Are you looking for a way to make money online in 2023 but don’t know where to start? If so, then Amazon can be the perfect platform for you.
With over $700 billion in revenue last year and growing, Amazon is one of the most lucrative ecommerce opportunities available today.
Yet making money on Amazon isn’t always easy — there are plenty of pitfalls and obstacles that can keep even the savviest entrepreneurs from succeeding.
To help you get started, let’s talk about seven effective ways to make money on Amazon this year.
What Is an Amazon Business?
Amazon has several programs that allow you to make money by selling products on its platform. These include:
- Amazon Fulfillment By Amazon (FBA)
- Amazon Associates
- Kindle Direct Publishing
- Amazon Merch
These programs offer different ways to make money, but they all involve selling products on Amazon’s platform. FBA is one of the most popular programs, allowing you to store and ship products directly from Amazon’s warehouses.
Why Make an Amazon Business?
Often people wonder why they should sell products or work for Amazon. So let’s start by looking at what Amazon offers:
Advantages
- Reputable platform: With over 310 million active shoppers and over 353 million products, Amazon is one of the world’s largest and most trusted ecommerce sites. So you’ll be tapping into a massive customer base.
- Low start-up costs: You can start for free with Amazon’s FBA program and other services.
- Easy to use tools: Amazon provides tools and features that make it easy for you to manage your business and understand the analytics behind it.
- Reliable payouts: You don’t have to worry about getting paid on time, as Amazon will issue payments directly into your bank account.
Disadvantages
- No autonomy: Amazon imposes strict rules and regulations on its sellers so that you won’t have as much creative control over your business.
- High competition: With millions of sellers on the site, it can take time to stand out from the crowd and make sales.
Many people have started making money online, including myself, on Amazon because of its low barrier to entry and high potential. You can make a decent income with the right strategy with their programs.
Don’t Skip: How to Sell on Amazon for Complete Beginners [Guide]
Can You Realistically Make Money On Amazon?
When beginners think of selling on Amazon, they often think it’s a get-rich-quick scheme. Or that everyone else can make money online, but they can’t.
So there is no better way to crush your possible self-doubt than showing people who went from zero to making thousands of dollars each month.
- Jake is a 21-year-old entrepreneur who sells things on FBA Amazon. He makes a lot of money- over one million dollars a year!
- By selling books on Amazon, Sean Dollwet created unimaginable wealth and became a millionaire.
- At just nineteen years old, Kenzo Sobrie has found incredible success utilizing Amazon FBA – generating millions of dollars in the process.
- And Melisa Vong, the instructor of foundr’s Infinite Amazon course, went from working a 9-5 at a car dealership to making $30,000 in her very first month on Amazon.
These are just a few of the countless stories of people making money on Amazon. The answer is yes- it is possible to make money on Amazon, and many people are doing it.
7 Methods: How To Make Money On Amazon
Now that you know it’s possible to make money on Amazon, let’s check seven popular methods people use to generate a profit.
1. Amazon Kindle Direct Publishing (KDP)
One of my first successful online businesses is still one of the most popular ways to make money on Amazon. KDP allows authors and publishers to self-publish digital books, paperbacks, and hardcovers through Amazon’s platform.
It’s a great way to make passive income as you can upload your books once, and they continue selling without additional effort.
Pros
- Passive Income: Once your book is published, you don’t have to do anything else and can continue to get paid for each sale.
- Low Cost: You can write your books and publish them for free on KDP.
- Easy To Use Interface: Amazon provides a simple way to upload and publish your books.
- Quick First Dollars: You can earn your first dollars online after a few hours or days from the time you publish.
Cons
- Competition: There are over 12 million books in the Kindle store, so it can be challenging to get your books noticed.
- Errors: You can’t easily make changes once your book is published and will have to go through a lengthy review process with Amazon.
What’s an Average Earning Potential with KDP?
