If you want to make money on Amazon, you are in the right place. This article will show you how to make money on Amazon in 12 straightforward ways.
If you’re ready to capitalize on the e-commerce boom, keep reading to take your first steps toward making money on Amazon.
Navigating Amazon’s E-commerce Landscape
Amazon is the platform that covers a significant chunk of eCommerce sales in the US.
With a vast audience and a trusted brand, it’s not a stretch to believe you can make money selling on Amazon and earn a full-time income.
Like any other business venture, success in selling products on Amazon requires thorough product research, strategic use of tools, and learning from experienced sellers. Understanding how Amazon works and finding profitable products to sell are the items to focus on.
1. Launching Your Private Label Brand
If you have ever dreamt of having your own brand, selling private-label products on Amazon makes it possible.
But what are private-label products? These are goods one company manufactures to be branded and sold by another. Here is how it works:
- First, you will need a supplier. The best place to start is still Alibaba. Connect with a few suppliers to determine who can offer the best price and quality.
- Once you have the supplier and product, create your Amazon listing and choose the fulfillment method: Fulfillment by Merchant (FBM) or Fulfillment by Amazon (FBA).
- Lastly, launch your product. Tip: to help you maximize results, work on an ad campaign to ensure your target audience sees the products.
But where do you find these profitable niche products? A tool like the Jungle Scout is your best friend here. Jungle Scout can help you analyze niche markets and competition and provide important data like estimated sales and revenue.
And remember, branding and product quality are key. They set your products apart from others and help build trust with customers.
2. Retail Arbitrage on Amazon
If launching a private-label product business is too expensive, then perhaps retail arbitrage is for you.
The concept of retail arbitrage is simple – buy discounted products from physical stores and sell them on Amazon for a profit. The great advantages of this business model are that you can get started fast and with as little as 500 USD.
To start, create an Amazon seller account, download a product scanning app, and choose your fulfillment method.
To determine if a product is profitable for retail arbitrage on Amazon, you can use the FBA Revenue calculator and scan barcodes with your smartphone.
Tip: Monitor local sales and retail store closing announcements for great buying opportunities at competitive prices. The key here is to find the right products at the right price.
3. Online Arbitrage on Amazon
With online arbitrage, you’re buying products to flip on Amazon from other e-commerce stores rather than buying products in-store as you would with retail arbitrage.
The difference is that with retail arbitrage, you’re limited to physical stores in your area, but with online arbitrage, the possibilities for purchasing inventory are nearly endless.
There are many opportunities to flip other online retail store products. Consider online stores such as:
- Home Depot
The pros of online arbitrage are the scalability and adaptability to market changes, which make this a great option.
4. Crafting and Selling with Amazon Handmade
If you like creating extraordinary handmade products, Amazon Handmade might be the right gig for you.
This marketplace market is trendy among Amazon sellers, and you can sell all kinds of handmade goods, from clothing and jewelry to accessories and art.
To become a seller on Amazon Handmade, you must go through their artisan-only application, an audit process to ensure your products are genuinely handcrafted.
Once you get approved, not only do you get a custom URL for your shop, but the $39.99 monthly fee for professional selling accounts is waived too.
Is it profitable? Absolutely! About a third of Handmade sellers make profits of over 20%, and almost 20% of customers are more inclined to purchase custom and unique items.
5. Amazon Merch on Demand
Another great and affordable way to start making money on Amazon is by selling your designs and art with Merch on Demand.
Amazon Merch on Demand is easy to set up. Even if you aren’t a graphic designer, or have a large social media following, you can start an Amazon Merch on Demand account.
Getting started is pretty simple; once you create an account and get approved, you must upload designs or artwork and choose the type of product you want to sell.
Once Amazon approves your design, they will create a product page, and when customers buy your product, they will handle production, shipping, and customer service — all with no upfront costs.
To create your design, you can leverage tools like Canva or, if you like IA, Midjourney.
I know it sounds good, but how much can you make? Sellers make a royalty on each design sold through Amazon Merch. The royalty fees can be anywhere from 13% to 37% of the product’s price, depending on the price the seller sets.
6. Kindle Direct Publishing
If writing is your thing, Kindle Direct Publishing can help you introduce your literary works to a vast audience on the world’s premier online marketplace – Amazon.
What is great about KDP is that you can make up to 70% of royalties on all your sales since you are practically selling a digital product.
Therefore, the income potential is quite exciting. However, note that in the world of publishing games, the key is volume. But if you can write well and a lot, you can reach outstanding results. In fact, some authors are making as much as $40,000 or more per month. And it’s not just novels. You can also create:
- Coloring books
- Word-search books
To really succeed with Kindle Direct Publishing, you need to figure out which products your audience would actually be interested in and then market them in a way that really speaks to them.
7. Affiliate Marketing with Amazon Associates Program
Do you have a blog, website, or social media page with a decent following? The Amazon Associates program might be your path to earning commissions.
It’s basically a way for bloggers, content creators, and publishers to promote products from other brands on their platforms and make money from the sales they drive.
Picture this: you find a cool product on Amazon, share your unique link with potential customers, and if they buy it, you get paid a commission that is usually around 4% to 10% of the product’s value.
The percentage may sound low, but with the use of social media, you have the potential to reach thousands of people who may be interested in the products you are promoting—giving you more of a chance to earn lots in affiliate commissions.
To become an Amazon Associate, you must have a blog or a website. Once you get approved, you will be provided with a unique link that you can share on your website or social media posts to earn commission.
