idea behind it was to allow people who wanted to sell their products to Amazon to reach millions of customers.

As of 2017, the website had more than one billion products for sale.

Amazon is a global giant that provides e-commerce services and a wide range of other consumer-facing products. You will have to pay to use the site but the money you make from it is fantastic.

First of all, you can get all of the information you need to create your own online store on Amazon. If you have created a store on another website before, you’re probably used to the free “Seller Central” storefront. You can create your own storefront using the same setup.

Then there is the free marketplace. If you use this you’ll be able to choose a few products that you think would sell well and start placing ads on the platform. You’ll be able to include images and pricing for your products and see what’s selling. Once you have a few items you’re happy with you can expand your business.


Picture with words types of affiliate marketing

Can you make money on Amazon?

Most of the success stories come from people who have found a way to make money on the platform. It can be as simple as getting enough products on the site and then selling them for a margin on your own website.

A popular route, however, involves selling something for a profit that people want. If you have an idea, you can use it as a platform to sell your products. You could turn a hobby into a business.

For example, on Amazon, you can sell workout gear like yoga mats, high-tech yoga pants, or even Amazon-brand products like Kindle and Kindle Fire products.

If you’re selling items from a local business, you can also turn Amazon into a side hustle. The retailer will give you access to its marketplace, which will let you sell to consumers.

You could also put your business up on eBay.

To earn money on Amazon, you need to be a part of their network and follow their specific policies. For instance, you can only make money by either selling products, listing items for purchase, or listing items for sale.

Once you have an account on the platform and follow their procedures, you can start selling to consumers.

The simple answer is yes. But, how much you can earn and the time it will take you to do it will vary based on the skills you have, the type of products you sell, and how often you sell.

For instance, the more products you have, the more it will take you to make a certain amount of money from Amazon.

If you are willing to invest some time to do it, it may be worth setting up your own eCommerce store on the platform.

There are numerous options available to entrepreneurs who want to start a business on Amazon. These eCommerce options include: Search for products on Amazon – This option is free. When you use this option, you can search for and find items and even arrange for them to be shipped directly to you. To use this option, you need to upload your own photos.

Let’s look at some of the ways you can earn a profit on the Amazon marketplace.

Picture with words types of affiliate marketing

The first is to Sell Your Own Products. One of the most popular ways to make money on Amazon is to create your own products and sell them.

If you’re an experienced writer you can easily create an entire product around your skill and then sell it through Amazon.

If you have creative talents such as music, painting, photography, or videography, you can upload videos to the platform and sell the videos directly to Amazon through its video hub.

You can also add Amazon items to your product list, and when people click on the products they can purchase them. In addition to that, you can upload non-Amazon products to sell on the platform, or in some cases buy Amazon product that doesn’t have a listing on the platform.

The second is to promote other people’s products on Amazon. People are buying products on Amazon all the time and often those products are being sold by other people.

When someone buys an item you promote, you make a commission. In addition to selling products, Amazon also offers several opportunities to get your own items listed on the site.

For instance, many available services help you sell and market products on Amazon.

In one example, the service provides you with the opportunity to list your products on the platform for a small fee, which is a one-time charge to list and relist your products.


Promote Amazon products with affiliate links

With over 60 million users, most of whom are probably interested in the kind of products you sell, it makes sense that selling on Amazon would allow you to make some money.

Just like any other site, Amazon has a subscription model that allows you to earn commissions from referrals to websites or emails to the site.

There are many different options available to make money on Amazon, ranging from taking a commission of between 2% and 5% on a product sold on Amazon or a larger commission of 20% to 30% on all product sales.

If you know of a popular product or website that you think the public would benefit from more of, you could affiliate sell that content or website for them. For example, you can become an affiliate seller for Timely Quote with a commission. For every click you make on an affiliate link of a product you recommend, you’ll earn a percentage of the sale, as long as the link actually leads to the product you recommend.

Have a unique product you want to promote? An affiliate will pay you to promote it on Amazon.com, including via product listings, product descriptions, keywords, reviews, social media sharing, and more.

Choose a popular, tested product and your rate will start at 30%. Set your pay rate for each promotion. (This will help determine the income you’ll make on the platform.) Once you’ve identified a product you want to promote, use the “buy box” on the right-hand side of the home page to add your product to Amazon.

