How To Make Money On Amazon: 14 REAL Strategies

Introduction

Many aspiring entrepreneurs of the modern-day world are becoming more and more aware of e-commerce platforms and how to make money selling on Amazon and other similar websites as individuals.

Amazon, specifically, can be more than a viable place for new entrepreneurs to learn the ropes of e-commerce while older, more experienced sellers can find plenty of success therein. In 2022 alone, Amazon reported a total revenue of $502 billion. The most amazing part? Over half of that amount was generated by third-party sellers.

If you’re wondering how to make money on Amazon and are looking for some real answers that are both viable and easy-to-understand, take a look at our guide which covers 14 methods that may just work for you.

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1. Fulfillment by Amazon (FBA)

This is a fantastic way to make money on Amazon! With Amazon FBA, e-commerce sellers on Amazon can both store and ship their products (no matter the number) directly from an Amazon warehouse. This ensures that you do not have to have your products piled in your home where they will invariably take up living space.

Additionally, since Amazon will store your products for you, this means that you can safely purchase even more products to more quickly expand your e-commerce business!

2. Fulfillment by Merchant (FBM)

Similar to FBA, Amazon FBM is a popular method of selling on Amazon where sellers list their products, and then effectively manage the storage, shipping, and customer support issues themselves. This is the main difference between this method and the Fulfillment by Amazon method discussed above.

This method may yield lower profitability due to the necessarily small inventory that private sellers can handle. However, the trade-off is that those who sell with Amazon FBM can avoid the latest Amazon seller fees associated with FBA. Additionally, if you’re only planning on selling a small selection of highly-sought inventory, this method is superior to Amazon FBA.

3. Private Labeling

A great way to make money on Amazon is by utilizing the extensive Amazon FBA private label network. A recent study found that 59% of Amazon sellers throughout the entire platform effectively run their business using this private label methodology.

So, what is private label? It is a process of creating or manufacturing an already existing item, adding product improvements you come up with yourself, placing your unique branding and logo on the item, and then selling it to your customers on the site.

This process is also sometimes known as white labeling or brand creation and has been around for years. It is also common in many different retail locations such as Target’s brand Mainstay and Walmart’s Great Value brand.

With FBA, Amazon can easily ship and deliver your products in two days or less (with some exceptions). This 2-day shipping process is known to many as Amazon Prime. With FBA, owners of e-commerce businesses can simply list products on Amazon, and then sit back and watch as they make money from their sales.

Additionally, Amazon makes the private labeling process even more streamlined with the following advantages:

1. By using digital tools geared specifically for Amazon — such as the Helium 10 e-commerce tools — the comprehensive collection of tools designed for both new and old e-commerce sellers — you can easily estimate the potential sales a product will make once it is live on Amazon.
2. You can use the simple process of sourcing and manufacturing your product or products from Alibaba with the Helium 10 Chrome Extension link for any item.
3. Once you’ve fully manufactured the product you want to sell, you can then sell it on Amazon using the FBA method. The best part? You don’t even have to ship it yourself. Keep in mind, though, that you also have the option to ship it yourself using Amazon FBM.

By using the Fulfillment by Amazon (FBA) method, you have the potential to earn around $625 – $1,875 per month per product. This is huge! Keep in mind that over half of private-label sellers on Amazon earn $5,000 (or even more) in monthly sales generated by their products, while nearly 30% have profit margins surpassing 20% (again, this is impressive). Additionally, 25% of these Amazon sellers take in large amounts of money in the range of $25,000-$250,000 every month. This is a simple way of saying that you can make an incredible amount of money through selling private label.

4. Retail Arbitrage

In short, retail arbitrage works like this: you go to a store (such as Walmart, Target, or any other big chain), find a product you want to sell on Amazon, buy it from the store, and then sell it for more money than you paid for it (this is called a ‘mark-up’).

Even though retail arbitrage can be a difficult way to make money on Amazon due to the advanced level of competitiveness, it is also a relatively quick and cheap way to succeed on the e-commerce platform. Each retail arbitrage seller has the ability to make as much (or as little) as they’d like; many sellers make anywhere from a few hundred to a few thousand per month.

The most important thing to remember, though, when considering becoming a retail arbitrage seller is that you need to have a lot of patience. It is often the case that these types of sellers spend the vast majority of each day (and even entire weekends) combing through physical retail stores in search of great products they think will make it big on Amazon. Many times, sellers do not find those lightning products.

However, with hard and perseverance, this method can still work for you and — assuming you find high-demand products to sell — will enable you to earn potentially more money than your day job.

To quickly discover more in-depth information on retail arbitrage selling on Amazon, check out our large guide on retail arbitrage selling.

5. Online Arbitrage

Similar to yet distinct from retail arbitrage, online arbitrage involves purchasing products from online retail stores and then reselling them for a profit on Amazon.

While retail arbitrage sellers can only buy and sell products found in physical stores, online arbitrage sellers have access to a near-infinite number of e-commerce stores offering every kind of product imaginable. Those using this method frequently browse the items available from eBay, Barnes & Noble, CVS, Walmart, and many more.

