Three Powerful Ways to Make Money on Amazon (Complete Guide
Hey there!
It’s Brian, and I want to discuss how you can make money on Amazon today. Before we jump into the three exciting methods to earn online, here’s a little about me. My twin brother Arek and I are professional e-commerce coaches with specialized expertise in scaling Amazon businesses.
We’ve helped hundreds of students find financial success through successful online brands. With our holistic e-commerce program, The FBA Studio, and YouTube channel, we aid people in learning foolproof tactics to make it big on Amazon.
You’ve seen the headlines and statistics across the internet- selling on Amazon makes people massive amounts of money. That’s because Amazon has quickly transformed into an e-commerce giant, with a 37.8% e-commerce market share and projected revenue of $140.0 billion. And with over 200 million prime members, Amazon promises success to aspiring sellers and brands.
To craft a successful brand on this immensely profitable channel, you first need to learn the different ways to get started. Additionally, evaluating the pros and cons of uptaking a selling opportunity on Amazon is essential. Below I’ll discuss the top three exciting ways to initiate your e-commerce journey. Or watch my YouTube video, where I reveal the number one method of earning on Amazon.
What Are The Different Ways to Money on Amazon in 2023?- 3 Best Methods
Amazon is undoubtedly the best place to purchase and sell on the internet. With a stunning $344 billion gross market value, over 310 million shoppers, and 6.3 active sellers, Amazon is the king of e-commerce.
The most prominent online marketplace, Amazon, is a massive opportunity for those who want to join the e-commerce world. In 2022, the brand earned $469 billion in annual revenue- over 58% of which was driven by third-party sellers.
Wondering how you can grab a piece of the Amazon pie? There are countless fantastic ways to get started, three of which I’ll discuss below. I’ll share the pros and cons to help you make the perfect decision. Let’s dive in!
Psst…You can watch the video edition of this article here to skip reading long paragraphs.
Amazon Private Label
The best way to create a profitable business on Amazon is to set up your private label business. With private labelling, you source high-quality products from manufacturers and put your branding on them before selling them to sellers.
But it’s more than that! Keep reading to find out:
A Quick Glance at Amazon Private Label
In Amazon private labelling, sellers manufacture an in-demand product, customize it to match their customers’ needs, and add their logos. Amazon White-Label allows retailers to create a brand by selling products with high sales but fewer reviews.
With Amazon PL, you get full rights to your manufacturer’s product and can market it as yours. Thus, this selling method allows you to stand out from the crowd.
Pros of Amazon Private Label
While Amazon private label isn’t a get-rich-quick scheme, it offers innumerable benefits, including:
- No Brand Restrictions- Amazon has multiple restrictions on selling products from other brands. However, when you set up your brand, you won’t have to worry about this.
- Complete Control on Price- Another fantastic benefit of PL is you are responsible for creating your listing, which means you can price your products!
- Less Competition- Since you’re no longer selling products from the same brand, you won’t have to stress about sellers stealing customers.
- Expand Your Product Line- Once your product takes off, you can diversify your product line by adding complementary items. As a result, you can protect profitability and create a consistent cash flow.
- Building an Asset- It’s no surprise that more aggregators, private equity investors, and buyers gravitate toward Amazon. So, creating a successful Amazon white-label brand comes with a life-changing exit.
- Higher Profit Margins- If you invest time, money, and efforts to create a unique product catered to your target audience, you can protect your profit margins and scale your brand. Consequently, you won’t have to worry about sellers producing similar products.
Cons of Amazon Private Label
Like all good things, Amazon's private label includes a few cons. Here’s an overview:
- High Upfront Costs- A significant drawback of Amazon PL is it requires massive upfront cash. You'll need a few thousand dollars to get started, from bulk orders and shipping fees to branding and advertising.
- More Setup- Amazon wholesale is straightforward, but the white label is multi-dimensional. Among multiple tasks, you'll have to focus on advertising, logo designing, copywriting, and marketing.
- Higher Risk- Spending a massive amount of cash comes with a natural risk. Since you’re creating a brand from scratch, there’s always the risk of failure.
- Branding and Designing- Making your voice heard in today’s saturated market requires top-notch branding. And to stand out, you’ll need to get your creative juices running.
How Does It Work?
Private label is a long-term investment, requiring massive effort and continuous improvement. Fortunately, getting started is easier than it sounds! Here’s how it all begins:
Create Your Amazon Account
Start building your Amazon Private Label business by creating your Amazon seller account. You'll have two options: Individual and Professional seller accounts.
I recommend investing in a professional seller account since it lets you sell over 40 products for $39.99 per month. Once done, you can view your seller central and manage your inventory.
Analyze Your Product and Competition
You’ve heard this before, but a good chunk of your success depends on your ability to weed out profitable products. So, spend time discovering best-selling products, analyzing your competitors, and learning more about your target audience.
Furthermore, take the time to assess your competitors' strategies and keywords. That way, you can find relevant terms to rank for and dive deeper into sub-niches. Here's a bonus tip: check your competitor's negative reviews to find areas for improvement.
