8 posts tagged with "Amazon FBA"

Amazon became the first online retailer to reach $25 billion in annual sales back in 2016. Since then Amazon's numbers and notoriety has only grown. With over 60 million Prime subscribers and counting, there's never been a better time to get in on the action.

If you're interested in becoming an Amazon seller, there are plenty of opportunities waiting for you. You may find yourself wondering how to get started in such a large, well-known market.

We've got you covered. Here are 20 ideas on how to make money on Amazon in 2023.

Why Should I Start Making Money on Amazon?​

There are a number of reasons why someone may want to start making more money online. Finding work on Amazon is a smart way to make supplemental income. Whether you're looking to pay off debts, pay for student loans, build a savings account, start paying for retirement, or simply stop living paycheck to paycheck, it's a great place to start.

Many Americans have to deal with rising inflation costs and are trying to get by. By finding an alternative income stream, you can protect yourself from any unexpected events by having more than one way to earn money.

1. Utilize Affiliate Marketing to Generate Passive Income​

If you run a blog, work as an influencer, or have a strong internet presence, Amazon Affiliate Marketing is an excellent way to earn additional income. Amazon's Affiliate program provides users with affiliate links to recommend their products to others.

It costs nothing to share these links, but you will need to sign up for an affiliate account. When someone clicks your link and makes a purchase, you earn a commission for recommending the product. Commissions range from between 4% and 10% of the purchase price.

Getting started with affiliate marketing is simple and doesn't take a lot of time to maintain, and there's lots of high quality free training out there to help you on your journey. If you don't have a large online following, however, it may not be as lucrative for you.

2. Increase Earnings through Cash-Back Offers​

Amazon offers special benefits to Prime Members with an Amazon Credit Card. This benefit allows cardholders to receive 10% or more cashback when they shop from select product categories. Some items even qualify for 25% cashback. To find out what qualifies, you must go to the Amazon Promotions page for a list of qualifying products.

If you aren't an Amazon cardholder, Amazon still offers a few ways to receive extra money in your account. Lightning deals and coupons run often to save you money on items you're interested in. Additionally, if you opt to have a single shipping day for orders with multiple items, Amazon will provide you with a digital credit to use on things like Amazon Music, audiobooks, and Kindle.

3. Sell Handmade Goods on Amazon Handmade​

Are you skilled at crafting handmade goods? With an Amazon selling account, you can apply to join Amazon Handmade to start selling your handcrafted items to customers.

Once you've filled out an application, it goes through an audit process so Amazon can confirm that your items are truly handmade. When you're approved, your product will gain exposure with the Amazon platform, however, it will involve more time and effort than other methods because you will need to keep up with the production of orders.

Amazon Handmade is a great way to get your product out there and generate additional income. Amazon receives a 15% referral fee for any orders.

Check out some of the best-selling handmade items for inspiration.

4. Develop a Private Label​

A private label is when a product is manufactured and packaged under the name of a brand rather than the name of the manufacturer. To get started with your own private label, you need to decide what items you would like to sell and find a manufacturer that provides a quality item that lives up to your brand name.

Once you've lined up a product, you can then put your branding on it and list it for sale on Amazon. To stay competitive, research similar items to determine a reasonable price point and ensure that the market isn't already oversaturated with similar items.

If you'd like to protect your product from counterfeit sellers, Amazon offers a brand registry option for your private label.

Manufacturers and Private Labels​

If you'd like to make money by manufacturing items, Amazon Accelerator is a program that helps you become a private label supplier. This is usually a great option for established brands but may be more challenging for those starting out.

Manufacturers involved in this program give up some control of their business to Amazon in exchange for tools to help them grow their business more quickly. You gain more exposure without the headache of logistics, but can only sell the product on Amazon and must be willing to part with control over brand operations.

5. Become a Wholesale Seller​

Wholesale selling is when you purchase products in bulk at a discounted, or wholesale, price. Then, you sell the product to your customers for a profit.

Because Amazon is such a prominent company, they often have excellent flexibility when it comes to wholesale pricing, allowing sellers to receive the best deals for their products.

To get started, you'll need to do the following:

• Determine what products you'd like to sell
• Create an Amazon seller account
• Obtain a business license and sales tax permit
• Find a warehouse or storage space for your product or enroll in Amazon FBA program

When buying wholesale, something to keep in mind is that you'll need to order in bulk to receive the discounted pricing and will need somewhere to store your product. Another choice is to enroll in the Fulfillment by Amazon Business (FBA) program. This allows your products to be stored and shipped from an Amazon distribution center.

Keep in mind that this option can be competitive. To receive a passive income, your items will need to be priced as low as possible. You want them to compete with other items on Amazon while generating enough margin to turn a profit.

6. Design Customized Merch​

If you have skills in the areas of Graphic Design, Typography, and Illustration, Merch by Amazon might be the perfect money-making opportunity for you. With Merch by Amazon, you upload your designs to products of your choice to sell on the platform.

Product options range from T-shirts, prints, bags, hoodies, stationery, and coffee mugs. For those getting started who already have a portfolio of designs, it is a minimal-effort opportunity.

All you'll need to do is sign up with your existing Amazon account, upload your artwork, choose the product details, and add a description. From there, Amazon handles the production, shipping, and customer service without any initial cost. Every time your designs sell, you will earn royalties.

7. Publish Your Writing With Amazon Direct Publishing​

Amazon Direct Publishing allows you to publish your own books on Amazon. You can publish your writing in both ebooks and print copies to earn royalties from Amazon.

This venture has varying degrees of success that depends on your quality as a writer. When you publish on Kindle, your book appears in the Kindle store within 48 hours and you receive up to 70% royalties from your sales.

Publishing is a successful option if you already have books published and want to add them to the Amazon platform. If not, you do have to put in more legwork without a traditional publisher by providing your own marketing to help sell your work.

8. Work With Amazon​

The online hustle isn't for everyone and you may be seeking a more traditional way to make money with Amazon. Amazon boasts of having employed more people than any other company in the last decade and employs over one million full and part-time workers in the United States alone.

In-Person Opportunities​

Many in-person job opportunities for Amazon are at their warehouse and distribution centers. In 2022, the company began offering a $ 19-an-hour minimum wage for their frontline workers, giving full-time employees the opportunity to earn up to $40,000 annually.

