6+ Ways to Make Money on Amazon [2023]

Amazon has become one of the largest e-commerce sites in the world, with millions of customers and an extensive range of products. Starting a business with Amazon can require minimal start-up costs and provides access to customers worldwide. Because of it’s diversity, there are many opportunities for people to leverage their unique skill and knowledge set to start businesses and make money on the Amazon platform. 

From selling poplular products to becoming an Amazon affiliate, this article cover some of the many ways you can make money on Amazon.  

Why Make Money with Amazon?

Did you know that in 2018 over 50 percent of Amazon sellers made over half a million in revenue? Or that in 2019 and 2020, Amazon invested over 30 billion dollars into their sellers?  The platform is teeming with opportunity and advanced tools for individuals to cash-in on the platform’s unique marketplace and features.

Amazon has become a go-to platform for creatives and entrepreneurs looking to launch full-blown businesses, reach new customers for their existing e-commerce brands, or just make some extra cash on the side. Consumers love how quick and easy it is to shop on Amazon, and sellers capitalize on Amazon benefits like Amazon Prime and the Amazon Buy Box.

On top of this, the Amazon seller community is huge and loves to lend a helping-hand. You can attend one of many seller conferences to learn about the upcoming changes in the e-commerce world and get the opportunity to talk and network with your peers. 

How to Make Money on Amazon

1. Sell Private Label Products

Selling private label is one of the best ways to make money on Amazon. With a private label business, you’re purchasing products from third-party manufacturers and suppliers, and branding, marketing, and selling them under your own label. Major retail and grocery companies have been doing this for years. 

Pros

• No need to produce your own products
• Total control over branding and selling strategy 
• Sellers can price their products competitively 
• Can use Amazon’s customer service for any product or shipping issues

Cons

• High investment costs
• Risk of private brand failing
• Seller must follow the rules set in place by Amazon in order to keep their seller account
• Competition can make it hard for your product to stand out 

What’s even better about selling private label is that you can also take advantage of Amazon FBA. You won’t have to worry about where you’ll store your products or how you’re going to ship your products to consumers. 

Amazon FBA means: 

• Your more likely to win an Amazon Buy Box
• Amazon FBA products are eligible for Amazon Prime 
• Amazon handles all shipping and fulfillment
• Customers can speak with trained Amazon customer service representatives
• Access to worldwide markets

2. Retail Arbitrage on Amazon

Retail arbitrage is buying items at a low price from one retailer and then reselling them at a higher price on another platform. With retail arbitrage, you can purchase bulk items at a discounted rate and resell them on Amazon for a profit. 

Pros

• Faster to launch compared to selling private label
• Lower initial investment cost
• Opportunity to expand into other selling methods

Cons

• Limited control over product supply
• Limited control over pricing and profit margins
• Amazon may ban certain brands and products

3. Kindle Direct Publishing

Kindle Direct Publishing, or KDP, is a self-publishing platform that allows authors and publishers to easily upload and sell physical and digital copies of their books and other content, such as e-books, on Amazon. It’s easy to use, and it’s free to get started. With KDP, authors can control their pricing, access a wide range of promotional tools, and access reports and analytics that can help maximize book sales.

Pros

• Ability to publish both ebooks and paperback books
• Access to Amazon exclusive deals
• Amazon partnership with Audible

Cons

• Limited income
• Content limitations
• 90-day waiting before you can sell your book

4. Amazon Wholesale

Selling wholesale on Amazon involves buying large quantities of branded items from another producer, supplier, or distributor and then reselling them to customers to make a profit. Not only does this ensure you have adequate inventory, but it also gives you quick access to considerable income.

Pros

• Consistent inventory supply
• Can work with exclusive suppliers and negotiate rates
• Can use Amazon FBA

Cons

• High initial investment
• Lower profit margins
• Minimum order quantities

5. Sell Handmade Products with Amazon Handmade

This Amazon service is designed to provide artisans an easy and convenient platform to sell their unique, handcrafted products to customers worldwide. From handmade jewelry to custom décor, Amazon Handmade allows you to share and promote your creations with potential customers.

Pros

• No listing fees because Amazon does not charge for product listings
• Handmade sellers can use the professional plan for free instead of paying $39.99 a month
• Ability to reach a larger audience on Amazon compared to your own ecommerce platform

Cons

• There are higher seller fees because Amazon has 15% selling fee charged on each sale
• Competition from other Amazon sellers

6. Merch by Amazon

Merch by Amazon is an excellent platform for entrepreneurs, content creators, and businesses to create and sell their products to customers worldwide. All users have to do is create and upload their designs, choose a product type and color, and Amazon will handle the entire production, shipping, and customer service process. 

Pros

• Eligible for Prime shipping
• Saves time and money for storage and shipping
• User-friendly platform

Cons

• Limited product variety
• Higher competition

Alternative Ways to Make Money with Amazon 

People can make money on Amazon in many ways beyond selling products:

• Affiliate Marketing with The Amazon Associate Program: Using the Amazon Associate Program, you can sign up to become an Amazon affiliate and earn commissions from qualifying purchases made by customers you refer. With this program, you can make money by promoting products from Amazon’s vast selection of goods, from electronics to beauty products to books and more.
• Join the Amazon Influencer Program: This program allows you to create a dedicated page on Amazon to share your thoughts and experiences on products and earn a commission from any sales you generate. As an Amazon Influencer, you can access exclusive tools and content to help you promote products and grow your online presence.
• Sell Professional Services via Amazon Services: Amazon Services is an online marketplace that allows businesses to list their services and attract customers worldwide. Amazon Services offers a wide range of options to fit any professional service provider’s needs, allowing them to connect easily with potential customers and manage their services in one convenient place. 
• Work at a Fulfillment Center: Working at a fulfillment center is an great way to gain valuable experience in logistics, customer service, and operations. From packing and shipping orders to managing inventory and maintaining customer relationships, there are many rewards to working at a fulfillment center. 
• Deliver with Amazon Flex: Amazon Flex is an on-demand delivery service that allows you to pick up packages from local Amazon delivery stations and deliver them to customers in your community. With Amazon Flex, you can choose when and where you work, and you get to keep 100% of the tips you receive from customers. 
• Become a WFH Amazon Sales Representative: This type of job offers the flexibility to manage your hours and work on your schedule. As an Amazon Sales Rep, you will be responsible for helping customers find the products they need and making sure their orders are fulfilled. 
• Start an Amazon Marketing Agency: With the power of the world’s largest e-commerce platform, you can build a successful business that helps other businesses grow. As an Amazon marketing agency, you will be responsible for creating, implementing, and managing successful Amazon marketing campaigns for clients. 

Ready to Make More Money Selling On Amazon?

There are plenty of ways to earn money with Amazon, whether it is selling products with a private label or joining a specific Amazon program. Whatever method you choose, let Sellesta help you grow your sales. 
With Sellesta, you can easily create listings, track prices, and get insights into the best-selling opportunities. Use our AI to find the perfect keyword for your product listings, get optimized listing recommendations, or conduct customer review and competitive analysis to see how your listing compares to other sellers on Amazon.