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How to Make Money on Amazon

How to make money on Amazon

Are you planning on expanding your income sources with the help of Amazon? We have just the right article lined up for you.

Amazon is the most prominent and leading eCommerce hub that brings home more than $3.86 billion in revenue every year. The platform is known for offering thousands of programs and operational opportunities for people all over the world. If you are contemplating earning with the help of Amazon, you have stumbled across the right article. With a few dedicated steps and plans, you too can find a suitable way that helps you bring home a massive profit without the extra setup and business costs. 

To make you get the best out of this article, we have included five of the most profitable and value-oriented ways to earn from Amazon. Dive down to find a suitable business model for your next paycheck. This article will help you understand how to make money on Amazon consistently.

How much on average does the seller on Amazon earn?

The average earning pattern of an Amazon seller highly depends on the niche, shipment program, and time of the month. When we talk about Amazon sellers making money by listing the products, the profit can commence from $1,000 and even reach upwards of $250,000 every month. Even new Amazon sellers have pulled extremely significant earnings in the last five years, irrespective of the experience. According to a market study, nearly 14% of sellers gain good profits within three months, 17% of sellers earn a healthy profit within three to six months, while 27% of Amazon sellers acquire huge profits six months to one year. However, the end profit depends on the seller’s intuition, market knowledge, and potential to use all the tools for their benefit. 

5 Different methods to Make Money on Amazon:

1. Publishing books on KDP (Kindle Direct Publishing)

Have you ever thought of earning massive profits by publishing your books on Amazon? If the answer is yes, this method will undoubtedly help you make good profits on Amazon. Amazon’s KDP or Amazon KDP allows people to publish their books without tedious publishing steps. Amazon allows you to post your written pieces in digital and actual print format (hardshell or paperback). These choices come in handy for people who wish to target and dominate a particular mode, either digital or print.

Kindle Publishing on Amazon

To earn excellent profits, you need to create books that people love to read. Do not forget to delve down the most loved topics of all time. If you want this method to be your income source, you need to have a firm grasp of writing, basic knowledge of plot assembly, and overall book writing terminologies. This method is excellent for writers or people who have a knack for writing. With constant efforts and some books on the platform, you have a high chance of succeeding in the publishing game. We recommend writers publish more than four books to see a sizable profit.

Amazon further offers various resources and third-party service providers to help with your publishing journey. Some services that can make your draft polished and ultimately more profitable include:

  • Editorial Services
  • Translation resources
  • eBook and paperback formatting
  • Book cover creation
  • eBook conversion

You can visit this Amazon page to know more about the details of publishing.

  • Create Space prints on demand

Create Space prints was a prominent destination to print your books for publishing on Amazon. But in recent years, Amazon acquired the company and merged the operations for a smoother working experience. As a result, Amazon gives you a choice to import and manage the old CreateSpace content via Amazon’s newly improved publishing series. In addition, they offer various publishing solutions like KDP print on demand and manufacturing on-demand.

  • How much money can you make with it?

With Amazon publishing, you can, on average, earn up to $40,000 per month. To attract such profits, you need to create excellent content with some prolific matter. Writers who write topically usually gain such profits. Even if you do not sell a considerable amount of books in the initial stage, your chances of reaching your profit goal will indubitably increase with time.

Pros of publishing on Amazon

  • It’s a great way to earn a few bucks, especially if a few drafts are lying around the house.
  • Publishing your ebook is completely free, so authors do not need to pay any other charges.
  • Publishing on Amazon adds a level of trust and credibility to your book.

Cons of publishing on Amazon

  • This method only helps writers and people who are blessed with the art of writing.
  • The process of doing everything on your own can often feel chaotic and overwhelming.
  • The entire marketing of the book is on your shoulders, unlike a traditional publishing model.

You can apply here to start your new income source via Kindle Direct Publishing.

