10 Proven Ways to Make Money on Amazon (Side Hustles 2024)

Are you tired of the 9-to-5 grind? Want to boost your income and take control of your financial future? Amazon offers a wealth of opportunities to earn money on your terms. But since you might not know how to make money on Amazon, learning might take time. 

However, you must not worry, as Amazon has plenty of solutions available for you, which we will discover below.

Whether you’re a budding entrepreneur, a creative with a product to share, or someone looking for a side hustle, Amazon can help make your goals a reality. From selling physical goods to offering specialized services, there’s a path for everyone. 

Discover how to earn on Amazon, including practical strategies and insider tips. Therefore, read the full article to earn on the world’s largest online marketplace.

Key Takeaways

  • Amazon offers multiple strategies for making money, including selling products and offering services.
  • The platform provides unique programs like FBA and KDP for individuals and businesses.
  • Success on Amazon requires understanding the various methods and complying with Amazon’s policies.

Top 10 Ways To Make Money On Amazon In 2024

Amazon provides many income-generating ways, from selling products to offering various services. Therefore, to help you grow, this section dives into ten effective strategies for capitalizing on one of the world’s largest marketplaces.

Selling Methods

Exploring various selling methods on Amazon can help individuals control the platform’s broad customer base and distribution network to generate revenue. Your chosen method can significantly impact profit, ability to expand, and operational complications.

1. Private Label Selling (FBA)

Private label selling on Amazon involves creating your brand and selling products under that brand with the help of Amazon’s Fulfillment by Amazon (FBA) service. 

Sellers find a product to sell, then source and brand it. The FBA service handles storage, shipping, returns, and customer service after the seller ships their inventory to Amazon.

Benefits Of Private Label Selling:

  • Control Over Branding: Sellers have complete authority over product branding and customization.
  • Scalability: Utilizing Amazon’s vast logistics network helps sellers scale their business efficiently.
  • Prime Eligibility: Products are eligible for Amazon Prime, increasing their appeal to a vast customer base.
Private Label Selling
Source: Amazon.com

Steps To Get Started:

  1. Research: Identify profitable niches and products with high demand.
  2. Source: Find a reliable manufacturer to create the branded product.
  3. Create an Amazon Seller Account: It is essential to list and sell products on Amazon.
  4. Send Inventory to Amazon: Ship products to Amazon’s fulfillment center.
  5. List Products: Create detailed and optimized product listings.

Considerations:

  • Investment: Initial setup costs can be major when purchasing inventory and creating a brand.
  • Market Research: Thorough research is critical to understand market trends and competition.
  • Compliance: Adherence to Amazon’s policies and quality specifications is mandatory.

Private label selling through FBA can be a profitable e-commerce strategy with careful planning and market insight. However, the resources available on Amazon can guide you through the complexities of starting and growing a private-label business on the platform.

2. Handmade Products

Selling handmade products on Amazon can be a lucrative channel for artisans. Customers seeking unique, handmade items often turn to Amazon’s Handmade category to find such products. Sellers must apply and demonstrate that their items are genuinely handmade to be approved in this category.

Applying To Amazon Handmade:

  1. Create a selling account with Amazon.
  2. Complete the application for Handmade, confirming that all products are handcrafted.

Items sold in the Handmade section must be made, altered, or assembled by hand. Approval comes with the benefit of waiving the Professional selling fee, offering a unique advantage for artisans.

Applying to Amazon Handmade
Source: Amazon.com

Product Guidelines:

  • Products must be handcrafted by the seller, their employees (if less than 20), or a collective (less than 100 members).
  • The use of mass-production techniques is prohibited.
  • A diverse range of categories is available for artisans to showcase their work, from jewelry to home decor.

Those interested in joining Amazon Handmade can enrich the market with their original creations while leveraging Amazon’s extensive customer base. 

Crafters can manage inventory, set competitive prices, and have their work seen by a global audience. This opportunity opens up an avenue for artists to turn their crafts into a profitable e-commerce business.

3. Print-On-Demand (Amazon Merch On Demand)

Print-on-demand services on Amazon, notably Amazon Merch on Demand, offer an accessible platform for individuals and businesses to capitalize on their creative designs without the need to manage inventory or handle shipping logistics. 

Users must first apply for an account, and upon approval, they can start uploading their artwork to the platform.

Amazon Merch on Demand functions by allowing sellers to :

  • Upload their custom designs.
  • Select the type of merchandise to sell (e.g., t-shirts, hoodies).
  • Set a price and add a product description.

Once the design is approved, Amazon will:

  • Create a listing for the product.
  • Print the item when ordered.
  • Ship directly to the customer.
  • Provide customer service assistance.
Amazon Merch on Demand functions
Source: Amazon.com

This model is beneficial as it eliminates upfront costs and the need for storage space, making it a favorable option for independent designers and content creators to monetize their work. 

