From a small company selling used books to a $2 Trillion organization, Amazon is one of the finest success stories of the modern generation. According to a business report, in 2020, Amazon added a staggering $386 Bn to its revenue. And more than half of it came from third-party sales.
You must be thinking to yourself – Is it possible to make money on Amazon and take a piece of cake? Well, let me tell you that it is. Over the years, thousands of entrepreneurs have entered the Amazon arena intending to earn big cash and have succeeded. All you need is a strong will, patience, and good planning.
In this article, we will discuss various ways that you can use to put yourself in the center of the Amazon ecosystem and take home some big cash every month. So if you are prepared to say goodbye to your 9-to-5 life in exchange for big bucks and successful life, take some of the opportunities mentioned in this article below.
Amazon: How to Cash the Opportunities
As we all know that Amazon is no longer only an online shopping store for clothes and shoes. They have their own movie production house, music store, transport facilities, and so on. All these sectors are filled with a number of business opportunities that can turn your fortune. Let’s see what can you do to make money on Amazon:
1. Sell Using FBA:
FBA or Fulfilled By Amazon is a seller agreement where you can use Amazon’s huge resources to sell your product on the marketplace. This is probably the easiest way to enter the Amazon business with minimum effort. When you sign for FBA agreement, All you need to do is send the inventory to Amazon warehouses and it will be stored there until sold.
Yes, there is a monthly fee that you need to pay in order to use Amazon warehouses and fulfillment services. Whenever the customer places an order, the process is automated by the Amazon system and it takes care of everything including picking up the item, packing, shipping, and delivering it to the customer.
All you need to do is register on Amazon as a seller, and pay the FBA free and storage charges. Next, you need to ship your items to the nearest Amazon warehouse and wait for the customer to place the order.
There are risks and benefits involved in Amazon FBA. While the cost of an FBA agreement is high enough, the chances that you might end up losing money are also very high. Also if the inventory is not sold before your agreement expires, you are asked to pay a higher amount in order to keep using the Amazon facility. This business approach requires a lot of market research and planning. We will discuss further how to approach FBA business from the scratch
2. Sell your Own Private Label:
Private labeling your product is another great way to make sales and earn money on Amazon. It basically means you register the product under your name. Private labeling includes manufacturing the existing goods with some improvements and labeling them with your name or brand logo and registering them on Amazon as your own.
The process is rather straightforward but again, it requires planning and a strategic approach. You simply order the product of your choice from the manufacturer, modify it with your brand name and logo and list your product on Amazon as a brand seller. You need to apply for brand registration on Amazon before you can actually sell it under your brand name.
To sell the private labels, you can use FBA which is the fastest way to reach the customers. As an FBA seller, your products fall into the Prime category, meaning premium service, quick delivery, and returns. Also, your product will be listed in the Prime FBA category which is likely to draw more organic traffic than a non-prime item. The private label gives you more control over your inventory since you can modify the product based on the customer reviews or device the price how you want before listing them on Amazon.
3. Take FBA training:
We all know how tempting it is to watch the thousands of Amazon sellers making loads of money just by selling their products on Amazon. In reality, the path to success is not so easy. To become a seller alone requires a lot of planning, market study, and e-commerce understanding. Let alone making millions. This is where an FBA course might help you tremendously.
FBA courses are the training programs that include online classes, video lessons, sessions with marketing experts, successful Amazon sellers, and so on. There are many organizations that offer 6-8 weeks of a training program that includes several lessons on Amazon marketing, product discovery, inventory management, shipping/logistics, and listing optimization.
These training programs are used by even some of the well-established Amazon sellers who are looking to strengthen their place on the Amazon marketplace.
- You get access to private blogs, Facebook pages, and seminars.
- Features and prices Here are some of the features of a good FBA training program:
- Specialized classes on how to begin your FBA journey and start selling
- How to create private labeling
- Tricks and tips to create a successful product listing
- Classes on how the fulfillment center works along with packing, label printing, and so on
- Classes on finding the supplier, shipping the inventory, and various logistics operations
4. Use a good FBA Seller Tool:
As I mentioned earlier, starting your business on Amazon requires extensive market research and a deep understanding of the particular niche. Without some professional help from business experts, it’s quite a daunting task to find out the most profitable products, trending keywords, potential suppliers, and so on. To overcome this situation, you need a good FBA seller package. Currently, there are well over 12 FBA seller tools available on the market.
An FBA seller suite is a collection of tools that do all the guesswork for you regarding product selection, product listing, financial research, and so on. It’s the most efficient way to get a headstart while setting up your Amazon business. These tools work on real-time data and usually have access to millions of Amazon product data from past years. They consist of a variety of features that can help you gather vital data about the competitors and create a strategic plan to launch your product on Amazon.