Work-From-Home Opportunities​

If you prefer not to be tied to a commute or have dreams of a remote job with the freedom to travel more, you have options. Amazon has several remote work opportunities that allow you to earn a stable income from the comfort of your home.

Amazon offers remote jobs ranging from data entry to customer service representatives. Many of these job offerings start at $16 an hour for entry-level positions, but earning levels vary depending on your skill level. They also have part-time opportunities if that's more suitable for your schedule.

To find available Amazon representative jobs, you can do a quick search online or go straight to Amazon's job page.

9. Become an Amazon Influencer​

Becoming an Amazon Influencer is similar to the Amazon affiliate program. Amazon Influencers are individuals who share Amazon products on social media pages, rather than blogs or other websites.

If you have influencer status on social media with a large following, this program is ideal for you. First, Amazon must approve you as an influencer before providing you with a unique link to share on your social media platforms.

When someone purchases the product, you earn a commission. It is your job to know which products your audience is interested in to keep a steady alternative income stream. As long as you are active on your social media pages, this can be a lucrative way to earn extra cash.

10. Leverage Your Fulfillment by Amazon Business to Maximize Profits​

As an Amazon seller, Fulfillment by Amazon (FBA) is an excellent way to streamline the selling process. With FBA, you distribute your products to an Amazon fulfillment center and then Amazon handles the rest.

Once your product is in hand, Amazon uses its successful infrastructure to package and ship your product out to customers. They even handle all the returns and customer services, allowing you to focus on your products without all of the extra leg work, creating a more satisfying experience for customers.

This program eliminates the need to handle logistics, invest in a warehouse storage space, or spend a large portion of your income on shipping services. To get started, you must sign up for a Professional Seller's Account, which will cost $39.99 per month.

To find success in this program, a seller does need to have a strong baseline. It's important to find a niche, research their product market, scope out the competition, and develop a system to manage their inventory and business.

11. Resell Products From Online Sources​

Online arbitrage is the process of buying products at a low cost with the intention of selling them for a higher price online in order to turn a profit. Amazon is one of the best platforms for selling these items online.

This method of selling involves minimal investment, but it does take some time to search for the right deals on items you'd like to resell. You can seek out these deals at major brick-and-mortar retail chains such as Walmart, Kohl's, Dollar General, Dick's Sporting Goods, etc. If you don't want to spend the additional time shopping in person, online sites such as eBay, are another option to find discounted items.

Be mindful when choosing which items to purchase and resell. Some items have a higher market value than others. The top categories for reselling products are:

• Home and kitchen items
• Cell phones and accessories
• Electronics
• Arts and craft supplies
• Gourmet grocery items
• Appliances

Some items are also restricted and don't allow you to list them as "new" if they were purchased elsewhere. There may be limitations on where items are allowed to be retailed as well, so be sure to check whether the brand has a limited list of authorized retailers.

12. Trade in Your Used Items​

While this option will not earn you extra cash in your bank account, it will get you cash in the form of an Amazon gift card to use on your next online shopping spree. Amazon's trade-in program allows customers to trade in eligible items in exchange for an Amazon gift card or promotional credit on specific items.

Thousands of items are eligible, including electronics, cell phones, video games, and Amazon devices. To find a list of all eligible items, visit the Amazon Trade-In store.

Items may be excepted in a variety of conditions, from non-working or good condition. To trade in your used items you must follow these steps:

Submit a Trade-In and Describe Your Items​

Visit Amazon's Trade-In program page to get started. From there, you will select your item and answer a few questions about its current condition. You'll receive a confirmation email on any items that are accepted with shipping instructions.

Prepare Your Item​

If you're trading in an electronic device or cell phone, you shouldn't ship it as-is. Cell phones should be unlocked and reset to factory settings. Electronic devices should also be reset and cleared of any personal information.

Ship​

Once you've received your prepaid shipping label from Amazon, you have 45 days to ship your trade-in item. Amazon covers the cost of shipping.

You can track the status of your trade-in on your Amazon trade-in account.

Items Declined by Amazon​

If your item is not accepted by Amazon, they will recycle it for you at no additional cost. You can request a shipping label to recycle the items. If you don't want the hassle of shipping the item to Amazon, look for a local electronics recycling center near you.

13. Become an Amazon Flex Delivery Driver​

If you're looking for a stable, yet flexible, income stream and are at least 21 years old, becoming an Amazon Flex Delivery driver is the job opportunity for you. Amazon Flex Delivery Drivers are independent contractors who use their own vehicles to deliver Amazon packages to customers.

Flex drivers make their own schedules by reserving blocks of time they would like to work. They can schedule their time well in advance or pick up shifts on the same day. Typical working blocks are from 2-4 hours or 3-6 hours at a time.

To work as a driver, you'll need a reliable vehicle, a driver's license, car insurance, and a smartphone.

14. Try Your Hand at Gig Work With Amazon Mechanical Turk​

If sales aren't your thing and you don't have a strong online following, gig work may be a good route for you. While gig work will not make you rich, it is a smart way to earn supplemental income without investing a lot of your time.

Amazon Mechanical Turk is a crowdsourcing marketplace where work is outsourced to gig workers. The program allows you to work remotely and has a variety of tasks available that you can complete for cash. Some of these tasks include answering surveys, creating subtitles, transcription services, moderating content, and data entry.

If you pick up consistent work, it's possible to make up to $15 an hour doing gig work.

15. Got a Great Voice? Give Voiceover Acting a Try​

Audiobooks are a big business, and Amazon is always looking for narrators to read their audiobooks. If you've got a great voice or a knack for impressions, this could be an exciting way for you to earn cash.

Amazon hires voiceover actors through ACX. You will have to go through an audition process to get the job, but if you have interest and talent, it's an avenue worth pursuing. If you make it through the audition process, you will continue earning royalties on your work as people purchase the audiobook.

16. Work as a Skill Developer for Amazon Alexa​

If you have a background in app development and IT, you find a side hustle as a skills developer for Amazon Alexa. Amazon looks for individuals who can develop special Alexa voice apps, called "skills".

Alexa Skills apps are an interactive voice interface allowing Alexa to interact with a user by performing tasks and providing information. As a skills developer with Amazon, you set your own price and earn up to 70% of the sales when users buy your app.

Another way to earn income through this avenue is with Amazon's Rewards program for developers. With this program, Amazon chooses select skills each month based on popularity and customer engagement. These developers earn rewards and cash for being one of the selected.

