Amazon isn’t just the world’s largest online retailer—it’s also a platform packed with opportunities to earn money. But the question is: how to make money on Amazon? The best part? Whether you want to start a side hustle or build a full-time income, Amazon offers several ways to turn your time and skills into profit, from Amazon affiliate software to Amazon KDP.
This guide will walk you through the most popular and profitable methods to earn on Amazon, with actionable steps and real-life examples to help you succeed.
Why Make Money on Amazon?
Amazon has over 300 million active users worldwide, making it a great opportunity for entrepreneurs and side hustlers. With multiple programs and opportunities tailored to different skills and goals, you can choose the method that best fits your strengths.
The Key Benefits of Earning Through Amazon
Whether you want to join the Amazon Influencer Program or the Amazon FBA, you’ll take the following advantages:
- Access to a massive customer base,
- Low startup costs for many programs,
- Flexible working hours,
- Scalable income opportunities.
How to Make Money on Amazon: Top Ways
Now, we’ll explore 9 popular methods you can use Amazon to get passive income. Let’s get started:
1. Sell Products through Amazon FBA and FBM
Selling products through Amazon’s Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM) programs is one of the most popular ways to make money on the platform. With FBA, Amazon handles storage, shipping, and customer service, while FBM allows you to manage these aspects yourself.
How Does Amazon FBA Work?
Here’s how the service works:
- Choose Products: Find products you want to sell,
- Ship to Amazon: Send your inventory to Amazon’s warehouses,
- Amazon Handles the Rest: They store your products, pack them when an order is placed, ship them to customers, and even handle customer service.
Pros and Cons of Amazon FBA
The Amazon FBA has both positive and negative sides. Before getting started with the program, let’s explore them:
Advantages
- Your products become eligible for Amazon Prime. So, you’ll attract more customers,
- Amazon handles storage, packing, shipping, and customer service, making fulfillment hassle-free.
Disadvantages
- Amazon’s fees can accumulate quickly, and impact your profit margins,
- You need to invest upfront in inventory before you start selling.
2. Use the Amazon Affiliate Program
The Amazon Affiliate Program, also known as Amazon Associates, is one of the most popular affiliate platforms that allows you to earn commissions by promoting Amazon products on your website or social media. You earn a percentage of sales generated through your affiliate links.
How Does Amazon Associates Work?
Working with this program is definitely easy:
- Sign Up for Amazon Associates: To start, you’ll need to sign up for the Amazon Associates program. It’s free to join, and once approved, you can access tools to create affiliate links for millions of products.
- Choose Products to Promote: Choose products that align with your audience’s interests. You can promote physical items (such as gadgets, home goods, or books), digital products (such as eBooks or software), or even Amazon services like Prime or Audible.
- Generate Affiliate Links: Once you’re logged into your Amazon Associates account, use their tools to generate custom affiliate links for products you want to promote. You can generate text links, image links, or banners, and share them across your platform.
- Promote Products: Then, you can place these links in your content, whether in blog posts, videos, podcasts, or social media posts. You can create reviews, tutorials, or blog posts showcasing the products you’re promoting, making it easier for your audience to trust your recommendations.
- Earn Commissions: Whenever someone clicks on your affiliate link and makes a purchase, you earn a commission. The Amazon commission percentage depends on the product category but can range from 1% to 20% of the sale price. Notably, you can also earn commissions on other products your referral purchases during the same session, even if they didn’t buy the item you linked to.
Pros and Cons of the Amazon Affiliate Program
Like any business opportunity, the Amazon Affiliate Program has its advantages and drawbacks. Here are the main ones:
Advantages
- Huge product selection,
- No inventory or shipping hassles,
- Global reach,
- Easy to get started.
Disadvantages
- Low commission rates in some categories,
- Strict guidelines,
- Short cookie duration (only 24 hours),
- High competition.
How to Make Money on Amazon Using AlgoRift?
For those looking to maximize their earnings through Amazon affiliate marketing, consider AlgoRift.ai. This platform connects Amazon brands with top affiliates and offers tools like custom contracts, branded affiliate pages, and coupon management to optimize your affiliate marketing strategy.
Here are the main features Algorift provides:
- Product & Strategy Management: Monitor product listings, track sales, manage affiliates, and optimize offers using advanced analytics.
- Multi-Account Management: Manage multiple Amazon seller accounts, brands, and products from one platform.
- Brand & Product Management: Organize and track the performance of multiple brands and product catalogs.