- Product Research Tool:
The product research tool finds you the most profitable and popular products in the niche. The data is based on thorough market research which is based on past sales,
- Listing Optimizer:
Creates the most successful listing for your Products, attracting more organic traffic on your Amazon sales page.
- Keyword Manager:
Finds the most trending keywords and further classify them based on the product type, making your product easily discoverable and appear at the top of the Amazon search result.
- Inventory Management:
Keep an eye on your stock. It also calculates the possible supply you need and when you should order it. Moreover, it helps you connect to the most reliable suppliers with the minimum price around the world
- Campaign and Launch
Plan various strategies and programs to launch your product on Amazon. It also helps you create lucrative deals for your customers while keeping an eye on your fellow competitors and their sales.
Currently, there are 3 best FBA seller tools
Jungle Scout – Starts at $29/month, also includes free Jungle Scout Academy FBA training
Helium 10 – Starts at $39/month, includes complimentary Freedom Ticket training worth $997
Viral Launch – Starts at $69/month, includes full seller tools
5. Sell Wholesale items:
Wholesale on Amazon is not much different than real life. The idea is simple. You purchase bulk quantities from the manufacturer and sell them on Amazon as a certified FBA seller. With wholesale, the procedure is more straightforward than with Private Labels. You just need to purchase the goods in considerable large quantities and ship them to the Amazon warehouse and you are done. Amazon will take care from here and you just need to wait for the customer to place the order.
Unlike Private labels, you are not required to do any labeling, branding, or modification to the product. However, the Wholesale market is a lot more competitive since you are sharing it with plenty of other wholesalers and usually the seller with the lowest price is able to attract the customers. This means that the profit margin is all about the purchase of the wholesale items. If you are not able to buy it at a significantly cheaper price, it’s rather difficult to make money in this segment.
6. Deliver for Amazon:
If you are looking for a more flexible and comfortable job, you can try Amazon Flex. Since the introduction of Amazon Prime and 1-2 day deliveries, there is a high demand for delivery associates at Amazon, especially in posh areas. So if you fulfill the requirements, you can give it a try and earn up to $18-25 per hour based on the job requirements in your area.
All you need to do is go to download the Flex App on your smartphone, register and answer a few questions and wait till you are accepted as Amazon’s third-party delivery associate. Mind you, you need to have your own vehicle in order to apply for this position. The shift usually lasts for 4-5 hours a day depending on the workload in your area.
While this is not a permanent income, if you happen to have a car, and are looking for a good part-time opportunity, the Amazon Flex is the perfect start for you.
7. Publish Your Book on Amazon:
Well, at first sight, this may sound like an impossible feat to achieve. Selling your own book? Well, it’s not as tricky as it seems, especially when we are talking about selling on Amazon. If you go through the Kindle store, you’d find out that this platform doesn’t only sell books from widely known authors but also from young and aspiring writers who are looking to earn a name in the writing field.
If writing interests you somehow, Amazon provides a great platform to publish your work and gain recognition. This program is called Amazon Kindle Direct Publishing. All you need to do is register on Kindle Direct Publishing and within a few minutes you can publish your ebook and it will be accessible across the globe. Amazon keeps the 30% of each product listing and the rest 70% royalty will go to you and this will be your pure profit.
Yes, writing a book requires some talent and patience and you may not start making money instantly but if you have confidence in your work or if you are running a small publishing house, you should definitely give KDP a try. This is one amazing opportunity where very little initial investment is required. Not only that, you can even get your books published using CreateSpace.
The key is to keep making content on a regular basis to increase your visibility and viewership. If you manage to pull one or two bestsellers, the chances of earning big money are very high.
As you can see, whether you are a writer, starting your own business, or even looking for a part-time job, Amazon has opportunities for everyone. You can easily find the one that interests you the most and start making some money right away.
There are various other ways to make money while working indirectly with Amazon such as promoting products on social media as an Amazon Influencer. You can also work as Amazon Customer Associate from a remote location or even join MTurk- an Amazon crowdsourcing Marketplace where you can be a part of the Amazon virtual task force and work on data entry, content modification, surveys, and so on.
Frequently Asked Question:
You can go to Amazon’s official career page and apply there with your details and work experience.
On average, you can earn somewhere between $625 to $1,875 per month per product on Amazon, considering you sell your product in good quantity. More than 56% of Private Label FBA sellers rake up to $5000 monthly, according to a business report.
Many companies provide FBA training programs these days. Jungle Scour training academy and Freedom Ticket by Helium 10 are two of them. Jungle Scout is best for the fresh business while Helium 10 is good if you haven’t started yet but are planning to step into the Amazon business.
Traditionally, appliances, electronics, toys, and games are a few of the most profitable categories where you can sell and start making good money straight away. However, I suggest you do thorough market research in your area and come up with a product to sell based on the data. You can also take the help of some Amazon Product Research Tool online, such as Jungle Scout, Helium 10, or Viral Launch.