When you’ve decided on a product, set your price and mark it as “free.” You’ll then automatically be paid each time someone clicks through to your product’s page.

Affiliate links are the easiest way to make money on Amazon, but they require that you make a one-off purchase. In other words, you buy a product for a reduced price and link to the seller on Amazon. If you create quality products, you can usually earn up to 25% of the price you paid.

In addition to purchasing your product, you should sign up for Amazon Associates to promote your products. This will not only increase your revenue but will also link you up with Amazon’s wider advertising network.

It’s worth noting, however, that affiliate links do not show up in search engine results for your own products and will not be automatically promoted on Amazon.


Picture of TShirts from Amazon

Sell Merchandise

If you’re not all about making money by selling physical goods like books, clothing, and accessories then Amazon makes it easy for you to take your passion for fashion to the next level.

You can even sell a combination of physical and virtual goods, meaning you can have your own e-commerce website where you sell everything from clothing and shoes to home decor and furniture.

You can find lots of unique and trendy clothing items at popular clothing brands including Forever 21, ASOS, ASOS Home, and more.

In fact, you’ll even find that many clothing brands sell their products on Amazon.

Alternatively, you can use the site to sell your own products. You could sell designer clothes and shoes like you would if you worked at a department store, or you could sell things like bags and watches.

Amazon is a giant online marketplace, but they offer merchants a way to sell goods directly to consumers on their website and on Amazon.com.

Many people get started on the platform by selling books and DVDs that they have already produced themselves. Then once they get to know the platform they can start selling many other items, such as t-shirts, jewelry, and much more.

Many people starting on Amazon also get started by selling their products on their own website. You can use Amazon’s drag-and-drop interface to create a shopping cart for your website, and then display all of your products in a folder.

You can also use Amazon’s Print on Demand service to have your own books or DVDs produced by Amazon, which is another great way to earn money.


Picture of Fastest Way to Publish an EBook

Publish your own book

You may have heard that Amazon sells more than 4.2 million books each day and estimates that 85% of all e-book downloads are from Amazon.

So, why not go one step further and write your own book? This could be an opportunity to see your name in print.

Unfortunately, there are still very few things you can do with your own book on Amazon. All you can do is choose to list it for sale, add a link back to your Amazon Author Page, and then hope that your book makes any money at all.

To get started, you’ll need to choose a category for your book and set up a book cover with Amazon’s publishing tools. Then you’ll need to start promoting your book, and you’ll even need to pay for a professional book cover.

Even if you’re not a writer, you can still publish your own book and sell it on Amazon. Writing a book can be a great way to build up your website traffic, gain exposure to a new group of people, and eventually, help make a few bucks off of your story.

Part of building your Amazon page is promoting your book on the platform, and Amazon offers two types of affiliate links for book buyers: An affiliate link is an Amazon.com link that a third party site runs on your behalf and then sends a small percentage to you each time a purchase is made.

These are usually referred to as “branded links.” An Amazon.com code link is an Amazon.com link that links to a website that runs on your behalf and then sends a small percentage to you each time a purchase is made.

You can earn a decent income from the Kindle Store by selling your own e-books, and earn a large amount of money in the process. You’ll get a 70% cut of sales, and it is a platform you can turn into a full-time job if you so wish.

For the average person with good writing talent, the chances are you can publish a hit eBook, just by putting in a little bit of work. But you have to be realistic about the amount of effort it takes to write a quality eBook, and that’s why you’ll get more money if you publish your own.

If you have a particular niche or subject you’re very interested in, you could do yourself a real favor by putting the time into writing a fantastic eBook.

An exciting new business opportunity is becoming available as the demand for e-books increase on Amazon. One exciting side benefit of publishing your own book on Amazon is that it can help you generate more exposure for your business.

If you can produce a good quality and marketable book on a topic you know well, then Amazon allows authors to sell up to 15% of the book’s royalties to other authors. You can work as an affiliate for Amazon to help sell your book, while still earning the royalties from your book.

As well as making money from writing, Amazon can also act as a platform to share ideas, build a following, and communicate with your target audience.


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Sell handmade items

Many people who sell on Etsy take note of a popular website called Amazon Handmade, where you can sell handmade items.