- Affiliate Promotions: Create exclusive promotions and discounts for affiliates to boost conversions.
- Affiliate Discovery: Find and connect with top-performing affiliates using advanced search filters.
- Reports & Analytics: Generate detailed reports on sales, product performance, and affiliates.
- Private Messaging: Communicate directly with affiliates and buyers.
- Team Management: Add team members, assign roles, and manage permissions for collaborative selling.
3. Participate In the Amazon Influencer Program
For influencers and digital creators with a significant online following, the Amazon Influencer Program offers a way to earn money by recommending products to your audience. This program provides influencers with a custom storefront and special vanity URLs to showcase their recommended products.
How Does the Amazon Influencer Program Work?
The process is pretty similar to the Amazon Affiliate Program, with some tweaks. Here’s how the service works:
- Sign Up and Get Approved: To get started, influencers must apply for the program through Amazon’s Influencer Program page. The approval process is based on their social media following, engagement rate, and overall influence.
If you’re approved, you’ll receive a unique Amazon storefront URL to curate your own product recommendations.
- Create Your Personalized Storefront: Once approved, you can start building your storefront by selecting products that align with your niche. You can organize your storefront into different categories, making it easier for your followers to navigate and find products that interest them.
- Share Your Storefront with Your Followers: Now, you can share the link to your Amazon storefront on your social media platforms. You can also embed product links directly in your posts, Stories, and videos, which will lead your followers to the product pages on Amazon. If they purchase through these links, you earn a commission.
- Earn Commissions: Similar to the Amazon Associates Program, influencers earn a commission when their followers click on the links and purchase products. Commissions vary by product category but typically range between 1% and 20%.
Pros and Cons of the Amazon Influencer Program
According to the reports, over 1 million Amazon influencers are out there. Why have they found the platform effective? What are the drawbacks? Let’s find out:
Advantages
- Low barrier to entry (allows influencers with a smaller, highly engaged audience),
- Custom storefronts to showcase products that align with your brand and audience,
- Wide product selection (millions of products are available).
Disadvantages
- Commissions are lower for certain categories,
- Limited control over product pricing,
- Higher competition.
4. Explore Amazon Kindle Direct Publishing (KDP)
If you’re an aspiring author wondering how to make money on Amazon, you can try publishing eBooks and paperbacks through Kindle Direct Publishing (KDP) and reach millions of readers. The Amazon KDP is one the nest Amazon’s marketing services, offering tools to format, publish, and promote your books, allowing you to earn royalties from sales.
How Does the Amazon KDP Work?
Now, let’s dig deeper into the Amazon Kindle Direct Publishing:
- Create an Account: The first step is to create a KDP account by signing up with your Amazon account. Once logged in, you can begin the publishing process.
- Upload Your Book: KDP supports multiple formats, including Microsoft Word, PDF, and ePub for eBooks, and PDF for paperback books. After preparing your manuscript, upload it to the KDP platform.
- Design Your Book Cover: You can either design your own book cover using graphic design software or use Amazon’s free Cover Creator tool to make a professional-looking cover. If you prefer, you can also hire a designer for custom covers.
- Set Your Book Details: You will need to provide essential information, including the book title, description, keywords, and category. This helps Amazon categorize and display your book to relevant readers. You can also choose whether to enroll your book in Kindle Unlimited, a subscription-based service that allows readers to borrow your eBook.
- Set Your Pricing and Royalties: KDP gives you the flexibility to set your own prices, which can help you maximize profits. You’ll also select your royalty rate, which can be 35% or 70%, depending on factors like pricing and whether you opt into Kindle Unlimited. The higher royalty rate is usually available for eBooks priced between $2.99 and $9.99.
- Publish Your Book: Once all details are set, click Publish. Your book will typically go live on Amazon within 24 to 48 hours. After publishing, you can track your book sales and royalties via the KDP dashboard.
Pros and Cons of the Amazon KDP
Are you going to give the Amazon KDP a try? First, let’s weigh down the pros and cons:
Advantages
- There are no upfront costs,
- Full control over your book content, pricing, marketing, etc,
- Fast publication,
- Global reach.
Disadvantages
- Low royalties for paperbacks,
- Limited control over Amazon’s pricing,
- Marketing is your responsibility,
- It doesn’t guarantee long-term success.
