Editor’s Note: This story originally appeared on The Penny Hoarder.
The average American spends $92 per month on Amazon. U.S. consumers received nearly 6 billion packages from those ubiquitous Amazon vans in 2023.
With all the spending, have you ever wondered how to make money on Amazon?
From affiliate links to writing a book, there are a lot of ways to get a piece of the pie. Here’s a helpful guide on how to make money on Amazon.
Use this guide to find an approach that fits your skills, time and money goals.
1. Sell Products on Amazon
You can list virtually anything for sale on Amazon as a third-party seller. You can expand your inventory beyond just things in your house, although that is one way to start. Here are some common sources of products:
- Personal Items: Yes, you can start by selling items from your house. This is a great way to declutter and make money from things you no longer need. Ensure these items are in good condition, especially if they are used. Note that there are seller fees and requirements before you get started.
- Retail Arbitrage: This involves buying products from retail stores (either online or brick-and-mortar) at a discount and then selling them on Amazon for a profit. This method requires research to find deals and understand what products have a higher resale value on Amazon.
- Online Arbitrage: This is similar to retail arbitrage, but it involves buying discounted products online from various e-commerce websites and reselling them on Amazon.
- Wholesale: Purchasing products in bulk directly from manufacturers or wholesalers at a lower price and selling them individually on Amazon. This method often requires a larger upfront investment but can lead to more significant profits.
- Dropshipping: You list products for sale on Amazon, and when a customer buys them, you purchase the item from a third party that ships it directly to the customer. This method doesn’t require you to hold any inventory.
- Private Label: This involves sourcing generic products from manufacturers, branding them with your label, and selling them on Amazon. This method can be more complex as it involves branding and marketing, but it can also be more profitable.
- Handmade Goods: If you’re crafty, you can sell your handmade items on Amazon. Handcrafted items can include anything from jewelry to handmade soaps, and there’s a market for these unique products.
The right approach for you depends on your goals, resources, and interests. For instance, selling personal items might be a good way to start with little investment, but if you’re looking to scale up, wholesale or private label might be more suitable.
Popular New or Used Items to Sell on Amazon
The most popular products to sell on Amazon include home products, electronics, clothing, and fitness equipment. You can sell new or used items, although some categories lend themselves more to new, such as baby products.
- Home and Kitchen Products: Sell both new and gently used items, like cookware, home decor, and small appliances. Ensure used items are clean and in good condition, and clearly state their condition in the listing.
- Electronics and Accessories: Offer new, refurbished, or used electronics like smartphones and laptops. For used electronics, provide detailed descriptions of the item’s condition and functionality.
- Beauty and Personal Care: Primarily sell new items due to hygiene concerns. Ensure products are sealed and follow Amazon’s guidelines for beauty products.
- Books: Both new and used books are popular, including fiction, non-fiction, and textbooks. Describe the condition of used books accurately (e.g., highlighting, wear and tear).
- Clothing, Shoes, and Jewelry: Focus on new items, but you can sell some used or vintage clothing and jewelry. Ensure used items are clean and well-maintained, and provide accurate size and condition details.
- Fitness and Sports Equipment: Sell new or gently used items like weights, yoga mats, and sports gear. Highlight any wear and tear on used items and offer competitive pricing.
- Toys and Games: New items are preferred, but you might sell some collectible or lightly used toys and games. For used items, ensure all parts are included and in good condition.
- Baby Products: We recommend new products due to safety and hygiene. If selling used items, you should thoroughly clean them and ensure they meet safety standards.
- Pet Supplies: Mainly sell new items, especially consumables like food. Used items like aquariums or cages should be clean and in excellent condition.
- Auto Parts and Accessories: Sell both new and used parts, but ensure used parts are functional and well-described. Include detailed installation instructions and compatibility information.
- Health and Household: Primarily sell new items for safety and hygiene reasons. Check expiration dates and storage conditions for health products.
- Gourmet Food and Grocery: Sell only new and unopened food items. Ensure proper packaging and adhere to expiration dates.
- Crafts, Arts, and Sewing: Both new and used crafting supplies can be sold. For used items, ensure they are complete sets and in good condition.
