How to make money on Amazon has become one of the most searched questions online, and for good reason. Amazon generated $574 billion in revenue in 2023, with over 60% of sales coming from independent sellers like you.
Here are the main ways to make money on Amazon:
Selling Physical Products:
No Inventory Required:
Service-Based Income:
Amazon attracts over 2 billion visitors monthly and holds 40% of the U.S. e-commerce market share. Independent sellers in the US averaged more than $290,000 in annual sales in 2024. The platform's massive reach means your content, products, or services get exposure to millions of potential customers.
Simple how to make money on amazon glossary:
The beauty of Amazon's ecosystem is its diversity. Whether you're looking to sell physical products, create digital content, or offer services, there's a path that fits your goals and budget.
Physical product sales remain the backbone of Amazon's marketplace. The numbers don't lie - this is where the real money is made.
Private label products dominate the seller landscape, with 54% of Amazon sellers using this method. Source generic products from manufacturers, add your own branding, and sell them as your own brand. Most sellers earn $625-$1,875 per month per product, with 40% making $1,000-$25,000 monthly overall.
Retail arbitrage involves buying discounted products from retail stores and reselling them on Amazon at market price. About 21% of retail arbitrage sellers achieve $5,000+ monthly sales, with 25% maintaining profit margins over 20%.
Wholesale means purchasing brand-name products in bulk directly from manufacturers or distributors. The stats are encouraging: 26% of wholesale sellers make $5,000+ monthly, and 34% maintain profit margins over 20%.
Online arbitrage takes the same concept as retail arbitrage but moves it online. You're hunting for deals on other websites and flipping them on Amazon.
When it comes to how to make money on Amazon with physical products, your biggest decision will be choosing between FBA and FBM:
| Feature | FBA (Fulfillment by Amazon) | FBM (Fulfillment by Merchant) |
|---|---|---|
| Storage | Amazon warehouses | Your location |
| Shipping | Amazon handles | You handle |
| Prime Eligibility | Yes | No (unless special approval) |
| Customer Service | Amazon handles | You handle |
| Monthly Fees | $39.99 + storage + fulfillment | $39.99 (Professional plan) |
| Sales Increase | 30-50% average boost | Baseline |
| Best For | Scaling businesses | Starting out/high-margin items |
Not ready to deal with physical products? Amazon offers several zero-inventory options that can generate substantial income.
Kindle Direct Publishing (KDP) lets you publish ebooks and print-on-demand books. Some authors earn up to $40,000 monthly, though most see a few hundred dollars per month. The key is volume - successful KDP authors publish multiple titles.
Amazon Merch on Demand handles the entire print-on-demand process for t-shirts, mugs, and other merchandise. You upload designs, set prices, and Amazon prints and ships when orders come in. Royalty rates range from 13% to 37% of the sale price.
Amazon Handmade caters to artisans and crafters. 63% of Amazon Handmade artisans earn over $1,000 monthly, with many reporting $100+ daily sales.
Amazon Services lets you offer professional services like home improvement or tutoring directly through Amazon's platform.
Amazon Renewed focuses on refurbished electronics and appliances. Dropshipping lets you partner with suppliers who ship directly to customers. Amazon Business opens doors to wholesale sales to corporate clients. Amazon Trade-In provides Amazon credit for used electronics, books, and games.
The beauty of these options is that you can start with minimal upfront investment and scale based on what works for your situation and skills.
Ready to turn your how to make money on Amazon dreams into reality? The journey from complete beginner to making your first sale doesn't have to be overwhelming.
Your Amazon selling journey starts with choosing the right foundation. Amazon offers two selling plans, and this decision shapes everything that follows.
The Individual Plan costs $0.99 per sale with no monthly fee, making it tempting for beginners. But if you're serious about making money, you'll likely outgrow this plan within your first month. It's designed for people selling fewer than 40 items monthly.
The Professional Plan at $39.99 monthly gives you unlimited sales plus the tools that separate successful sellers from struggling ones. You'll need this plan for Brand Registry, which protects your listings from hijackers. You'll also get access to bulk listing tools, detailed analytics, and the ability to create promotions.