5. Utilize Merch by Amazon
Merch by Amazon enables designers to create and sell custom-branded merchandise, such as T-shirts, hoodies, and accessories, without upfront costs or inventory management. Amazon handles production, shipping, and customer service, while you earn royalties on each sale.
How Does Merch By Amazon Work?
Just like other monetization methods on Amazon, you need to join the program. Let’s find out how it works:
- Sign Up for Merch by Amazon: Apply for an account and wait for approval. Once accepted, you can start uploading designs.
- Create Your Designs: Design graphics for apparel and other merchandise. Use design tools like Adobe Illustrator or Canva to create high-quality images.
- Upload and List Your Products: Upload your designs, select product types (t-shirts, hoodies, etc.), set prices, and write product descriptions.
- Amazon Handles Fulfillment: When someone buys your product, Amazon prints it, ships it, and manages customer service.
- Earn Royalties: You receive royalties for each product sold based on the sale price and Amazon’s costs.
Pros and Cons of Merch By Amazon
Let’s see the good and bad things about this method:
Advantages
- Access to Amazon’s customer base,
- Passive income potential,
- No upfront costs.
Disadvantages
- Royalties can be low,
- Limited control over pricing,
- Time-consuming and competitive approval process.
6. Sell Your Own Private Label Products on Amazon
Private label products involve branding existing products with your own label or packaging. This method allows you to differentiate your products in a competitive market and build a brand identity.
How to Make Money on Amazon By Selling Private Label Products?
If you’re already an Amazon seller, just follow these steps:
- Research Product Opportunities: Use tools like Jungle Scout or Helium 10 to find high-demand, low-competition products.
- Find a Manufacturer: Source products from platforms like Alibaba or work directly with manufacturers who offer private labeling services.
- Create Your Brand: Design custom packaging, logos, and branding materials to make your product unique.
- Order Samples and Finalize Product: Test product samples for quality before placing a bulk order.
- Use Fulfillment by Amazon (FBA): Ship your inventory to Amazon’s warehouses, where they handle storage, shipping, and customer service.
- List and Optimize Your Product: Now, create an optimized product listing with high-quality images, detailed descriptions, and relevant keywords.
- Launch and Market: Finally, you can use Amazon PPC ads, promotions, and influencer marketing to drive traffic and sales.
Pros and Cons of Selling Private Label Products on Amazon
Before getting started with selling your products on Amazon, it’s good to learn about the pros and cons:
Advantages
- Higher profit margins,
- Complete control over product branding, packaging, and more,
- A strong brand can create repeat customers and open opportunities for off-Amazon sales.
Disadvantages
- The high initial investment,
- Risk of unsold inventory,
- Quality control challenges.
7. Sell Wholesale Goods on Amazon
Another way to make money on Amazon is to source wholesale goods and sell them on the Platform. This method can be lucrative, especially for those with strong negotiation skills and a keen understanding of market demand. However, it requires effectively managing inventory and logistics.
How Does Selling Wholesale Goods on Amazon Work?
The process requires the following steps:
- Set Up Your Amazon Seller Account: Register as an individual or professional seller.
- Find a Supplier: Research and partner with a reputable wholesaler or manufacturer who offers products at discounted rates for bulk purchases.
- Purchase Wholesale Inventory: Buy products in bulk from the supplier, taking advantage of lower prices for larger quantities.
- List Products on Amazon: Create detailed product listings, ensuring they are optimized with keywords, descriptions, and competitive pricing.
- Fulfillment: Choose between Fulfilled by Amazon (FBA) or Fulfilled by Merchant (FBM) for order fulfillment. FBA involves Amazon storing and shipping your products, while FBM means you handle fulfillment yourself.
- Market Your Products: Utilize Amazon’s advertising tools and other marketing strategies to increase visibility and drive sales.
Pros and Cons of Selling Wholesale Goods on Amazon
Advantages
- Lower product costs and increasing profit margins,
- Established market demand,
- If you use FBA, you can leverage Amazon’s storage, fulfillment, and customer service systems.
Disadvantages
- Storage and handling costs,
- Less control over pricing,
- Fierce competition.
8. Use Retail and Online Arbitrage to Flip Products for Profit
Arbitrage involves buying products at a lower price and selling them for a higher price on Amazon. Retail arbitrage involves sourcing products from retail stores, while online arbitrage focuses on purchasing items from online marketplaces.
How Does the Amazon Retail and Online Arbitrage Work?
