How to Make Money on Amazon? 10 Strategies to Be Profitable

Amazon is more than just an online store; it is a large platform with prospects for entrepreneurs, creators, and side hustlers. If your goal is to create a full-time business or to gain extra earnings, Amazon presents diverse methods for income creation.

Everyone has a route from trading goods via Fulfillment by Amazon (FBA) to using their skills with Merch by Amazon and Kindle Direct Publishing. We will look at 10 tested methods to make money on Amazon, noting their positives, challenges, and how to begin. 

Also, to achieve success, you must have a robust web presence. WPX.net helps in this area and offers performance hosting to ensure a website operates fast, securely, and smoothly. We will explore optimal methods to generate income via Amazon and guide you on how to start now. Let’s begin!

1. Fulfillment by Amazon (FBA)

Source: Amazon FBA

Fulfillment by Amazon (FBA) is a widely used sales approach where Amazon manages product storage, packaging, and dispatch. According to JungleScout, 82% of Amazon sellers use FBA as their fulfillment method. This offering lets sellers target product procurement and promotion while Amazon manages logistics.

To start, you need to apply as a seller and send your inventory stock to Amazon’s centers. Amazon keeps the items in warehouses, and when a buyer orders, Amazon selects and packs the item to send. Amazon also manages customer support, including returns.

Pros of FBA:

• Prime Status: You can qualify for Amazon Prime. This increases your visibility and appeal to buyers’ interest.
• Automated Logistics: Amazon deals with storage, dispatch, and support.
• Scalability: FBA lets the business expand without logistical concerns.

Cons of FBA:

• Costs: FBA has fees, including fulfillment and storage costs, that can lower your profit.
• Inventory Management: If you have items that do not sell quickly, you’ll incur long-term storage fees.

FBA suits those seeking to expand operations and supply fast dispatch to buyers without handling fulfillment processes.

2. Fulfillment by Merchant (FBM)

Source: Amazon FBM

Fulfillment by Merchant (FBM) gives one more option to sell products on Amazon. In this model, sellers place items on the marketplace; however, they are in charge of the items’ storage, packaging, and shipping.

Similarly, with FBA, you first need to register as a seller and list your items on Amazon. When a buyer submits an order request to Amazon, you will handle and ship it directly. You’re also responsible for dealing with customer service and returns.

Pros of FBM:

• Reduced Costs: Since Amazon does not keep or dispatch items, FBA-linked costs are eliminated.
• Increased Oversight: Sellers exert direct control over inventory, packaging, and branding.
• Superior for Reduced-Profit Goods: FBM can create greater earnings for things with reduced profit margins.

Cons of FBM:

• Added Accountability: Vendors should handle dispatch, returns, and customer inquiries.
• No Prime Badge: Without FBA, goods are not appropriate for Amazon Prime, which can reduce sales potential.
• Logistics Management: Safekeeping and shipping products need more time and work.

FBM is a fine choice for sellers with the infrastructure for their fulfillment process or those who offer market-niche products with lower sales volumes.

Source: WPX

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3. Retail and Online Arbitrage

Retail and online arbitrage include acquiring reduced-cost goods from physical stores or web platforms and selling those goods again on Amazon for profit.

To start with arbitrage, you need to locate reduced-cost or clearance goods at physical stores (retail arbitrage) or e-commerce locations (online arbitrage). Afterward, check Amazon’s platform to determine if the products sell at a greater value. If you’re okay with the profit margin, get the products, then list them on Amazon. When your product sells, you can fulfill the order using FBA or FBM.

Pros of Arbitrage:

• Low Startup Costs: No need for a private label or bulk inventory purchases.
• Quick Turnaround: Can generate quick profits by finding fast-selling items.
• Easy to Start: No need to create a new brand or product.

Cons of Arbitrage:

• Requires much time: Constant product search and price comparison is time-consuming.
• Scalability is restricted: Stock relies on items available from shops or online.
• Costs are competitive: Other sellers may lower prices, reducing profit margins.

Arbitrage suits newcomers seeking a less risky introduction to selling through Amazon and those ready to put in the effort to find good offers.

4. Kindle Direct Publishing (KDP)

Source: KDP

Kindle Direct Publishing (KDP) lets writers self-publish eBooks and paperbacks through Amazon without needing a publisher.

To start with KDP, you need to draft, format the book, and upload it to Kindle Direct Publishing. After, you must decide on cost and royalty arrangements. Then, Amazon puts it up for purchase on Kindle devices and apps.

Pros of KDP:

• Zero Initial Fees: Publication via KDP is free.
• Continuous Revenue: Once the book is published, it may generate sales indefinitely.
• Broad Audience: Amazon provides access to a large number of readers globally.

Cons of KDP:

• Promotion Needed: Success relies on marketing and SEO.
• Intense Rivalry: Many authors are publishing, making it hard to be noticed.
• Royalties Differ: Profits depend on prices and Amazon’s royalty setup.

KDP presents a good choice for writers who plan to gain from their skills and knowledge.

5. Amazon Influencer Program

Source: Amazon Influencer Program

The Amazon Influencer Program enables content creators to earn commissions by marketing Amazon items via personalized online shops.

To start with the influencer program, you need to submit an application and make sure you have an established social media presence. Next, develop a specific Amazon storefront that features recommended items, then share the product links to your followers. You’ll receive payments on all qualifying transactions.

