Every seller wonders how to make money on Amazon at one point or another. With its expansive customer base, Amazon is an ideal space for anyone looking to start or expand an online business.
But here’s the rub: navigating the marketplace can be overwhelming. That’s true for newcomers and sometimes seasoned sellers.
One starting point is to find an Amazon business model that fits your growth strategy.
How to Make Money by Selling on Amazon
Amazon is more than an online marketplace; it’s a space full of different monetization opportunities. Whether you want to sell a physical item, design your own prints or even write a book, anyone can build their own seller journey on Amazon.
However, the question arises again: how to make money on Amazon? The first step is to find the right business model.
Let’s take a quick look at some of the most popular options you can put your efforts into.
Open a Store for Physical Products
This is the simple option for any seller that already offers a product offline and wants to build a digital storefront. You just need to choose your Amazon seller name, set up an account, and get started.
Establishing an online store and selling physical products on Amazon is a time-tested strategy for generating income. And, best of all, you can choose to leave the legwork to Amazon!
The Fulfillment by Amazon (FBA) program empowers you to have the chance to focus on your own brand without handling the warehousing, packaging, and shipping logistics. Amazon’s seller-friendly interface and tools further simplify the process of setting up an online store.
By tapping into Amazon’s vast marketplace, entrepreneurs gain access to an extensive customer base. In return, they can increase their visibility, sales, and scalability.
Design and Sell Merch
What if you’re a creative entrepreneur who loves to design products from scratch? How to sell without dealing with all the logistics?
For example, if you have some patterns in mind and a lot of designs for hoodies, then Amazon Merch on Demand is the way to go. This print-on-demand service enables sellers to create and sell custom merchandise like t-shirts, hoodies, and more.
Amazon oversees production, stock management, and fulfillment. This leaves entrepreneurs free to concentrate on crafting unique designs and marketing their creations.
And thanks to the retail giant’s colossal customer base, artists and designers get an opportunity to showcase their work on a global scale. Plus, they can turn their artistic talents into a profitable venture.
Publish Your Own eBook
With Amazon’s seamless publishing process and extensive marketing tools, aspiring authors can bring their stories to life and generate substantial income.
Kindle Direct Publishing (KDP) empowers writers to publish and sell their own eBooks on Amazon’s Kindle store. KDP offers authors unparalleled access to millions of readers worldwide, enabling them to share their literary creations with ease.
Authors retain control over their content, from formatting to pricing, while enjoying competitive royalty rates of up to 70% on eBook sales.
Sell Your Artwork or Handmade Products
For artists and artisans, Amazon Handmade serves as a dedicated marketplace to showcase and sell their creations. This specialized platform caters to customers seeking unique, one-of-a-kind items.
Amazon Handmade provides an opportunity to display your craftsmanship and unique talents. At the same time, you’ll benefit from the platform’s vast customer base and efficient fulfillment network.
Use Affiliate Marketing to Monetize Your Content
Maybe you don’t want to sell and manage an online store, but you do have your own audience and products that you have bought and can’t wait to recommend to them.
Amazon Associates offers content creators a strategic way to monetize their online presence by promoting products.
By incorporating referral links and driving traffic to Amazon, entrepreneurs can earn commissions on qualifying purchases.
With Amazon’s diverse product catalog and unwavering reputation, affiliate marketers have a plethora of options to align with their niche and audience.
Simple Steps on How to Make Money on Amazon
If you think that Amazon looks promising and you want to give it a try, these are some of the main things you need to do.
Choose a Business Model That Aligns with Your Goals
Before delving into Amazon, it’s crucial to determine the business model that best suits your goals and resources. Do you want to sell physical products, publish eBooks, or promote affiliate links?
Each model has its own set of requirements and advantages. So, do your research to find the one that best aligns with your interests, expertise, and financial capacity.
Find a Profitable Niche
Conduct extensive market research to uncover product categories with high demand and relatively low competition. Look for untapped niches, emerging trends, and gaps in the market that present opportunities for differentiation.
Analyze your competitors to gain insights into market demand and product viability. By targeting a profitable niche, you increase your chances of standing out and capturing a loyal customer base.
Read Amazon’s Policies (more than once)
Go through the platform’s policies to get a better idea of what you can and can’t do on Amazon. Unknowingly breaking one of these can cost you both time and money
Build a Multi-Channel Marketing Strategy Across Multiple Channels
While Amazon is a dominant force in e-commerce, it’s essential to diversify your revenue streams and reduce reliance on a single platform.
Develop a comprehensive multi-channel strategy that extends beyond Amazon.This strategy should encompass your own ecommerce website, social media platforms, and other online marketplaces.
Align your branding, marketing efforts, and customer experience across all channels to create a cohesive and recognizable brand presence.
Such an approach will allow you to expand your customer reach, build brand equity, and mitigate risks associated with depending solely on Amazon.
Setting Up a Store on Amazon
Open Your Amazon Account
To kickstart your journey as a third party Amazon seller, navigate to Amazon Seller Central and create your account.
Choose the appropriate seller plan that aligns with your business needs. Then, complete the registration process by providing the necessary information and agreeing to Amazon’s terms and conditions.
Choose a Product That Fulfills Customer Demand
Selecting the right product is a critical factor in your success. Conduct thorough market research to identify products with a demonstrated demand, manageable competition, and reasonable profit margins.
Look for products that solve a problem or fulfill a need, as they are more likely to attract customer interest and drive sales. Also, consider factors such as product differentiation, target audience, and market trends.
Understand Product Specifications and Master Marketing Techniques
To effectively market your product on Amazon, one must gain a deep understanding of its specifications, features, and benefits. This knowledge will enable you to craft compelling product descriptions that resonate with potential customers.
Highlight the unique selling points your product addresses. Incorporate persuasive language to create a sense of urgency and showcase the value proposition your product offers.
Optimize Your Listings and Showcase Great Photos
Optimizing your product listings is crucial for visibility and conversion rates on Amazon. Conduct keyword research to identify the most relevant and high-converting terms used by potential customers.
Then, incorporate keywords strategically in your product titles, bullet points, and descriptions. Structure your listings in a logical and easy-to-read manner, providing all the necessary information customers may require.
So, how to make money on Amazon? Well, you can open an online store, design and sell merch, or publish eBooks. It’s also possible to become an Amazon affiliate or sell handmade products.
The retail giant is a vast ecosystem filled with unique opportunities. You can choose to start selling on Amazon in any way you can think of.
Amazon offers the infrastructure, support, and resources you need to turn ideas into thriving businesses. By capitalizing on Amazon’s unparalleled reach and resources, brands can and embark on a rewarding journey in the ever-evolving realm of e-commerce.
Antonella Fleitas is a freelance content writer from Argentina. Antonella worked with many projects to create fact-based, evergreen content about science, language learning, and culture. Her main goal is to build a strong content foundation for her clients, based on meaningful stories that people can learn from.