2. Selling wholesale goods on Amazon

Selling wholesale goods on Amazon taps a different market where sellers do business through a B2B model. The entire business of selling wholesale involves purchasing and selling in bulk quantities to other companies. The central cost-cutting in this method is the lack of manufacturing and branding expenses. As a result, sellers can earn huge profits even if they get a single order per day. Amazon business sellers have access to 55 unique Fortune 100 companies as their customers.

Make money with selling wholesale goods on Amazon

Many seasoned Amazon sellers have forayed into the wholesale game because of its favorable market condition. This B2B marketplace provides great unique business features that regular B2C sellers cannot have. For example, sellers have the choice of accepting quote requests, various display quantity features, along with diversity certification on your listing page. If you know the ropes of B2B selling, you can sell a considerable amount of goods and earn high profits in no time.

  • Where to find wholesale goods?

To find a supplier for your wholesale goods, you might have to do a lot more research than required. Wholesale suppliers are generally based in various continents; therefore, communicating can be a little tedious. Most wholesalers rely on eCommerce sites like Alibaba or Aliexpress to source their products. You can also contact the product owner, thus reducing the middlemen cost. Apart from these sites, you can also consult various trade expo directories to contact the company directly. Sometimes, a physical search nearby your cities can also prove to be beneficial.

  • Where to start?

The skeleton structure of selling wholesale on Amazon include:

  • Properly setting up a seller account.
  • Researching a high-demand or valuable product to market.
  • Asking for the manufacturer to ship the samples.
  • Sourcing the decided product from the manufacturer.
  • Creating a detailed and well-optimized SEO listing to rank first.
  • Starting the listing process.
  • Taking orders and handling queries.
  • Branching out and building marketing strategies.
  • Managing inventories and keeping track of sales.
  • Developing long-term relationships for future sales.
  • How much money can you make with it?

On average, wholesale sellers can roughly earn from $2,000 – $4,000 per month. Researchers found that nearly 61% of wholesale sellers make $5,000 in monthly sales. The profit rate ultimately depends on the buying price from the manufacturer. With lower buying costs, you are in a position to knock down the rates than the competition while still earning profits. Be aware as the B2B market has a lot of competition; thus, a proper SEO can provide a necessary boost. In short, retail arbitrage can be quite helpful at times.

Pros of wholesale selling on Amazon Business

  • You can earn huge profits as compared to regular Amazon B2C selling.
  • Once companies like your product, price, and service, they tend to purchase their future products from the same seller to save time.
  • The program lets you access unique features for smoother operations.

Cons of wholesale selling on Amazon Business

  • Amazon Business requires a lot of knowledge and market trends; thus, entry-level sellers usually earn way less than expected.
  • There is vast market competition that can drastically affect sellers’ sales.

You can read and apply here for becoming an Amazon Wholesale seller.

3. Sell your private label products on Amazon

Selling your private label products on Amazon can be a lucrative model to grow your business and earn good profits as a seller. Many sellers are jumping on the bandwagon of private labeling to reduce the competition further. In simple words, giving birth to a private label means accessing a generic product and then labeling it as your own.

How to make money on Amazon

The private label dictates that the product has been registered on Amazon as their own. Even though starting a private label might sound like a sure way to gain profits, the entire procedure can be a tad bit arduous. Private label sellers cannot import any product from Alibaba, sell it and call it a day. However, this model has a lot of room for improvement as you can direct your manufacturer to produce the item as per your needs or consumer suggestions. 

  • Where to start?

The following points are some of the most crucial and standard steps when starting a private label business on Amazon:

1. Picking a product

 This step requires utmost dedication and market knowledge to scour out the latest trends for a profitable product. You can search various markets to find out the products that are in demand. Sellers can also use Amazon to search for the hottest products.

2. Find the right supplier

You are free to do your research to find the right supplier. Sometimes international manufacturers are lenient with private label policies; you should try to contact such sellers. Always factor in the total cost, price per product, minimum order quantity, delivery time, shipment costs, private label policy, order lead time, and the quantity of the product. We highly recommend researching and comparing various companies to get the best deal.