Pros:

• No Direct Sales Required: Just suggest items to your audience.
• Possible Residual Revenue: Generate income via follower purchases.
• Collaboration Possibilities: Individuals might work alongside brands for additional revenue.

Cons:

• Large Audience Needed: Approval relies on standing on social media influence.
• Income tied to Commissions: Payout depends on follower purchases.
• Reliance on Amazon: Adjustments to Amazon policies could affect income.

Amazon influencers enhance trustworthiness and audience size through a website or blog, besides social media. WPX.net’s WordPress Hosting lets influencers create a well-made site, display suggested items, and raise conversion rates. Get started with WPX.net’s WordPress Hosting.

6. Amazon Associates (Affiliate Marketing)

Source: Amazon Associates

Amazon Associates is a program for affiliate marketers. It permits website operators and bloggers to get payment by promoting products from Amazon. 

You can start when you enroll in the Amazon Associates program and generate affiliate URLs for items sold on Amazon. Next, share those links on your social media platforms, blogs, or websites. You’ll receive a commission when someone purchases through your link.

Pros:

• Easy to Join: No need for product inventory or initial expenses.
• Varied Product Choice: Promote almost any item on Amazon.
• Earning Potential: If you generate higher traffic, it’ll help you earn more.

Cons:

• Low Commission Payments: Payments differ based on item type and might be limited.
• Short Cookie Life: Amazon’s tracking cookie functions for only 24 hours.
• Needs Steady Traffic: Success relies on driving targeted site visitors.

Achieving success within Amazon affiliate promotion relies on a quick, trustworthy website that maintains visitor interest. The high-speed WordPress hosting from WPX.net aids bloggers and website owners in creating optimized affiliate sites that drive more traffic and conversions. 

If you want an additional affiliate income source, visit WPX.net’s affiliate marketing page.

7. Amazon Handmade

Souce: Amazon Handmade

For capable artisans or craftspeople, Amazon Handmade provides a superb method to transform enthusiasm into income. This platform is like Etsy, particularly for handmade items, but with Amazon’s large client base.

To begin, you need to apply and gain Amazon’s approval to ensure that your products meet the handmade criteria. Afterward, you can create a shop, display items, and manage shipments independently or utilize FBA. Although Amazon Handmade imposes a 15 % referral charge for each sale, there are no listing fees. So, it’s a fine option for artists seeking additional revenue streams.

Pros

• Reach a sizable group of customers.
• There are no fees to list; payment occurs after the item sells.
• It works well for unique, handmade goods.

Cons

• Commission fees are higher than on other platforms.
• You need permission to sell.
• Competition exists with mass-produced goods.

8. Merch by Amazon

Source: Amazon Merch on Demand

For individuals skilled in graphic design, Merch by Amazon gives a straightforward avenue to market personalized T-shirts, hoodies, and apparel. You just upload designs, decide on costs, and allow Amazon to manage everything else – including printing, delivery, and customer support.

The program functions on a royalty structure. You receive a fraction of each transaction, derived from your offering’s cost. Elevated sales lead to increased earning prospects. Program admittance is contingent on application, and slots might be restricted.

Pros

• No need to manage inventory.
• Possible steady earnings.
• It does not cost anything to start.

Cons

• It’s a competitive market
• Few customization options.
• Requires approval.

9. Amazon Mechanical Turk (MTurk)

Source: Amazon Mechanical Turk

Amazon Mechanical Turk (MTurk) serves as a platform for micro-tasks. Companies publish simple online tasks demanding human intellect like data entry, content review, surveys, or image identification. The payment for each task remains fairly low. Even so, MTurk presents a solid method to gain additional money in your spare time.

Workers, referred to as Turkers, pick from tasks and complete them at their own pace. Payments differ based on the task’s complexity, but doing good work all the time leads to higher pay. MTurk is not a way to become wealthy, but it is a way to earn supplemental income from home.

Pros

• Work hours are Flexible.
• Tasks are basic and require minimal expertise.
• can be done anywhere (remotely).

Cons

• Compensation is low for each task.
• Certain tasks are monotonous.
• Payment processing times differ.

10. Amazon Flex

Source: Amazon Flex

Do you want to make money through Amazon package delivery? Amazon Flex is a program where contractors use personal vehicles to deliver. This is like services such as Uber or DoorDash, but you deliver Amazon orders instead of people or food.

Flex drivers decide when they work. They choose time blocks for deliveries through the app. Payment is usually $18 to $25 per hour. This varies based on location, demand, and tips.

While Amazon Flex has limited availability, it is a good opportunity for individuals who like driving. Drivers can also earn supplemental income with a schedule they control. If a way to make income on Amazon other than selling, this option is worth considering.

Pros

• Work hours offer flexibility.
• Pay is fair; on average, compensation ranges from $18 to $25 each hour.
• You can work in your local area.

Cons

• Requires a reliable vehicle.
• You are responsible for gas and maintenance costs.
• The availability depends on demand in your area.

Conclusion

Amazon has given us several opportunities to make money. You can sell physical products, publish books, or maximize referral programs. The secret to good results is to pick the method that matches your skills, money, and aims. With hard work and a clear plan, you can make Amazon a regular source of income.

If you’re ready to begin, check out Amazon’s seller programs, optimize your product listings, and set aside money for marketing. Remember that a good online profile can boost your success. WPX.net offers strong website hosting so your site works well, and helps you get more buyers.

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