How To Make Money On Amazon In 2022 (15 Best Ways)

by Biz Wiz
• Updated May 1, 2022

It's a new year and a new chance for you to make more money.

How? By selling on Amazon, of course.

The online retail giant is the go-to place for many consumers looking for products, from beauty supplies to gadgets to books. That makes it an excellent place for entrepreneurs and small business owners to grow their businesses.

To help you get started, we've put together this simple guide on making money on Amazon.

1. Publish and Sell Books on Amazon Kindle Direct Publishing

Amazon's Kindle Direct Publishing (KDP) offers authors and publishers an easy way to turn their written works into digital books. If you're looking for a way to make money on Amazon, this is a solid option. 

According to Publishers Weekly, in 2019, authors earned more than a whopping $300 million from the KDP Select Global Fund. 

The best part? You don't have to worry about printing or shipping costs – and can even receive royalties as high as 70 percent on each sale.

While there is a chance that you could make a good income from amazon KDP, it's not guaranteed. 

A small poll by Low Content Profits with 86 KDP authors revealed some interesting numbers: 

  • 79% said that they are making less than $100 a month from amazon KDP
  • 6% of KDP authors said they are making over $100 per month 
  • About 15% are making more than $500 a month.

Now comes the most important part – setting the price for your book. 

When setting the price for your book, it's crucial to balance charging too much and not charging enough. You also want to make sure that your price aligns with the competition.

If you're not sure what to charge, you can use KDP's pricing information to decide. Discounts can also boost your sales but use them sparingly so you don't devalue your book.

Finally, hit the publish button, promote your book, and watch the money come in. 

🔑 Benefits of Amazon Kindle Direct Publishing

  • Reach millions of readers worldwide with Amazon Kindle
  • Publish your book worldwide in a matter of minutes
  • Earn up to 70% royalty on sales to customers in the US, Canada, UK, Germany, India, France, Italy, Spain, Japan, Brazil, Mexico, Australia, etc.
  • With KDP Select, get access to special promotional tools to help you drive sales.
  • Publish any type of content you wish to, without worrying about content filtering that publishers put in place for various reasons.
  • You retain all copyrights over your work as an author.

2. Amazon Associates – Amazon's Affiliate Program

Want to make money on the internet through an affiliate program? Amazon offers a great way to do that through its Amazon Associates Program. If you're not familiar with it, you sign up and earn a commission when someone purchases a product through your affiliate links.

Amazon gives you a unique link that tracks every purchase made from your site or blog. You don't have to add it to each link manually; once you add it, every qualifying purchase made through any of your links will earn you a commission.

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The commissions aren't massive, but they add up if you manage to refer enough people and if those people buy things that have high ticket prices. 

You can check the commission rate per product category before promoting any products. The commission varies from 1% to 20%, depending on the product types and the total value of the sale.

According to Website Income, you need to have an amazon affiliate site with:

  • 1,500 daily visitors to make $100/day.
  • 15,000 daily visitors to earn $1,000/day.

You can use social media platforms such as Instagram, YouTube, or TikTok to generate affiliate sales with your referral links in the bio. However, blogging is the most popular method for Amazon Associates members to earn money. 

Since this is an affiliate program, you can promote products in many different ways; however, it's best to stick to promoting products related to your website's topic. If you have a blog about gaming, you could promote some of the Amazon games that you would use in your niche.

If you want to make money on Amazon with the Amazon Associates program but don't know where to start – here are some quick tips on getting started:

  • Find a Niche. Don't try to sell everything; instead, focus on a specific niche such as "running shoes," "luxury handbags," or "Survival Gear." This will make it easier for you to create content around your niche, and people are more likely to trust you as an expert on a specific topic.
  • Fashion and Health & Wellness are the top niches. 

Source: InfluencerMarketingHub

  • Create Content. Create content around your niches, such as informational articles, guides, and reviews. 
  • Build Trust. Build trust by reviewing products honestly and strive to be objective in your reviews.
  • Get Traffic. Once you have written content and are making sales, the next step is to find ways to get traffic (visitors) to your site to continue growing your business.

🔑 Benefits of the Amazon Associates Program

  • Zero cost of entry 
  • No maintenance costs
  • A wide range of products to choose from 
  • Sell products on various platforms, including your website, social media sites, and blogs.
  • Earn advertising fees from Qualifying Purchases, not just the products you advertised.