3. Designing and embellishing your product

Designing is purely creative work; you will need to hire a few hands to give a professional touch. You can approach any branding studio or work with a freelancer to brand your item and create a catchy brand in general.

4. Listing 

Once the entire brand is ready, you can initiate the process of product listings. Ensure to use the highest quality images for better product credibility. You can also opt for videos to create trust and interest in your product. Finally, do not forget to include a powerful description that encapsulates all the plus points of your product.

5. Protecting and legalizing your business

To stand out from the online crowd, consider adding a brand logo all over the product. You must enroll in the Amazon Brand Registry to keep your label safe from any infringements or copyright violations.

6. Sales and business inventory

You can now start paying attention to the sales and record the inventory details for future use. Then, track and order the products in time to avoid out-of-stock issues.

  • How much money can I make selling private label products on Amazon?

The profits from selling a private label product can highly differ, but an estimated yield can range from $600 to $2000 per month. In addition, 31% of private label sellers with more than a year of experience have experienced lifetime profits of over $50,000.

Pros of selling a private label on Amazon 

  • Sellers have lower levels of competition.
  • Seasonal changes in the products are possible to increase further sales.
  • Sellers have complete control over the quality of the product.
  • Amazon handmade products can be quite profitable.
  • Amazon handmade products may not face regulatory problems much.

Cons of selling a private label on Amazon 

  • The initial process of branding for Amazon handmade can be a tedious job.
  • You might find other sellers duplicating your products and ideas.
  • Amazon handmade products may need time to reach a good sales point.

4. FBA

Amazon FBA is a widely popular business model to make decent profits without worrying much about logistics. FBA frees the sellers from the further complications of customer support and shipping. When a seller agrees to join Amazon FBA, the products are directly stored in the Amazon warehouse.

Make money from Amazon FBA program

Amazon then takes the responsibility to deliver the products according to the order list at its earliest. Furthermore, FBA also expedites the shipping by enrolling the seller in their Prime feature. Amazon charges a nominal amount depending on the product’s size, weight, and units to compensate for the service. Many sellers use the FBA revenue calculator to understand the charges and profits. 

  • What are some of the things to keep in mind?

If you wish to become an Amazon FBA seller, we highly recommend paying attention to these things for a more excellent profit range.

  • Sellers who have a product ranging between $30-50 tend to get more significant sales. Do not forget to aim for a $20 margin.
  • Ensure to have a complete inventory at least three months before major holidays.
  • Try to profit by selling products that are often used or purchased during the 4th quarter holidays.
  • Sellers sourcing their products from China should pay attention to the Chinese New Year as the market does not during that time.
  • Do not forget to calculate Amazon’s cut and pay extra attention to shipping costs from the manufacturer.
  • How much can you make with Amazon FBA?

Sellers obviously cannot make a six-figure income in the starting months, but it is not an impossible target to achieve. Practically speaking, an average new Amazon seller can make anywhere around $1000 to $2,000 per month. If the seller has ample knowledge, tricks, and a festival calendar to double the sales, the end profit will undoubtedly have more zeros.

Pros of Amazon FBA

  • You will have a lot of time to focus on your business rather than worrying about shipping and handling.
  • You have a higher chance of quick delivery with Amazon’s FBA.
  • Sellers get selected for Prime membership.
  • The program is excellent for entry-level sellers and newbies alike.

Cons of Amazon FBA

  • Since FBA has a minimal profit margin, you need to sell a considerable volume of products to see good profits.
  • Many sellers feel that Amazon FBA fees can end up becoming a massive expense for their business. Thus, it could be a less ideal way for making money.

You can click here to apply for the Amazon FBA program.

5. Amazon Affiliate program

You must have noticed several blogs or influential people directing you towards a specific product on Amazon using a unique link. Well, this link is nothing but Amazon’s affiliate program that houses many benefits for people who have a huge fan following.