- Office Products: Sell new items or used items in like-new condition. Provide detailed descriptions of used items, including any signs of wear.
Tips for Selling Used Items on Amazon
If you’re selling used items on Amazon, follow these tips for successful transactions.
- Condition Descriptions: Accurately describe the condition of used items. Be transparent about any defects, wear, or damage.
- Competitive Pricing: Price used items competitively, considering their condition and the availability of similar new items.
- Quality Images: Use high-quality images that clearly show the item’s condition.
- Clear Return Policy: Have a clear return policy to handle any issues with used items.
- Customer Communication: Be responsive to customer inquiries about the condition and specifics of used items.
- Packaging: Ensure you package your items well to maintain their condition through shipping.
Selling used items on Amazon can be lucrative if handled with care and transparency, catering to customers looking for more affordable or unique options.
Next are steps to sign up as an Amazon seller.
Step 1: Research and Plan
Before diving into the world of Amazon selling, do your research. Understand the current market trends, identify in-demand products, and analyze the competition.
This step is about laying a solid foundation for your business plan. Consider factors like your budget, target audience, and potential profit margins.
Step 2: Set up Your Amazon Seller Account
To start selling, create an Amazon Seller account. You will choose between two types of accounts: Individual or Professional.
Individual accounts are suitable for sellers planning to sell fewer items, while Professional accounts are ideal for higher-volume sales.
Provide the necessary information, including business details, tax information, and bank account details.
Step 3: Choose Your Fulfillment Method
Amazon offers two main options: Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM).
FBA allows Amazon to handle storage, packing, and shipping for you, whereas FBM requires you to manage these aspects yourself.
Consider your resources and preferences when choosing the right method for your business.
Step 4: Find or Create Your Products
This step involves either sourcing products to sell or creating your own. If sourcing products, establish relationships with reliable suppliers.
For those creating unique products, focus on quality and differentiation. Always keep Amazon’s policies and quality standards in mind to avoid potential issues.
Step 5: Optimize Your Product Listings
Creating compelling and detailed product listings is key to attracting customers.
Use high-quality images, provide clear and concise descriptions and incorporate relevant keywords to improve visibility. Also, consider a pricing strategy that makes your products competitive yet profitable.
Step 6: Manage Your Inventory
Effective inventory management is vital to prevent stockouts or overstock situations.
Regularly monitor your inventory levels and predict future demand to ensure you always have enough stock to meet customer orders.
Step 7: Promote Your Products
To increase visibility and sales, consider using Amazon’s advertising tools such as Sponsored Products, Sponsored Brands, and the Amazon Influencer Program.
Additionally, employ external marketing strategies like social media promotion, email marketing, and SEO optimization on your own website.
Step 8: Monitor Performance and Optimize
Regularly review your sales data, customer feedback, and other performance metrics. Use this information to optimize your listings, adjust pricing, improve customer service, and refine your overall strategy.
Staying adaptive and responsive to market changes is key to long-term success on Amazon.
How to Choose Whether to Take the FBA Route
Deciding between Fulfillment by Amazon (FBA) and Fulfillment by Merchant (managing your own logistics) is a critical step in your journey as an Amazon seller.
Here are key factors to consider when determining if FBA is the right choice for you.
Understand the FBA Model
FBA means Amazon takes care of storage, packaging, shipping, and customer service for your products. This model is designed to simplify the seller’s responsibilities but comes with specific costs and guidelines.
Evaluate Your Product Categories
Some products are more suited for FBA than others. Lightweight, small, and non-fragile items usually yield better margins with FBA due to lower shipping and storage costs.
Conversely, higher fees might make large, heavy, or slow-moving items less profitable.
Consider Your Sales Volume
FBA can be more cost-effective for sellers with high sales volumes, thanks to economies of scale. If you’re selling many products regularly, FBA’s streamlined process can save time and potentially reduce shipping costs.
Analyze Cost Implications
Carefully assess FBA fees, including storage and fulfillment fees. Compare these costs against what it would cost you to store, pack, and ship products yourself.
Remember to factor in the potential savings in time and labor with FBA.
Try Amazon’s FBA profitability calculator.
Factor in Geographic Reach
FBA might give you an advantage in expanding your reach.