3. Create An Amazon Seller Account And Sell Your Physical Products On Amazon

An Amazon Seller account is a great way for you to make money producing your products or selling someone else's products without spending the time and money on building your e-commerce website. 

With its brand value amounting to 684bn USD, Amazon is one of the most popular platforms globally for online shopping.

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According to the report from CNBC, Amazon has a market share of almost 50% in eCommerce in the United States alone. And regardless of the pandemic, Amazon sales have blown past pre-pandemic projections for 2020, rocketing from 44.1% to $318.41 billion.

You simply have to decide what you want to sell and create a seller account to tap into Amazon's vast customer base. 

Amazon gives you the option to create two types of accounts: 

  • Individual seller account - you pay $0.99 for each item sold on Amazon and other selling fees, which vary by category. There are no monthly fees.
  • Professional seller account - there's a $39.99 monthly subscription fee but no charge for each item sold on Amazon.

The professional seller account is better for higher volume sellers with more than 40 items per month because the individual seller account will cost more money. 

Plus, the professional seller account gives you access to advanced tools like: 

You'll also be able to create new product detail pages or modify existing ones, set shipping rates, sell products in Amazon's restricted categories, and add multiple users to your account. 

The next steps include: 

  • Listing your products in the Amazon Marketplace.
  • Marketing and selling items to customers.
  • Shipping the products to customers.
  • Getting paid by Amazon directly into your bank account.

How much you can make selling on Amazon depends on the customers' experience, the profit margin you set, and how well you promote the products. Selling high-ranking, high-margin products with positive ratings will quickly lead you to success.

Here are some other tips to help you make the most of your Amazon Seller Account: 

  • Know your audience - When setting up your account, take advantage of Amazon's tools to help sellers understand the customer base. For example, if you know the age and gender of the most likely to buy your products, you can tailor your product descriptions accordingly. 
  • Pay attention to customer reviews - They can provide valuable insights into what customers like and dislike about your niche or category products.
  • Get High-Quality Images - Amazon allows up to nine images per listing, and they require at least one image (although this one image must meet specific characteristics). Their guidelines state that images should be at least 1000 pixels on the longest side. 
  • Consider third-party fulfillment services - Fulfillment by Amazon (FBA) is an option, but consider other fulfillment services. Don't be afraid to reach out directly to warehouse operators or other fulfillment service providers (many will offer free consultations).

🔑 Benefits of selling on Amazon

  • Set up a storefront where people can buy your products, and you don't have to worry about customer service or shipping.
  • Statistics show that more than half of all product searches begin on Amazon, allowing you to tap into a massive user base. 
  • Amazon deposits funds directly to your bank account, even for Pay on Delivery orders, every 7 days.
  • Amazon's Seller App lets you resolve issues, and respond to customers – anywhere, anytime.

4. Sell Professional Services on Amazon.

Selling professional services is another way of making money on Amazon. There are no startup costs, monthly subscription fees, or advertisement costs. You will get real customer opportunities and receive a revenue share on completed assignments.

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You can offer professional services in auto repair, handyman services, computer repair, assembler, house cleaner, make-up artist, and more. 

To be a Professional Service provider on Amazon, you have to meet Amazon's basic requirements, including carrying General Liability insurance with a limit of $1,000,000 per occurrence and providing the appropriate licensing for your trade.

After your service is approved, customers in your area will be able to find and book your services through Amazon.

Amazon charges you depending on the price of your service and the type of service you're offering:

  • Pre-packaged Services: Amazon collects 20% of the total cost up to $1,000 and 15% for the service greater than $1,000.
  • Recurring Services: If a customer books your company for a recurring service, Amazon collects 10% of the service price for completed orders over $1,000.

Once you've completed the job, customers leave feedback about your work. Your profile will show all of your jobs completed through Amazon.

According to statistics, online reviews have influenced 67.7% of buying decisions and are read by 90% of customers before visiting a company. So you must satisfy your customers – by completing services on-time and frequently communicating – to receive positive feedback, which will help attract new clients in the future.

🔑 Benefits of selling professional services on Amazon

  • No startup, monthly subscription, or advertisement fees. 
  • Amazon reviews work as referrals. 
  • Tap into Amazon's massive audience base. 