17. Stream on Twitch​

Twitch is an American live-streaming service owned by Amazon. Content creators on Twitch often play video games, esports, and music on their platforms while talking to live viewers.

Content creators on Twitch earn money through subscribers to their channels, ads, donations, and branded merchandise. Amazon also offers a unique affiliate program for Twitch users to mention or share affiliate links for extra money.

It can be challenging to find your niche and build up a following of subscribers, so bear in mind that this is not a get-rich-quick method and will require some planning and time to grow.

18. Write Reviews for Amazon Vine​

This option is invitation-only by Amazon. When invited to join the Amazon Vine Review program, you are offered free products in exchange for reviews. You don't receive compensation, but it is a great way to earn some free products.

To be considered as an Amazon Vine Reviewer, start writing reviews! Amazon customers who regularly share reviews are selected at random to participate in this program. The more descriptive and helpful reviews your write, the greater the likelihood that you will be selected.

While there isn't an option to apply, it's a great opportunity to be mindful of as you get started in your Amazon venture. Who doesn't like the opportunity for some free products?

19. Create an Online Course to Help Other Amazon Sellers​

One of the most lucrative ways to earn money online is by providing something of value to others. In our current digital age, creating an online course is one of the best ways to share your knowledge with others while earning a steady income stream.

If you have experienced success as an Amazon seller, why not share your success with others? Think back to your setbacks when you first started out and how new Amazon sellers can avoid them. Sharing these experiences provide value to others, something that is key to a successful online course.

How to Develop Your Course​

To start developing your course, you must first identify your target audience. The demographicsfor Amazon sellers consist primarily of men at 64%. The age range of 25 to 44 makes up 58% of sellers.

This is important to keep in mind as you create and market your course as these are the individuals you'll want to draw in to purchase your product. When developing the course materials, it should be clear and engaging with a variety of learning outcomes and benefits. For added value, consider including various exercises to put the learning materials to practice.

Include interesting visuals, real-life examples, and tools to help people get started. Be sure to market your online course and find a platform to host it. You can even publish it in the form of an eBook on Amazon publishing for another income stream.

20. Offer Up Your Services​

Aside from offering gig work through flex delivery and Amazon Mechanical Turk, Amazon has started working to connect people with other service offerings through Amazon Home Services. Amazon Home Services gives customers the opportunity to buy and schedule services directly on their platform.

All they have to do is add the service to their cart and schedule a time. They are covered by Amazon's happiness guarantee so customers feel comfortable scheduling with them.

Popular services sold on Amazon include:

• Furniture assembly
• Plumbing
• Music lessons
• Lawn care
• Dog walking
• Product and appliance assembly

If you want your services to be offered on Amazon's platform, you must fill out an application. Once approved, you must set up your Amazon Home Service Account, build your service packages, and start selling.

Because you get to create your own packages, you don't have to sacrifice your usual rates to sell your services on Amazon. Amazon only receives a 10 to 20 percent platform fee and a 5 percent transaction fee.

Tips to Get Started​

To start making money on Amazon, don't try to do too much at once. Choose something from this list that you feel makes the most sense to you and dive in! By choosing one option to focus on, you can dedicate your time to success rather than trying to juggle several opportunities at once.

Find Your Niche​

Choose a niche for yourself and stick with it. While it may seem enticing to throw everything in your basket and see what sticks, it can limit your success. Having a niche allows you to dedicate your time to excel in your area and prevents the consumers from feeling overwhelmed.

Learn more on how to find your niche when learning to earn money online.

Be Realistic​

You are not going to get rich right away by earning money on Amazon. It takes some time to find your footing and it may be at least a year before you start seeing significant results. 63% of Amazon sellers become profitable in their first year.

The key is to stick with it and stay consistent. With perseverance, you will begin seeing results.

Optimize Descriptions​

Whether you're an Amazon seller, affiliate marketer, or selling your services, optimizing your description and profile is crucial. Optimization increases traffic to your listings. Use popular keywords, search words, and be detailed when setting up your information.

Using the right words will give you a higher ranking in searches and place your products above competitors. If you aren't sure where to get started with writing better descriptions, research search engine optimization (SEO), and popular listings of similar products.

Spread the Word​

As you start out in your venture, don't be afraid to spread the word to friends and family. People you know can help build a local customer base and act as free marketing for your business.

Do Your Research​

Never stop learning. Earning money online is ever-evolving and there are always new things to learn to help you succeed. Platforms constantly change the algorithms that decide who sees your content or products. By staying up to date on this information, you set yourself up for greater success.

Be Adaptable​

Because the online world is always evolving, you must be adaptable. If something isn't working, don't be afraid to try something new to see what works. If you don't find success with one money-making method on this list, don't be afraid to try something else. Remember to give it some time before dropping it as a feasible money-making opportunity. It takes at least a year to find your footing.

Don't Stop Saving​

Even as you start earning extra cash with Amazon, don't spend it all in one place. While it's exciting to have some extra money in your pocket, finding a way to achieve financial freedom is the best thing you can do for long-term success.

Use this new increase in income as an opportunity to boost your savings. Pay off your debts and focus on having more disposable income.

Final Thoughts​

There are so many ways to make money on Amazon that you're bound to find something that works for you. Amazon is a billion-dollar company with a long-standing reputation to set you up for success.

If you've already launched a Fulfillment by Amazon store and begun to experience some success, you may already be anticipating your next steps. Read on if you are wondering how to build on your existing store and customer base to scale your FBA store and earn more money. Here are the best ways to scale.

Optimize Your Product Listings​

You've already spent a lot of time creating your product listings. However, optimizing your listings to improve your search ranking and visibility is never done. Due to algorithm changes, it's worth revisiting and re-optimizing your listings regularly, and it's always a good idea to monitor your performance against competitive products. As you optimize, pay attention to the following:

Search Optimization​

Improve your rank on your core keywords and scale by ranking on more keywords. Use backend keywords, product descriptions, and product features to include the most highly ranked and profitable keywords.

Optimal Pricing​

Optimizing your pricing is arguably the most effective way to scale Amazon FBA, and there are several tools to continually assess and optimize your product prices.

Because optimization is complex and needs regular review, it's a good idea to use a tool to review your strategy and position, compare you to competitors, and drive organic traffic. There is a range of apps and software to assist in this process, or you can hire a professional to manage optimization.