Amazon’s vast logistics network can help you deliver products to a broader audience more efficiently, which can be particularly beneficial if you’re looking to scale up.
Assess Your Control Needs
With FBA, you’ll have less control over the packing and shipping process.
If you have specific requirements for packaging or want closer control over inventory, self-fulfillment might be a better option.
Look at Customer Service and Returns
Amazon handles customer service and returns for FBA products, which can be a significant advantage.
However, if you prefer to manage customer interactions personally, consider this in your decision.
Think About Prime Eligibility
FBA products are automatically Prime-eligible, which can boost sales.
Prime customers often search for products with this benefit, so using FBA can increase your product’s visibility and appeal to a large customer base.
Reflect on Your Long-Term Strategy
Consider your long-term business goals. If scaling your business quickly is a priority, FBA might offer the necessary infrastructure and resources to grow efficiently.
For more niche businesses or those with unique products, maintaining control through self-fulfillment could align better with your brand strategy.
2. Get an Amazon Warehouse Job or Driver Job
To get a job at an Amazon warehouse or as a driver, follow these steps:
- Apply Online: Start by applying online through Amazon’s job portal. For hourly warehouse roles, you don’t need a resume. You must provide some basic information about yourself and select your preferred shift. This process typically takes about 20 minutes. For those without a formal resume, it’s still okay to apply; just briefly describe your background, experience, educational achievements and skills.
- Attend a Pre-Hire Appointment: After applying, you’ll be invited to an in-person pre-hire appointment. Make sure to bring proof of your identity and employment eligibility. This appointment is a part of the application process and is not paid.
- Day 1 at Amazon: You’ll receive an email with schedule details for your first day. Before arriving, you must complete some pre-hire checklist items, including checking your contingent offer status, accepting the job offer, completing employment paperwork, ordering safety shoes (Amazon provides a credit), and setting up your employee account.
- Onboarding and Training: On your first day, you will receive onboarding and training, including important safety rules. The training could be at a different location than your assigned warehouse, so check your welcome email for details.
- Work Attire: Be sure to wear proper attire, which includes closed-toed shoes, no jackets or hoodies with drawstrings, no long necklaces, no hoop earrings, and long hair pulled back and up.
- Job Alerts: You can sign up for job alerts by texting a specific code to receive updates on new job opportunities.
- Remote Opportunities: While most hourly jobs require being at a local Amazon facility, some roles in customer service and corporate may offer partial remote or work-from-home potential.
As a Fulfillment Center Warehouse Associate, you’ll be part of the team that prepares customer orders. This includes receiving and putting away inventory, preparing customer orders, packing them up, loading boxes onto trucks, using scanners to read barcodes, and ensuring product quality.
Amazon offers benefits like flexible shifts, career development opportunities, a great team environment, competitive pay, and on-the-job training.
3. Deliver Packages for Amazon Flex
The Amazon Flex program offers a flexible opportunity to make money by delivering packages.
As a delivery partner with Amazon Flex, you can deliver various products from Amazon.com, Prime Now, Amazon Fresh, and even food from local restaurants.
Here’s what you need to know about making money with Amazon Flex.
Flex Earnings and Payments
- Income Potential: Amazon Flex advertises $18 to $25 per hour. However, this is not a guaranteed hourly wage but an estimate based on the flat rate paid for each delivery block. For example, a four-hour block might pay $72, equating to $18 per hour. Your actual earnings can vary based on the time taken to complete deliveries.
- Payment Schedule: Earnings are directly deposited into your bank account with payments processed every Tuesday and Friday.
Flex Scheduling and Workload
- Flexibility: One of the main attractions of Amazon Flex is the ability to choose your schedule. Delivery blocks can be booked in advance or grabbed last minute, and they vary in length, typically ranging from three to six hours.
- Block Availability: It’s important to note that delivery blocks are not guaranteed and are available on a first-come-first-served basis. The Flex app is where you’ll find and reserve these blocks.
Vehicle and Equipment Requirements
- Vehicle Types: Depending on the type of delivery, you can use various vehicles. For Amazon.com deliveries, you need a four-door midsize sedan or larger, while for Prime Now, any car will suffice. In some areas, even bikes are acceptable.
