If you’re like many people looking for extra income, you’ve probably heard that you can make money with Amazon. Did you know that Amazon’s third-party sellers made over $80 billion in sales in 2020 alone? It’s definitely possible, but it takes some know-how, a little patience, and the right approach.
Maybe you even thought it sounded too good to be true, like one of those late-night infomercials promising untold riches with minimal effort. Well, the truth is, making money with Amazon is definitely possible, but it takes some know-how, a little patience, and the right approach. So, letâs dive into the different ways you can turn Amazon into your money-making sidekick.
The Amazon FBA Opportunity
One of the most popular ways people are earning with Amazon is through something called FBA, which stands for “Fulfillment by Amazon.” Now, I know that sounds kind of technical, but itâs actually pretty simple. Picture this: you source products that you think will sell well, send them to Amazonâs warehouse, and they handle the heavy liftingâlike storage, packing, and shippingâevery time a customer buys your item.
This means you donât have to store a bunch of products in your garage or spare bedroom, and you donât have to make daily trips to the post office. Amazon essentially becomes your logistics partner.
To get started, youâll need to do some research. The key to FBA success is finding products that people want to buy, but which arenât already flooded by competition. For example, niche home decor items like unique storage baskets or kitchen accessories are often overlooked but can be quite profitable.
Tools like Jungle Scout or Helium 10 can help you spot these opportunities, and once you’ve decided what to sell, you’ll need to source those itemsâwhich usually means finding a manufacturer. Many people use platforms like Alibaba to connect with manufacturers, often overseas, to produce the product at a reasonable price.
Itâs also crucial to consider the costs involved in FBA. Amazon charges fees for storage and fulfillment, so your product margins need to be high enough to make a profit even after those fees. But the good part is, once your product is listed, Amazon does much of the work for you. It might take some trial and error to get the right products, but a lot of people find that once they hit on a winning item, it becomes a solid stream of income.
Amazon Kindle Direct Publishing (KDP)
If sourcing and shipping physical products isnât your thing, thereâs another fantastic opportunity on Amazon called Kindle Direct Publishing, or KDP. This is perfect if you enjoy writing or even if you just have a great idea for a book.
You donât need to be a professional authorâpeople are making money with KDP by publishing everything from cookbooks and childrenâs stories to journals and planners. With KDP, you write (or hire someone to write) a book, format it, and upload it to Amazon. Once your book is published, it’s available in the Kindle Store for anyone to buy.
One of the best parts about KDP is that Amazon makes the process really easy. They take care of the printing and shipping, and you donât need to invest upfront to publish your book.
Every time someone buys your book, Amazon prints a copy and ships it to the buyer, and you get a royalty. The royalties can vary depending on the price you set, but the beauty of KDP is that you can potentially earn passive income from your books long after theyâre published.
Of course, writing a bookâeven a short oneâtakes some time and creativity. To brainstorm book topics, you could research Amazonâs bestsellers to see what’s trending or use tools like Google Trends to understand what people are interested in. And while you donât need to write the next bestseller, you should consider what people want to read.
Look for topics that are trending or that people need help with. The more useful or entertaining your book is, the better itâs likely to do. If youâre not a writer, donât let that stop youâmany people use freelance ghostwriters to bring their ideas to life.
Merch by Amazon
Hereâs a fun one: If youâre creative and like designing, you can earn money with Amazon through a program called Merch by Amazon. This lets you upload designs, which Amazon then prints on t-shirts, hoodies, or other apparel when someone orders. Think of it like creating your own line of clothing without needing to invest in inventory or buy expensive printing equipment.
The best part is, once youâve uploaded your design, your work is done. You donât need to worry about production or shipping; Amazon handles all of that. You simply earn a royalty each time someone buys something with your design on it. To get started, youâll need to apply to join the program. Once youâre approved, you can start uploading your designs.
If youâre worried about not being artistic, donât beâsimple designs often work really well. For example, one successful design might be a simple motivational phrase in a bold font or a basic illustration of a popular trend, like a coffee cup or a cat.
Many top sellers are just catchy phrases or basic graphics. Tools like Canva can help you create designs without any graphic design skills, and there are also freelance designers you can hire if youâd rather outsource that part.
Amazon Affiliate Program
Another popular way to make money with Amazon is through its affiliate program, called Amazon Associates. This is perfect if you already have a blog, YouTube channel, or social media followingâbut even if you donât, you can build one to get started. The idea is simple: you recommend products, and if people buy them through your unique affiliate link, you earn a commission.
Imagine youâre someone who loves to cook, and you have a blog where you share your favorite recipes. You can include links to your favorite cooking tools, like a blender or an air fryer, and if your readers click those links and make a purchase, you earn a little money from the sale. Commissions range depending on the product category, but the idea is that with enough traffic, those small commissions can really add up.