Advertise​

Advertising is a time-tested way to scale a business, and there are more options than ever for advertising your products. Amazon PPC is simple and affordable and a great way to increase sales on the platform. You may also consider advertising with Google, Facebook, Instagram, or other platforms where you have a presence.

Figuring out your most effective advertising strategy can be complicated and time-consuming, and measuring how every advertising dollar pays off in sales is essential.

Performing small, affordable A/B tests to measure the effectiveness of your ads is a great way to ensure that your strategy will pay off. Naturally, it is always best to advertise after a successful product launch and optimize your listings to maximize your ROI.

Add Product Variants with Child ASINs​

Launching a new Amazon FBA product can be time-consuming, and building up sales and reviews to improve ranking can take even longer. Instead, consider adding variations to your most popular listings using child ASINs. With child ASINs, you can:

• Add options for product size or color
• Add options for product accessories and bundles
• Add new designs and variants

Child ASINs may not be the right choice for every product or variant; you may want to rank for specific keywords by each variant. However, they can be an excellent choice to maximize return on your existing traffic and save time.

Launch More Products in Existing Categories​

If you have a few successful products or product categories, you can scale your success by launching more products within those categories. Expanding your selection within a category helps you take advantage of existing search rankings and reviews and can help maximize revenue from existing customers.

Expand into Other Amazon Marketplaces​

While Amazon in the US is the dominant marketplace, you may want to expand your Amazon FBA into other markets. Germany, the UK, and Japan all have robust Amazon marketplaces with the potential to create new opportunities and open new revenue streams.

For current Amazon FBA sellers, Amazon has guides to assist you with going global and can transport your stock to international FBA locations with Pan-European FBA. When scaling FBA internationally, here are a few things to keep in mind:

Fewer Sellers​

Although the global Amazon marketplace is growing, there are far fewer sellers in each market, which creates new opportunities for your products to stand out and compete.

Different Annual Holidays​

Global markets have different and unique holidays, which can create new opportunities for different shopping periods and occasions.

Language​

Amazon requires that product listings and customer support be offered in the local language of the specific marketplace. You may need to use a translator or other service to ensure you can operate (and rank in search) for the international Amazon marketplace you are considering.

Different Taxes, Fees, and Regulations​

Depending on the marketplace, a different regulatory framework will have additional rules, taxes, and fees. You may need to comply with varying product standards, collect and pay VAT, and account for import and customs fees and other costs and procedures. While Amazon provides the information that streamlines and simplifies these considerations for you, it is vital to do the necessary research to comply.

Not every store or product is suitable for marketing outside the United States, but it's worth researching and an easy way to scale your Amazon FBA.

Expand Your Business Model​

Over time, you may want to scale your Amazon FBA by adding drop shipping, arbitrage, wholesale, private label, or other services to your product line. Each opportunity should be researched carefully, and some involve a risk level. However, Amazon gives ambitious entrepreneurs many ways to make money on their platform, each of which deserves consideration. Blending different strategies and revenue streams allow your business to scale and earn even higher returns.

Conclusion​

Once you have experienced some initial success on Amazon FBA, you can begin to gather the information and resources necessary to scale that success and make the most of your Amazon store.

There are dozens of ways to improve your store's performance and products, expand into new products and categories, expand into new markets, and even become a wholesaler, all on the Amazon platform. Invest in the best tools, perform detailed research, and make the right choices for your business.

Amazon is the world's largest marketplace, with a staggering 45 percent of the US e-commerce market. Amazon made nearly $470 billion in sales in 2021 and sells more than $17 million in products every hour worldwide. Fortunately, there are many ways that people can participate in this success and take advantage of opportunities to earn money on the Amazon platform.

Two of the most common ways to earn money on Amazon are as Amazon Affiliates or Amazon Sellers. In both cases, people can work on their own businesses from home, making money from the power of the Amazon marketplace. But the ways these programs work are very different and have different benefits and drawbacks. Let's look closer at Amazon Affiliates vs. Amazon Sellers.

What is an Amazon Affiliate?​

An Amazon Affiliate is a person who has an online presence (usually a website or blog, but it may also be a social media account or streaming channel) and uses their platform to direct their visitors to Amazon to buy products. When they direct traffic toward Amazon, and these visitors make purchases, the affiliate earns a commission.

For an affiliate to earn money on Amazon, their directed traffic must use their specific link, which tracks the referring affiliate and ensures that commissions are credited to them. Visitors must place items in their cart within 24 hours of clicking the affiliate link and complete the purchase before the shopping cart expires (usually 90 days). An affiliate must have a large audience to earn significant money on Amazon. It helps sell high-commission products like luxury goods, games, electronics, beauty, and fragrances.

There are currently over 900,000 Amazon affiliates participating in the program, and it's a great way to monetize a blog or online presence.

What is an Amazon Seller?​

An Amazon Seller is a person with a product who chooses to sell their product using the Amazon marketplace. Sellers create product listings on Amazon and can market those products directly to Amazon visitors on Amazon, or use their own website to feature their products and use Amazon as their e-commerce platform.

The most common way to sell products on Amazon is with the Amazon Fulfillment by Amazon program, which allows sellers to store their products in Amazon facilities. It uses Amazon staff to ship products, manage to track, and oversee returns. This program will enable people to sell on the Amazon platform without developing their own logistics and supply chain and allows sellers to take advantage of features like Amazon Prime.

About 9.5 million sellers are on the Amazon platform globally, and 73% participate in the FBA program.

Benefits of Being an Amazon Affiliate​

There are several significant benefits of being an Amazon Affiliate. Here are the most important advantages:

Amazon is Trusted and Reliable​

As an affiliate, it is easy to do business with a platform like Amazon, which can be relied upon to pay your commissions promptly and correctly. For your site visitors, it is easy to direct e-commerce traffic to Amazon since it is a trusted platform, and many will frequently shop there.

Amazon Offers High Commissions​

Unlike other online affiliate platforms, Amazon offers some of the highest commission rates, especially on specific products.

Amazon Carries a Vast Range of Products​

Amazon carries nearly every product imaginable, so you can create the content that best works for you and your audience and still find relevant products to earn commission on. Amazon affiliates make money on the entire shopping cart created through their window, so if they send someone to Amazon for lipstick and they buy a pair of shoes or a blender in the same transaction, the affiliate earns money on all those products.