After a few months of publishing your books, you can expect to earn anywhere from $1,000 to $5,000 a month.
It depends on the niche you publish your books in and how well they sell.
Should You Become A Kindle Publisher?
If you have decent writing skills and time to write books, KDP is the way to go. Alternatively, you can also hire ghostwriters to write the books for you.
It’s a great way to create an income stream while completely controlling all aspects of your business.
Once you have established a steady income, you can outsource more and scale up. The big attraction of Kindle Direct Publishing is that it offers almost unlimited potential to make money on Amazon, so it deserves a closer look.
To get started publishing books today, click here.
2. Amazon FBA
One of the most popular methods for making money on Amazon is the FBA program.
FBA stands for “fulfillment by Amazon,” meaning you can send your products to Amazon, and they will pick, pack, ship, and handle customer service for you. Besides, you can instantly access millions of hungry customers waiting to purchase your products.
So, you don’t need to worry about creating your website or dealing with customer support and all those tedious aspects.
Pros
- Huge Potential: FBA offers unlimited potential to earn money online and reach millions of customers.
- Low Start-Up Cost: You can start FBA with as low as $100.
- Flexibility: You control entirely the products you sell, the prices you set, and how often you make shipments.
- Amazon Fulfillment Center: Amazon provides a huge fulfillment center where all your products will be stored and handled with care. This is one of the best advantages of using Amazon FBA.
- 24/7 Customer Support: You don’t need to handle customer calls, as Amazon customer support handles all customer queries and complaints so that you can stay focused on your business.
Cons
- Limited Branding: As Amazon takes care of customer service, you won’t have much control over the branding.
- More Returns: Because of Amazon’s open return policy, you can get more returns than selling on your website.
- It Can Be Costly: FBA can be costly compared to fulfilling orders yourself. This service may not be good for low-cost items.
What’s an Average Earning Potential with FBA?
The earning potential with Amazon FBA is unrivaled. Amazingly, seventy percent of Amazon sellers make over one thousand dollars each month. Even more impressive is that a quarter (25%) make greater than twenty-five thousand per month.
Should You Start FBA?
If you have some extra money to invest, Amazon FBA can be a profitable way to get started with ecommerce. The low start-up cost makes it much easier for entrepreneurs to get going, and you can begin seeing profits soon after launching.
You don’t need to store products, find customers, or provide customer service. Amazon takes care of all that for you, making it a low-stress way to earn money.
The only downside is that your brand might get lost in the process, but if you’re okay with that, FBA could be a great option.
To get started with FBA today, click here.
Keep Learning: How to Sell on Amazon FBA
3. Amazon Affiliate Program
If you’d like to become an affiliate marketer and earn commissions, the Amazon Associates program is one of the best ways to start.
The program allows you to promote products from Amazon and earn a commission on every sale you make. You don’t need to have any stock or create your products; you need an Amazon Associates account, and you can start earning money quickly.
It’s ideal if you plan on promoting physical products such as electronics, clothing, and home goods. You can promote digital products like ebooks, music, movies, etc. Often people build niche blogs (like a blog about camping or a blog about board games) and can promote products related to their niche.
Another alternative is to build a YouTube channel where you unbox and review products. You can share the link to buy a product or feature an Amazon affiliate link in the description of your video.
Pros
- Millions of Products: You can choose from millions of products to promote.
- Reputable Brand: Whenever someone sees a product from Amazon, they know it’s high quality and trustworthy. For this reason, these items often have a high conversion rate for affiliates.
- Low Cost: There is no cost to join the program, so you won’t have to invest any of your money.
- Universal Cookie: If someone clicks on your link or any items they purchase on Amazon, you earn a commission.
Cons
- Low Commission Rates: The commission rate is relatively low compared to other affiliate programs. You should expect between 4-8% depending on the product.
- 24-Hour Cookie: If someone doesn’t purchase a product within 24 hours, you won’t get the commission.
