14 Ways To Make Money with Amazon (From $0.24 to $200,000!)
How To Make Money with Amazon For
Let's admit it. We're in the Amazon ecosystem whether we like it or not.
Amazon is such a beast of a company that tons of other businesses have sprung off of it. Amazon has given the ability to thousands of people to earn their first dollar online. Not only is Amazon's CEO, Jeff Bezos, well-off because of this, but so are the people that participate in Amazon's growth.
I'm not talking about the shareholders either, although, I'm sure many early investors are laughing now...
I'm talking about regular people like you and me.
People who like to create things, build businesses, and know when a good opportunity exists.
Let's start knocking down the top ways to earn income from Amazon
1) Earn Affiliate Commissions Being An Amazon Associate
Amazon Associates is the affiliate program that Amazon has developed in the mid-90's. It has allowed thousands of influencers to monetize their content by recommending physical products on Amazon. The main reason why this is our number one choice is because it's a lot easier to start then the rest of the options.
Influencer marketing is becoming bigger and bigger so the general public is certainly becoming more aware of this type of monetization. Once you realize why people are recommending products, it does have less of an affect on their purchasing decision.
Think of all those unboxing videos on youtube or all those people putting together their dream computers. At the bottom of all those videos is their affiliate link. Personally, I think this is much better than simply posting a picture of yourself with a peace sign and a vitamin supplement on your Instagram, but to each their own.
Here at HPD, we're all about adding value to as many different niches as possible. While being rewarded at the same time. We create ready-made affiliate sites filled with informational content but also review content that helps people make a buying decision. It's not shady or unethical either. As Amazon affiliates focusing on SEO, we put together well researched articles that target certain keywords with commercial intent.
If you're unfamiliar with Amazon's commission structure, here's a pic:
At first, the commission rates might look low but there's a reason for that:
1) Amazon has extremely high conversions. So when someone lands on their marketplace with the desire to purchase something. 9 times out of 10, they will leave with something that resembles what they were looking for.
2) They have everything. Hence the book about Amazon, titled "The Everything Store". Things range from the latest gadgets to groceries. With the purchase of Whole Foods recently, expansion is definitely still on their minds.
If you're unfamiliar with Amazon associates but need some help, sign up for these two things: our Amazon affiliate course ($7) and also join our early bird list (free!) Where we keep you updated on new niches that you can enter.
2) Private Label Physical Products To Sell Online
This is the second most popular option for those looking to build a business off of Amazon. It involves taking a popular product (with hopefully low ratings and reviews), that's selling well on Amazon and adding your own twist to it. You do this by manufacturing the product and becoming a third party seller to Amazon.
You could either highly customize a product or build what's known as a "me too" product and just order one from a manufacturer that is already being produced and put your own branding on it.
Both options will work, however, creating your own unique product will always add a certain defensibility into your business. The main downfall with this income stream is that it requires a lot of capital to start. You have to spend a lot of money to research the product, create it, ship it to your warehouse, ship it to Amazon, spend money on ads, etc. But once you are there, I know quite a few people that are doing well.
One thing that's great about this shoulder niche is that we're able to use the tools available for sellers into our own research as an affiliate. Check out tools like Amasuite and Jungle Scout that are meant for affiliates but can be maximized for affiliate use too.
3) Utilize Retail Arbitrage For Physical Products
Right now, there's a lot of people out to garage sales, searching eBay, and visiting local stores to scan products with price differences. This is known as arbitrage. It's the disparate price differences between a product available in one place and the same product available in another place. Then capitalizing on that price difference.
People doing arbitrage will generally purchase the entire stock available, if they know there's some room for profit. Hence the reasons why some stores only allow you to buy a maximum amount of something because it's their "loss leader" in a sense.
This isn't nearly as attractive as private labeling because you still have to compete with others in the "buy box". Whereas if you have a private label brand then you own the rights to sell it completely. Versus selling something like Duracell batteries where you're one in a million sellers all competing on price.
One thing that I like about this opportunity is the ability to get into the physical products space with a trusted company and learn the ropes of getting your product into Amazon.
4) Dropshipping with a Fulfilled By Merchant Account
Dropshipping is the opportunity where you can sell physical products without the need to hold inventory.
But here's the catch…
Instead of holding inventory and creating a Shopify store, you create your store on Amazon itself. It's still a monthly subscription, but it's minimal compared to amount of exposure that you'd get.
For sellers, there are two main ways to deliver a product to an Amazon customer.
Amazon FBA is when the product is delivered through Amazon's warehouse and Fulfilled by Merchant is when you're delivering the product to the end customer yourself. Through your own logistics.
With dropshipping, when an order from an Amazon Customer comes to your Amazon store then the payment is taken on the platform but you have to deliver the product yourself. But instead of having the product in your own physical Warehouse you actually just have that product delivered by the manufacturer itself. You often times won't even see the product.