- Smartphone: A capable smartphone is essential for accessing the Amazon Flex app. The app is crucial for navigation and scanning package barcodes.
Independent Contractor Status
- Expenses: As an independent contractor, you’ll be responsible for all associated expenses like gas, parking, tolls, and vehicle maintenance. Using reward apps for saving on gas can be a useful.
- Taxes: Amazon doesn’t withhold taxes from your earnings. You’ll receive a 1099 tax form and must set aside a portion of your earnings for tax purposes.
Tips to Increase Your Flex Earnings
- You can increase your earnings by accepting different types of deliveries, such as Amazon Logistics, Amazon Fresh, Prime Now, and Amazon Restaurants. The most common type is Amazon Logistics, which includes regular shipments and same-day shipping options.
- Combine Amazon Flex with other delivery gigs like DoorDash, Instacart, or Uber Eats. This approach helps maintain a consistent income, especially during slower periods with Amazon Flex.
How to Sign Up for Amazon Flex
The process involves downloading the Amazon Flex app, completing a background check, and meeting the vehicle and age requirements.
While the program recruits in various areas based on need, there’s an option to join a waitlist if your city isn’t currently listed.
Remember, while Amazon Flex offers flexibility and a variety of delivery options, it’s primarily designed for part-time income.
The actual earnings can vary based on several factors, including delivery type, location and individual efficiency.
4. Work From Home for Amazon
One of the best ways to make money on Amazon is to work remotely for the company.
Amazon consistently recruits new employees across its platforms, but the work-from-home customer service jobs prove most popular with our readers.
Why? These positions are fairly entry-level, and you can work from your couch. If you’re looking for something temporary, you can snag a seasonal gig around the holidays.
Amazon Customer Service Positions
Customer service roles typically involve interacting with customers through phone, chat, or email. These positions focus on addressing customer inquiries, resolving issues, and providing support.
The average pay is about $16 per hour.
Generally, these roles require a high school diploma or equivalent and some customer service experience. Proficiency in English and basic computer skills are also essential.
A reliable wired internet connection is necessary for these roles.
Technical and Other Roles
Apart from customer service, Amazon offers various remote roles such as Virtual Technical Support, Virtual Sales Specialist, Virtual Recruiter, Content Writer or Editor, and more.
Technical roles like Cloud Support Engineers and Technical Program Managers are also available.
Getting an Amazon Remote Job
- How to Apply: Visit Amazon’s remote jobs page, create an account, explore job opportunities, tailor your resume, and submit your application.
- Recruitment Process: Amazon’s recruitment process for remote jobs includes a resume review, initial screening, skills assessment, behavioral and technical interviews, and a thorough virtual interview setup.
- Tips for Success: To increase your chances of success, demonstrate your ability to work independently, manage time effectively, and communicate remotely. Familiarize yourself with Amazon’s Leadership Principles as they form the basis of interview questions.
Remember, the nature of remote work at Amazon can vary, with some positions allowing full remote work while others might require occasional office visits during the onboarding process or part-time in-office work.
5. Use Amazon’s Affiliate Program
Want to know how to make money on Amazon with just the click of a link? Amazon Associates, the affiliate marketing program, is a great way to monetize your website or blog.
Basically, you make money with Amazon affiliates by adding Amazon’s special affiliate links to Amazon products you’ve written about or reviewed, and when a reader clicks your link and makes a purchase, you’ll earn a commission. This is called affiliate marketing.
Here’s an example: You use a fancy new kitchen gadget and want to write a product review. Use an affiliate link in your review. When someone clicks to buy that awesome gadget, you’ll pocket up to 10% of the purchase price.
Realistically, you might not earn a ton of money through the affiliate program, but it’s free to join, so there’s no loss in adding these into posts you’re already writing and sharing.
6. Write a Book
Did you know you can use Amazon to become an author? Self-publishing a book can be a great way to earn passive income.
Amazon offers several options, including publishing to Kindle, print or audio.
Publishing a Kindle book is free. It also takes less than five minutes (not including writing time, of course), and your book will be available to millions of readers within 24 to 48 hours. You’ll earn up to 70% royalty through Kindle Direct Publishing.
You’ll also keep the rights to your book, set your own list prices and can make changes within the book after publishing.