Earn passive income with Amazon affiliate program

If you already have the following base, you can enroll in Amazon’s affiliate program to earn a commission. You can make this commission via publishing these links on various social media platforms and channels.

Blogs and Youtube are some of the most popular platforms to engage with your audience. This Amazon program can bring quite a bit of commission, given your audience buys the product.

  • How does it work?

Amazon Associates is a pure program that you can sign up for. In exchange, you get unique links that Amazon can trace back to your account. People then click on the link to check out the products. When people buy these products, Amazon grants a small percentage of the sale to you. The base commission percentage varies between 4% to 10% according to the item and niche. When used by affiliates with millions of followers and page views, this affiliate method can turn into a highly lucrative income source.

  • Amazon Influencer

Amazon Influencer is yet another affiliate program that targets people who follow content creators and professional influencers. This program also enables the influencers to curate a personal page that has all their favorite Amazon products in one spot. In addition, the page can accommodate influencer’s live streams, videos, and other shoppable posts.

  • Amazon commissions

The commission rates of each genre of product highly vary according to its popularity and original price. However, the following are some of the most prominent niches that people access:

  • Luxury beauty products have a whopping 10.00% commission which is the highest percentage in the program.
  • The second-best commission rate products include digital music, physical music, handmade products, and digital videos. The commission rate is a decent 5.00%.
  • Printed books, kitchen accessories, and automotive products have a 4.50% commission margin.
  • Affiliates linking Amazon fashion, watches, jewelry, luggage, shoes, and accessories have a standard 4.00% commission rate.
  • Toys, furniture, home improvement, pets products, and headphones list a 3.00% commission rate.
  • Lastly, televisions and digital video games have a minimal 2.00% rate in their affiliate program.

If you are curious about understanding the commission rate in detail, we recommend visiting this page to view the entire bifurcation of genres, products, and commission margins.

  • Blogging vs. Video Reviews

There is no straightforward way to say which one stands better chances of earning a commission. It is not a hidden fact that masses nowadays gravitate towards video reviews as their first preference. However, this can change when your product belongs to some other niche.

Video reviews are excellent for fashion and lifestyle, while blogging is a practical choice for people dealing with infrastructure, architecture, cooking, and other super niched topics. Building a highly successful blog with high page views and even dedicated followers takes substantial time.

On the other hand, if you aren’t camera shy, video reviews can be equally fruitful. An ideal situation would be optimizing both review styles and coming to an Omni or multi-platform approach.

  • How much money can you make as an Affiliate? 

The money highly varies from person, niche, platform, and so on. The main factor to consider is the popularity and fan following. Most affiliates tend to profit from the medium range of 3 to 5% commission bracket. This percentage can roughly translate to a few thousand dollars per month.

Pros of Amazon Associates

  • Associates do not have to source products or manage inventory.
  • The entire process is straightforward if you have a website or platform.
  • It is relatively easier than listing and following the orders.
  • You can earn a hefty commission by just mentioning/providing the link once.

Cons of Amazon Associates

  • Amazon Associates is not a lucrative model if you don’t have enough following or page views.
  • Amazon affiliate is not an entry-level source for making money on Amazon.

If you are interested in the Amazon associates program, feel free to apply here.

Conclusion

We hope this Amazon business article introduced you to some of the most exciting and highly lucrative business models. It should have answered the big question: how to make money on Amazon. Of course, each business method has its pros and cons; thus, one should carefully weigh down all the options to find the perfect income source. Before wrapping, we want to clear the myth about Amazon being a quick cash-making source. This myth, however, is highly untrue. But with enough determination and effort, this platform can help you hit your financial goals in no time.

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Flow Harrington

Flow Harrington

Head of content marketing @ Infinite FBA, full-time Amazon seller. Or in plain English, I’m the guy in charge of making epic blog posts whilst running my FBA business.