5) Sell Handmade Goods with Amazon’s Etsy Competitor
Amazon handmade a marketplace where customers have access to thousands of handcrafted goods from Artisans around the globe.
With Amazon handmade, you as the seller are able to sell physical products that you've created with your own hands.
The reason for the low rating is because I think Etsy would be a better opportunity and in reality you can really only sell as many goods as you create personally. I know that many of the goods on Etsy aren't actually handmade, but going with the main principal of both platforms, it's not ideal for a business as it isn't scalable.
As a side hustle, sure. But are you going to be able to sell the entire business in general? I'd say no.
6) Sell T-Shirts With Merch by Amazon
This is another cool opportunity for regular people like us to sell something that's extremely simple that nearly everyone wants.
Merch by Amazon gives sellers the ability to create designs for t-shirts that Amazon sells on it's platform but they do not own your design. So you can still sell your design to another site.
Here's a look at the royalty structure, which is really just the fees Amazon charges you. As the creator, you set the list price and Amazon takes their cut then you keep the profits:
At the moment there is a waiting list to join the program because of its popularity. And of course, there's going to be a lot of people applying because it's such a simple way to possibly earn your first dollar online.
7) Have a physical service? Become a Partner with Amazon Home Services
As if Amazon could not be any smarter.
They've put together a program that helps people who aren't quite handy and directs them to trusted vendors to help their customers with installing whatever they bought from Amazon.
These services don't have to pay an upfront cost or chase leads.
Amazon vets these services and applies their stamp of approval and of course, they make money as the middleman too.
Jeff Bezos really loves to leverage the Amazon network. It's impressive.
I gave this rating a lower score simply because it's not accessible to everyone around the globe but I know that some people in our community also run service based businesses while investing into their Amazon affiliate sites.
8) Do Tiny Jobs on Amazon's Fiverr Competitor, Mechanical Turk!
This is a really really neat side business that Amazon has going on for it. It's a platform that's very similar to Fiverr except they really focus on scale. By that, I mean that each task is performed by many hundreds, often times thousands, of people.
When someone asks for a job to be done, the posting is revealed to every participant on the platform and hundreds can apply. And also be accepted.
Here's the interesting story of why it's called Mechanical Turk. In the 18th century, there was a touring show where a human-like dummy would play chess and win against several prominent members of society. Later on, it was revealed that a person was hidden beneath the cabinet of the chess board and was controlling the movements of the dummy.
9) Become a Self-Publishing Author
Amazon has a unique service called Kindle Direct Publishing that allows authors to self-publish their book. This means that nearly anyone can publish a book and have direct access once again, to Amazon's cherished customers.
Now authors don't have to go through a major publisher and wait months to promote their book. They can publish the book immediately, brand it, and launch the book themselves on Amazon.
It gets even better, Amazon has another service that is attached to their Kindle Network which allows a customer to purchase the physical version of an eBook. Better yet, customers can just purchase the physical book.
10) Be a Voice Actor for Amazon’s Audio Creation Exchange (ACX)
I devour tons and tons and tons of audio books. One opportunity that nearly anyone can participate in is the ability to be a voice actor for authors that want to transition their book into audio.
Amazon's ACX platform allows voice actors to bid on potential audio books for which the voice actor can benefit from either a front end compensation package or royalties on the back end. Some even get both. It depends on the deal you make with the author or publisher.
Here's a quick way to hack, try and record your content in audio so you can practice. You can do this easily with Google docs voice option.
11) Write a Script & Sell a Movie to Amazon Studios
Now we're really getting out there. This opportunity is not nearly as lucrative as creating a physical private label empire or selling your Amazon affiliate site. but, there is a lot of cash still on the table. We're talking $200,000 for each script that Amazon will purchase off of you. The terms have changed recently and Amazon Studios doesn't explicitly offer that amount publicly, but hopefully it's near that amount.
The other direct benefits that Amazon offers is the opportunity to distribute your film to international film festivals through it's Amazon Video Direct platform. Awesome right?
12) Create an Android App for Amazon’s Appstore
There is still an opportunity in the apps market. Although it's getting harder to stand out from the crowd, there are still individual app makers who are making a consistent revenue stream from the popularity of their app.
The Amazon app store only accepts Android apps, for obvious reasons. So if you want even greater access to Amazon's customer base this is an opportunity to earn direct sales and also ad revenue.
13) Become Part of Amazon’s Delivery Network
I really do believe that in the future, Amazon will be as competitive with it's own logistics network as the big boys like FedEx, UPS, DHL.
There you have it! 13 ways for you to participate in the Amazon economy. It's awesome that companies like this exist and allow for you to grow with them. We still love the affiliate game and believe it's the easiest start-up possible. Commit to doing research and start studying SEO!