Proven Methods to Quickly Make Money on Amazon Without Selling
Selling products online can be a great way to earn extra cash, but it's not everyone's thing. Some people don't have the upfront funds to buy inventory, while others prefer to avoid the process of selling altogether. Thankfully, Amazon offers alternative ways to generate income that don't involve selling products directly.
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In this article, we'll explore various methods for making money on Amazon that are lucrative alternatives to traditional product sales.
5 Ways to Make Money on Amazon Without Selling
With Amazon being one of the largest e-commerce platforms, it's no surprise that there are many ways to earn money there. While this marketplace is renowned for selling products from a wide variety of categories, you can also generate revenue without having to sell anything. Let's explore the top five methods for how to make money on Amazon without selling products:
Method 1: Amazon Affiliate Program
If you have a blog or website, you can earn money just by telling people about products available on Amazon. All you have to do is share a unique affiliate product link, and when someone clicks on it and makes a purchase, you earn a commission.
Method 2: Amazon Influencer Program
Similar to the Amazon Affiliate Program, the Amazon Influencer Program is tailored for social media. Add a personalized URL link to your account, and when someone makes a purchase based on your recommendations, you get paid by Amazon.
Method 3: Kindle Direct Publishing (KDP)
Originally, Amazon started out as a book-selling platform, and still has a program dedicated to authors. Through KDP, you can upload your text and earn up to 70% royalties on the books you sell. This program supports both e-books and printed books, making it an excellent option for generating passive income. Additionally, Amazon offers a five-day free promotion of your book, helping you reach more readers and boost your visibility.
Method 4: Amazon Merch on Demand
This is another way to earn money from home that’s especially ideal for designers and people who are creative. Upload your designs or artwork to Amazon, and when someone buys an item, Amazon handles will print your design on items like bags, T-shirts, and more. They also take care of delivery, while you earn a commission.
Method 5: Amazon Mechanical Turk (MTurk)
Mturk operates as a job marketplace where you can get paid for tasks like research and manual data entry. This platform allows companies to save money on outsourcing, offering you a side hustle to earn money in your free time.
We can see that there are different ways to generate additional income through advertising, sharing your creations, or performing tasks. However, without a large audience or established popularity as an author, the profit you can generate from these methods may be modest. If you're looking to earn more with minimal effort, it may be worthwhile to consider selling.
Many people don't want to deal with the hassles of storing physical products or logistics, but you don’t necessarily need to perform these tasks yourself. Let's explore how you can achieve an income of $10,000 per month without dealing with inventory.
Earning Money Without Inventory
Many seven-figure Amazon sellers claim to earn thousands of dollars in passive income each month. Remarkably, some are even able to achieve this without having to handle any physical products directly. Here are some of the best methods for earning on Amazon:
Method 1: Amazon FBA
Amazon FBA (Fulfillment by Amazon) is a service that streamlines all logistics for sellers. You can order products remotely from a supplier like Alibaba, and have them delivered directly to Amazon FBA centers. Once an order is placed, Amazon FBA employees will handle all aspects of packing and shipping items to the customer. Keep in mind that Amazon charges a fee for this service.
The benefits of using Amazon FBA include high profit margins, efficient logistics, and access to Amazon's vast customer base, including Prime customers. Amazon algorithms prioritize FBA products among search results, giving you a higher chance of making a sale.
This means you don’t have to handle physical products at all. However, to ensure significant profits, it's crucial to choose the right products.
Profitability Criteria
While each business model may have its own unique procedures and criteria, there are still universal factors to consider when determining a product's profitability, regardless of which type of business you have:
High demand: Choose products that have demonstrated stable demand and sales numbers.
High margin: Look for products with healthy profit margins, allowing you to cover your costs and generate substantial profits.
Low weight: Opt for products that are lightweight to minimize shipping and storage costs.
Competition: Avoid products with numerous sellers (including Amazon itself).
Furthermore, the criteria for product ratings will vary depending on whether you're a reseller or a private brand owner. Resellers should prioritize products with high ratings to ensure customer satisfaction, whereas private brand owners may see value in products with lower ratings, as they present opportunities for improvement.