The amount of money that it is possible to make with this method mostly depends on the amount of effort you put into online arbitrage. If you continually run into problems when looking for great products, this method may not be for you. Conversely, if there are many products that you think will make you a profit, this may just be the method for you.

6. Wholesale

While on the face of it similar to private labeling, Amazon wholesale is more about buying large, bulk quantities of products with the aim of reselling them on Amazon.

The main difference between wholesaling and private labeling is that wholesaling involves selling products from other companies. This means that you’ll never have to worry about large manufacturing costs and the many steps necessary to brand products.

The above benefits make wholesaling one of the best methods to make money on Amazon, and a whopping 61% of Amazon wholesale sellers make at least $5,000 per month!

If you haven’t yet guessed, wholesale reselling on Amazon is an extremely popular way to sell products on Amazon (actually, it’s the second most popular method out of them all). With 26% of sellers effectively utilizing the wholesale methodology, this is a near-surefire way to earn money.

However, new and eager wholesalers should keep in mind that this popularity makes wholesaling highly competitive, much more so than private labeling. The reason for this is that wholesalers have to share what is known as the “Buy Box” with their fellow resellers. More often than not, competitive wholesalers will have to reduce their prices more than the other guy to get the Buy Box and the attention of both Amazon and their customers. Keep in mind that while competitively lowering prices is common, it can be avoided using different Amazon strategies.

Also, remember that the profit you make with the wholesaling method isn’t in the customer buying phase; rather, the profit is determined by how low you can initially purchase your products.

While the above knowledge is still fresh in your mind, consider checking out Helium 10’s guide on Amazon wholesaling.

7. Dropshipping

Amazon dropshipping may be the right path for you if you don’t have a lot of capital when starting your e-commerce business.

In short, dropshipping easily allows you to list your products for sale on Amazon and you won’t even need to ever own them. This incredible method has you simply list items for sale, wait for a customer to order that product, and then order it from a supplier at a reduced cost. After ordering from the supplier, they will then ship the product for you, netting you a sizable profit and a hassle-free selling experience.

Using this method, drop shippers are able to earn money on Amazon without the need to buy, store, and ship the product themselves.

While the potential to earn money with dropshipping may seem easy, the real trouble comes from finding a supplier. Without a supplier, dropshipping becomes much harder to make successfully work, although it’s still possible.

However, if you do find a supplier willing to work with you, the income you can earn with this method, provided you find the best selling products on Amazon for a given time, is near infinite.

If you’re ready to seize the moment and try dropshipping out for yourself, take a look at our Amazon dropshipping guide to be as prepared as possible.

8. Amazon Affiliate Program

An additional way to earn money on Amazon is by becoming Amazon’s version of an influencer. Amazon “influencers” are called Amazon Affiliates and, like other influencers, they earn a commission by promoting products owned by Amazon and other brands via the Amazon Associates Program.

Amazon Associates is a popular program using affiliates where members can easily sign up and receive special links that are exclusive to them and their audience. Once a member of an affiliate’s audience uses the special link to buy a product, that affiliate will then receive their commission. Sounds pretty cool, right?

So, how exactly can you promote products that are already live on Amazon? While there are a few ways to go about doing this, the best ways are through a dedicated blog, YouTube channel, TikTok account, or other popular social media platforms.

In short, if you discover an amazing product on Amazon that you can’t stop thinking about, you can share the link to the product with your viewers (potential customers) and, if they go ahead and buy it, you earn a commission.

By effectively utilizing social media, affiliate marketing on Amazon helps you get into the hearts and minds of your audience and encourage them through your excitement for a given product you’re promoting to go out and get it for themselves. With a large enough audience, you can quickly earn lots of cash through all your affiliate commissions.

By using the highly popular Amazon Affiliate Program, you have the potential to earn 3-5% per commission (although the exact percentage can vary), which may not seem like a lot at first, but with each person who uses your links, you can quickly start earning a sizable amount from this method alone.

However, the primary difficulty with this method is that you will need to be, in some capacity, an influencer to succeed. If you do not post frequently on your social media, you’ll have a tough time making it big as an Amazon affiliate.

If the amazing benefits of the Amazon Affiliate Program stand out to you, we encourage you to dive deeper and learn how to effectively grow your storefront with this program and help it stand out from the rest.

9. Amazon Influencer Program

Similar yet distinct from the Amazon Affiliate Program, the Amazon Influencer Program gives you your own unique storefront on Amazon filled with the products and items you’ve fallen in love with on the site.

This money-making method on Amazon is especially popular with influencers on TikTok, Instagram, and YouTube since it easily enables them to refer their large number of viewers to their dedicated Amazon storefronts. Once there, they can purchase any product that those influencers recommend.

While having a large viewer base can certainly help, you do not need a lot of followers to make this method work. It is still possible to get approved and become a member of the Amazon Influencer Program, even if you have a few hundred followers on social media.