When a product sells, the creator earns a royalty. Amazon’s print-on-demand service ensures that products are only printed when there is actual demand, thus reducing waste and the risk associated with unsold inventory.

The platform offers a variety of products for customization and sells them on the Amazon marketplace, which boasts a vast customer base. 

In short, you design, and Amazon handles the rest, aligning with the overarching Amazon philosophy of streamlining operations for sellers.

Reselling Products

Reselling on Amazon offers a lucrative opportunity to earn money by purchasing goods at lower prices and selling them for a profit. Only genuine and legal items should be sourced to ensure compliance with Amazon’s policies.

4. Retail Arbitrage

Retail Arbitrage involves buying products from retail stores at discounted prices and reselling them on Amazon at a higher price. Individuals can start with used items from around their homes or from clearance sales, leveraging price differences to their advantage.

Retail Arbitrage
Source: Pinterest

5. Online Arbitrage

With online arbitrage, resellers purchase products from online retailers and list them on Amazon. This approach requires careful research to find items at lower prices online than on Amazon, factoring in Amazon’s fees for the Fulfillment by Amazon (FBA) system and the Fulfillment by Merchant (FBM) option.

Online Arbitrage
Source: Pinterest

6. Wholesaling

When one considers making money on Amazon, wholesaling emerges as a lucrative model. It involves purchasing goods in bulk from manufacturers or distributors at a discounted rate and then selling them individually on the Amazon platform. One typically starts with setting up an Amazon seller account and finding a high-demand product.

Next, one must focus on sourcing the product. This is a critical step, as the cost-effectiveness of one’s source directly impacts profit margins. 

They must negotiate favorable terms to ensure competitive pricing. It is essential to obtain a business license, a sales tax permit, or a resale certificate, which allows tax-free product purchasing.

Wholesaling
Source: Amazon.com

Below are the basic steps in the wholesaling process:

  • Create an Amazon Seller Account: Begin with a professional account on Amazon.
  • Research Products: Identify items that already have a strong demand on Amazon.
  • Product Sourcing: Communicate with brands or manufacturers to get wholesale prices.
  • Listing Products: Advertise the product on Amazon by joining an existing listing or creating a new one.

Wholesalers benefit from high margins and the ability to leverage Amazon’s vast customer base. They can invest less in brand development or marketing, as they can capitalize on existing product popularity.

Wholesaling can scale one’s Amazon business effectively if they have the right resources and knowledge to source products and manage inventory effectively. It requires diligence, strategic planning, and an understanding of Amazon’s marketplace dynamics.

Making Money Through Amazon Services

Amazon provides various services that allow individuals to monetize their skills and content. These platforms are designed to suit diverse entrepreneurial ventures, from publishing ebooks to generating referral income.

7. Kindle Direct Publishing (KDP)

Kindle Direct Publishing, commonly known as KDP, is an accessible platform provided by Amazon that allows authors to self-publish their works digitally. Individuals can publish both eBooks and paperback books using KDP’s services, and those publications are then made available on Amazon’s extensive marketplace for readers worldwide.

Authors benefit from KDP because it is a free service that offers independence and control over the publishing process, including pricing and book rights. A writer can start with no initial costs, a significant shift from traditional publishing.

Formatting for KDP is streamlined—authors can convert their manuscripts into e-book formats with relative ease. To assist with this, Amazon provides detailed guides and resources. They can also sell their works in more than 10 countries in over 45 languages, expanding their global reach.

Here is a brief overview of the process:

  • Creating an account on KDP is straightforward.
  • After setting up, authors can upload their manuscripts directly to the platform.
  • Authors can design their book covers on the platform or upload their own.
  • They then set their prices, potentially earning up to 70% royalty on sales.
Kindle Direct Publishing
Source: Kindle Direct Publishing

KDP users have recounted varying success levels, with some earning significant monthly profits through diligent strategy and marketing efforts. For instance, the profitability can go up to $17,000 per month (source: Business Insider), as reported by some authors. However, one must write quality content and engage in effective marketing and promotion to achieve such figures.

Through KDP, authors can join a community of self-publishers and share their literature with an enormous audience seeking content across various genres.

8. Amazon Affiliate Program (Amazon Associates)

The Amazon Affiliate Program, also known as Amazon Associates, is a popular method individuals and businesses use to earn income by promoting Amazon products. Participants receive a commission for purchases made through affiliate links they share with their audience.

Getting Started:

  • Sign Up: Interested parties should apply to join the program. Acceptance is contingent upon meeting Amazon’s requirements.
  • Create Content: Affiliates create and publish content, which may include product reviews, recommendations, or any other content that can feature affiliate links.
  • Promote Products: Using customized linking tools, affiliates promote Amazon products. This can be done through a blog, social media account, or any platform with an audience.
Amazon Associates
Source: Amazon Associates

Earning Commissions:

  • Share Links: Affiliates share product links with their audience.
  • Generate Sales: Commissions are earned when customers purchase through these affiliate links.
  • Receive Payments: Affiliates are paid their commissions based on a pre-defined payment structure.

