How To Make Money On Amazon: 7 Ridiculously Easy Ways

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The digital age has revolutionized the way we do life.

Getting goods and services has become a cakewalk. All you need do is click a few links on a website and your new toy (or tool) will be delivered right to your doorstep. And this model has opened up a lot of opportunities for entrepreneurs to cash in on the global e-commerce boom. According to Statista, global retail e-commerce sales are expected to be way over $3.5 billion.

Perhaps you’re such a one and are wondering how you can get yourself a piece of this juicy pie. Why not? After all, all you need is an internet connection.

While there are many ways of making money online, this post will show you how to make money on Amazon.

3 Reasons You Should Consider Amazon as Your E-commerce Marketplace of Choice

While there are many e-commerce marketplaces you can leverage to make money online, Amazon is one of the best. This is especially true if you’re just starting out.

What makes Amazon such a great choice?

Let me give you 3 reasons.

1. Global Reach

This is one of the biggest advantages Amazon has in its favor. While the company started off peddling second-hand books, it has grown to become the biggest online market place – spanning the entire globe. For you, this means you can serve customers from all over the world – from the comfort of your home.

2. Brand Recognition

One of the biggest challenges of starting a new business is getting people to trust you. However, conducting your business on Amazon allows you to “borrow” the company’s brand name. Sure, people know that you’re an individual seller, but they trust Amazon and thus you benefit from being under the Amazon umbrella.

3. Ready Market

Another great advantage of using Amazon is that you have a ready market to sell to. Especially considering that most patrons of the marketplace usually search for a particular product and not a specific brand.

If you’re looking to get into the world of e-commerce, Amazon is a good place to start. Sure, competition may be stiff and you may be a bit restricted by the rules of the marketplace but with the right product, you’ll get a good revenue stream.

You must register as a seller on Amazon before you get started.

How to Make Money on Amazon Even If You’ve Never Sold Anything In Your Life Before

Amazon has great opportunities for you to make money even if you are a newbie. While several ways involve selling, some don’t. So whether you’re a seller or looking to do some work, the Amazon marketplace provides many opportunities for you to earn. Here are the 7 top you can make money on Amazon:

 1. Retail Arbitrage

Retail arbitrage simply means scouring local stores for bargain items that you’ll then sell at a profit. To make it easier, you can sign up for websites that alert you of bargains. You can also use apps that scan items and show you how much they are going for on Amazon.

Retail arbitrage is one of the easiest ways to get started selling on Amazon as it requires the least investment. This model is also good for newbies as it’s easy to manage your inventory. Good as it sounds, however, retail arbitrage has its disadvantages with the 3 main ones being that it:

  • Has low margins
  • Requires time and effort
  • Difficult to scale

To succeed with this model, you must be very good at researching products that move fast on Amazon and know where to get them at a low price. You must also be willing to drive to pick up your inventory.

2. Become a Retailer

Another selling model that’s easy to pull off on Amazon is buying products in bulk from the manufacturer or a wholesaler then selling them as single units. The biggest advantage of this is that you buy your products at a lower price than you would at a retail store and get higher profit margins. Compared to retail arbitrage, it also saves you a lot of time and energy.

On the flip side, this model has a few drawbacks that include:

  • Large investment needed
  • Higher risk of loss (if the product doesn’t sell well)

The key to succeeding with bulk buying is to be sure the product you’re investing in will move fast. You also need to know how many units to buy so as to satisfy your orders without overstocking.

3. Sell White Label Products

One of the best ways to make money on Amazon is by selling white label products. These are products that a manufacturer makes and you place your own branding on them. While this model may seem difficult and complicated, it isn’t. To succeed with white label products, you need to:

  • Research the market and find a product that moves in large volumes
  • Have a good supplier.

White label products are a great way to go since they are products people are already buying. That’s if you pick the right ones.

4. Create and Sell Your Own Private Label Products

Private label products are products that you have created and have the exclusive rights to sell. Again, the concept may sound difficult, but in reality, it’s quite easy to pull off. Creating private label products involves either modifying an existing product or creating one from scratch.

What’s so easy about that?

Well, thankfully, unlike in the past when you had to hire a team of product developers, you can easily have your concept developed and manufactured in China. This way, you save tons of cash. And if you’re wondering, here are the advantages of selling your own private label products on Amazon:

  • Low competition
  • Very high margins
  • More control over your product and its price

Sound too good to be true?

Well, it is true. However, you also need to know about the disadvantages of this model. The main ones are:

  • Relatively high investment costs
  • High risks of dead stock

Overall, however, private label products are a great way to distinguish yourself in the Amazon marketplace. As a result, you’ll be able to make more sales and generate more revenue.

5. Amazon Associates

You’ve probably come across the term “affiliate marketing” as you’ve looked for ways to make money online.

So what is it?

Affiliate marketing is a business model whereby you sell someone else’s products on your website.

This is where Amazon Associates comes in. With Amazon Associates, you can sell some products from Amazon on your blog or website for a commission (anything from 4% – 8.5%). To increase the chances of selling, make sure the products you promote are in line with your blog’s message.

The biggest challenge with earning as an Amazon Associate is that your website needs to generate a good number of visitors. However, the advantages are:

  • You can generate passive income
  • If a visitor clicks into Amazon through a product you’re promoting and purchases something else instead, you still get a commission on that item
  • Amazon follows up on abandoned carts

If you have a niche website with a decent amount of traffic, use Amazon Affiliates to make money.

6. Merch by Amazon

Fancy yourself a good designer?

Then put your skills to work and sell your T-shirt designs on Merch by Amazon. This is a new initiative by Amazon but it’s growing so fast as individual designers and big brands alike (like Marvel and Fortnite) are already leveraging this channel. All you need to get started are your design skills as there are no upfront costs involved. To ensure that your designs sell like hotcakes:

  • Have a knack for anticipating trends
  • Create seasonal designs

As of this writing, Merch is by invite only. To apply, fill in the form on the landing page and Amazon will get back to you. Once approved, you’ll be able to upload your designs. If someone orders a T-shirt with your design, Amazon takes care of the printing and shipping and gives you a royalty.

7. Sell Your Skills and Services

While Amazon is primarily a marketplace for selling physical and digital products, you can also make money on Amazon by selling your skills and services. There are several programs where you can do this. However, the main ones are:

  • Mechanical Turk. This is where you are paid to do various tasks that range from simple data entry to recommending product images to transcribe audio and everything in-between.
  • Amazon Services. Are you good with your hands? If so, Amazon services can connect you to locals who need the services you provide. This can be anything including, but not limited to, plumbing, landscaping, and house cleaning.
  • Amazon Flex. With Amazon Flex, you help fulfill Amazon’s deliveries as a driver. You choose when you want to work and can earn $12-$15 an hour.
  • CamperForce. Love life on the road? Amazon’s CamperForce can help you earn money while enjoying life on the road mainly by picking, packing, stowing, or receiving goods on behalf of Amazon and its clientele. Besides the hourly pay, one of the biggest advantages of this program is that it also offers a 401(k).

As you can well see, Amazon is not just a marketplace for sellers. You can also earn money by offering your skills on the platform.

How to Make Money on Amazon – It’s Easy As Pie

Amazon offers a wealth of opportunities to make good money. Whether you want to sell or offer your services, Amazon offers you the flexibility to do so at your own time.

So what are you waiting for?

Go ahead and sign up for any of their money-making channels and get started.