Aloha, Amazon Seller!
How to make money selling on Amazon in 2022? Here you can get more information about great ways to earn cash on Amazon, and which methods might work best for you in 2022.
Amazon.com offers a lot of excellent opportunities for smart and active people who want to make money. Being a gigantic online e-commerce empire, this marketplace attracts millions of merchants who want to succeed and make money selling on Amazon by trading their unique or competitively priced products.
However, contrary to popular belief, people are making money from Amazon not only through retail or wholesale sales, when they find a product to satisfy supply and demand requirements of the buyers, provide for the order fulfillment themselves, or use Amazon’s FBA, and ship items to customers.
There are many other ways to earn money on Amazon, starting from offering services to customers or writing and publishing your own books, to trading in the used things you don’t need for the moment. Amazon offers a lot of programs to help you grow your business together with the platform.
In this blog, we will tell you, how to make money selling on Amazon and what to sell on Amazon to make money.
How to Make Money on Amazon?
As said, on Amazon there are two options to monetize your skills – sell anything online or offer your services to customers. You can sell goods, become an influencer, sell your Amazon-related content to advertise goods for sellers, become Amazon virtual assistant, or trade-in your second-hand stuff.
7 Effective Methods to Make Money on Amazon in 2022:
#1. Become a seller - sell FBA or FBM;
#2. Become an influencer and advertise products for sellers;
#3. Become an Amazon Associate under Amazon Affiliate Program;
#4. Become a virtual assistant and offer consultancy to Amazon merchants;
#5. Join Amazon’s Trade-In program and sell stuff you don’t need;
#6. Work under Amazon Flex, delivering orders for Amazon;
#7. Publish your own books with Amazon Kindle Direct Publishing.
How to Make Money on Amazon as a Seller?
Becoming a seller on Amazon includes 6 basic steps – selecting a business model; registering an Amazon Seller account; finding a product to sell; sourcing the product from the supplier or manufacturer; creating an optimized listing if the product doesn’t already exist on Amazon (or listing it under an existing listing if it does); listing and promoting the product.
Step 1. Select a Sales Model
4 Popular Business Models on Amazon
Retail arbitrage is a model in which a merchant buys discounted products from retailers, either in brick-and-mortar stores or from online retailers, and sells them on Amazon.
Making money through Amazon wholesale means that you purchase items in bulk from the supplier at a discounted cost and trade them on Amazon for a higher price.
Dropshipping Amazon is a model in which you list a product you found, receive an order from the buyer, and request your supplier to send it to that buyer. A profit is received from the difference between the wholesale price of the manufacturer and the retail price you set.
A Private label is a model in which you are making money from Amazon sales of a popular product by creating your own brand out of it, usually by introducing some improvements.
Step 2. Create an Amazon Seller Central Account
To start selling on Amazon, and make money with Amazon FBA and FBM, you have to register your Amazon seller account. You can find a guide on how to register an Amazon Seller Central account here.
There are two options for that - an individual account or a professional one. Under a Professional account, you’ll have to pay $39.99 monthly; under an Individual account, you’ll have to pay a $0.99 fee per sale. If you sell over 40 orders a month, a Professional account will suit you better.
Step 3. Select a Product to Sell on Amazon
To create a successful Amazon business, you’ll need to carefully research what to sell on Amazon to make money. When researching your product, see to it that it has a sufficient margin; don’t choose bulk, easily broken, or very heavy products. Also, don’t focus on extremely seasonal goods, as they’ll not sell year-round. Skip licensed or restricted category products – for the latter you’ll need permission to sell.
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Places to find Amazon products to sell are best-seller or trending lists of different e-commerce platforms, like Walmart, AliExpress, eBay, Etsy, or Chinese Alibaba. Search in customer reviews or shopper forums. Don’t neglect social media. Use keyword research for popular keywords, look at the competition in your category.
Step 4. Order a Product from the Supplier
The key requirements to suppliers are reliability, quality products, and meeting deadlines. See to it that a supplier is reputable, provides required insurance and certificates, has clear shipping and return policies, and specifies in the contract what happens if the products are not shipped.
