Make Money on Amazon in 2023

This article provides an in-depth guide on how to make money on Amazon in 2023. It highlights various programs and methods to help you establish an Amazon business.

What is an Amazon Business?

Amazon offers several programs that enable you to earn money by selling products on its platform.

• Amazon Fulfillment By Amazon (FBA)
• Amazon Associates
• Kindle Direct Publishing
• Amazon Merch

These programs provide diverse ways to make money, all involving selling products on Amazon's platform.

Why Start an Amazon Business?

Amazon offers many advantages for those looking to create a business, making it an appealing choice.

Advantages

• Reputable platform: Amazon is a globally recognized and trusted e-commerce site with millions of active shoppers.
• Low start-up costs: Several Amazon programs offer free or low-cost entry, making it accessible for beginners.
• Easy-to-use tools: Amazon provides user-friendly tools to manage your business, track analytics, and monitor performance.
• Reliable payouts: Amazon ensures timely payments directly into your bank account.

Disadvantages

• Limited autonomy: Amazon imposes strict rules and regulations on sellers, limiting creative control over your business.
• High competition: With millions of sellers on Amazon, standing out and achieving sales can be challenging.

Can You Really Make Money on Amazon?

While some might view selling on Amazon as a get-rich-quick scheme, many successful individuals have built thriving businesses using Amazon's programs.

• Jake, a 21-year-old entrepreneur, generates over one million dollars annually through Amazon FBA.
• Sean Dollwet achieved millionaire status by selling books on Amazon.
• Kenzo Sobrie, at 19, has achieved remarkable success using Amazon FBA, generating millions of dollars.
• Melisa Vong, the instructor of Foundr's "Infinite Amazon" course, transformed from a 9-5 employee to earning $30,000 in her first month on Amazon.

7 Methods: How to Make Money on Amazon

This section explores seven popular methods for generating profit on Amazon.

1. Amazon Kindle Direct Publishing (KDP)

KDP allows authors and publishers to self-publish their digital books, paperbacks, and hardcovers through Amazon's platform, offering a passive income opportunity.

Pros

• Passive income: Once published, your book continues selling, generating income without further effort.
• Low cost: Publishing books on KDP is free, allowing you to start with minimal investment.
• Easy-to-use interface: Amazon provides a simple way to upload and publish your books.
• Quick first dollars: You can start earning money shortly after publishing your books.

Cons

• Competition: The Kindle store has over 12 million books, making it challenging to gain visibility.
• Errors: Changes to published books require a lengthy review process with Amazon.

Earning Potential

After a few months, you can expect to earn $1,000 to $5,000 per month, depending on the book's niche and sales performance.

2. Amazon FBA

FBA (Fulfillment by Amazon) allows you to send your products to Amazon's warehouses, where they handle picking, packing, shipping, and customer service.

Pros

• Huge potential: FBA offers unlimited earning potential and access to a massive customer base.
• Low start-up cost: You can start FBA with as little as $100.
• Flexibility: You control product selection, pricing, and shipment frequency.
• Amazon fulfillment centers: Amazon's fulfillment centers ensure safe storage and handling of your products.
• 24/7 customer support: Amazon's customer support handles customer queries and complaints, allowing you to focus on your business.

Cons

• Limited branding: Amazon handles customer service, limiting your control over branding.
• More returns: Amazon's return policy can lead to higher return rates compared to selling on your website.
• Costly: FBA can be more expensive than fulfilling orders yourself, particularly for low-cost items.

Earning Potential

Seventy percent of Amazon sellers earn over $1,000 per month, with 25% exceeding $25,000 per month.

3. Amazon Affiliate Program

The Amazon Associates program allows you to promote products from Amazon and earn commissions on sales generated through your links.

Pros

• Millions of products: You have a vast selection of products to promote.
• Reputable brand: Amazon's reputation for quality and trust contributes to high conversion rates for affiliates.
• Low cost: Joining the program is free, requiring no upfront investment.
• Universal cookie: Commissions are earned on any purchases made on Amazon after clicking your link.