An Affiliate Has Independence and Flexibility​

An Amazon affiliate can earn money from Amazon but often participate in monetization programs from other online businesses and platforms. If they stopped working with Amazon, they could start working with a different marketplace. They earn commission on all the products in the cart, so they don't have to stay in a specific niche and can evolve their content over time. For a smart influencer, Amazon is just one piece of a broader monetization strategy, and they remain independent and open to new opportunities.

Benefits of Being an Amazon Seller​

If you have a product, there are many reasons to choose the Amazon marketplace. Here are the most significant benefits:

Access to a Trusted Marketplace​

New sellers and products often struggle to build trust and credibility with buyers for years. Because the Amazon platform is so well-known, it is much easier to establish a new business and take advantage of Amazon's dominance in search, enormous traffic, and trusted reliability.

Access to Amazon Prime and Other Programs​

Nearly 150 million Americans have Amazon Prime, and many people will not purchase a product if they have to pay for shipping. Amazon sellers, especially those who choose Amazon FBA, can offer their products to customers who prefer Amazon Prime, use Amazon Lockers, buy products from Alexa, and more. As the Amazon ecosystem expands, it provides various services that most private sellers could not offer independently.

Access to Education and Support​

Finding success in an online business can be a considerable challenge. Amazon supports its sellers with vast resources and services to help start and run an e-commerce business. In addition, Amazon is so popular a marketplace that third parties have also created tools, tutorials, and expert services to help you grow as an Amazon seller.

Sell Without Hassle​

While Amazon FBA isn't the right choice for every seller, it does make storing, packing, shipping, and delivery of products incredibly simple and efficient. Without it, sellers would need to figure out how to store, package, and ship their inventory, which can be complicated and expensive.

Conclusion​

Thanks to the popularity and success of Amazon, there are many different ways to make money on the platform. Joining the Amazon Associates program and becoming an affiliate, developing your own product line, and becoming an Amazon FBA seller are the simplest and most popular ways to make money with your Amazon business.

It's no secret that Amazon is one of the world's most successful and profitable companies, with nearly 75% of online shoppers relying on it for their shopping needs. But do you ever wonder how Amazon sellers make money?

Whether you're an experienced seller or just getting started, understanding how Amazon sellers make money can help you maximize your profits and stay competitive.

Types of Amazon Sellers​

There are three primary types of Amazon sellers: individual, professional, and business-to-business.

Any person can sign up to be an individual seller on Amazon. With this status, you can sell products on a case-by-case basis. Fulfillment by Amazon (FBA) is not available to individual sellers. There is also a $0.99 per item plus other selling fees.

Professional sellers pay a monthly subscription fee of $39.99 and don't have to pay the $0.99 per item fee. This status is best for those who plan on selling more than 40 items per month, as it will likely save you money in the long run. Fulfillment by Amazon is available to professional sellers.

Businesses of all sizes can subscribe to Amazon Business Seller (B2B) plans at $39.99 monthly plus other selling fees. They sell their products exclusively to other businesses. As a business seller, you can access features that help streamline selling to businesses, such as bulk listing and purchasing tools, pay-by-invoice, and volume pricing plans. Fulfillment by Amazon is available to business sellers enrolled in a paid subscription plan.

Fulfillment by Amazon (FBA) and Merchant Fulfilled Network (MFN)​

There are two key distribution methods to make money selling on Amazon: through Fulfillment by Amazon (FBA) or by utilizing Amazon's Merchant Fulfilled Network (MFN). FBA is the more popular of the two, as it offers more benefits to sellers.

With FBA, sellers ship their products to an Amazon fulfillment center, and Amazon handles the rest – including storage, customer service, and shipping. This hands-off approach appeals to many sellers, as it frees up their time to focus on other aspects of their business. And because customers trust Amazon implicitly, they're more likely to buy products fulfilled by Amazon.

Another advantage of FBA is that it makes sellers eligible for Prime shipping. Buyers get their products faster and are more likely to be satisfied with the purchase. More customer satisfaction means increased sales and more positive feedback for sellers.

The main downside of FBA is the cost – both in terms of the fees charged by Amazon and the cost of shipping products to Amazon's fulfillment centers.

With MFN, merchants list their items on Amazon but handle all other aspects of selling themselves, such as storage, packing, shipping, and returns. This way, merchants have more flexibility with how they want to handle these processes. Sellers who want more control of the entire process may prefer MFN over FBA, despite its drawbacks and potentially lower customer engagement.

Business Methods for Selling on Amazon​

We've looked at the types of sellers who list their merchandise on Amazon and Amazon's methods of selling and delivering said inventory. Next, we will overview some business models and services that can answer how Amazon sellers make money.

Merchants can create and sell their products or resell them in different ways. Retail arbitrage or Amazon arbitrage is reselling products from brick-and-mortar retailers on Amazon at a higher price. You can also resell products from various manufacturers under your label by either white or private labeling. Some Amazon sellers make money through drop-shipping. In this case, they do not physically have the products in stock. Instead, they source directly from the manufacturer or supplier.

Amazon Handmade​

Handmade products are those that the artisan merchant entirely handcrafts personally. These products can range from jewelry to furniture to clothing. Amazon Handmade is a section of the Amazon website dedicated to selling these crafts.

When selling on Amazon Handmade, there are no listing fees. Sellers pay a referral fee and a variable closing fee when their product sells. The referral fee is a percentage of the total sale price, and the item's category determines the closing fee.

To be eligible to sell on Amazon Handmade, you must apply and have your products approved by Amazon. Once your products are approved, you can start listing them for sale on the site.

Kindle Direct Publishing​

If you want to self-publish your book, Kindle Direct Publishing (KDP) may interest you. With KDP, you can publish your book electronically on Amazon's Kindle platform. You'll retain control of your book's rights and pricing and get 70% of the royalties earned on each sale. KDP is an excellent option if you're looking for a hands-off approach to publishing your book.

**Private Label Products

Private-label selling is when a seller sells products another company manufactures. The seller sells these items under their brand name rather than the manufacturer. The product must sell exclusively through one retailer to be considered private-label selling rather than white-label selling. It shouldn't be a generic product (such as ibuprofen) that multiple retailers can sell simultaneously.

Private-label products usually cost less than branded products. They can help save money while still getting quality products. There are many different types of private-label products on Amazon, so sellers can find products that fit their niche and target market.

White Label Selling​

Many Amazon sellers make money by white-labeling products. White labeling is when a seller takes a generic, no-brand item and puts their branding on it. The seller can add their label, packaging, design, or combination.

