Amazon is one of the most popular online retailers in the world, and it offers a variety of ways to make money. If you’re looking for a way to generate passive income, Amazon is a great option.
There are a number of different ways to make passive income on Amazon.
Make Money On Amazon
Each of these methods has its own pros and cons. In this article we’ll go through on how you can get started with each of these methods and how you can start making money from them. Some of these methods require more money to get started like Amazon FBA. But while it can take more money these is more chance to make money more as well.
Some of these methods are less riskier and require less money to get started such as Kindle Publishing or even Amazon Associates.
Amazon FBA
Amazon FBA (Fulfilment by Amazon) is a program that allows you to sell your products on Amazon without having to worry about shipping or customer service. Amazon will handle all of that for you, so you can focus on marketing and sales.
- Pros:
- You don’t have to worry about shipping or customer service.
- Amazon has a large customer base.
- You can sell a variety of products.
- Cons:
- There are high fees associated with Amazon FBA.
- It can be competitive to get your products listed on Amazon.
- You may need to invest in inventory.
How To Get Started With Amazon FBA
A. Create an Amazon Seller account.
To get started you’ll want to go onto the Amazon Seller Central website to create your own account. Once you have done this you can make start adding products to list on the Amazon website.
B. Research products that are in high demand and have low competition.
Researching products is super important because if you don’t you can just be stuck with inventory. A good way to start is to use a tool like Jungle Scout. JS is a paid tool however it can help you save so much time.
If you enter a particular keyword it can show you all the stats about a product to see how much money it is making, the ranking of the product, competition of a certain niche and much more. Using this tool you can find products with low competition but higher demand so you can than fill the need and create a product.
While this is a paid product, it can help and can aid you in finding a profitable niche to sell in.
D. Source your products.
Next you want to find a manufacturer who can help you create the product you want. You can either do this two ways. You can either white label a product – this is when a manufacturer has a existing product they already make and they put you product name and logo onto it.
Or if you have something bespoke you can also ask the manufacturers to make you something specific to your requirements.
A good place to start when looking for manufacturers is Alibaba. Alibaba is a B2B marketplace which has thousands of suppliers to choose from. Just search for the ones that can make you product and message a few.
Be sure to ask for samples from them as you want to make sure the product and the quality is up to standard.
E. Fulfil your orders through Amazon FBA.
Once you’ve found a manufacturer and you’ve received your inventory, you’ll want to then ship your shipment to the Amazon warehouse. First you’ll have to create your listing on Amazon Seller Central and once you’ve done that they will let you know which warehouse to send your shipment to.
You’ll just have to pay for the courier charge, stick the postage label on your shipment boxes and send them off to Amazon.
F. Market and sell your products
You’ve might of heard of the saying ‘build it and they’ll come’. Well, if you do this, you will probably have no sales. You need to do marketing in order to build an audience, and get customers.
One way you can get customers is using influencer marketing. Find someone on either TikTok or Instagram who is within your targeted niche and who has between 20,000 to 100,000 followers and DM them telling them about your brand and let them know you can send them free product for them to post about it.
Some might request payment but targeting influencers who have between 20,000 to 100,000 followers makes sure they are not to big and some of them still have that personal relationship with their followers. When the influencers post about your brand some of their followers may click over to the product and buy it. You can also give them a specific discount code.
Another way to get customers is through social media. Create Facebook, TikTok and Instagram pages for your business and post about your product.
Instead of being salesy, try posting informative, educational or even entertaining posts and videos. This includes showing the different uses of your product and who your product is intended for. Read this article if you want more ideas on what to post.
Check out this article if you want to know how to market and sell your products on Amazon FBA as we go in more detail in the article.
Kindle Publishing
Next up is Kindle Publishing. Kindle publishing is a program that allows you to self-publish ebooks on Amazon. You can earn royalties on every book that you sell, and you don’t have to worry about printing or distributing your books.
How To Get Started With Kindle Publishing
A. Create a Kindle Direct Publishing account.
The first step to getting started with Kindle Publishing is to go onto the Kindle website and register an account so you can start publishing ebooks.
Fill in your personal details and bank account information so you can get paid correctly as well.
B. Write and format your ebook.
Writing your book is not as hard or as daunting as it sounds. First of all you’ll want to research your niche and decide if you want to write about non-fiction or fiction. If you are a creative individual with a knack for story telling, then you might want to have as go at writing fiction.
If not you can write non-fiction books. When choosing non-fiction niches you want to choose something that is in demand and will be profitable. Some profitable niches are:
Business & Investing
Health & Fitness
Cooking
Self Help
C. Set a price for your ebook.
Pricing is important when it comes to setting the price of your ebook as it can affect the amount of royalties paid out to you. If you price your self between $2.99 – $9.99 you can get paid 70% royalties. If you price price at $0.99 you can get paid 35% royalties.
How you price your book depends on your goals for your book. For example if you are a new author and want to drive some sales and get reviews for your book it might be a good idea to set the price of your book for $0.99.
D. Promote your ebook.
Now that you have your book live, you’ll want to promote your book. The biggest mistake you can make is publishing your book and hoping people will download your book. That is simply not the case! You will have to promote and market your books to get sales. Some ways you can promote your books are:
Social Media
You can promote your books on social media like Instagram and TikTok. If you don’t have a large enough following you can buy paid shoutouts and promo posts on other Instagram and TikTok pages.