Brand and List Products
So, you’ve found your product; what next? It’s time to find a quality supplier! Use B2B E-commerce sites like Alibaba or e-Bay to find the best manufacturers at budget-friendly prices.
The next step is creating your listing and branding your products. You'll have to call your creative side out for this to craft a compelling product description, attention-grabbing headline, and eye-catching images. Alternatively, you can hire a professional offering relevant services.
Amazon FBA Wholesale
Selling wholesale is another fantastic way to grow a successful brand on Amazon. Like private labels, selling wholesale involves purchasing bulk items and selling through Amazon’s robust network.
Let’s discuss in-depth how Amazon FBA wholesale works:
A Quick Glance at Amazon FBA Wholesale
In Amazon FBA wholesale, retailers purchase branded products in bulk from manufacturers at a wholesale price and sell them on Amazon. Under this business model, merchants profit by reselling the items at a higher price.
A wholesale sourcing-based company and Amazon FBA program allow you to be the only seller providing the product or join hundreds of like-minded retailers selling it on Amazon.
Pros of Amazon FBA Wholesale
Amazon FBA wholesale has countless benefits, including:
- Established Customer Base- Selling wholesale lets you resell products people know and love. Thus, you can benefit from an existing, pre-engaged customer base and eliminate the need for marketing.
- Easy-to-Start- Amazon FBA wholesale stands out for its ease of starting. The business model requires a few days to set up your account and start growing an organic brand.
- Scalability Potential- If your product sells well on Amazon, you can quickly diversify your product line and increase inventory to scale your business.
- Amazon Brand Approval- Selling wholesale provides Amazon’s approval, which helps reduce buy-box competition. Sometimes, it can lead to getting exclusive selling rights on Amazon.
- Profitable and Low-Risk- Amazon FBA wholesale is a lucrative business opportunity, promising profitability within six months.
Cons of Amazon FBA Wholesale
Selling wholesale has several noticeable drawbacks, including:
- Too Competitive- Most Amazon listings on which you place offers will have multiple sellers. And since the only way to differentiate is to cut prices, it can sometimes lead to you eating your profits.
- Time-Consuming- Research is an essential aspect of Amazon wholesale. Scouring through hundreds and thousands of products can be time-consuming and exhausting.
- Upfront Costs- Another significant drawback of Amazon wholesaling is massive up-front costs. You’ll need considerable capital investment to purchase bulk products. In addition, you’ll have to carry the risk of having a high inventory.
- Cold Outreach- Before you start reselling on Amazon, you’ll need the approval of brands. It involves cold calling and emailing to convince brands to allow you to sell their products.
How Does It Work?
Now that we’ve discussed the nitty-gritty of Amazon FBA wholesale, let’s discuss what it takes to get started:
Conduct Product Research
Selling wholesale starts with finding a profitable, whether by researching your supplier’s inventory or the Amazon marketplace.
Ideally, the product you resell should generate high sales, have high-profit margins, and less competition. Choosing a small and lightweight item is also wise to enjoy cheaper shipping fees.
Register for an Amazon Seller Account
Once you’ve found the ideal product, the next step is creating an Amazon seller account. As a wholesaler, the professional version is best to unlock advanced features and avoid overhead costs.
Add Products and Manage Inventory
After creating your Amazon account, you can start researching top-notch suppliers. Remember to talk with multiple merchants to get the most out of your money.
Once you secure a deal, you can create your Product Listing or join an existing one. The next step is simple- watch as Amazon fulfills your orders and stay on top of your inventory to ensure success.
Amazon Kindle Direct Publishing
Amazon Kindle Direct Publishing allows you to self-publish your books on Amazon. With KDP, you can skip waiting for a publishing house to notice you.
Instead, you can publish e-books and print hard copies of them. But there’s a catch! Let’s take a closer look:
A Quick Glance at Amazon Kindle Direct Publishing
Amazon Kindle Direct Publishing is the brand’s self-publishing platform that allows authors to publish and sell books. With KDP, you can exploit Amazon’s massive audience and avoid the hassle of going through a traditional publishing house.
Amazon KDP lets you create e-books and paper books with minimum upfront costs and no inventory orders. Plus, you get full rights to your publication!
Pros of Amazon Kindle Direct Publishing
Let’s discuss in-depth the benefits of Amazon KDP:
- No Upfront Costs- The best part of self-publishing on Amazon is you can list your e-books free of cost!
- KDP Partners with Audible- Another benefit of Amazon KDP is you get the option of transforming your e-book into an audiobook. It adds a new dimension to your books and diversifies our customer base
- Print on-Demand- Amazon offers writers professional print-on-demand service, which removes the hassle of pre-ordering and storing stock. It also helps you save costs on shipping.
- Access to Consumers- Amazon is a massive marketplace, which means you can get your book in front of millions of pre-engaged customers.
- Choose Between e-books and Paper Books- Amazon Kindle Direct Publishing allows you to convert your e-book into a paper book. Therefore, you can sell e-books, paper books, or both!
Cons of Amazon Kindle Direct Publishing
Unfortunately, there are significant drawbacks with Amazon KDP, including:
- Limited Reach and Revenue- Publishing on Kindle means your book will reach a limited amount of people. You’ll lose traffic from people who don’t use Amazon KDP or countries that boycott the platform.