Those interested can quickly apply for this program by using their Instagram, Facebook, TikTok, or YouTube accounts. However, those using Instagram or Facebook will need to have an additional business or creator account in order to get into the program.

So, how much money can Amazon influencers make? While the exact amount varies, influencers can earn a few hundred dollars per month all the way to a few thousand. New influencers can also benefit from learning what popular influencer storefronts to emulate, enabling them to get a head start over others new to the scene.

The commissions that Amazon influencers receive by directly their audience to Amazon can vary from 1% per sale up to 20%, all depending on the specific category. Also, keep in mind that the more effort and time you put into your unique Amazon storefront, the more traffic you will receive, thereby netting you more cash.

To learn the ins and outs of making money on Amazon as an influencer, simply watch the video below talking about this method.

10. Amazon Merch on Demand

If you’ve ever seen a cool or standout design on a shirt or mug and started to think of your own unique designs, Amazon Merch on Demand is the place for you! By using this method to make money on Amazon, you can put your own creative designs on items, including shirts, bags, coffee mugs, hats, and much more.

Additionally, every time someone buys one of your products, Amazon will automatically create the item for you and then ship it, all while you profit off your unique design.

When selling any item with Merch on Demand, you will receive a royalty fee for that particular sale. While the exact percentage can vary depending on that given product’s price, the percentage will usually be within the 13%-37% range. To ensure that you get a higher royalty percentage, try to make your products expensive while still keeping the competitor’s prices in mind.

11. Amazon Handmade

Perfect for creative individuals, Amazon Handmade allows artisans and creators to design, craft, and then sell their handmade goods directly on Amazon.

Due to the specific nature of crafting items, this method of making money on Amazon will necessarily take more time and effort, although the trade-off in the form of massive brand exposure is well worth it.

When utilizing Amazon Handmade, you have the potential to cultivate a wide audience of Amazon users who love your products and brand, all the while making money straight from your home.

On the subject of making money, a recent study found that 63% of Amazon Handmade artisans make over $1,000 per month in sales. However, this number has the potential to rise even further thanks to the massive audience on Amazon.

The Amazon fees for handcrafted items should also be taken into account. Even with these fees, Amazon artisans can still expect profit margins of well over 20%.

12. Amazon Kindle Direct Publishing (KDP)

With Amazon Kindle Direct Publishing (also known as simply Amazon KDP), you can publish your own books on Amazon. In addition to publishing your books in a digital format, you will also have the option to publish your books in physical, printed editions.

However, writers and publishers will need to constantly write in order to find long-lasting success while using this method. While it is possible to become successful after only writing and publishing one or two stand-out hits, the vast majority will find an easier time by prolifically writing.

It’s a simple fact that the more you write on Amazon, the more you make. If your writing skills are a little rusty or if you don’t feel comfortable writing, you can still make money with Amazon self-publishing by creating “low or medium content” in the form of journals, coloring books, word-search books, planners, and more.

While the potential income you can make on Amazon via this method is — on paper — infinite, a few authors make around $40,000 or more per month. Keep in mind that this number isn’t guaranteed, but even a small amount of additional income per month has the ability to change your life.

Another interesting thing to note about Amazon KDP is that you can sell on Amazon with inventory, making this process even more streamlined and easy to utilize, providing that you have the time and energy to write a ton!

If you’re a new or aspiring writer, check out our take on Amazon KDP in the video below.

13. Digital Products

If you’re interested in selling digital products on Amazon, you should know that the main appeal to this method is the heightened scalability, low overhead costs, and increased potential for recurring revenue.

Selling digital products is great for creators, entrepreneurs, and even businesses that are looking to capitalize on specialized content.

Additionally, by using Amazon Digital Services LLC (a subsidiary owned by Amazon), you can easily sell music, art, eBooks, audiobooks, and more on all of the digital services offered on the e-commerce platform.

While the exact number can vary, it is possible for digital product sellers on Amazon to make anywhere from $10 to $100 per week. And that’s just when they’re getting started. Experienced digital sellers have been known to make up to $3,000 per month or more by launching a handful of successful products on Amazon.

If the above way of making money on Amazon sounds like a great option, be sure to use Helium 10’s dedicated tools including the free Chrome Extension to identify gaps that you can fill with your own unique digital products.

14. Amazon Services

While Amazon is known first and foremost as an e-commerce selling platform, it also offers aspiring entrepreneurs to sell their services online. In other words, Amazon Services allows people to work directly for them instead of selling with them.

For example, if you’re a writer, a repairman, or have expertise in an important field, Amazon Services can help you get in touch with people or businesses that require your assistance.

Just like a normal 9-5 position, working with Amazon Services has the potential to be highly profitable for those who put in a sizable amount of effort.

Conclusion

By using one or more of the above ways to make money on Amazon, you will be better positioned for success on the e-commerce platform while discovering along the way which method — out of all the rest — works best for you and your specific needs.

If you find that you need just a little bit more help in the Amazon selling process, we offer a handy guide that covers how to sell products on Amazon and make money simultaneously.