Description and Keywords
Make sure your books are optimized and keywords are correct for the books so you book can be found in search. Use keywords that are to do with your book. For example if your book is to do with investing then you can use words like investing and make money , etc. Check out this article if you want to find more information on how to find keywords.
- Pros:
- You can self-publish your ebooks without having to go through a traditional publisher.
- There are no upfront costs.
- You can earn royalties on every book that you sell.
- Cons:
- It can be difficult to stand out from the competition.
- It takes time to build an audience.
- You may need to invest in marketing.
Amazon Flex
Amazon Flex is a program that allows you to deliver Amazon packages to customers. You can set your own hours and work as much or as little as you want.
How To Get Started With Amazon Flex
To become a Amazon Flex driver you’ll need a smartphone with an internet connection and a car. It’s very easy to get started.
A. Sign up for Amazon Flex:
- Go to the Amazon Flex homepage.
- Click on the “Become a Driver” or “Get Started” button.
B. Complete the registration process:
- Provide personal information such as your name, email address, and phone number.
- Fill out details about your vehicle, including make, model, and license plate number.
- Submit any required documentation, such as your driver’s license and proof of insurance.
C. Complete your background check: A. Consent to the background check:
- Amazon will send you an email with instructions to consent to the background check.
- Follow the provided link and provide the necessary information.
D. Once approved. Schedule your shifts:
- Visit your smartphone’s app store and search for “Amazon Flex.”
- Download and install the app on your device.
- Start working!
Amazon state on their website that Amazon Flex drivers can make between $18 – $25 per hour. However bare in mind that it may not be consistent and there can be periods when it is less busy.
You would also have to take out expenses such as fuel, maintenance of your car, insurance, etc.
Making passive income on Amazon is a great way to generate additional income. With hard work and dedication, you can earn a significant amount of money Amazon Flex.
While this is more of a hands on role than the others on the list, if you enjoy driving than this may be for you.
Amazon Associates
Amazon Associates is Amazon’s affiliate program which you can earn commission anywhere from 1% – 20% depending on the category.
If you are a blogger, influencer or have a following it can be a good idea to become an affiliate for Amazon. You will just be recommending products available on Amazon and if a person buys through your link then you get paid a small commission for that sale.
How To Get Started With Amazon Associates
It’s very easy to get started with the Amazon Associates program.
- Go to the Amazon Associates homepage.
- Click on the “Join Now for Free” or “Sign Up” button.
Enter your website or app details:
- Provide information about your website or app, including its name, URL, and description.
- Describe your content and target audience to help Amazon understand your promotional approach.
Verify your identity and provide tax information:
- Verify your identity by providing your phone number and entering the verification code.
- Provide your tax information, such as your Social Security Number or Tax Identification Number.
Choose products to promote: A. Explore the Amazon Associates dashboard:
- Log in to your Amazon Associates account.
- Familiarize yourself with the dashboard’s features and options.
Search for products to promote:
- Use the search bar or browse categories to find products relevant to your target audience.
- Consider products with high demand, good customer reviews, and competitive prices.
C. Generate affiliate links:
- Click on the “SiteStripe” or similar tool in the Amazon Associates dashboard.
- Select the desired product and generate a unique affiliate link.
III. Optimize your affiliate strategy: A. Understand your audience:
- Research your target audience’s preferences, interests, and needs.
- Tailor your content and product recommendations accordingly.
B. Create high-quality content:
This can include creating well researched blog posts or even content for social media like video or even photo posts. You will want to create high quality content that is engaging with your audience.
For example for social media you can create ‘Day in the Life’ type content where you show what you do during your day and in the video you can throw in a couple of product recommendations that you use.
D. Utilize various promotional channels:
- Leverage your website, blog, or social media platforms to reach your audience.
- Consider using email marketing, YouTube videos, or podcasting to promote products.
Final Words
Amazon presents a wealth of opportunities for generating passive income. Whether it’s leveraging FBA to sell physical products, self-publishing e-books through Kindle Direct Publishing, or becoming an Amazon Flex driver, the potential to earn passive income is vast.
Before you embark on your journey to start to make money on Amazon, here are some important things to consider.
- Do your research: Before you start selling products on Amazon, it’s important to do your research and make sure that there is a demand for the products that you want to sell. You can use Amazon’s own research tools to help you with this.
- Set competitive prices: When you’re setting prices for your products, it’s important to set them competitively. If your prices are too high, you’ll likely have trouble making sales.
- Provide excellent customer service: Customer service is essential for any business, but it’s especially important for businesses that sell products on Amazon. Make sure that you respond to customer inquiries promptly and courteously.
- Be patient: It takes time to build a successful business on Amazon. Don’t expect to start making a lot of money right away. Just keep working hard and you’ll eventually start to see results.
By carefully considering the pros and cons of each method, conducting thorough research, and implementing effective strategies, individuals can embark on a journey to create successful passive income streams on Amazon. Remember, dedication, ongoing learning, and adaptability are key to long-term success in the ever-evolving world of e-commerce.
