Amazon is the world’s largest marketplace and is seeing continual growth, year after year. While you may be thinking that you’ve missed the e-commerce wave when you take a look at the numbers your fears will be dispelled away.
While the days of e-commerce pioneers are over, don’t let that discourage you. They have left behind the roadmap to success, so newcomers can easily get started. There are multitudes of ways you can make money on Amazon, but here are the 5 most profitable ones. Each of them will require that you dedicate your attention, time and effort into making your venture profitable.
So, if you feel you’re up to the task let’s get right to it!
Retail arbitrage is the simplest and easiest way to make an extra buck on Amazon, but it’s also the one where you will be spending most of your time.
The business model is quite simple. You will browse around retail stores in the discount section, such as Walmart, and Target looking for products that you can resell on Amazon for a profit.
The good news it’s quite easy to do, the bad news is that it’s quite competitive and since you will be spending most of your time browsing the discount section in other stores, it’s quite impossible to scale.
Since the barrier to entry is almost nonexistent, over the years more and more people have picked up on this method for making money and now you can be expected to have stiff competition when it comes to reselling.
You can expect a payday of about a few hundred dollars to a few thousand dollars per month, but when you account for the value of your time into the equation, it may not be worth it.
This method requires a bit more skill from your part, but if you do it right you can expect a passive income each month.
The business model is quite simple. First, you have to join Amazon affiliate program, where you will be provided with unique links to products you’re looking to promote. You build a blog about a certain niche with said products where you provide answers and helpful guides to potential customers. If they happen to click on your link and end up buying the product you get a nice commission!
The commission ranges from about 3-5%, so if you really want to make it work you need to have a large volume of people visiting your site.
It’s a great way for anyone starting his online business, but you should expect that it will take some time (from half a year to a month) before you can expect regular paychecks in the 4 figure dollar amounts.
Even then, there is no guarantee of success. It all depends upon you choosing the right niche, which enough volume and low competition as well as on you providing value for the customer.
If you have a knack for writing and and are passionate about a certain niche, this may be the best method for you to make money online.
If you have a bit more cash to invest in and are ready to start your journey as an internet marketer, being a wholesale seller could be a job for you.
More and more companies are putting their inventory up on Amazon since they are quite aware of how gargantuan the company has become, but not all companies want to spend their time optimizing their listing.
That is where you come into play.
You will be selling their products in bulk and earn a nice profit while doing so.
The good news is that if you have mastered the skill of optimizing your listing, you know how to improve your BSR (best seller rank) and you are good at selling, making money through this method will be quite easy.
The bad thing is that it’s become increasingly harder to make money using this method since it’s quite unlikely that you will be the only one selling the companies product. And if a pricing war ensues, you can expect a race to the bottom. Together with your profit margins.
The trick to making money is being able to find products that sell at a low-enough price.
If you are willing to invest a few thousands of dollars to make your own branded product which you will sell on Amazon using FBA network, you may expect huge success in a relatively short period of time.
Among them was to make money on Amazon the process of white-labeling (sourcing unbranded products on sites such as Alibaba and branding them) is the most expensive one, but also the most profitable one if done correctly.
Since the costs associated with selling your own private label products are high, not many people are willing to invest in that opportunity. So, you can expect to have less competition.
The process is quite simple:
The great thing about private labeling is that you can always expect there will be new trendy products. People are buying more and more stuff on Amazon ever so frequently. So, if you manage to read the trends correctly, you can hit the goldmine.
The bad thing about this method is that a lot of Chinese companies are starting to sell their product directly on Amazon. But, if you are good at marketing you can still come on top.
Publishing your books has never been so easier thanks to Amazon’s Kindle Direct Publishing.
In the 21. Century no such things as publishers or distributors are necessary. Thanks to Amazon you can publish your book with no effort at all.
Of course, if you are not a writer this method may not appeal to you, but you can still make money by creating beautiful notebooks designs and planners.
For real success though, you should strive to find a niche you’re knowledgeable and passionate about so you can truly dominate it.
Publishing just one or two books will hardly get you anywhere with KDP, the real success is volume.
Write as many books as you can, so that your work completely fills the needs of that niche. There is a lot of upfront work involved, but if you’re good at it, you can expect a nice paycheck every month without having to lift a finger.
There hasn’t been a better time to jump in the Amazon bandwagon and join thousands of other people making money in that marketplace. Dispell any notion that the boat has sailed, with the continual growth of Amazon, new opportunities are emerging each month. So, if you’re ready to claim success, pick any of these methods and give it your all!