Publishing to print through Amazon’s print-on-demand service is also free. Here, you can create, publish, and distribute your book within a few days. You’ll still own your copyright, and you set your list price. You’ll also earn up to 60% royalties.
Finally, through Amazon’s Audiobook Creation Exchange, you can publish audiobooks, which you can distribute through Audible, Amazon, and iTunes. You’ve got several royalty rate options here.
7. Join Mechanical Turk
If you’re technically savvy and want to know how to make money on Amazon, consider working behind the scenes with the company’s crowdsourcing marketplace. Amazon’s Mechanical Turk offers a variety of “microtasks” known as Human Intelligence Tasks (HITs).
These include data entry, audio, and video transcriptions, categorizing images, evaluating items for quality, answering surveys, data collection, and more. The tasks are generally repetitive and require minimal effort.
The earnings on Mechanical Turk are relatively low, generally ranging from $2 to $7 per hour. On the plus side, you can choose when to work and for how long.
There’s also the option to cash out daily without any minimum amount required. The tasks do not require specialized skills, making them accessible to many users.
Users must be at least 18 years old, have a stable internet connection and an active PayPal account for receiving payments.
8. Apply to Amazon Handmade
Love to craft and wondering how to make money on Amazon? Consider Amazon Handmade — the “Etsy of Amazon.” It’s a platform for artists to sell their own products.
To sell on Amazon Handmade, you must set up a Professional Seller Account on Amazon. This typically costs $39.99 per month, but Amazon may waive this fee for Handmade sellers for a certain period.
The next step is applying to become an Artisan. This involves providing personal information, details about your organization and production process, and the category of products you plan to sell.
Supporting documents like high-quality pictures of your products or your production process may be required.
Upon approval, you can list your handmade items. This requires clear and accurate product titles, descriptions, prices, and images. It’s important to craft compelling content that emphasizes the uniqueness and value of your products.
Joining Amazon Handmade is free, but when you make a sale, there’s a 15% referral fee. The $39.99 monthly subscription fee for a Professional selling account is waived for approved applications after the first month.
Payments are either directly deposited into your bank account every two weeks or go to your Amazon Payments account, from which you can transfer funds to your bank or use them to buy products on Amazon.
As a Handmade seller, you need to handle shipping yourself. This includes using quality materials for packaging, offering different box sizes, insuring valuable items, and ensuring fast order processing.
9. Sell Your T-Shirt Designs
Merch by Amazon allows you to upload your T-shirt designs, choose product types and colors, set prices, and create product descriptions. Amazon then creates a product page and handles production, shipping and customer service.
You can set your own prices and earn royalties on each sale. For example, a standard T-shirt sold at $15.99 in the U.S. marketplace might earn you a royalty of $2.21. As the selling price increases, so does the royalty.
For instance, a T-shirt priced at $17.99 might bring a royalty of around $3.72, and this amount increases progressively with higher prices, reaching up to about $9.77 for a T-shirt priced at $25.99.
It’s important to remember that these figures are not fixed and can vary based on multiple factors like the marketplace, the product category, and Amazon’s fees and costs, which include fulfillment, materials, production, customer service, and more.
The platform requires an application process, and the market has become more saturated, so patience and creativity are crucial.
10. Link up With Amazon’s Influencer Program
Always wanted to be a social influencer? Well, Amazon has a program for that. (Of course!)
The Amazon Influencer Program has evolved to be an effective platform for influencers to monetize their social media presence.
The program is open to influencers with a strong presence on Instagram, YouTube, TikTok, or Facebook. Amazon evaluates applicants based on the number of followers, engagement rates, and content quality.
While there’s no specific minimum follower count, a strong, engaged follower base is crucial.
Influencers earn commissions varying from 1%-10% on sales generated through their custom storefronts on Amazon.
This includes sales from a wide range of products available on Amazon, except for certain non-commissionable categories like gift cards and alcohol.
Applying to the Amazon Influencer Program is straightforward. You must sign up on the Amazon Influencer Program website and link your social media account.
Approval can be instant or may take up to five days, depending on the platform you apply with.
Influencers can benefit from Amazon’s high brand trust and flexibility in product promotion. Focus on niche products and create authentic, engaging content.
