How to Make Money on Amazon: 11 Proven Strategies 2021
When most people think about Amazon they think of somewhere you go to spend money. But actually, there are many different ways you can earn money on the platform.
In addition to selling products to consumers all around the world, the company also offers full-time and part-time work, and the opportunity to grow your own business.
Ways to make money from Amazon include promoting products via affiliate links, selling your own items on the platform, self-publishing e-books, or working for the company at one of their corporate offices or fulfillment centers.
The 11 ways to make money on Amazon are
- Promote Amazon products with affiliate links
- Sell merchandise
- Resell items you find on other marketplaces
- Sell your own branded products on Amazon
- Self-publish a book on Amazon Kindle
- Deliver orders through the Amazon Flex program
- Complete tasks on Amazon Mechanical Turk
- Sell handmade items
- Sell your professional services on Amazon
- Work for Amazon
- Start an Amazon consulting business
Want to learn how to make money on Amazon? Keep reading for all the details.
11 Ways to Make Money on Amazon
Amazon continues to add new ways to make money on their platform, meaning there is likely something available for anyone wanting to make a little extra money.
When it comes to making money on Amazon, there are plenty of options. Best of all, many of these can be done from home. Let’s walk through each method and go over how exactly to use these strategies to earn some cash.
#1 Promote Amazon Products with Affiliate Links
Lots of people are interested in selling Amazon products, but they don’t want to go through the hassle of sourcing products, storing inventory, or fulfilling orders. If this is how you feel then Amazon Associates is for you.
With this program, Amazon will provide you with special links you can use to promote items that are sold on their site. You can post your links on your blog, social media pages, or anywhere else on the internet.
Every time someone clicks on one of your links and buys a product (known as a referral), you’ll make a small commission. The best part is, even if they buy something completely different than what you were promoting you still make money.
This strategy is ideal for people who already have an established blog or social media following. Or if you’re skilled with SEO you can create a website around a particular niche. Optimize your pages for certain keywords, promote relevant items, and include your affiliate links to start making money.
#2 Sell Merchandise
Have you ever thought about selling your own clothing? Well, the Merch by Amazon program lets you do just that.
How it works is, you create a design for a shirt or sweater and then upload it to the site. If someone buys your shirt Amazon will print it and send it to the customer. Because the platform works on a print-on-demand system you don’t have to buy or store any inventory. Your shirts are only created when someone orders them.
This is an awesome business for anyone who’s artistic and good at design. But even if you’re not you can always hire someone to create designs for you (although this will add an additional cost).
It’s worth noting that the program is extremely popular. As such, acceptance is by invitation only. You’ll need to submit an application and then you might have to wait a while to get accepted. So, if you’re at all interested submit your application as soon as possible.
#3 Resell Items You Find on Other Marketplaces
Lots of people think that in order to sell products on Amazon you need to know how to get inventory from wholesalers and manufacturers. This can be a bit intimidating and prevents some people from ever starting this kind of business.
However, you can actually resell items from other online marketplaces like eBay, AliExpress, Craigslist, Facebook Marketplace, and more. This is what’s known as online arbitrage.
What most people don’t realize is that prices can vary greatly from one marketplace to another. You might be able to find a product that’s selling on eBay for half the price it’s selling for on Amazon. If this is the case, you can buy it on eBay and then resell it on Amazon for a profit.
Of course, not everything you buy will make you money. If there’s no demand for what you’re selling then you won’t get many sales. This is why before you start an online arbitrage business you need to do some product research.
Here’s a quick guide on how to do online arbitrage successfully:
Have a look on Amazon and other marketplaces to see what you might be interested in selling. Focus on products that are selling for less on other marketplaces, as these will allow you to make a profit when you sell them on Amazon.
Install the AMZScout Pro Extension. Search for the products you’re interested in on Amazon, and when the search results come up open the Extension.
Check the sales history to ensure the items sell consistently all year, then look at the product and niche score to make sure there’s enough demand but not too much competition. Scores of 7 or higher mean it’s a good product to sell.
Once you find items that you want to sell, install AMZScout’s Online Arbitrage and Dropshipping Extension. When you view those products on Amazon you’ll now be able to see your costs, profit margins, and other data to help you figure out if they’ll be profitable to sell.
