There is no escaping the fact that Amazon is an e-commerce giant that easily blows competitors of all sizes out of the water.
With sales of $10,000 per second, this money-making machine looks set to continue to dominate the e-commerce industry.
If you’re a budding e-commerce entrepreneur, one of the best ways of tackling the problem of Amazon has a threat is to look for how to make money on Amazon.
If you can’t beat them, join them. With plenty of options to sell through Amazon yourself, why not piggyback off their dominant market position?
Here’s the best way to make money on Amazon.
How to Make Money on Amazon Using FBA
FBA stands for ‘Fulfillment by Amazon.’ The way the concept works is that you sign up as an Amazon seller, buy products that you’d like to sell, and then Amazon ships your inventory through one of their many fulfillment centers.
All of your products will be listed on the Amazon website. Because Amazon is often the first place that customers go when looking for any item, you stand a higher chance of finding customers compared to going it alone as an unknown brand.
The top tips for making money on Amazon using FBA are:
- Source products that you know will sell – do some market research first to make sure that you get the right product mix.
- Ship products that are of high-quality – your reputation will be built on satisfied customers, so source products with high QC standards.
- Stock products with healthy margins- you’ll have FBA costs and taxes to consider on top of the unit cost. Find ways of maintaining maximum markup.
To maximize your sales, take advantage of Amazon Prime. With many customers preferring to use Prime, this will enhance your listings.
Amazon Seller Fulfilled Prime has eligibility requirements. You’ll need to achieve these minimum expectations regarding customer satisfaction and shipping quota before acceptance.
If you’re able to handle the shipping yourself, you can reduce your Amazon fees by picking, packing, and sending your inventory.
Before you do this, factor the time and money it would cost you to do to make sure it is more effective than using Amazon’s services.
While you may choose to import items in bulk to sell through Amazon, but there are shipping costs and import taxes that you’ll need to think about. In addition to this, to enjoy the benefits of buying in this way, you’ll need to buy in vast quantities.
The entry costs to this type of bulk buying may be prohibitive.
Using retail arbitrage techniques, you would source all of your products directly from retailers. Find heavily discounted products, buy as many as you can, and sell them at a higher price online.
There is a lot of work involved in sourcing your products in this way, but it can be an effective method to help you to start selling.
Private Label Selling on Amazon
Private label is one of the most popular and effective ways of selling on Amazon. This is sometimes referred to as ‘white label’ selling.
This is a good way of developing your brand. It is something that is used by major retailers.
Ever see an identical product packaged with different branding across two stores? This is very likely an example of private label selling.
To do this, you will buy unbranded products from manufacturers or suppliers and simply repackage the item with your branding and sell it.
You can make your sales using FBA
Selling Wholesale on Amazon
Instead of directly targeting retail customers using the Amazon platform, you could target retailers.
Using the Amazon Business, you will act as a supplier to other businesses. The platform will give you the ability to list products, generate quotes, and much more.
Amazon Business has a wide reach and is currently used by 55 of the Fortune 100 companies.
If you have a strong understanding of a specific type of product, you could sell some serious volume using this service.
What Other Ways of Selling are There on Amazon?
In addition to these services, there are many other Amazon money making tips that you can take advantage of.
You could create ebooks and sell them online using Amazon Kindle.
To do this, you will need to write the content, or find someone to write it for you. Then, you simply publish it and earn a cut of the sales.
If you don’t have a product to offer, there are still other ways of earning via Amazon. The Amazon Affiliates program and Amazon Mechanical Turk are two such examples.
If you run a blog or website that has a reasonable amount of visitors, you could promote products using the Amazon Affiliates program.
To do this, you will need to join the Affiliate program.
Once you’re accepted, you will simply reference a specific product on Amazon and use a link generated through the Affiliate account that will earn you a small commission on any sales that your blog post generates.
Many people earn a sizeable income by using affiliate links, and if you have a clear strategy, you can make this work well.
Amazon Mechanical Turk is a job board where users can pick up small jobs that will take minutes to complete.
These jobs will be completing tasks that computers cannot. These might be asking you to identify certain things within images, or they could involve data entry.
Tasks may only pay a few cents, but they’re quick enough to do that you can complete hundreds in a short time.
Make Money Your Own Way
All of these methods for how to make money on Amazon are tried and tested. Many people enjoy great success in doing it. It’s important that you find your own niche and make money in a way that you enjoy using Amazon.
If you enjoyed this guide to making money on Amazon, be sure and check out the rest of the articles on this site.