White-label selling can be a beginner-friendly way to start on Amazon without investing in product development and manufacturing. It can be a way to diversify your product offerings and reach a broader range of customers.

White-label and private-label selling appear relatively similar. Many aspiring sellers may find themselves confusing the two. The keywords to remember when distinguishing the two are "exclusive" and "generic."

Dropshipping​

Dropshipping is a business model in which e-commerce entrepreneurs sell products without carrying any inventory. When a store owner receives an order from a customer, they contact the supplier. The supplier will then ship the products directly to the customer's doorstep.

There are several reasons why retailers would choose drop shipping.

• Start an online business with little upfront investment
• Test different products and suppliers to see what works
• Low overhead costs
• No need to hire staff to pick, pack, and ship orders
• This business model is not without its issues.
• Seller has no control over the production or shipping process
• Cannot guarantee the quality of the product or service
• Responsible for customer service
• May have a low-profit margin

Some have expressed ethical concerns about dropshipping. The reason is low involvement from the merchant and the model's simplicity appealing to dishonest merchants who care more about raw profit than the customer or merchandise.

Conclusion​

These points should give you good insight if you've ever wondered how Amazon sellers make money. With these fulfillment options and retail methods, you may find a business strategy that works for you and your creative and financial expectations.

Around the world, millions of entrepreneurs are making money selling products on Amazon, and 73% of them use Amazon FBA for their fulfillment. It’s an efficient way for small businesses and startups to launch businesses and products that compete with established companies. If you’re considering starting an e-commerce business that sells products on Amazon, you may be wondering how to find the right products. Here is a brief guide to finding products to sell on Amazon FBA.

How to Choose Which Products to Sell on Amazon​

Before choosing specific products and looking for suppliers, you must consider what type of products you want and how you will do business. Here are the most important criteria for choosing which products you will sell on Amazon:

Niche​

Your niche should be a product, service, or industry in which you are an expert and offer unique value to your customer. If you carry products available elsewhere, consider how you will compete with other businesses: Will your price or service be better? Will you have unique products or services or unique bundles and promotions? To compete on Amazon, your business has to stand out, so research your niche carefully and figure out what sets you apart.

Profit​

You will need to purchase products at a price that will allow you to sell them at a profit. Your profit needs to be large enough to cover all your business expenses, including the cost of your own time and labor, while still being low enough to compete with other businesses in your niche. Calculating all your overhead and expenses will allow you to determine how much you can spend on products and how much profit you can expect from selling on Amazon.

Scalability​

There are two crucial aspects of scalability. If your business is successful, you will need to fulfill more and more orders: how quickly can your suppliers scale up and deliver more products? For example, if you sell handmade quilts, there is a limit to how many you can make in a year and, therefore, a limit to the size and scale of your business. On the other hand, scalability will allow you to increase your offerings and grow your business if your business plateaus. Are there related products in your niche that fit into your product line and will enable you to grow? For example, if you sell comic books, your customers may also be interested in action figures.

Practicality​

It’s important to consider practicality in your Amazon products. Products, especially large, heavy, or fragile items, are difficult to ship and prone to problems and complaints. Items especially expensive, rare, or need to travel exceptional distances may require special shipping procedures and insurance. Consider the kinds of products people look for and buy on Amazon and how to easily fulfill orders with minimal disruptions.

How to Find Products to Sell on Amazon​

Once you have considered your business plan, including costs and prices, it’s time to start looking for the specific products you might sell on Amazon FBA. Some of the best ways to find products for your Amazon business include:

Research Google Trends​

Google Trends is an excellent tool for showing you what products people are looking for, as well as other important information like the specific words and keywords they use, regions where the products are more popular, and search frequency over time. Go to Google Trends and look up your niche and your products. Don’t forget to look at “related queries” for more ideas.

Research Social Media​

People often use social media to share the products they are interested in. Pinterest and TikTok are especially powerful for identifying products that are trending and in high demand. Search for your desired niche or product; note how many people are talking about it and what they say. Social media is also a powerful way to identify people’s thoughts and feelings, which can help you identify an opportunity for an unmet need or competitive advantage related to your product.

Research Amazon Trends and Best Sellers​

Many times Amazon itself is a great way to identify desirable products. Amazon Best Sellers show you what products are selling and their categories, subcategories, and related products. Amazon trend reports are another great way to review what is currently popular on the platform, so you can assess opportunities and competition.

Research Other Online Marketplaces​

While Amazon is the biggest online marketplace in the world, it isn’t the only one. Other marketplaces, like Etsy, eBay, or AliExpress, may have popular products that are less common on Amazon or appeal to a different audience. If there is an online specialty marketplace for your niche or your customer, research your products on that marketplace. The more information you obtain about what products people want, what price they are willing to pay, what features they require, or what they don’t like about the current offerings, the better able you will be to find the right products for your Amazon store. This research is also integral to the foundation of your marketing plan, so it’s vital for your business in more ways than one.

Conclusion​

Choosing products to sell on Amazon FBA is a balancing act between the products that meet your business's needs and those that meet your customer's needs. Fortunately, a vast range of methods and tools will help you identify those products and set your business apart from the competition. The more time you spend planning and researching, the more informed your business plan is, and the greater your chances of success. Take your time, consider all your options, be informed before launching an Amazon FBA business, and set yourself up for success!

As they say, you have to spend money to make money. Starting your own business selling on Amazon FBA is more affordable than many other businesses. However, there are still startup costs, and it requires careful budgeting. Here is a guide to the cost of starting to sell on Amazon FBA.

Minimum Cost to Start Amazon FBA Business​

According to a recent survey, 18% of Amazon sellers started with a budget of less than $500. If you don’t have a lot of capital, here is an overview of the minimum costs to start selling on Amazon FBA.

Amazon Seller Plan | Minimum of $0.99 + Seller Fees Per Item Sold​

All sellers need an Amazon seller plan. Plan costs are currently the individual plan, which costs $0 per month + $0.99 per item sold + selling fees, or the professional plan, which costs a flat $39.99 per month + selling fees. An individual plan might be the right choice if you sell fewer than 40 items monthly and don’t need advertising or analytics. The professional plan has many benefits, like advanced reports and analytics, on-site advertising and promotions, and adding multiple users to your seller account.