And that’s it really. If you like to shop online and are good at tracking down deals then this could be the perfect business for you.
#4 Sell Your Own Branded Products on Amazon
If you want to sell on Amazon and are looking for something that’s more profitable and scalable than online arbitrage, you might want to consider selling your own private label products. These are unique items that have your own branding on them.
The big advantage of selling private label products is that you’re the only one selling them. This means you face less competition and you don’t have to fight other sellers for the buy box.
Coming up with your own unique item might seem difficult, but it’s actually fairly easy. All you have to do is take an existing Amazon product and change or improve it in some way to make it your own.
In order to figure out what to sell, follow these steps:
Use the AMZScout Product Database to find items that meet your criteria. Look for products that have 300 sales per month, are priced between $40 - $70, have less than 100 reviews, and weigh less than 5 pounds, as these are the criteria most successful sellers use.
Install the AMZScout Pro Extension and search for the items you found with the Product Database. Check their sales history, and product and niche scores, to ensure they’ll be profitable all year long and don’t have too much competition.
Once you discover something you want to sell, find a manufacturer who can create a similar item for you. The best place to find one is Alibaba.com. Search for your product there and then start reaching out to manufacturers.
Have the manufacturer send you a sample. If you’re happy with it, place your order.
If you’re selling on Amazon, we recommend using Amazon FBA. With this program, you’ll ship your inventory to Amazon and they’ll store it and fulfill your order for you, which saves you a lot of time and resources. So in many ways, it’s a lot like dropshipping.
#5 Self-Publish a Book on Amazon Kindle
Gone are the days when you needed to be accepted by a major publisher in order to make money selling books. With Amazon, you can simply publish your own e-books on their platform and start earning a nice income.
You can choose to write either fiction or non-fiction. Popular fiction writers generally make more, but it’s harder to market and sell a fiction book. This is why many authors focus on non-fiction. If you target a popular niche and use the right keywords you can easily start showing up in Amazon searches.
The cost to write a book is pretty minimal, assuming you’re planning on writing it yourself. You’ll have to pay for a cover design, and it’s recommended you hire someone to edit and format your book. But neither of these will set you back too much, making this a great opportunity for anyone who loves to write.
#6 Deliver Orders Through the Amazon Flex Program
The Amazon Flex program is similar to Uber, except instead of delivering people you deliver packages.
With this program, you use your own vehicle to deliver Amazon orders. Simply download the app, sign up, reserve a block of orders, pick them up at the depot, and deliver them to the specified addresses.
While this isn’t exactly a scalable business, it’s a great way to make some extra money. It’s worth noting that the Flex program isn’t currently available everywhere. They may also have enough drivers in your area, in which case there won’t be any openings.
Still, if this is an opportunity you’re interested in then it’s definitely worth downloading the app and checking it out.
#7 Complete Tasks on Amazon Mechanical Turk
Amazon Mechanical Turk (MTurk for short) is a program that allows businesses to hire people for simple virtual tasks.
The idea is that there are many things that humans still do more effectively than computers. This includes data validation, transcription, and research. There’s also the opportunity to take surveys.
Participating in the program is easy. Just sign up, pick the tasks you want to complete, and submit them for payment. There’s no set schedule, you can do these tasks on your own time.
The downside is that these jobs generally pay very little. Still, if you have some free time and want to make some money it’s worth a shot. The tasks listed here don’t take any special skills, so they can be performed by anyone.
#8 Sell Handmade Items
Are you someone who’s crafty, artistic, and likes to make their own goods? Then you might want to consider selling your products on Amazon.
Amazon Handmade sells items made by local artisans. This includes jewelry, mugs, toys, and beauty items. Chances are, if you can make it then you can sell it on Amazon.
Of course, the same rules apply here as they do for selling any type of product. You should make sure there’s actually a demand for what you’re selling before you put all your time and energy into making it. This is why it’s a good idea to do some research before getting started.
Selling handmade stuff can be a lot of work. But if it’s something you enjoy then this will be an excellent opportunity for you.
