Amazon has become the leader in the eCommerce industry in the world. Started in the United States in 1994, the retail giant became a billion-dollar company in a short amount of time. Now, Amazon offers its services in numerous countries around the globe, including the United Kingdom, Germany, France, Ireland, Canada, Mexico, Italy, Spain, Japan, China, and Australia.
Although Amazon started out as an online bookstore, it now provides a plethora of eCommerce services to its users. Due to its mass popularity, Amazon now extends numerous job opportunities, as well as the ability to earn from the comfort of your home. This is a guide designed to answer your question, how to make money on Amazon as a beginner?
Sell Wholesale Goods To Make Money On Amazon
You can sell goods bought from wholesale on Amazon. This means purchasing products in bulk quantities and then selling it on the platform using Amazon’s FBA network (Fulfilment by Amazon). Selling wholesale goods means that you are buying branded products which could already be established and selling, manufactured by another manufacturer, and then selling them on Amazon. This is one of the most prevalent methods for selling, as you are able to make a profit by purchasing wholesale goods at an economical rate and making a sale at the market price.
With that said, the profit made using this approach depends solely on the amount you paid to buy the products. If you are able to acquire wholesale products at an affordable rate, you can make a larger profit in the long run.
However, selling wholesale goods on Amazon’s FBA network is cumbersome due to the tough competition. As there are several individuals’ sellers marketing the same products, you would have to adhere to the market prices or reduce your rates in order to attract the customers.
This method is ideal for individuals who are starting out the venture of monetizing from Amazon. It requires minimal investment and furthermore, offers the opportunity to discontinue the sales, when and if necessary.
Sell Private Label Products on Amazon
Similar to selling wholesale goods, Amazon provides you with the platform to sell your private label products on the FBA network. Private label products are those goods that are value-added and enhanced to be marketed at a premium price. This means that you can upgrade a pre-existing product to improve its look or function and sell it at a higher rate to get good money.
To create private label products, you do not need to make any modifications. In fact, taking simple steps, such as stamping on your brand logo, is enough to get your product approved. Additionally, selling your private label products on Amazon is more advantageous, as customers are attracted to this platform due to its swift delivery. Amazon Prime’s one-day delivery service ensures that your customers can be delivered the product on the same day.
In addition to this, selling private label products is relatively easier on Amazon. Employ tools offered by different platforms, such as Jungle Scout and Alibaba, before selling your product. Jungle Scout is inclusive of a tool that predicts the number of sales your product can make once it is launched on Amazon’s FBA network. This way, you can make an educated decision about the type of product you wish to sell, before investing any of your savings into the process.
Alibaba is another platform that can be quite advantageous. With Alibaba or the Jungle Scout’s Supplier Database, you can source or manufacture products for your private label. Once the products are manufactured, you can send them to Amazon’s warehouse and sell them to customers using the FBA network. Essentially, when it comes to making money with Amazon, this is a very convenient option, as you do not have to ship your own order.
Publish Original Books on Kindle Direct Publishing
If you have a knack for writing, generating income through Amazon Kindle Direct Publishing (KDP) could be a viable option. With KDP, you can self-publish your masterpieces on Amazon, and make money by selling digital copies of it. With that said, Amazon further provides the option to print out the hard copies of your book. You can use Amazon’s CreateSpace, which enables the prints on demand.
However, with this approach, there is no guarantee that the book would be purchased, unless you write something that is sought after by the target audience. One way to do this is by reading the reviews of the different books published on Amazon to identify the gap in the market. Once you gauge an understanding of what the customer’s demand, your book can be custom-written to fulfill the requirements of the target audience. For instance, statistics show that crime and thriller were the most preferred genre in the UK in 2017, therefore, stories falling in this genre were sold the most. Although, there could be a fluctuation in the customer preference, therefore, it is imperative to research your options before initiating the writing process.
Work as an Amazon Flex Driver
Another way to make money through Amazon’s diverse platform is by working as an Amazon Flex Driver. Amazon Flex is a program that enables individuals to make deliveries for Amazon. Any individual can become an Amazon Flex Driver if they own a vehicle that facilitates deliveries. You can download the application, fill out a questionnaire, and wait for the approval. With that said, Amazon does run background checks to ensure that you are a reliable person for the job.
To participate in this program, you would need to have a smartphone with a camera (with a flash), GPS location services, and a SIM card. While the application is compatible with both Android and iOS phones, you need to have a 6.0 or above Android phone with two GB of RAM, or an iOS 13 or above (iPhone 6s or an updated model).
With the Amazon Flex Driver program, you can earn around £13-15 per hour. The pay is based on the number of packages you deliver in the required amount of time. This means that if you deliver more than the required number of packages, the earnings can be higher, whereas, if you deliver less than the standard amount, your income would be less.