Influencers can also repurpose Amazon review videos for other social media platforms to increase reach.
Creating an attractive and personalized storefront is vital. This includes a logo, background image, page title, tagline, and accurate product descriptions.
Promoting your storefront on various platforms using tools like Site Stripe can enhance visibility and sales.
11. Trade in Your Used Tech
Wondering how to make money on Amazon with old tech products? Amazon has a trade-in program!
If you’ve got old items sitting around, including gaming consoles, Kindles, books, phones, tablets, and smartwatches, Amazon will take them and send you a gift card in return.
Depending on your location, it can take up to 10 days to get paid in Amazon gift cards. (Sorry — no cash with this one, but gift cards are nice, too!)
Choosing How to Make Money on Amazon
To choose your approach, consider these factors:
- Skills and Interests: Reflect on your strengths and what you enjoy doing. For instance, designing T-shirts or creating handmade goods might be your forte if you’re creative. If you have a strong social media presence, the Influencer Program could be a great fit.
- Resources: Consider your resources, including time, money, and expertise. Some Amazon ventures require more upfront investment, like wholesale or private label selling, while others, like Amazon Flex or Mechanical Turk, require more of your time than money.
- Market Trends: Stay informed about current consumer behavior trends and Amazon’s popular product categories. This will help you understand what products or services are in demand and can guide your decision.
- Growth Potential: Consider how much you want to scale your business. Some methods (like selling products) offer significant growth potential, while others may be more suitable for supplemental income.
- Risk and Return: Weigh each approach’s potential risks and returns. Higher-risk options like private labeling may offer higher returns but require more capital and risk management.
- Time Commitment: Consider how much time you can dedicate to your Amazon venture. Some options require consistent effort and time, like managing an Amazon store, while others, like the Affiliate Program, can be more passive.
- Compliance and Regulations: Ensure you understand and can comply with Amazon’s policies and regulations for sellers, affiliates, or content creators.
- Long-Term Viability: Consider the long-term viability of your chosen approach. Some trends may be temporary, so choosing a business model with the potential for sustainability and growth is important.
- Personal Goals: Align your choice with your personal and financial goals. Whether it’s building a full-fledged business or earning extra income, your approach should match your objectives.
By carefully evaluating these factors, you can choose an Amazon money-making strategy that suits your unique situation and sets you up for success.
Future Trends on Amazon
As Amazon continues to evolve, staying ahead of future trends is crucial for anyone looking to make money on the platform. Here are some potential trends to watch:
- Increased Demand for Eco-Friendly Products: With growing awareness of environmental issues, there’s likely to be a surge in demand for sustainable and eco-friendly products. Consider offering products that are organic, recyclable or have a lower environmental impact.
- Growth of Private Label Brands: Private labeling is expected to grow as sellers seek to establish their own brands on Amazon. This approach can offer higher profit margins and brand loyalty.
- Expansion of Amazon’s Global Footprint: Amazon’s expansion into new international markets may offer opportunities for sellers to reach new customer bases.
- Rise of Voice Shopping: With the increasing use of smart speakers like Amazon Echo, voice shopping might become more prevalent, influencing how products are listed and discovered on Amazon.
- Advancements in AI and Machine Learning: These technologies could enhance personalized shopping experiences, suggesting new opportunities for targeted marketing and product recommendations.
- Increased Use of Amazon Advertising Tools: As competition on the platform grows, effective use of Amazon’s advertising tools will become more important for sellers to stand out.
- Growth in Amazon Services and Subscriptions: Services like Amazon Prime, Audible, and Kindle Unlimited might expand, offering new opportunities for affiliates and content creators.
- Enhanced Focus on Customer Experience: Sellers who prioritize customer experience, including faster shipping, easy returns, and superior customer service, will likely see more success.
- Innovations in Fulfillment and Logistics: Amazon may introduce new fulfillment and logistics solutions, impacting how sellers manage inventory and fulfillment.
- Evolution of Amazon Influencer Program: The program might expand with new features and opportunities, especially for influencers with niche audiences.
Staying informed about these trends can help you adapt your strategies and capitalize on emerging opportunities on Amazon.