5. Retail Arbitrage 

Retail arbitrage is one of the best ways to make money on Amazon. You don't need any particular skills or experience, and you certainly don't have to be a business person.

You can make money by buying items in retail stores and then reselling them on Amazon. 

Here's retail arbitrage in action: you buy something for $10 at the store, sell it online for $20 (on Amazon or eBay), and pocket the $10 profit (minus fees). 

The key is finding items that are priced too low at retail stores or buying products from clearance racks so that they can be resold online at a higher price point. Alternatively, if you happen to be traveling overseas, some stores may sell products for less than what they cost in the U.S.

Once you have found a good deal, you will need to purchase the items and then list them for sale on Amazon. You can start your Retail Arbitrage business with the Amazon seller account or Amazon FBA.

There will be times that you lose money. But if you keep trying, those losses will eventually turn into profits!

Case in point: Nate and Alysha are Amazon arbitrage experts who began with only a $100 investment but generated more than $180,000 in total sales in their first year with perseverance.

Alysha advises that one should avoid going all-in on one product since there have been a handful of purchases throughout the process that didn't sell as well as expected.

Instead, "Go wide, not deep. Buy one of a hundred different things. If 20 of them are bad buys, the other 80 will be good buys," Nate explains.

What profit margins should you target? It isn't easy to calculate the entire cost while sourcing. However, Nate states that you should aim for 25% to 30% profit margins.

If an item and Amazon fees cost you $100, you should list it for at least $125 to $130. If you can sell it for more, that's great. Otherwise, you still make a decent profit at 25% to 30%.

🔑 Benefits of retail arbitrage 

  • Flexible business hours. 
  • You can get started with a low budget and grow your business as you start earning profits from your sales.
  • There is no need to buy in bulk. You can buy one item and sell it at a profit. 
  • You don't have to go through the pains of setting up an e-commerce store or managing inventory in a warehouse. 

6. Online Arbitrage

The difference between Online arbitrage and Retail arbitrage is that you are buying products from online marketplaces instead of offline stores with online arbitrage. Rest, the concept is similar. 

If you can find a good product at the right price, you can use FBA to sell items with minimal effort. 

Like retail arbitrage, online arbitrage also entails buying low and selling high. To ensure that you aren't buying too much inventory at one time, start with a smaller order of products and see how they perform in your stock.

🔑 Benefits of online arbitrage

  • You don't need to physically visit any retail stores or suppliers to purchase their products
  • Easy to source products from anywhere globally
  • Quicker to scale by outsourcing with virtual assistants to find profitable products

7. Amazon Work From Home Employee

Selling on Amazon isn't the only way to make money. You can also work for Amazon. 

Amazon is one of the best employers in today's market. Forbes ranked Amazon #4 among the best employers in 2021. 

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Of course, the appeal of working for the company is readily apparent and seems to be one of the best ways to make money on Amazon without actually selling on Amazon.

You can find many full-time and part-time positions listed on their site, including customer service, human resources, and even tech support. And many of these jobs are remote. Just flip through their site to find current remote job openings.

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How much does Amazon pay you to work from home? The minimum salary for all Amazon employees is $18 per hour

According to Indeed, Customer Service providers at Amazon can earn $30,000 to $50,000 a year – while the Call Center representatives make an average of $39,000 per year.

However, the wage and salary may vary depending on your position and location.

🔑 Benefits of Amazon Work From Home Jobs

  • Flexible schedule
  • Ample opportunities to work from home
  • Amazon is perfect for those who want to sidestep the monotony of 9 to 5 jobs

8. Make Money With Amazon Handmade. 

Amazon launched its version of Etsy for handmade and antique items in 2015, and it's been gaining traction ever since. The program is called Amazon Handmade – a marketplace to sells handcrafted goods, fine art, and vintage products.

You'll need to create an account on Amazon Handmade to get started. Then set up a profile and start listing your products.

Only handmade items are eligible for Amazon Handmade, which means that any item you list can't be mass-produced. Items must be individually crafted by hand or have at least one component made. The company may verify your listings if they feel it's necessary.

Some examples of products people often sell on Amazon Handmade include: 

  • Art
  • Handmade cutting boards
  • Pottery
  • Crochet handbags
  • Handmade jewelry 
  • Beauty & grooming products 
  • Pillowcases, and more.