Both YouTube and TikTok are valuable platforms for users to share video-based product recommendations. They offer engaging ways to share affiliate links with your audience.
Learn more on Affiliate Marketing and how to start in 2024. Go to my article How to Start Affiliate Marketing to learn more.
8. Amazon Influencer Program
Another branch of the Amazon Associate Program is the Amazon Influencer Program. Similarly to affiliate marketers, influencers who have been approved by Amazon promote their products on social media. They have their own dedicated storefront on Amazon with products you love and recommend, and they earn a commission for each sale made through their promotion.
To become an Amazon Influencer, you need to apply and get Amazon’s approval first. They’re looking for a solid social media following. However, no set number of followers is required, and Amazon focuses more on your overall online influence, content quality, and engagement with your audience.
Once you’re in, you’ll get a special URL for your own Amazon page, where you can show off the products you’re into.
Influencers make a commission whenever their followers purchase the products they suggest, and the commission rates range from 1% to 20%, depending on the category.
9. Wholesale Selling on Amazon
Similar to Private Labels, as an Amazon Wholesale Seller, you buy products in bulk and resell them individually on Amazon. The main difference is that you buy from established brands; therefore, you do not need to worry about manufacturing and branding the products.
While wholesaling is the second most popular way to make money on Amazon, note that it can be more competitive than the private-label market.
So it can sometimes be a race to the lowest price where sellers’ only leverage to compete with each other is lowering their price tag. But there are strategies you can follow to prevent that from happening to your business.
The game here is played around the price you pay. The lower the cost of purchase, the higher the earnings.
10. Leveraging Amazon Mechanical Turk for Extra Cash
Amazon Mechanical Turk (MTurk) lets you complete small tasks for money. It’s a marketplace run by Amazon where you can do tasks like:
- data entry and validation
- survey participation
Some Mechanical Turk workers can make up to $15 an hour or more. On average, it’s usually between $6 to $10 an hour, so for a 20-hour workweek, that’s around $120 – $200.
But remember, while it’s easy to get started, the tasks can be pretty boring and not very well-paying. So, while it’s a good way to start making money on Amazon, it might not be the most lucrative opportunity out there.
11. Dropshipping: Selling Without Inventory
Another great way to sell products on Amazon without owning inventory is dropshipping.
You offer products that are handled by third-party vendors, you list products for sale, and once a customer places an order, you buy the product from your supplier at a lower price and have them ship the order to your customers.
So, with dropshipping, you earn money without ever touching or seeing the product! And the great thing is that your supplier will handle the logistics for you while you focus on managing the product’s listing and marketing, which is, if you ask me, the fun part.
To kick off dropshipping on Amazon, you need to:
- Become the seller of record
- Pick and buy a selling plan
- Head to inventory> Add a product to your Seller Central account
- Make your product listings by choosing the ‘Select Product’ option
Tip: when you’re considering products for dropshipping, it’s important to look for options that will give you the best profit margin and to make sure that the suppliers are reliable and offer good quality products.
The main downside of dropshipping is that you have to share a significant portion of your profits with third-party vendors. However, if you pick the right product before it goes viral, you are in for big earnings as long as you position yourself well in the marketplace.
12. Selling Used Items on Amazon
We all have some used items lying around; I am sure you do, too. If so, why not sell them on Amazon? You can start selling your old stuff on Amazon by figuring out the serial number or the product code on the packaging of your items.
Reselling used books is a popular choice on Amazon for example. Just make sure the items aren’t in bad shape and might be valuable to collectors. And remember, use really good pictures to catch buyers’ attention.
If you’re selling your used items individually on Amazon, get ready to take photos, measure products, and write detailed descriptions for each item because it is the most important step to get your product seen.
I hope you found this post helpful. We’ve taken a deep dive into the many ways to make money on Amazon. From private label selling to retail arbitrage, from Amazon Handmade to Kindle Direct Publishing, the opportunities are as vast as Amazon’s marketplace. Whether you’re a creator, a bargain hunter, or a book lover, there’s a potential income stream waiting for you.
Frequently Asked Questions
Can you make money on Amazon?
Yes, many Amazon sellers make significant income from the platform, with some earning over $100,000 per month in sales and others generating annual sales ranging from $12,000 to $300,000. Making money on Amazon is possible, but it requires effort and good ideas.
How much can you realistically make on Amazon?
On Amazon, most sellers make at least $1,000 per month, with super-sellers making over $100,000 each month. Statistics show that 50% of sellers make $1,000 to $25,000 per month, amounting to $12,000 to $300,000 in annual sales.
What is retail arbitrage?
Retail arbitrage is the practice of buying discounted products from retail stores and reselling them for a profit, often on platforms like Amazon.
What is private label selling?
Private label selling is when you take an existing product, put your own brand on it, and sell it as your very own private label products, often on platforms like Amazon.
What is Amazon Mechanical Turk?
Amazon Mechanical Turk is a marketplace on Amazon where you can earn money by completing small tasks like data validation and research.
Is Amazon Mechanical Turk worth doing?
The worth of Amazon Mechanical Turk (MTurk) varies. It offers flexibility but pays relatively low for tasks. It’s suitable for those seeking flexible, low-skilled tasks, but may not be ideal for substantial earnings or specialized work. Consider personal preferences and financial needs before deciding.
Is Amazon affiliate marketing free?
Yes, joining the Amazon Associates Program for affiliate marketing is free. Amazon provides unique affiliate links, and affiliates earn commissions on qualifying purchases made through these links. There are no upfront costs, making it accessible for individuals to participate in the program without any financial investment.