Making money on Amazon has personally changed my life forever. It has been one of the main catalysts for me quitting my job. It’s allowed me to work in my own time with no set hours and of course, it has helped me earn a lot of money along the way. However, whilst many of us consider Amazon as an extremely convenient online e-commerce store, there are actually many other ways that you can make good money from this global platform.
In this article, I’m going to be sharing some of my favourite ways to profit from Amazon and how you can get started in 2021.
Selling Physical Products
Okay so let’s start of with the one that most people already know about. Selling your own products on Amazon through their 3rd party marketplace. Now, whilst most people are already aware of this, some people still only believe that when you are buying a product from the Amazon website, you are directly buying it from Amazon. This simply isn’t the case. In fact, In the last quarter of 2020, more than half (55%) of sales made through the website was via 3rd party sellers using the Fulfilment by Amazon Service.
If you don’t know what that means, Fulfilment by Amazon, commonly known as FBA is a service that Amazon created to allow 3rd party sellers to sell their own products through the Amazon platform. But, at the same time take advantage of their great fulfilment channels such as prime. The process is extremely simple. You send your products into a fulfilment warehouse. Amazon then stores those products for you, and when they sell, Amazon will handle the shipping and customer service for you at a price.
The next thing to think about is how are you actually going to find profitable products to sell. There are 4 main sub business models within the Amazon ecosystem.
Private Label – This is when you create your own product. Typically you find a supplier in China and communicate with them on how to brand and design the product before shipping it into Amazon.
Wholesale – This is when you deal with manufactures and distributors of already established products to buy items in bulk.
Retail Arbitrage – This is a process of finding discounted products in retail stores that sell for a profit on Amazon.
Online Arbitrage – Very similar to retail arbitrage, online arbitrage is the process of finding discounted products from online stores that sell for a profit on Amazon. All of the above are all fantastic ways of making money online.
In my personal opinion, I would very much suggest for beginners to take a look at retail arbitrage first. This is because it’s cheap to get started and it allows you to learn the platform without having to take too many risks.
I actually have a full dedicated playlist over on my YouTube channel that is aimed to help new sellers learn how to sell on Amazon so feel free to go check that out.
Buy Amazon Stock
As with most large corporations, you can purchase some stock in the company with the mindset that the stock price could go up over time. This is also exactly the same with Amazon. In fact, if you were to purchase just 1 Amazon stock 5 years ago, for $550, you would made over $2500!
Personally, I can see Amazon stock only continuing to thrive simply just because of how diverse they actually are. Just take this post for example. I’m talking about multiple ways that you can make money on Amazon and only one of them includes using the marketplace for what you know it for. You also have Amazon’s space project and other massive revenue earners such as Amazon Web Services where they create hosting solutions for online businesses.
Disclaimer: one thing to always remember with stocks and any kind of investing, is that just because the stock has gone up previously, it doesn’t mean it will always keep rising so always do your research and understand the risks before you invest.
If you want to take a look at investing into Amazon or maybe just taking a look at investing in general, check out this great referral link to FreeTrade which is a Commission Free Trading platform aimed at beginners and if you open an account with £1, we both get a free share worth anything between £3 & £200.
Possibly one of my favourite ways to make money with Amazon is Amazon Flex. This is pretty much Amazon copying Uber but for Prime deliveries.
Basically, all you need to do is download the Amazon Flex App, go through the sign up process and book when you want to start delivering and that is pretty much it. On the Amazon Flex Official Website, they claim you can make anything between £13 – £15 an hour which is much higher than the national minimum wage of £8.91.
One of my favourite things about this is whilst you are technically an employee of Amazon, you get the complete flexibility of when you work. Guess that’s where they got the name from … You get to chose how many parcels you deliver based on your vehicle size, the hours you want to work and the area you want to deliver in.
The only downside of this is that you are not covered for fuel expenses and general wear on your vehicle but this is normally the case with most independent delivery companies.
Another one of my favourite ways to make money on Amazon is through their Associates Platform. This is where you can recommend any Amazon products to somebody and if they are to purchase that product through your affiliate link, you get a commission on that sale.
This is absolute perfect for influencers, YouTubers and product reviewers as you can make free, valuable content that costs no extra to the customer but still get paid at the same time. Another bonus of the affiliate program is that if a customer clicks on your link, your affiliate account stays active on their device for 24 hours so if they were purchase anything else, you would get the affiliate sale for that too!
If you want to sign up to the Amazon Associates website then click here.
I have a step by step video tutorial on Amazon Affiliate Marketing for Beginners where I show the sign up process plus some examples of people making over £100,000 a year with this business model alone.
Merch By Amazon
If you are creative or you have a passion for designing t shirts and merchandise, then maybe Merch by Amazon could be a good option for you. What you can do with MBA is upload your own designs to the platform and then from there, Amazon will print them onto T-shirts / Hoodies as and when they sell.
This is very similar to starting your own print on demand business but you get to leverage the most visited online store in the world to sell your products.
Another great thing about Merch By Amazon is that it has very little risk. That’s because you don’t have to buy any inventory, you only pay for it when the product sells. The only thing you really pay for is your time to create the designs. Just like with all the other Amazon branches, this market also has it’s own dedicated website that you can check out here.
As you may have now realised, there are many different ways that you can earn money on Amazon and it doesn’t just include the standard buying and selling. One to remember when thinking about starting any new business / side hustle is to do something that you will enjoy. Just because something looks attractive from a money point of view, it doesn’t mean you will love doing it and if that’s the case, the likely hood is you will give up before you start to see the success from using this amazing platform.