Should you sell handmade items on Amazon or Etsy? 

Amazon Handmade charges you a 15% referral fee for the total sales price with no listing or transaction fee, and the listings never expire, which are two advantages compared to Etsy.

And while Etsy is a top-of-mind choice for buying artisan goods or vintage products, it still has nearly ten times fewer customers than Amazon in 2021. 

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So, if you're looking to reach a wider audience, Amazon Handmade is undoubtedly a better option.

🔑 Benefits of Amazon Handmade

  • A global audience: An enormous customer base means more potential buyers and increased sales for your unique items.
  • Exposure: Get discovered by tens of millions of people searching across Amazon every day and shown with other relevant products on the product detail pages for each item you create.
  • Customer reviews: Handmade at Amazon lets you engage directly with customers and ask for feedback on your products, which helps other shoppers make informed buying decisions.

9. Amazon Mechanical Turk. 

Amazon Mechanical Turk (MTurk) is a crowdsourced marketplace for people to do Human Intelligence Tasks (HITs) – known as micro-tasks – such as transcribing audio files, doing surveys, writing short product descriptions, tagging photos, and the like. 

Workers can choose which tasks they want to complete and are paid based on each task.

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The best part is that you can work on these tasks from anywhere, and they are perfect for those who want to make a little bit of extra money on the side. 

According to TSolo, an MTurk worker with 6-year experience, you can:

  • Make around $5 - $6 per hour when you just start with the platform.
  • Then earn up to $14 - $18 per hour once you get it.

On his best day, he made $400 in twenty hours. And most full-time employees he knows earn between $8 and $12 per hour on average.

TSolo also suggests that "Although I wouldn't recommend MTurk as a full-time job, you can still make decent money if you take the time to learn how to work efficiently – especially compared to similar platforms."

🔑 Benefits of Amazon Mechanical Turk

  • Flexible work hours and a very large pool of tasks available.
  • A great opportunity to earn additional income while working from home.
  • Working on Amazon Mechanical Turk will save you tons of money on gas and transportation costs. 
  • You can make as many requests as you want; there's no limit.
  • You can work on your schedule. 
  • Some tasks take only a few minutes to complete.
  • There are many different types of tasks available (surveys, image tagging, etc.) 

10. Merch by Amazon

Merch by Amazon is a print-on-demand service offered by Amazon. It allows designers and content creators to upload their designs and sell them as T-shirts and other merchandise without worrying about inventory, shipping, or handling payments.

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To get started with Merch by Amazon, you will need to create an account and submit your t-shirt design to get approved. When a customer purchases your t-shirt, Amazon will print and ship the shirt to the customer for you. You will then receive a royalty payment for each shirt that is sold.

For instance, these are standard rates for US-based sellers: 

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It's important to note that you will not be able to list your shirts for sale until Amazon approves your design. So make sure to submit high-quality designs that meet Amazon's standards

It's a very straightforward process, but there are a few rules that you need to be aware of to earn well from the program.

  • You must own the rights to each design you upload.
  • Your design must demonstrate originality and creativity.
  • Designs must not contain profanity or inappropriate content.
  • Your designs cannot contain references to trademarked terms, brands, characters, or competitors' products or services. You can use Amazon logos, but only if they follow Amazon brand guidelines.

Regardless, it's an excellent alternative to your online store as you don't have to worry about upfront costs or inventory costs as your "key investment" is image files.

To promote your t-shirts, you can use social media (Twitter, Facebook, etc.), your blog, or other online platforms. 

You can also create a free business card and share it with friends and family members at parties, weddings, and other occasions.

🔑 Benefits of Merch by Amazon 

  • No inventory or shipping is required.
  • As an Amazon seller, you can start selling t-shirts within minutes if you have a design ready to go! 
  • There are no set-up fees, no costs to create images, no cost to upload your products, and no cost to maintain your account. 
  • Earn royalties equal to your share of the price of every unit sold.
  • Simple tools and analytics to help you easily manage your merch.
  • Print-on-demand fulfillment through Amazon's global printing partners (they get your merch to your buyers quickly and reliably). 

11. Dropshipping on Amazon. 

Amazon dropshipping is a business model whereby you sell products that are not in your inventory. Instead, your supplier will ship the product directly to your customer's door whenever you make a sale. This model helps you avoid worrying over storage or shipping costs.