#9 Sell Your Professional Services on Amazon
Amazon made their name by selling products, and now they’re moving into selling professional services as well.
This is different from the Mechanical Turk program, which focuses on unskilled tasks. With Amazon Home Services, you’ll be selling skilled labor. Currently, the program offers:
Home theatre services
The services provided are based around requests by customers after they buy an item on the site. The program is meant to help customers get their products working or installed.
This opportunity isn’t for everyone, as you need to have the skills required to perform these tasks. But if you think you’d be a good fit then you should definitely look into it.
#10 Work for Amazon
Amazon is one of the world’s largest companies, which means they have millions of jobs available all around the world. If you’re interested in working for Amazon there are plenty of opportunities to explore.
You can see their available jobs at Amazon.jobs. Some typical jobs offered by the company include:
There are plenty of roles within the company, so check out the site and see if there’s a position that suits your skills.
#11 Start an Amazon Consulting Business
Have you sold on Amazon before? Then you likely have a valuable set of skills and experience to offer.
Many sellers are looking for consultants to help them through the process of starting a business. This includes advice on product research, product sourcing, how to sell, how to make a profit, pricing, marketing, and more.
There are even opportunities for people without selling experience. You may have skills that are valuable to sellers, including:
Copywriting for product listings
PPC advertising skills
Start by advertising your services on sites like Upwork, Fiverr, and Freelancer. All it takes is a few positive recommendations for things to really take off.
How Much Can You Make on Amazon?
After reading through all of the above strategies, you’re probably wondering how much you can make and which method is the most profitable.
Income varies wildly between each one, so let’s go through them individually.
How much you make as an Amazon affiliate will depend largely on how much traffic you’re able to drive to your links and the price of the products you’re promoting. Royalty rates range from 1% - 10% per referral. A successful affiliate can make $1000 per month, and many make even more than that.
Merch by Amazon
In order to make money with Merch by Amazon, you need to get people to visit your product listings, either through SEO or paid advertising. In the US, royalties range from $2.21 - $9.77 per sale. The best sellers make $2,000 - $3,000 every month, with some making over six-figures a year.
Your ability to make money through online arbitrage is tied to how many sales you make and how much profit you make on each sale. If you sell a lot, and your sales margins are good, you can definitely make over $1,000 a month.
Private Label Products
There are really no limits on how much you can earn with private label products, meaning this is one of the best ways to make money on Amazon. The business is very scalable and very profitable. The most successful sellers make up to $50,000 a month, while others who only sell on Amazon as a side hustle still do very well.
Publishing your books on Amazon can be very lucrative if you’re able to produce quality content and market it effectively. Royalties range from 35% - 70% per sale. Some smaller authors might only make $50 - $100 a month, while the most successful writers earn over $100,000 a year.
While there is definitely the opportunity to earn some money with Amazon Flex, this should be seen as more of a side gig. According to Amazon, their drivers usually earn between $18 - $25 an hour.
Amazon Mechanical Turk
While making money with the Mechanical Turk program is easy, you won’t make very much. Because these tasks are seen as unskilled, businesses typically aren’t willing to pay very much for them. You can expect to get paid anywhere between $2 - $7 an hour.
The only limit on how much money you can make with Amazon Handmade is the number of products you’re able to produce. If you come up with something popular you’ll need to keep up with the demand if you want to maximize your earning power. That said, smaller sellers might make $100 a month, while others will be able to earn $50,000 or more.
Amazon Home Services
Your income with Amazon Home Services comes down to how many jobs you’re able to do. Also, keep in mind that Amazon takes a 10 - 20% cut from every job. That said, the best contractors can make around $8,000 a month.
Work for Amazon
As you might expect, Amazon’s salaries vary widely. There’s a big difference between someone working in one of their fulfillment centers and someone working at one of their corporate offices. With that in mind, you can make anywhere from $16 an hour to over $120,000 a year.
Amazon Consulting Business
When it comes to an Amazon consulting business, it’s really up to you how much you make. You can charge whatever you want and work as much or as little as you want. The most successful businesses make over $100,000 a year.
As you can see, there are plenty of money-making opportunities through Amazon. If you’re looking for some extra cash check some of these out and see if one is right for you.