The great John D Rockefeller said he became a billionaire by making 1,000 people millionaires. The same could be said for Amazon founder Jeff Bezos. Here are 5 ways you can make money on Amazon.
First let’s get this out of the way. Amazon FBA is fulfillment by Amazon. This is how the Prime subscription works. You send your items in to an Amazon warehouse and they ship the order out on your behalf. They take a cut, you get a cut and everyone is happy.
Selling New Products
Unlike eBay, Amazon only accepts new or gently used products. There are a number of ways you can accumulate new items. After you have all of your products labeled to Amazon specs you’ll then package everything together and ship it out.
Yard Sales/Thrift Stores
This is not the best way to find inventory for Amazon but is still an option. If you are sourcing for eBay as well then you can kill 2 birds with 1 stone. The key to finding a good product is caldulating your return in ivestment after Amazon fees are paid. The better Amazon’s best seller rank is the quicker your item will sell as well.
Wholesale
This is when you buy name brand goods in large quantity for a set price and resell them for a profit. This is exactly what all retailers do. Now, Imagine if you started a toy store in your hometown that sold popular items like paw patrol or Thomas the Tank etc. (Only examples) However, instead of that physical storefront you sell those same items on amazon through FBA. You get to reap the rewards of a hot selling item without the overhead of a physical storefront and you have the entire country to sell to.
Retail Arbitrage
This is when you actually go to retailers in your hometown, find discounts and resell them on Amazon for the going rate. You’ll be surprised how high of a markup Amazon charges in relation to Walmart, Target, T.J. Maxx etc. This isn’t always the case but there are some gems out there. Even reselling name brand dish soap from Dollar Tree can net you a few dollar profit. You have to remember people are paying for the convenience.
Private Label
The next way to make money on Amazon is private labeling. This is when you source a product from China, have them put your logo on it and they ship it directly to Amazon. You can source from anywhere in the world but China is the cheapest and they have a marketplace called Alibaba for wholesalers.
Why Private label?
If you have your logo on an item it is specific to your brand. No one can list under your listing. If you manage to get on the first page of Amazon for a particular product, chances are you’ll be making a fortune. That’s not to say someone can’t copy your product and put their own logo on it. This is why you’ll see hundreds of the same product with different logos. I highly recommend taking a course to learn private labeling since there is a lot involved from start to finish. A lot of the nuances can not be found on YouTube. I took Tanner J. Fox’s Amazon Seller Mastery.
Affiliate Marketing
Amazon’s affiliate program is called Amazon Associates. Just recently they slashed their affiliate commissions and wrecked a lot of business’s that exclusively used Amazon to promote. Commissions are now quite small, so looking at other online retailers might be a better option for you. It’s tough to compete with Amazon because online shoppers don’t think twice about using their services. The one good thing about Amazon’s s affiliate program is when someone clicks on your link for let’s say a microphone you promoted, you’ll also get a commission if they buy toilet paper as well.
Print on demand
My next way to make money on Amazon is Print on demand. If you’re an artist this could be a great opportunity for you. If not you can still make a fortune by hiring an artist or coming up with clever text.
Selling print on demand is a different process than selling through FBA. You have to get approved for this service through March by Amazon and it could take a very long time. When you do get approved, simply upload your design to Amazon as a t-shirt. When it sells it will get printed and shipped to the customer. You’ll earn a royalty for your design.
Amazon Kindle Publishing
With e book publishing you’ll need to set up a Kindle Direct Publishing account. From their you’ll pick royalty options, which is your piece of the pie. Just like selling anything else on Amazon you want to identify your keywords so customers will be able to find your book. Although Amazon gets a ton of daily traffic to their marketplace, which benefits you, you’ll still need to market your book as well.
As far as the book content goes, you can choose to write it yourself or hire someone else to do it for you. The same goes for the cover. You can simply hire someone from fiverr.com or Upwork.
The book can be any length you desire which you’ll have to price accordingly. Amazon Kindle Publishimg is probably the least takes about business models but probably the most passive.
To Your Success
I hope this helped you learn how to make money on Amazon. If you have any questions about any of these businesses drop a comment down below as I have experience in most of them.
If you enjoyed this, check out Digital Nomad Jobs to Start While on Quarantine.
This article includes affiliate links. The blog earns a small commission at no extra cost to you. By using our links you help to keep the blog running. Furthermore, this article is not financial advice. I am not a financial advisor and words herein are for entertainment purposes only.