This program is a convenient option to make money, as you can work in accordance with your schedule. Amazon Flex Driver programs provide you with flexibility in hours, so you can simultaneously fulfill your responsibilities at a full-time job.
Although, currently, the Amazon Flex Driver program has limited its recruitment to a few towns, which include Aberdeen, Banbury, Bromley-by-Bow, Eastbourne, Hayes, Hemel Hempstead, Ipswich, Swindon, and Wembley. However, individuals from any city can download the application to make an account, and wait for a response from an Amazon’s representative.
Benefit from the Amazon Influencer Program
Amazon also pays commissions to bloggers and influencers via its Amazon’s Associate program. The Amazon Influencer Program is a subcategory, which enables influencers on the internet to earn money by promoting the products offered on the platform.
With the Amazon Influencer Program, you can make your presence visible on the platform.
Once qualified, Amazon would provide you with a special vanity URL that can be used to promote your brand on Amazon. In return, you would be required to create content such as videos for YouTube or upload pictures on Instagram to promote niche-specific products offered on the platform. Additionally, you would get compensated when a customer visits your vanity URL and makes a purchase on Amazon.
In order to become a part of the Amazon Influencer Program, you would need to submit an application online. As Amazon is looking for individuals who can convince the shoppers to invest in certain products, having a large following on your social media platforms is recommended. The eligibility criteria for the Influencer Program requires you to have an account on Instagram, YouTube, Twitter, and Facebook. While there is no specific criterion for the number of followers you are required to have, the application has a higher chance of acceptance if your follower count falls in the range of 100,000-500,000 followers.
If your application is accepted, you can add some of your favorite products onto your list, which would then become visible to your followers. While you have the freedom to choose any product, it is recommended to choose items that are related to your niche.
You can make money using the influencer program through commissions. However, the amount you earn depends largely on the frequency of your posts, as well as the commission rate. Depending on the sales, the rate of commission can range from anywhere between one percent to seven percent. Considering this, to make more money on Amazon, you would need to generate higher sales.
Online and Retail Arbitrage
Arbitrage is referred to as the method of purchasing discounted products in bulks from a retail or online store and selling them at a higher price. However, Amazon has made it quite complicated to sell products of popular brands, but you can still generate an income by giving a flipping of the acquired products.
Online and retail arbitrage can be quite time-consuming and arduous, especially for a beginner who is not well-versed in the market prices and discount opportunities. Taking this into consideration, you are required to carry out comprehensive research on sales and discounts offered or form a connection at a retail store, to acquire products at an ideal rate.
However, online arbitrage is relatively easier than retail arbitrage, as you can purchase products from other eCommerce stores, such as eBay. Although, this approach does come with a fierce amount of competition, therefore, earning through this method comes with a certain degree of risk. Additionally, with online arbitrage, you are provided with limited options, thus making it a non-consistent way of generating an income.
Apply Creativity with the Amazon Handmade Service
If you have a creative side, Amazon Handmade can be the perfect channel to monetize from your talents of making handcrafted goods. The Amazon Handmade program is a platform for Artisans and creative individuals to sell their masterpieces online. Any individual can sign up for the Amazon Handmade program by submitting an application, which can then be audited by the authority at Amazon. Based on the portfolio provided, the application can be approved or disapproved.
Joining this program does not require any payments. You can create an account and your own shop without any fee or hidden charges. However, Amazon Handmade does charge a 12.24 % referral fee for every product that you sell. Once your application is approved, you would be provided with a page URL that features your products. A custom URL can make it easier for individuals to find your store on Amazon.
Handcrafted products are more commonly sold on mainstream platforms like eBay, as eBay charges a relatively less referral fee. With that said, Amazon has a larger customer base, which makes your shop visible to a larger demographic of customers. Therefore, using Amazon Handmade does not only enable you to sell your products online, but it also enables you to increase your brand’s visibility.
See Your Ideas Come to Life with Merch by Amazon
Merch by Amazon is another facility that encourages you to explore your creative side. With this program, you can create and upload your custom design on the on-demand printing service, known as Merch by Amazon. Your designs can be featured on clothing, mugs, hats, tote bags, and more.
Money is earned through this program, every time a sale is made using your design. To become a part of this community, you can submit an application and wait for approval. Like the previous programs, Merch by Amazon does not charge an initiation fee. Once you have submitted the designs, you can just wait to collect royalty from the products that are sold. Additionally, as printing the delivery is managed by Amazon, you do not have to invest any additional time, effort, or money.
So, How Can You Make Money On Amazon…?
Amazon is the home to a plethora of job opportunities for individuals who wish to generate extra income. It provides individuals with unique talents to charge for their services. Whether you are a writer, a driver, an artesian, an influencer, or a business-minded individual, Amazon extends a podium that enables you to bring in some additional income. If you are thinking about earning some extra cash through Amazon, read the aforementioned guide, and pick the approach that is right for you!