Conducting thorough research is essential, but this process can be challenging for beginners. Fortunately, analytical tools like the Amzscout toolkit can streamline the process. With data on millions of products that is updated regularly, you can evaluate key factors easily, such as estimated monthly profit, profit per unit, sales history, and more.
To find trending products, follow these steps:
1. Go to the AMZScout Product Database. Start a free trial by entering your email address.
2. Apply filters to narrow down your search. There are 16 filters available. Consider the following ones:
Category: Select your preferred product category.
Weight: Prioritize products that are non-fragile and weigh up to 4 lb.
Number of sales: Aim for items that generate at least 200 sales/month for high demand.
Prices: Choose products priced starting at $30 to ensure a high margin return per product.
You can use additional filters tailored to your business model.
3. Get your results. Click “Find Products” to generate a list of items that match your criteria. Select products you are interested in and evaluate each one individually using the AMZScout PRO AI Extension.
4. Search for a product on Amazon. Enter a product name from the Product Database into the Amazon search field. Click on the icon in the upper right-hand corner of the page to open the PRO AI Extension.
5. Evaluate the niche’s performance. Click on the Niche Score, located in the upper right-hand corner of the page. This score represents the average demand, sales, and competition assessments within the niche. A score exceeding 7 is deemed promising, indicating favorable profit margins.
6. Check the product’s performance. If the niche looks promising, click on the product to view its Product History. Here, you can analyze the following trends:
Sales: Ensure that sales are either growing or stable.
Reviews: Evaluate if an increase in reviews aligns with sales growth.
Pricing: Monitor competitors’ prices to help you adjust your own and remain competitive.
7. Calculate your profit.Click on the Profit Calculator below the product and enter the product's costs (FBA fees are calculated automatically) to see if your margin after all costs exceeds 20%. If not, the item may not be profitable and therefore not worth your time and effort.
8. Analyze opportunities and risks. Open "AI Product Analysis" to access "AI Product Insights". Review the summary to confirm if the product's strengths outweigh its weaknesses, and evaluate the opportunities and risks to ensure alignment with your business goals.
Once you identify high-margin products for your business, and find the right products to sell as you benefit from opportunities offered by Amazon FBA, you can enjoy not dealing with physical products directly while still having great potential for success.
Now, let's explore another method of earning money on Amazon.
Method 2: Dropshipping
Dropshipping is a business model where you only pay a supplier each time you receive an order from a customer. Every supplier operates differently, but the general process is as follows:
1. Identify a reliable supplier who offers dropshipping services.
2. Use an app or integration to add the supplier's products to your Amazon store. Some products may be available for free, but many suppliers require a subscription (averaging $100/month).
3. When a sale is made, you purchase the product from the supplier's website.
4. The supplier packs and ships the order directly to the customer.
In this model, you avoid dealing with any product storage and order fulfillment. It's also simpler to change your product range - just remove or add new products by importing them to your store without the need to buy them upfront.
Dropshipping allows for an easy start with low upfront costs. However, it's crucial to find a reliable supplier who adheres to Amazon's dropshipping policy and uses secure and fast shipping couriers. This allows you to invest less money and generate significant profits, albeit with less control over the business.
Method 3: Create Digital Products
Another way to make money on Amazon is by creating digital products, such as music or videos, and earning revenue each time someone purchases your product. You can also publish apps and earn profits from downloads or in-app advertising.
Selling digital products offers high-profit margins and global reach with low overhead costs. However, you might face high competition requiring continuous innovation and really effective marketing strategies in order to stand out.
As you can see, there are numerous avenues for generating income without relying on physical product sales. As you contemplate which option to pursue, it's essential to consider both the potential for passive income and the scalability of your business so you can ensure long-term earning potential with minimal effort.
Conclusion
There are numerous ways to earn money without selling items directly or handling physical products. Whether you’re using Amazon FBA, dropshipping, or affiliate marketing, the AMZScout toolkit can help you identify the most promising products. This allows you to start a business with lower upfront investments and greater flexibility, thereby enhancing your scalability and increasing profitability.