Benefits:

  • Vast Inventory: Millions of products are available for promotion across various categories.
  • Resources: Amazon provides resources and tools to help affiliates succeed.
  • Flexibility: The program offers the flexibility to earn through diverse content creation methods.

Affiliates must understand Amazon’s guidelines to ensure compliance and maximize their earning potential. With a strategic approach, the Amazon Affiliate Program can be a lucrative source of income.

Other Potential Ways To Make Money On Amazon

Aside from the popular methods such as selling products through Fulfillment by Amazon (FBA) and merchant-fulfilled listings, entrepreneurs have other avenues to explore on Amazon.

9. Amazon Influencer Program

The Amazon Influencer Program provides content creators and social media personalities a platform to earn commissions by recommending Amazon products to their followers.

Amazon Influencer Program

Getting Started:

  • Apply and Gain Approval: Influencers apply to join the program. Amazon reviews applications based on factors such as social media presence and engagement.
  • Create a Storefront: Approved influencers receive a personalized Amazon storefront to showcase their product recommendations.
  • Share Links: Influencers share their storefront and individual product links with their audience on platforms like YouTube, Instagram, and Facebook.

Earning Commissions:

  • Promote Products: Influencers highlight products they love and encourage their followers to purchase through personalized links.
  • Drive Sales: Earn a commission for each product purchased through their unique links.
  • Receive Payments: Amazon pays commissions according to their payment structure.

Benefits:

  • Monetize existing social media followings.
  • Benefit from the trust and reach of the Amazon brand.
  • Promote products across a wide range of categories.

10. Selling Used Items

Individuals can earn money on Amazon by selling used items in various conditions, benefiting from the platform’s extensive customer base.

Selling Used Items

Getting Started:

  • Register for an Amazon seller account.
  • Sign up for the Amazon Renewed program to sell used and pre-owned items. 
  • Provide accurate descriptions and clear images of used items for sale.
  • Research similar listings to price your items competitively.

Earning Income:

  • Choose between self-fulfillment or using Amazon’s FBA (Fulfillment by Amazon) services.
  • Amazon deposits earnings into your seller account after deducting fees.

Benefits:

  • Turn unwanted items into cash.
  • Access to Amazon’s vast customer base.
  • Option to sell a variety of used goods.

Important Note: Understanding Amazon’s policies on selling used items is crucial to ensure a smooth selling experience.

Pro Tips For Success On Amazon

Achieving success on Amazon requires strategic planning and a keen understanding of the platform’s vast ecosystem. Here are essential pro tips to help sellers maximize their presence and profitability.

1. Build Your Brand

Sellers who establish a strong, recognizable brand create more trust with customers and differentiate themselves from competitors. Registering with Amazon’s Brand Registry protects your intellectual property and gives access to enhanced marketing features.

2. Set Competitive Price

Pricing impacts both your conversion rate and search ranking on Amazon. Utilize tools such as the Amazon Revenue Calculator to understand the costs involved and set a competitive yet profitable price.

3. Take Advantage Of Amazon Advertising

Investing in Amazon Advertising can boost visibility among your target audience. Sellers can launch various campaigns, including Sponsored Products, Sponsored Brands, and display ads to reach potential customers at different stages of their buying journey.

4. Use FBA For Fast Shipping

Enrolling in Fulfillment by Amazon (FBA) can greatly enhance your shipping speed and reliability, providing Prime eligibility for your products — a massive draw for Amazon customers.

5. Prioritize Customer Satisfaction

High customer satisfaction leads to better reviews, higher rankings, and repeat customers. Promptly address customer concerns, ensure product quality, and continually gather feedback to improve your offerings.

6. Leverage Amazon Tools

Amazon offers many tools for sellers to improve their operations and decision-making. Familiarize yourself with Amazon Seller Central, inventory management tools, and analytics features to make informed business decisions and stay ahead of market trends.

More Amazon reads: 

Conclusion: What’s Your Favourite Method? Share With Us In Comments!

Amazon provides numerous opportunities to generate revenue through various business models. 

These methods range from selling physical products under a private label to leveraging digital platforms like Kindle Direct Publishing. The adaptability of Amazon’s ecosystem allows individuals to find a niche that best suits their skills and goals.

Before beginning their Amazon venture, new entrepreneurs should conduct thorough research and consider initial costs, market demand, and competition. It’s crucial to remain updated with Amazon’s policies and market trends to maximize earnings potential. They can build a profitable Amazon-based business with a strategic approach and commitment.

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