There are millions of sellers on the platform, but there are a few key benefits that set Amazon Handmade apart from its competitors: Merchants who start on Amazon Handmade also have the option to skip the seller fees of Etsy.

Amazon Handmade will list items on your storefront within 30 days of receiving the order. You’ll be able to promote products on Amazon.com and be able to schedule display ads in the Amazon section of your website.

Do you love making handmade things? If you do, then you may have come across products from sellers on Amazon. These items can range from socks to bibs to earbuds and more.

Now, some people may find this kind of thing creepy and, frankly, pretty weird. But Amazon has made it simple to set up an Amazon listing and sell these items to people who need them.

While doing this you can expect to make around $10-$20 per item from selling these items.

Why would you want to sell handmade products on Amazon? Besides the obvious money-making opportunities, you’ll be able to expand your customer base, even outside of your usual online shop.

Selling on Amazon lets you build a bigger customer base, as people can see that you also sell these products on other websites, too.


Picture of Amazon and Phone

Sell your professional services on Amazon

If you have a passion for photography, maybe you could set up an online photography studio and sell photos or photography classes online.

Other professionals who could set up online businesses on Amazon include interior designers, web designers, consultants, and even financial advisors.

There are many reasons why professionals from all walks of life are using Amazon to sell their services, including allowing their employees to work from home, making it easier to run a business, and providing high-quality support.

Professional services, such as web design, are most popular with professionals working from home.

If you have skills in a certain field, Amazon may be the place for you. Selling your own services on Amazon can earn you extra cash when other people want to hire you to help them with a problem or issue.


Resell Goods through retail Arbitrage

An example of retail arbitrage is when you sell the exact same product on two websites, then arrange to have them ship it to one address (called domestic shipper). You then sell it to the second website, who packages it up and ships it to your first client (the distributor).

Many e-commerce businesses use this kind of strategy. It’s common for an Amazon seller to look to resell third-party products on eBay, which allows them to make even more money per sale.

It’s also an effective tactic for websites that use free software like WordPress to allow customers to place product listings on their websites. This reduces the load on Amazon’s servers, allowing them to handle more orders without slowing down.


Picture Amazon Dropshipping

Start dropshipping on Amazon

Dropshipping is Amazon’s term for selling accessories like chargers and cables through third-party manufacturers.

Companies in this space usually sell their products via online stores with Amazon as their distributor, and everything you need to make it happen comes with a five-star rating from Amazon.

Dropshipping is perfect for budding entrepreneurs. It’s flexible, it’s affordable, and there are thousands of products that are easy to dropship.

Before you jump into this booming industry, though, make sure you’re doing everything by the book. In most cases, dropshipping is considered a grey market.

You’ll need to file your own FBA certification with Amazon and purchase its export and packaging kit. You also need to meet all of the company’s guidelines.


Conclusion

While most people will never make money from selling products through Amazon, it can be a great way to make a few extra bucks to help pay for your living expenses. And, while it may take time, it can be a lucrative way to make a little extra spending money on the side.

Don’t spend too much time on the site if you don’t want to lose all of your hard-earned money, and be wary of prices that seem too good to be true.

There’s no guarantee that items will be discounted and ship quickly, so use these tips to make smart choices.

As mentioned earlier, most of the money made from Amazon comes through a commission. However, you can earn additional money selling your own products, and you can also make money from advertising and the search function.

Are you in the process of making money online?

If not, YOU CAN START TODAY!

Hope you find this helpful. Feel free to leave a comment and let me know what you think in the box below.

2 thoughts on “How to Make Money on Amazon”

  1. Amazon is truly a great starting point for anyone who is starting on the affiliate marketing business, or simply if you’d like to earn some extra money. Now, affiliate marketing with Amazon is a little rough due to the low commission rates, but if you’re willing to sell on the platform as well, you can become a well-known seller and have great success. I’m currently trying to start editing my second book for self-publishing and I’m digging in to KDP to see how the process goes and what I need to do. 

    Reply
    • Hi Stephanie,

      Thanks for your comment and for reaching out. That is a great idea to sell your products as well as be an affiliate. I started doing some digital planners and things and I’ve noticed that Amazon has KDP for those. I haven’t checked in to it yet, but that sure is a thought. 

      Good luck with your publishing. Thanks again. Have a good evening. 

      Connie

      Reply

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