Amazon FBA Per-Sale Costs​

No matter your seller plan, you will pay a wide range of per-item fees when you sell something on Amazon and fulfill your orders through Amazon FBA. Here is an overview of the per-item fees that sellers pay with each transaction:

Amazon Referral Fees​

Minimum of $0.30 per item sold. All items sold on Amazon have a referral fee. The fee is a percentage of the sale price, and the rate varies depending on the product category. For example, Amazon device accessories have a referral fee of 45%, while personal computers have a referral fee of 6%. The average referral fee on Amazon is 15%, and the minimum referral fee is $0.30 per item sold.

Amazon FBA Fees​

Minimum of $2.47 per order fulfilled. Fulfillment by Amazon is one of the easiest, most affordable ways to manage inventory and fulfillment when selling online, but there are still associated costs and fees. There are two FBA fees: shipping fees for fulfilling orders and storage fees for your inventory. Inventory fees are charged monthly based on the average cubic volume of space your products use in an Amazon fulfillment center. Inventory fees range from $0.48 to $2.40 per cubic foot and triple over the holiday season.

Fulfillment Fees​

Fulfillment fees are based on your orders' shipping size and weight, with additional charges over the holiday season. There is also a separate fulfillment category for apparel items. FBA Small & Light orders can ship for as little as $2.47, while oversized and heavy orders can cost upwards of $150 per pound.

Additional FBA Fee​

Depending on how much and long you store items in an Amazon fulfillment center, additional fees may exist. Additional Seller Fees Depending on the types of products and services you offer, there are other potential Amazon seller fees, including costs like:

• Rental book service fees. If you sell textbook rentals on Amazon, there is a service fee of $5.00 per rental.
• High volume listing fees. If you have many non-media items in your Amazon store that have not sold in 12 months, Amazon may charge $0.005 per item in catalog fees.
• Refund administration fee. If you refund a paid order to a customer, Amazon refund the referral fee. However, they will subtract a refund administration fee from the amount. The price is either $5.00 or 20% of the referral fee, whichever is less.
• Miscellaneous seller fees. Depending on the type, size, category, season, or other factors of your specific inventory, additional Amazon seller fees may apply to your business.

Summary of Costs to Start Selling with Amazon FBA​

The good news is that getting an Amazon seller account and starting to sell products using Amazon FBA is highly affordable and does not require a significant investment. However, the wide range of fees and costs significantly affect your per-item and per-order prices and profits. To help you price your products correctly, you can use Amazon’s Revenue Calculator to compare fulfillment methods and associated costs. With an individual plan, you can sign up and start selling items on Amazon FBA for a minimum of ~$4.00 per item.

Amazon Programs and Incentives​

Amazon has several programs to help new sellers be more successful on the platform. Many of these programs require an investment, but they offer valuable ways to launch and grow your Amazon FBA business. Some of the programs are:

New Seller Incentives​

New sellers can benefit from several Amazon programs, including Amazon FBA, Amazon Brand Registry, and Amazon Coupons. Sellers who join these programs can get free Amazon credits for shipping, advertising, or other bonuses.

Perfect Launch​

Perfect Launch is an Amazon program designed to help sellers make the most of their first 90 days on Amazon. It provides in-depth education and resources to help you understand and use Amazon FBA, Amazon Brand Registry, Amazon Prime, automated pricing, and other seller tools. On average, Perfect Launch sellers generate more than 6% more revenue in their first year.

SAS Core​

SAS Core is more expensive but takes advantage of Amazon’s experts to give you individual guidance, recommendations, and special programs and deals. For $1,600 per month + 0.3% of your sales, you can get personalized operational support, guidance, strategy, and unique opportunities for your Amazon FBA business.

Conclusion​

Nearly one-third of Amazon FBA sellers launch their business with less than $1,000 in capital, making it an extremely affordable way to establish a retail business. Choosing the right products and offering them at the right prices is the key to success with Amazon FBA, and you can get started with a small amount of investment capital.

Once you’ve chosen your niche and researched which products to sell, finding the right supplier is crucial for success on Amazon FBA. The price and quality of products, as well as the professionalism and reliability of your supplier, determines how you will run your business and how much money you can make. Here is a guide to how to find suppliers for Amazon FBA.

Different Types of Wholesale Suppliers​

Generally speaking, when you sell products on Amazon, you will purchase them wholesale. This means you will be buying products in large quantities for a discount, so you can resell them for a profit. However, when you have large quantities of products, you also need to consider the cost of storing large amounts of inventory, so make sure to include FBA’s storage fees in your price calculations.

There are several different types of wholesale suppliers. Here are the primary categories:

Manufacturer​

The manufacturer is the business that makes the product.

Distributor​

A distributor facilitates sales of products from the manufacturer to wholesalers and/or retailers. They may carry products from several different manufacturers but usually specializes in a specific industry or product category.

Wholesaler​

A wholesaler buys products in bulk to resell them to retailers. A wholesaler usually carries products from many different manufacturers and may carry products in a wide range of categories.

Retailer​

A retailer buys smaller quantities of products to sell them directly to consumers.

As we all know, the more businesses involved in a transaction, the higher the costs because every middleman makes a profit from every transaction stage. Many retailers try to buy directly from the manufacturer to reduce costs. On the other hand, many manufacturers keep their costs down by dealing with a distributor rather than hiring their own sales and distribution staff. Depending on the product and company, you may or may not be able to buy it directly. Remember that when purchasing directly from the manufacturer, you may need to coordinate shipping your wholesale products from the manufacturer to an Amazon fulfillment center. They usually manage moving products from a factory to the fulfillment center when working with a distributor.

One advantage of working with a wholesaler is that the wholesaler usually already has products in your country, regardless of the country of origin or manufacture. This means you don’t have to manage import and customs shipping and fees, making it easier for your products to reach a local Amazon fulfillment center. When importing products from overseas, it can be worthwhile to pay more to work with an experienced wholesaler rather than managing the import process yourself. Finally, buying from a wholesaler can be highly efficient since they specialize in selling and distributing wholesale products and are accustomed to serving customers who will resell the goods.

How to Find Suppliers for Amazon FBA​

Depending on your product type, there are many ways to find suppliers for your Amazon store. Here are some of the best ways to find suppliers for products to sell on Amazon FBA:

Go Directly to the Manufacturer​

Working directly with the manufacturer gives you the best product wholesale price. You can often find products that sell well on Amazon; look up the manufacturer and contact them to buy directly. Not all manufacturers will sell directly; some work exclusively through certain distributors, but it is worth researching.