- Inconsistent Revenue- Unlike an online business, enrolling in KDP select does not promise consistent revenue. In addition, Kindle pays writers based on per page read, which lowers your profit.
- 90-Day Exclusivity Clause- When you publish your e-book on Amazon, the platform implements a 90-days exclusivity period during which you cannot post or sell your digital copy elsewhere.
- Content Limitations- Another significant drawback of Amazon Kindle is it requires you to post less than 10% of content on other platforms. Thus, you'll violate Amazon's guidelines if you post more than the limited amount on your website, blog, or Wattpad story.
How Does It work?
Publishing your first e-book can be intimidating, but it’s not impossible! Here’s how you can get started:
Create Your Kindle Direct Publishing Account
Once you finish writing your book (a million coffee cups later), you can set up your KDP account within seconds. Open Kindle Direct Publishing and sign up by entering the necessary information.
After logging in, you can customize your account to reflect your personality.
List Your Book
The next step is straightforward, create your book’s title and product description. Remember to add relevant keywords and select the appropriate category to rank higher in Amazon’s algorithm.
Before you can upload any documents, KDP will ask whether your book is on sale or ready for pre-orders.
Upload and Publish!
After writing a stellar product description, it’s time to hop onto your manuscript and book cover. Ensure you create an attention-grabbing cover to hook readers instantly.
Once done, you can hit “Publish” and set a price to go live!
Which Is The Best Way to Make Money Through Amazon?
The perfect seller business model depends on multiple factors, including whether it matches your skills and needs. Ensure you contemplate the pros and cons we discussed to make the perfect decision.
I recommend choosing Amazon Private Label for multiple reasons, including:
- Higher Profit Margins- Amazon White Label is about creating a high-quality product catered to your target audience. If you invest the time and effort to curate a unique item, you won’t have to stress about other sellers stealing your traffic and profits.
- Better ROI- With Amazon FBA, you can better predict your sales and practice more control over your brand image. Consequently, you can dictate prices and enjoy a better ROI.
- Complete Creative and Cost Control- In Private Labelling, you have complete control over your brand’s direction. You’ll control branding elements, listing, supply chain management, sales prices, and more!
- Asset Building-Amazon PL encourages sellers to build a solid, high-value, and sustainable business, which can later be sold to Amazon aggregators and private buyers.
Bonus: Tools and Tricks to Start Selling on Amazon
Now that we’ve discussed everything about selling on Amazon, let’s dive into the top tools you can use to ease your online brand-building journey:
For Research and Analysis
Helium10 is a fantastic suite of Amazon tools packed with high-quality features like SEO, product research, and inventory management. With this innovative tool, you can pinpoint winning products, identify trends, manage items, optimize listings, and find keywords.
You can get started using discount code “ZAB6M20” to enjoy 20% off your first six months on Helium10. Or you can enter coupon code “THEZABTWINS10” to unlock 10% off forever!
For Money Transferring
A massive part of running an online business is transferring money worldwide. With Wise, you can send, receive, and store money anywhere.
In addition, you can convert your money to over 52 different countries and send it to 70 countries without worrying about overhead costs and expensive exchange rates. Simply click this link to sign up for Wise and take charge of your finances.
For Quality Control
Running quality control tests ensures your product matches customers’ needs. With Movely, you can partner with a quality control team to run product inspections and provide insightful reports featuring images, videos, and instructions.
That way, you’ll receive an unbiased view of your desired product. Ultimately, you can invest in the right, high-quality products that help prevent returns and negative reviews. P.S. If you click this link, you can access a 20-page e-book illustrating how to vet suppliers, what product specifications you should check, and ways to enhance inspections.
For Branding and Advertising
Optimizing your Amazon product listing is critical to expanding your business. With the FBA Studio, you can take your company’s branding to the next level!
Once you partner with the FBA Studio, you can get professional help for photography, infographic creation, branding, logo designing, copywriting, packaging, and A+ content writing. That way, you can optimize your product listing for Amazon’s algorithm and rank higher.
Another must-use listing optimization tool is Product Pinion. With this Amazon tool, you can run split and video tests to get insights into your target audience’s needs and wants. Consequently, you can create products that resonate with your customers and boost sales!
The Bottom Line
So there you have it. Three fantastic ways to earn money on Amazon!
Before I wrap up this article, what way will you start earning online? Whatever your Amazon business model, you can establish a healthy profit margin with minimum upfront investment.
If you’re unsure which business model best matches your needs, you can get a free consultation by scheduling a call with Arek and me. Or you can check out our YouTube channel to get a closer look at the e-commerce world.
References
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https://www.junglescout.com/blog/amazon-kindle-direct-publishing/
https://blog.reedsy.com/guide/kdp/how-to-publish-a-book-on-amazon/
https://publishdrive.com/the-pros-and-cons-of-self-publishing-on-amazon.html
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https://amzscout.net/blog/wholesale-on-amazon-is-it-right-for-you/#RegisterforanAmazonSellerAccount