Cons

• Low commission rates: Commission rates are lower than other affiliate programs, typically between 4-8%.
• 24-hour cookie: You only earn commissions if a purchase is made within 24 hours of clicking your link.
• Need marketing skills: Building a successful blog or YouTube channel to promote products requires marketing expertise.

Earning Potential

Earnings vary depending on product selection and marketing effectiveness, ranging from hundreds to thousands of dollars per month.

4. Merch By Amazon

Merch by Amazon allows you to upload your designs to products like t-shirts, mugs, and phone cases, and Amazon handles fulfillment, payment, customer service, and shipping.

Pros

• Passive income: Once designs are uploaded, they generate income passively.
• Own delivery service: Amazon handles fulfillment, eliminating the need for inventory management and shipping.
• Global marketplace: Your products are available in 18 countries.
• Easy-to-use interface: You can easily set prices, upload designs, and track performance data.

Cons

• High competition: The program is free to join, leading to high competition.
• Low royalty: Royalties on each sale are low, requiring high sales volumes to generate significant income.
• Time-consuming: Creating and uploading new designs regularly is crucial to stay competitive.

Earning Potential

Earnings depend on design popularity, competition, and the number of designs created. Some individuals earn thousands per month, while others generate minimal income.

5. Amazon Handmade

Similar to Etsy, Amazon Handmade allows artists and craftspeople to showcase their handcrafted goods on Amazon's platform.

Pros

• Massive traffic: Amazon's larger customer base compared to Etsy offers increased visibility.
• Effective advertisement: Amazon Handmade features an advertising system to promote products to target audiences.
• Secure payments: Payments are processed through Amazon, eliminating concerns about refunds and chargebacks.
• Competitive shipping prices: Amazon offers competitive shipping rates on Handmade products, with the option to set free delivery for specific orders.
• Customization options: Customers can customize products, potentially increasing sales.

Cons

• Expensive fees: Amazon charges a 15% fee per sale on Handmade products.
• Not seller-friendly: Using the platform can be complex and involves numerous rules to follow.
• Ads overspend: Ineffective ad campaigns can lead to wasted budgets.

Earning Potential

About 63% of handmade sellers generate over $1,000 per month in sales.

6. Amazon Mechanical Turk

Amazon Mechanical Turk connects companies with individuals seeking work-from-home opportunities. You can complete tasks like data entry, transcription, surveys, and website testing for cash.

Pros

• Flexibility: You control your working hours and workload.
• Easy to get started: Only an Amazon account is required.

Cons

• Monotonous: Tasks can be repetitive and boring.
• Locked high-paying tasks: Accessing higher-paying jobs often requires completing other tasks.
• Low payment: Some tasks offer very low pay.

Earning Potential

Expect to earn between $6 to $12 per hour, with most surveys paying around $0.40 and taking a few minutes.

7. Amazon Seller Account

The Amazon Seller Account allows you to list and sell products directly on Amazon's marketplace, handling your inventory, payment processing, and customer service.

Pros

• Huge marketplace: Amazon's vast customer base provides access to a larger audience, potentially generating more sales than through your own website.
• International expansion: Amazon allows you to sell in multiple countries.
• Ongoing support: Amazon offers customer support and feedback to help you grow your business.
• Effective advertisement: Amazon provides various advertising options, including sponsored products and automated campaigns.

Cons

• High competition: Amazon's competitive marketplace requires differentiation and unique offerings to succeed.
• Selling fees: Amazon charges fees on each sale, which needs to be factored into pricing.
• Order management: Managing orders can be time-consuming, particularly for high-volume businesses.

Earning Potential

Approximately 50% of sellers earn between $1,000 to $25,000 per month, with higher earnings potential for unique offerings and excellent customer service.

Build Your Amazon Business

Choose your Amazon business based on your goals, interests, and strengths. Consider whether you want to create a full-time income or earn extra cash. If you're more creative, consider Merch by Amazon for designing products. If you're analytical, Amazon FBA might be a better fit. For book lovers, self-publishing through Kindle Direct Publishing could be ideal.

Regardless of your chosen path, Amazon offers a powerful platform to earn substantial income. Now that you know how to get started, take the leap and build your Amazon business.