Here’s how to make money on Amazon through retail and online arbitrage:
- Find Products at a Discount: The first step is to identify products that are significantly discounted or on clearance. Retail arbitrage typically involves going to physical stores like Walmart, Target, or local liquidators to find items on sale.
For online arbitrage, you search for discounted products on e-commerce websites like eBay, Overstock, or even Amazon itself during sales events.
- Scan and Analyze: Use tools and apps to help identify profitable products and analyze their price history. For instance, Amazon sellers often use the Amazon Seller App, Scoutify, Profit Bandit, or Keepa (a price tracking tool).
- Purchase the Product: Once you find a profitable product, the next step is to buy it in bulk (if possible). Retail arbitrage sellers purchase items in physical stores, while online arbitrage sellers will buy from online marketplaces.
- List the Product on Amazon: After acquiring the product, list it for sale on Amazon. You need to create a product listing if one doesn’t already exist, adding details like product description, images, and keywords to ensure it shows up in relevant search results.
- Ship the Product to Amazon FBA (Optional): If you use Amazon’s Fulfillment by Amazon (FBA) service, you can send the products to Amazon’s warehouses, and they will take care of storage, shipping, and customer service.
This makes the process more passive after the initial sale. If you opt for Fulfillment by Merchant (FBM), you handle the shipping directly to customers
- Monitor Sales and Adjust Pricing: It’s important to stay on top of your sales and inventory levels. If an item is selling quickly, you may want to raise the price slightly, but if it’s not moving, consider lowering the price to remain competitive.
Pros and Cons of Amazon Retail and Online Arbitrage
This online income avenue comes with benefits and drawbacks:
Advantages
- Low startup costs,
- Scalability and flexibility,
- No Need for manufacturing or creating products.
Disadvantages
- Time-consuming (finding profitable products. Visiting stores, scanning items, and analyzing pricing data),
- Highly competitive,
- Limited control over product pricing,
- Amazon’s strict rules.
9. Consider Dropshipping
Dropshipping allows you to sell products without holding inventory. When a customer makes a purchase, the supplier ships the product directly to them. This method minimizes upfront costs but requires careful supplier selection and customer service management.
How Does Dropshipping on Amazon Work?
To earn money through dropshipping on Amazon, you need to follow these steps:
- Set Up Your Amazon Seller Account: Register as an individual or professional seller.
- Choose a Niche and Products: Next, research trending products in a low-competition niche.
- Find a Supplier: Partner with a reliable supplier (e.g., AliExpress, SaleHoo) who will ship products directly to customers.
- List Products on Amazon: Now, you should create optimized product listings with detailed descriptions and attractive prices.
- Market Your Store: Drive traffic through Amazon ads or external marketing (e.g., social media).
- Receive Orders and Forward to Supplier: When an order is placed, send the details to your supplier, who ships directly to the customer.
- Customer Service: In the end, handle inquiries and feedback to maintain high ratings and ensure customer satisfaction.
Pros and Cons of Dropshipping on Amazon
Dropship reports that 12% to %33 of online retailers dropship on Amazon for extra income. There are benefits as well as drawbacks. Let’s dive into them:
Advantages
- Low startup costs,
- No inventory management,
- Wide product selection.
Disadvantages
- Low profit margins,
- Less control over shipping and fulfillment,
- Dependency on suppliers,
- Amazon’s strict policies.
FAQs: How to Make Money on Amazon
Here are a few common questions about making money on Amazon.
1. How Much Can You Earn with the Amazon Affiliate Program?
Earnings vary based on product categories and sales volumes. Affiliates typically earn commissions ranging from 1% to 20% per sale.
2. Can You Make Money on Amazon Without Selling Products?
Yes, methods like affiliate marketing, Kindle Direct Publishing, and Merch by Amazon offer opportunities to earn money without selling physical products.
With affiliate marketing platforms like AlgoRift, you can partner with brands to promote their products and earn commissions. These methods offer flexible, scalable ways to generate income without managing inventory or handling physical goods.
3. What Are the Pros and Cons of Selling Through Amazon FBA?
Pros include access to Amazon’s vast customer base and fulfillment services. Cons may include fees and potential competition.
Final Words
You learned how to make money on Amazon using various methods. In fact, this platform offers diverse opportunities for entrepreneurs at every level. Whether you choose to sell products, promote affiliate links, publish eBooks, or create custom merchandise, Amazon provides the platform and tools to turn your ideas into profitable ventures. Explore these methods, consider your strengths and goals, and start building your Amazon success story today.