- Need Marketing Skills: You must know how to build a successful blog or YouTube channel to promote products.
What’s an Average Earning Potential with Amazon Associate Program?
This depends on many factors, from the products you choose to promote, and how successful your marketing is. It can range from hundreds of dollars to thousands per month.
Should You Become an Amazon Affiliate?
Contrary to other Amazon businesses, this relies more on your marketing skills than a large budget. If you have the skills to create engaging content and build an audience, then the Amazon affiliate program is worth considering.
You have a vast selection to promote on nearly any niche and the potential to earn a decent amount of money.
To get started with Amazon Associate program today, click here.
Keep Learning: The Ultimate Guide to Affiliate Marketing For Beginners
4. Merch By Amazon
If you have a creative mind and want to create your designs and sell them on T-shirts, and other items, then Merch By Amazon is a great option.
Using this program, you can upload designs onto shirts, mugs, phone cases, and more. All products are fulfilled by Amazon, meaning they handle payment, customer service, and shipping for you.
You just need to design the product, upload it, and Merch By Amazon will do the rest. You’ll also earn royalties on each item sold without worrying about stock or shipping.
Pros
- Passive Income: Once your designs are uploaded, you can set and forget while they generate income for you.
- Own Delivery Service: All products are fulfilled by Amazon, so you don’t need to worry about stock or shipping.
- Global Marketplace: Your products will be available in 18 countries, including the US, UK, Canada, and more.
- Easy-to-Use Interface: You can easily set prices, upload designs, and get real-time product performance data.
Cons
- High Competition: Anyone can join this program for free, so there is a lot of competition.
- Low Royalty: You won’t get much from each item sold. To make money, you need to sell a lot of products.
- Time-Consuming: You must create new designs and upload them regularly to stay competitive.
What’s an Average Earning Potential with Merch By Amazon?
It depends on several factors, like the number of designs you create, how popular they are, and how much competition there is. Some people make thousands a month, while others make nothing.
Should You Start Merch By Amazon?
This program is fantastic if you’re creative and don’t mind spending hours making and uploading designs.
Also, once you publish your designs, you don’t need to do much else. This makes it a low-maintenance but potentially lucrative business model for those who can put in the work upfront.
Another strategy some people take is to outsource their designs to a company. This could be a great way to make money without spending time making the designs.
Or keep this idea in mind once you have the resources and want to scale up your Amazon business more quickly.
If you’re ready to start Merch By Amazon today, click here.
5. Amazon Handmade
This program is similar to Etsy but uses Amazon’s platform for showcasing your products. It’s perfect for artists and crafts who want to make money selling their handmade goods.
Like other Amazon programs, you can set your prices and let them handle payment, shipping, and customer service. You only need to focus on creating and marketing your products.
Pros
- Massive Traffic: Unlike Etsy, Amazon has a much larger customer base.
- Effective Advertisement: Handmade has an in-built advertisement system that helps promote your products. You can laser-target specific demographics.
- Secure Payments: All payments are processed through Amazon, so you don’t need to worry about refunds or chargebacks.
- Good Shipping Prices: Amazon offers competitive shipping rates on Handmade products, plus you can set up free delivery for specific orders.
- Customization Options: It allows customers to customize products, which can help increase sales.
Cons
- Expensive Fees: You have a 15% fee per sale on Amazon Handmade. So, to make more money, you’ll need to charge more for your products.
- Not Seller Friendly: You have a high learning curve; using the Amazon platform is complicated, and it has a lot of rules to follow.
- Ads Overspend: If you don’t set up your ads correctly, you can easily waste your budget on ineffective campaigns.
What’s an Average Earning Potential with Amazon Handmade?
Of handmade sellers, about 63% make over $1,000 a month in sales. So you should make at least that if you’re successful.
Should You Start Selling On Amazon Handmade?
Amazon Handmade is an excellent choice for artisans and craftspeople who want to take advantage of the massive Amazon customer base. Furthermore, it’s super convenient for buyers since they can buy through their trusted Amazon account.