(Source)

Amazon dropshipping is different from the traditional dropshipping model because it allows you to start an online business selling products on Amazon rather than building your e-commerce store.

To get started with dropshipping on Amazon, you must check Amazon's requirements for dropshipping to avoid getting your account suspended. Then you'll need to find a supplier, one of the easiest ways is to use Alibaba or AliExpress.

Once you've found a supplier, create a listing on Amazon. Be sure to include high-quality photos, a detailed description, and a competitive price. You'll also want to configure your shipping settings so that the supplier can ship the product directly to the customer.

Dropshipping with Amazon can be a lucrative business. The average drop shipping margin is between 10% and 30%, and Amazon takes around 15% of your top-line revenue. So at a 30% margin, you'll make a 15% net margin after selling a product on Amazon.

To maximize sales, you need to drive traffic to your product listings. This can be done in several ways, such as paid advertising, email marketing, or social media. Then aim for a high seller rating to get the Buy Box on your listing, which will lead to more sales.

For the uninitiated, Amazon Buy Box allows buyers to use the "Buy It Now" button because it's the simplest way to purchase a product. They don't have to add an item to the cart and then go through checkout — instead, they can click on a single button and complete their purchase immediately.

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🔑 Benefits of Amazon dropshipping

  • Since you never have to handle any merchandise, starting an Amazon dropshipping business doesn't require much upfront capital.
  • Wide selection of products. 
  • No overhead cost. 
  • You won't have to worry about shipping and fulfillment. 
  • You won't have to deal with refunds. 
  • It mostly runs on autopilot, and you get a steady stream of income. 

12. Amazon Flex

Amazon Flex is a new way for anyone, anywhere, to earn money delivering goods for Amazon. You'll be a delivery partner with Amazon, picking up packages from one of their delivery stations and delivering directly to customers.

The best part? The job pays $18-$25 an hour. That's more than twice the federal minimum wage and about what many full-time workers earn.

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That said, the amount you make depends on various things, such as your location, the number of packages you can deliver, and the time of day.

Amazon Flex hires drivers from all over the country. To discover where Amazon Flex is looking for drivers, check out their website. If your city isn't on Amazon Flex's list, you can sign up to get notified when they start recruiting drivers in your area. 

There are some catches, though. You need to: 

  • Be at least 21 years old
  • Have a year of driving experience
  • Have a clean driving record (no serious traffic violations or DUIs) 
  • Pass a background check before Amazon hires you.

Pro Tip: Claiming blocks during busy periods and delivering for Prime Now and Amazon Fresh, which allow customers to tip you, are the two best ways to increase your hourly rate.

🔑 Benefits of Amazon Flex

  • You can set your schedule.
  • Competitive pay rates, especially if you can make multiple drop-offs in one trip. 
  • The sign-up process for Amazon Flex is very easy, and once approved, drivers can start making deliveries immediately.
  • You can also choose your location, meaning you can pick up delivery blocks close to home.

13. Amazon's Delivery Service Partner

Amazon's Delivery Service Partner (DSP) program is an opportunity for entrepreneurs to start their own delivery business, delivering packages for Amazon. DSPs have access to Amazon's world-class technology, resources, and support to earn a high income. They also benefit from marketing support, including access to Amazon's outstanding customer service team.

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Coming to the potential earnings, you stand a chance to earn up to $300,000 per year with the DSP program, as reported by Driveroo.

Beginners often start with around five vans and an investment of about $10,000. This is not a fee you have to pay for Amazon. This fee covers legal representation, accountant and lawyer fees, laptops and timekeeping software, etc.

As an Amazon DSP owner, you will:

  • Hire and develop your employees
  • Maintain a safe work environment and ensure compliance with local, state, and federal requirements
  • Develop a motivated team that is focused on delivering packages on time and in good condition
  • Deliver outstanding customer service while managing resources effectively

🔑 Benefits of the Amazon DSP program

  • Amazon provides the vans and covers fuel, insurance, and vehicle maintenance costs.
  • Partners can earn at least $20/hour at select stations.
  • Amazon's delivery technology allows you to optimize your deliveries for speed and efficiency.
  • Each delivery partner can manage a fleet of 20 to 40 delivery vehicles.