Contact a Distributor​

In most cases, you can search online for distributors of your specific product or product category. There are specialty distributors for nearly every product type, so use the relevant terms and find wholesale distributors.

Use a Wholesale Directory​

There are a number of online directories that list wholesalers, making it easy to find wholesalers in your category. In fact, a number of wholesalers are specialized in Amazon FBA and already have a supply chain that can deliver products to an Amazon fulfillment center for you.

Visit a Trade Show​

Trade shows are a great way to meet distributors and wholesale suppliers face to face and allow you to find new and unusual products, setting you apart from the competition. You can see and test products in person by attending a trade show, meeting suppliers, and building stronger relationships. Nearly every industry has an annual trade show, and attending is an excellent investment in your Amazon FBA business.

Purchase the Product At Retail​

In most cases, paying retail prices is the most expensive way to supply your Amazon store. However, buying them for resale may be the most efficient method for specialty, rare, or handmade goods.

Because Amazon is such a large marketplace with such a global reach, many suppliers specialize in working with Amazon sellers. If you are new to Amazon FBA, working with an experienced Amazon supplier may be the best option, even if it is not the most affordable.

Every step in your product's journey from the factory to your customer costs money, and various paths are available. Therefore, it is a good idea to calculate your supply chain in several ways to determine which method is most efficient and affordable. Depending on your products, suppliers, and region, there are dozens of ways to configure your supply chain, with differing costs and time frames.

Finally, remember that the suppliers and supply chain that is best for your Amazon store when it is new and small may not be the best option later on as your business grows. It’s a good idea to revisit these questions and calculations every year or two to ensure you are still getting the best deal for your business.

Fulfillment by Amazon is a program that has made it possible for ordinary people to start a retail business and deliver orders worldwide. While it is not the only way to manage online order fulfillment, it is simple, affordable, and designed to perfectly complement the Amazon marketplace. It is also the most efficient way to sell products using Amazon Prime, accessing Amazon's most committed customers. Let's learn more about Amazon FBA and how to get approved for Amazon FBA.

What is Amazon FBA?​

FBA stands for Fulfilled By Amazon and is Amazon's order fulfillment service. Fulfillment consists of three essential components:

Inventory Storage​

Retailers need space to store products before customers order them. This space might be a warehouse, storage facility, or a portion of a retail store where items can be stored. The space must be clean, dry, and organized, so that stored items are not damaged and can be retrieved quickly.

Order Packaging​

The necessary items must be gathered in the storage facility when orders are placed and packaged for shipping. In most cases, individual products are packaged in a jar, bag, box, etc., and then they must be placed in a second box, bag, or envelope for shipping. When an order contains multiple products or fragile or delicate items, the items need to be packaged together or with special care.

Order Shipping​

Once packaged, orders need to be shipped. Shipping costs usually vary based on the size and weight of the item, and may also have additional charges for faster delivery, etc. With their associated costs, orders are labeled and priced for shipping by UPS, USPS, DHL, and other carriers.

In many cases, online businesses use different services and vendors for these various components of the fulfillment process. Using different vendors may be a good way to fulfill specialty products like hand-blown glass or grand pianos, and may also be more affordable in some instances. However, it also requires the business owner to manage and coordinate different vendors, services, and contracts. Many Amazon sellers find it easiest and most convenient to use Amazon to manage all these aspects of their online retail business.

Benefits of Amazon FBA​

Many sellers choose Amazon FBA for convenience and ease of use rather than contracting their fulfillment service (called "self-fulfillment). However, those who use Amazon FBA while selling on Amazon have other unique benefits not available to self-fulfill sellers. The most significant benefits of Amazon FBA for Amazon sellers are:

Amazon Prime​

While it is occasionally possible for self-fulfilling retailers to qualify for Amazon Prime (the program is currently closed and waitlisted), sellers who use Amazon FBA can sell using Amazon Prime. Over 200 million people worldwide are signed up for Amazon Prime, and many will only order items that qualify for Prime. In addition, Prime items may be prioritized in Amazon searches. Joining Amazon Prime is a key way to grow your business on Amazon, and it is best accessed through Amazon FBA.

Customer Service​

As we all know, sometimes things go wrong with online orders. For sellers who self-fulfill, especially if multiple vendors are involved, it may take extra time and many phone calls to check the status of an order: Has it been packaged? Has it been dispatched? Has it been shipped? Because Amazon and Amazon FBA are a single service, customers can use Amazon to check in on their order status, contact customer service, and process complaints and refunds. This allows sellers to offer excellent customer service and comprehensive information about their orders and refunds without managing these inquiries or tracking down the information.

Inventory Tracking​

Keeping track of orders and inventory is always necessary when selling online. The number of items you have in storage needs to be consistent with the number of things you offer in your online shop. There are different tools to help sellers manage inventory. Still, when the retail storefront and inventory storage and fulfillment are handled by Amazon, it is much easier to coordinate how much product you have and how much you need.

How to Get Approved for Restricted Product Categories​

Using Amazon FBA​

Naturally, not all products are available on Amazon, and FBA will not carry all types of products. FBA prohibits dangerous goods, hazardous materials, alcoholic beverages, etc. Sometimes, you can offer those products in the Amazon marketplace but not fulfill orders with FBA. If you plan to sell restricted items, carefully check the guidelines.

There are specific categories of products that sellers must be pre-approved to sell on Amazon. Generally, these are expensive products like jewelry and watches, fine art, certain collectibles, game consoles, etc. There are also special restrictions on prestige brands designed to prevent counterfeit products.

Here is how to sell restricted products on Amazon:

1. When you add a product to your shop, you may see a notification that the product is restricted. There may be an "apply now" button next to the product name.
2. If there is no "apply now" button, the product is not eligible to be sold on Amazon, even if it has previously been sold.
3. When you click "apply now," you will be taken to the application to sell. The information required on the application depends on the type of product you are listing. In the case of expensive or designer products, you may be required to submit original purchase invoices, certifications of authenticity, etc. You may also be asked to provide photographs or other compliance documentation. Your application will be denied if any of this information is missing or illegible.

If your request is denied, you can request approval again with the complete and correct documentation.

If Amazon marketplace or Amazon FBA determines the product or your account is ineligible to be listed or fulfilled, you don't have the option to appeal; if you really want to sell or fulfill those products or orders, you need to find another marketplace. However, for most ordinary products and sellers, Amazon FBA is the easiest and most convenient way to keep your business profitable and your customers happy.