If you’re willing to learn how to use the platform and create great products, this could be an ideal Amazon business.
If you’re ready to start Amazon Handmade today, click here.
6. Amazon Mechanical Turk
This platform connects companies and businesses with people looking for ways to work from home. They can offer tasks like data entry or transcriptions, take surveys, and test companies’ websites which you can complete in exchange for cash.
Pros
- Flexible: You can decide when, how often, and how much you want to work. So if you need a weekend off or want a break, that’s no problem.
- Easy To Get Started: You need an Amazon account and are good to go. There’s no need for interviews or complicated applications.
Cons
- Monotonous: You should expect to do a lot of repetitive tasks, which can get boring after some time.
- Locked High Payings Tasks: To get higher-paying jobs, you must complete other tasks. It can take some time before you start making more money.
- Low Payment: Some tasks may pay very little, so you must be careful not to spend too much time on them.
What’s an Average Earning Potential with Amazon Mechanical Turk?
You should expect an average of between $6 to $12 per hour. Most surveys pay about $0.40 and take a few minutes to complete.
Should You Find Work on Amazon Turk?
If you have free time and want to earn extra money from the comfort of your home, Amazon Mechanical Turk can be a great way to do it. Most of the tasks on the platform are simple and pay a few cents per task.
But besides that, I don’t recommend this program to anyone. Amazon Turk pays poorly, and most tasks are extremely monotonous. You’re better off learning another Amazon business.
Click here to join Mechanical Turk.
7. Amazon Seller Accont
This platform is perfect for those who want to become an ecommerce vendor. Amazon Seller Account allows you to list and sell products directly on their marketplace. You don’t need to worry about building a website, dealing with payment processing, or handling customer service.
Pros
- Huge Marketplace: As one of the largest online retail stores, Amazon allows you to reach out and sell to a much larger audience. So you can make more sales compared to having your ecommerce website.
- International Expansion: Amazon also allows you to sell in multiple countries.
- Ongoing Support: Amazon provides great customer support and feedback, which helps you make your business more
- Effective Advertisement: You have four different ad management options, from sponsored products to automatic campaigns.
Cons
- High Competition: With millions of sellers on Amazon, it’s very competitive. You have to stand out from the competition and offer something unique or better to be successful.
- Selling Fees: Amazon charges a fee for each sale you make, so you need to factor that into your pricing structure.
- Order Management: You must be proactive when it comes to ordering management. This can take a lot of time and energy, depending on how many orders you receive.
What’s an Average Earning Potential as an Amazon Seller?
About 50% of sellers make between $1000 to $25,000 a month on Amazon. You should expect to make more if you have a unique offering and excellent customer service.
Should You Become an Amazon Seller?
Suppose you have products in a brick-and-mortar store, and you’d like to expand your business online without needing to build a website, or you already have an ecommerce store and want to reach a larger audience. In that case, Amazon Seller Account is worth considering.
Click here to join Seller Account.
Keep Learning: What to Sell on Amazon (Tips to Find Profitable Products)
Build an Amazon Business
So, have you chosen your Amazon business? If you’re still struggling to choose, ask yourself, “What is my end goal?”.
Do you want to make a few extra bucks with Mechanical Turk, or do you want to build up a full-time income with your own Amazon page selling products? Are you a more creative or analytical person?
If you’re more creative, then making designs for t-shirts and hoodies through Amazon’s Merch program is a fantastic choice. Otherwise, Amazon FBA might be the perfect fit if you’re more analytical. Or, if you love books, running a self-publishing business on the Kindle platform may be your best option.
At the end of the day, no matter which program you choose, Amazon is an incredible platform to make some serious cash. Now that you know how to start an Amazon business, it’s time to take the leap and get started.
The post 7 Proven Ways to Make Money on Amazon in 2023 appeared first on Foundr.