Building an audience does take time, but if youâre sharing things that youâre genuinely passionate about, it can be a lot of fun. The key is to provide valuable content that people want to read or watch. Popular content themes like ‘how-to guides,’ ‘product reviews,’ or ‘top 10 lists’ tend to work really well and attract more engagement. If youâre recommending products that you love and use yourself, your recommendations will feel natural, and people will be more inclined to trust your suggestions.
Amazon Handmade
If youâre someone who likes to make things by hand, Amazon Handmade could be a great opportunity for you. Itâs similar to Etsy, where artisans sell handmade goods. Whether you make jewelry, home dĂ©cor, clothing, or personalized gifts, Amazon gives you a platform to reach a huge customer base.
It’s important to use high-quality photos and provide detailed descriptions to help your products stand out and boost sales. The nice part is, you get to focus on creating your products while Amazon helps connect you with potential buyers.
Getting started with Amazon Handmade is a bit different from just selling on Amazon. Youâll need to apply, and Amazon will need to approve your shop to make sure your products meet their handmade criteria. But once youâre set up, you have access to Amazonâs massive customer network, which can really help boost sales compared to starting from scratch on your own website.
While Amazon does take a percentage of your sales, the exposure you get is often worth it. The people who succeed on Amazon Handmade are those who offer something unique and who really care about the quality of their products. Because itâs handmade, customers are often willing to pay more, so thereâs room for good profit margins if you find the right niche.
Retail Arbitrage
Retail arbitrage is another way people are making money with Amazon, and it can be kind of like a treasure hunt. The idea is simple: you find products at local stores, buy them at a discount, and then sell them on Amazon for a higher price.
For instance, one seller found a batch of board games on clearance at a local store for $5 each and later sold them on Amazon for $25 each, making a significant profit. Maybe youâve come across a clearance sale at a store like Walmart or Target, where items are heavily discounted. You buy these items, list them on Amazon, and sell them for a profit.
Retail arbitrage does take some legworkâyou have to find those deals, evaluate if theyâre profitable on Amazon (taking into account shipping and fees), and then list them. There are apps that can help you scan products and check prices to see if itâs worth the investment. Itâs not a passive income stream by any meansâyou have to be out there hunting for bargainsâbut many people enjoy the thrill of finding a good deal and turning it into cash.
Becoming an Amazon Seller
If you donât want to use Amazon FBA or arenât interested in retail arbitrage, you can still make money by becoming a third-party seller on Amazon. This is a bit more hands-on since youâll be handling the storage, packing, and shipping yourself, but it gives you more control over the entire process. This approach can work well if you want to sell items in smaller quantities or if you have a unique product that doesnât fit the bulk-shipping model of FBA.
Being a third-party seller can be as flexible as you want it to be. Some people start by selling things they already ownâlike books, clothes, or collectiblesâand then reinvest their earnings into purchasing more inventory. Over time, you can scale up and begin sourcing products from wholesalers or manufacturers.
Itâs important to note that competition is fierce on Amazon, so you need to make sure your product stands out. High-quality images, detailed descriptions, and positive customer reviews can all help improve your sales. Customer service is also a big factorâresponding quickly to customer inquiries and ensuring theyâre happy with their purchase can lead to better reviews and repeat buyers.
Amazon Mechanical Turk (MTurk)
If you’re looking for a way to make some extra cash in your spare time, Amazon Mechanical Turk (often called MTurk) could be worth checking out. MTurk is a platform that lets you complete small tasks, called Human Intelligence Tasks (HITs), in exchange for payment. These tasks could be anything from taking surveys to categorizing images or transcribing audio clips. Itâs not something that will make you rich, but it can be an easy way to earn a few extra bucks here and there.
Most tasks on MTurk donât pay a lotâoften just a few cents to a dollar per taskâbut if youâre efficient and can do several tasks quickly, the money can add up. This can be a good option if youâre looking for something you can do while watching TV or during your downtime. Itâs flexible, and you get to choose the tasks that interest you.
The Key to Success with Amazon
No matter which method you choose to make money with Amazon, the key to success is persistence. Set small, achievable goals to maintain motivation and build momentumâeach step forward, no matter how small, brings you closer to success.
None of these opportunities are âget-rich-quickâ schemes. Whether youâre diving into FBA, publishing a book, creating designs, or selling handmade goods, it takes effort, time, and often a bit of trial and error to find out what works best for you.
Many people who succeed with Amazon started smallâmaybe selling one product or publishing one bookâand then scaled up as they learned the ropes. You might have some setbacks along the way, but each one will teach you something that you can use to improve. And the more you stick with it, the better your chances of building a steady income stream.
Most importantly, choose something that interests you. If you hate writing, KDP might feel like a chore, but if you love design, Merch by Amazon could be a fun way to make some money. Play to your strengths, be willing to learn, and stay patient. The opportunities are there, and with the right approach, you can definitely make Amazon work for you.