14. Amazon CamperForce

Amazon CamperForce is a unique work program for RVers and campers who want to travel the country and stay at beautiful campgrounds while earning money and having fun. 

Amazon hires temporary workers to help with the holiday rush at Amazon warehouses – and campers get to earn some extra cash during the holidays. Win-win! So, if you're looking to make some extra money during the holidays, CamperForce might be a good option.

According to CNBC, Amazon began recruiting hundreds of CamperForce employees in 2008 at just one location, Coffeyville, Kansas. In 2021, CamperForce sites had opened in 14 states and are now open at 26 locations throughout the United States. So there are plenty of opportunities for you to join the program and make a passive income.

To get started with CamperForce, visit Amazon's CamperForce website. Create an account and apply for the program through the website. If selected, you'll participate in the program, with the starting pay being $15 per hour. The program pays you weekly, including overtime (if applicable), as reported by Kamper Jobs.

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One of the best parts about CamperForce is that Amazon will provide you with a campsite to park your R.V. (Recreational Vehicle). This means you can save money on rent and utilities while working for them.

🔑 Benefits of Amazon CamperForce 

  • Full-time and part-time opportunities. 
  • You get paid weekly and for overtime if you want to work it.  
  • You'll get a completion bonus at the end of the assignment ( $.50 for each regular hour worked and $1.00 for each overtime hour worked).
  • CamperForce associates receive $120 weekly toward their campground expenses.

15. Fulfillment by Amazon (FBA)

In 2020, the coronavirus added $102.08 billion to U.S. ecommerce sales, which is $116.45 billion in 2021, as Digital Commerce 360 estimated.

According to Fortune's research, the virus triggered the closure of more than 200,000 enterprises, including several restaurants and businesses. Amazon, on the other hand, kept growing and became more prominent.

The ecommerce giant is now looking for entrepreneurs who can help it keep up with surging demand by signing up for its Fulfillment by Amazon (FBA) program. 

Fulfillment by Amazon (FBA) helps businesses grow by providing access to Amazon's storage, packaging, and shipping network. Companies send products to Amazon fulfillment centers, and Amazon picks, packs, ships, and provides customer service for these products.

Here's a quick overview of how to set up your Amazon FBA account

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This helps you ease your selling tasks, improve delivery times, and free up valuable time.

But can FBA make you rich? The Jungle Scout team surveyed thousands of Amazon sellers and has collected the following monthly sales statistics:

  • 17% of people making under $5000.
  • 20% earning from $1000 to $5000.
  • 19% have an income of $25,000-$250,000.
  • And 6% making more than $250,000.

While Amazon takes care of everything else, you still have to manufacture your products to send them to Amazon's warehouses. 

A great workaround is private labeling products rather than manufacturing them yourself. Private labeling is when you find a product and "private label" it. All this means is that you put your brand on the product. You can then sell the item under your brand name and keep all the profits.

One route to successfully sourcing products is to use Alibaba – one of the world's largest online B2B marketplaces, where wholesale buyers connect with suppliers from China and worldwide.

Alibaba sells products in large quantities that come straight from the manufacturer. This means you can buy them at a lower price than you typically pay for retail goods. You may also be able to negotiate better prices if you're ordering more than one item from them at once. 

🔑 Benefits of Fulfillment by Amazon

  • Quickly start selling on Amazon Marketplace. 
  • Keep your inventory in Amazon's network of fulfillment centers.
  • Amazon picks, packs, ships, and tracks your orders on your behalf.
  • Amazon also handles returns and refunds on your behalf. 
  • Get access to Prime customers, who buy more often and spend more on Amazon than non-Prime members.

It's your turn to cash in on the ever-growing Amazon marketplace! 

There you have it – a general overview of making money on Amazon without much investment. 

Follow the above simple steps to sell on Amazon, private label products, leverage affiliate marketing, and deliver products for Amazon, among others – and you will also start to make money on Amazon in a couple of days. 

So, this answers your question about how to make money on Amazon. Depending on your niche, there are many untapped potentials for everyone to make a profit on Amazon.

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Biz Wiz
Biz Wiz is a digital marketing wizard and an online scaling business expert. He creates awesome how-to guides, digital marketing tips, and software reviews for beginners and experienced digital marketers. Join Biz Wiz on MerchantWizard.com today to take your online business to the next level.
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