Step 5. List a Product on Amazon
First, you’ll need to check if your product already exists on Amazon. If it does, add a product and match an existing Amazon listing to avoid duplicate listings. If it doesn’t, for instance, if you have a private label or handmade product, you’ll need to create an optimized listing that should include high-quality images; relevant keywords for the shoppers to find it; clear product descriptions, and informational bullets; more than 20 reviews with 4-star rating and up.
Step 6. Launch and Market Your Product
From your Seller Central, launch PPC campaigns and target growing visibility and conversions. Amazon has a lot of efficient marketing tools to do that. Measure the efficiency of your ads and adjust poorly working campaigns over time.
How to Make Money as an Influencer on Amazon?
Amazon influencer is a person that promotes Amazon seller products via their unique links on social media and custom storefronts on Amazon, and receives a payment for that. Amazon has an Influencer Program, in which influencers promote products and get rewarded. Influencers are required to have a consistent qualifying audience on social media like Facebook, Instagram, Twitter, or YouTube.
To become an influencer, you’ll need to enroll in Amazon Influencer Program and comply with Amazon influencer qualifications by being approved. Qualification criteria for the content include engagement rate; followers’ loyalty; level of interaction with the content; the number of likes and comments; the number of subscribers; audience activity; high content quality; relevance to Amazon; and niche content.
You can find a lot of useful information on how to become a successful influencer here.
How to Make Money as an Amazon Associate?
Amazon associate is engaged in more or less the same activities as an influencer; however, they are not required to have a custom store on Amazon, and the requirements are less strict. You’ll need to enroll in Amazon Affiliate Program. The same way as influencer program, affiliate activities are a good option as to how to make passive income on Amazon.
How to Make Money as a Virtual Assistant on Amazon?
Amazon Virtual Assistant is an expert outsourced by a seller to provide online assistance services related to Amazon account and sales. VAs work full-time, part-time, or on a per-task basis, depending on the case.
Virtual assistants help merchants with customer relationship management; communication with suppliers; listing optimization; order and inventory management; PPC campaign optimization; communicating with Amazon, and a lot of other things. If a seller hires a VA, he’ll save time and get professional help. If you have experience in selling on Amazon, you can offer your services as an Amazon VA.
How to Make Money with Amazon’s Trade-In program?
Amazon’s Trade-In program is not exactly a way of making money, it’s rather a way to get rid of unwanted items. The program gives a possibility to exchange old stuff you want to get rid of, for Amazon credit.
With this method, you can get up to roughly 25% of the item’s original price as credit. The negative side of this program is that you can’t just get rid of any old garbage. The platform is very selective as to what you can sell on Amazon, and the products have to be in very good condition.
All details about Amazon’s Trade-In program can be found on Amazon’s Trade-in program homepage.
How to Make Money with Amazon Flex?
With Amazon Flex, you can use your own car to deliver packages for Amazon to earn extra money. To join the program, you have to be 21 and up; have a valid U.S. driver’s license, and have a mid-size or larger car. Amazon pays $18–25 per hour and you’ll need to download the app.
How to Make Money Selling Your Books on Amazon?
With Amazon Kindle Direct Publishing, there is a possibility to self-publish an e-book, and each time it sells, you will get paid. You can write about something you like or have competence in. It should not necessarily be very long.
In addition, you can also make money on Amazon with:
- Amazon Prime Video Direct;
- As a delivery fulfillment warehouse associate;
- Amazon’s Mechanical Turk;
- Publish your app on Amazon Appstore;
- Sell designs with Amazon Merch;
- Amazon Vine, get merchandise for free in exchange for a review;
- Offer your services under Amazon Services;
- Become an Amazon delivery service partner.
Enjoy your sales and don’t forget about your product’s profitability and KPIs, it’s very important to keep track of them as they show your account health. To do the analysis easily, you can use Business Analytics Seller tools, like SelleRise. With this tool, you can keep track of your sales, costs, and profits and see where you can optimize them. Also, you can see sales and profit dynamics showing you how healthy is your business.