Amazon is a true powerhouse in the eCommerce space. There are many ways to get your share of this pie. This guide contains a complete list of Amazon ways to make money.
Amazon allows you to sell products and services
These strategies are all about selling. Although selling isn’t the only way you can make money on Amazon. There are many ways to do this. You don’t have to sell physical products, but you can still make money on Amazon. There may be a way to sell on Amazon that you are not aware of.
1. Amazon FBA – Sell Products
FBA stands for “fulfillment By Amazon.” This is a benefit for sellers as it places the power of Amazon’s distribution network behind your products. There are several steps that you must take to sell FBA.
- Source your product. You can sell products on Amazon by using Alibaba or another similar platform. Then, you can source the items and then create your branding.
- You can become an Amazon seller. Amazon Seller Central is $39.99 per month.
- Send your products to Amazon. Send your inventory to Amazon fulfillment centers so they can distribute it.
- Wait for customers. Amazon will ship your order to you if someone orders your product from Amazon. FBA allows you to sell products at scale. You can always ship the products yourself, but this will save you additional Amazon fees.
Pro Tip: SellerApp’s What Products to Sell on Amazon is a great article for anyone still trying to figure out how to make money on Amazon.
Amazon FBA can help you make money if you buy products at a lower price than the retail price and then mark them up.
- Amazon takes care of all the shipping and distribution for you.
- Amazon hosts your products where millions of people shop every single day.
- To make a profit, you must sell enough physical products. For some sellers, this can prove to be a barrier.
2. Retail Arbitrage
You will have to pay high shipping costs if you import inventory from abroad. Many sellers can avoid this by using retail arbitrage.
Retail arbitrage refers to the act of purchasing inventory from local retailers, then selling it on Amazon at a profit.
Find discounted products at your local Target or Walmart. Simply list the items on Amazon with a markup.
Online arbitrage is also an option. These websites offer free shipping if you buy directly. Usually, however, you will get the best discount in-store. Another good place to find cheap products to buy is eBay.
Amazon’s retail arbitrage: Pros
- If you love bargain hunting, it can be very fun to find deals.
- It doesn’t matter if you have a large inventory.
Amazon’s retail arbitrage: Cons
- It can be difficult to perform retail arbitrage at scale.
- Retail arbitrage is a popular method of selling and, therefore, is a competitive space.
3. Publishing Your Books
Are you a good writer? Amazon KDP allows you to publish digital books. Publishing takes just five minutes and your book will be published on Amazon Kindle Direct Publishing (KDP) within 24-48 hours.
Amazon allows you to set your book prices. Amazon allows you to earn up to 70% in royalties for Kindle sales.
You can also make any changes to your content at any time.
You can also publish physical copies of your books using CreateSpace. ACX can also be used to create audiobooks that are available for sale on Amazon.
- If you have written books, it’s a great way of making extra money.
- Publishing your ebook is free. This allows you to see your name printed without the need for a traditional publisher.
- To make money with Amazon ebooks, you must be a prolific writer.
- Without a traditional publisher, you can do all your marketing yourself.
4. Wholesale Products
Instead of focusing on consumers, you can now sell products in bulk through Amazon Business.
It is an Amazon B2B marketplace. It offers business customers special pricing and the convenience of shopping at Amazon.
You’ll be able to sell on Amazon Business Marketplace with unique features. You’ll be able to accept quotes requests. Amazon also allows you to show different diversity and quality certifications on your page.
Amazon Business is a customer of 55 Fortune 100 companies. This B2B marketplace is used by more than half of the largest hospitals in America and over 40% of densely populated local governments.
You can make a significant product volume if you are a good B2B professional.
Amazon Business Pros
- Amazon’s vast platform may allow you to reach more customers.
- This program offers unique features, including the ability to offer quantity pricing and business pricing.
Amazon Business Cons
- Amazon Business is the best option for established businesses that have a high barrier of entry.
5. Amazon’s Private Brands
Amazon Accelerator is an incentive program for manufacturers to start their brands and develop innovative products. These products will only be sold on Amazon by you as a private supplier.
Amazon will guide you through the onboarding process and provide you with valuable tools to build your brand. A suite of marketing services will also be available to you.
Amazon offers product testing and customer feedback if you are unsure of which products are best.
If you have direct access to manufacturing, being an Amazon Accelerator brand is a great way for you to make some money with significant margins on this marketplace.
Amazon Accelerator: Pros
- If you have an idea but don’t know how to sell it, it’s great!
Amazon Accelerator: Cons
- Amazon is the only place you can sell your product. You cannot open your shop, or sell through other retailers.
6. Handmade Goods
Handcrafted goods are in high demand. Amazon Handmade is a great place to join if you are a crafter and love making things at home.
It sells handcrafted products from sellers in more than 80 countries.
It offers an audit and application process for artisans only. This assures that the products are truly handcrafted.
It is easy to price handmade sellers. For each sale, you’ll only pay a 15% referral charge to Amazon.
Amazon Handmade: Pros
- Amazon’s vast platform may allow you to reach more customers.
Amazon Handmade: Cons
- These fees might be higher than those charged by other online marketplaces.
- You must keep up with the demand fluctuations for your product.
7. Amazon Merch allows you to create custom merchandise
Are you able to design a t-shirt or a coffee cup with a creative design? You don’t have the means to make hundreds of thousands of these by yourself.
Amazon Merch can make your idea a reality. Upload your design. Next, choose a product type or color.
Amazon will create a product webpage for you. Amazon will also handle all shipping and customer service. For every product you design, you’ll be paid a royalty.
Merch by Amazon is free to join. Some people may not be eligible.
Pros of Merch
- You can express your design ideas without worrying about shipping and production.
Cons of Merch
- There may be fees that are higher than in other online marketplaces.