Creating your Seller Central account becomes your business command center where you'll manage everything from inventory to customer messages. Amazon requires business information, tax details, and bank account information for payments. Amazon typically pays sellers about 60 days after the month when sales occurred, so plan your cash flow accordingly.
Product research and sourcing separates successful sellers from those who struggle. Use Amazon's Product Opportunity Explorer to find market gaps. Look for products with monthly search volume over 1,000, competing listings with fewer than 100 reviews, and price points between $20-$200.
When you're ready to list your products, focus on creating listings that convert browsers into buyers. Your title should include primary keywords within the first 80 characters. High-quality images from multiple angles are non-negotiable. Write detailed bullet points that highlight benefits rather than just features, and use Amazon's automated pricing tools to stay competitive.
Fulfillment by Amazon (FBA) offers compelling advantages that translate directly to higher sales. Prime eligibility alone increases conversion rates dramatically, with most sellers seeing a 30-50% sales increase after switching to FBA. Amazon handles customer service, returns, and shipping, freeing you to focus on product sourcing and marketing.
However, FBA comes with considerations that can eat into profits if you're not careful. Storage fees increase during Q4 when warehouse space is premium. Long-term storage fees kick in for slow-moving inventory.
Fulfillment by Merchant (FBM) makes sense for specific situations. If you're selling high-margin items, oversized products, or fragile goods that need special handling, FBM often delivers better profit margins. You maintain complete control over the fulfillment process and don't face storage limitations.
The sweet spot for many sellers is starting with FBM to test products and market demand, then transitioning successful items to FBA for scaling.
Customer reviews can make or break your Amazon business, but building them ethically requires patience and strategy.
The Amazon Vine Program remains the gold standard for legitimate reviews. This invitation-only program connects trusted reviewers with sellers, but you can't pay your way in. Amazon invites reviewers based on their review quality and helpfulness rankings.
Amazon's Request a Review button is your most reliable tool for generating reviews. Use it 5-30 days after delivery when the product experience is fresh in customers' minds.
Exceptional customer service creates the foundation for positive reviews. Respond to customer messages within 24 hours, provide tracking information proactively, and resolve issues quickly and generously.
Don't underestimate the power of packaging excellence. Research shows 52% of consumers make repeat purchases based on premium packaging experiences. Include thank-you notes, care instructions, or small bonus items to create memorable unboxing moments.
Building reviews takes time, but the compound effect is powerful. Each positive review makes the next sale easier, creating momentum that can transform a struggling listing into a bestseller.
If you're a content creator or someone who prefers building passive income streams, Amazon offers several fantastic opportunities that don't require dealing with inventory or shipping boxes from your garage.
The Amazon Associates program is honestly one of the easiest ways to start earning money online. It's the world's largest affiliate program, and you can earn up to 10% commissions on qualifying purchases. Learn more about affiliate earnings.
Here's what makes Amazon Associates so appealing - you don't need to convince people to buy from some unknown brand. Amazon already has their trust and credit card information. Your job is simply to recommend products you genuinely like and let Amazon handle the rest.
Commission rates vary by category, and knowing these can help you focus your content. Luxury Beauty products pay up to 10%, while Physical Books earn 4.5% and Electronics pay 2.5%. The key is finding that sweet spot between commission rates and conversion potential.
The real magic happens when you create detailed product reviews and comparison posts that help people make buying decisions. Use Amazon's built-in tools like widgets and banners to make your links look professional. Always include proper affiliate disclosures - it's required by law and builds trust with your audience.
Focus on evergreen content that keeps driving traffic months or years after you publish it. Think "best coffee makers under $100" rather than "Black Friday deals." More info about Make Money Blogging.
The Amazon Influencer Program takes affiliate marketing up a notch by giving you your own personalized storefront and video monetization opportunities. It's like having your own mini Amazon store.
Getting approved requires an active social media presence on Instagram, TikTok, YouTube, or Facebook. Quality followers matter way more than quantity. Amazon would rather work with someone who has 5,000 engaged followers than 50,000 ghost accounts.
Once you're in, you get a custom URL (amazon.com/shop/yourusername) where you can create curated product collections. Every purchase made through your storefront earns you a commission, even if they buy something completely different from what you recommended.
Amazon Live is where things get really interesting. You can host interactive shopping sessions where viewers ask questions and make purchases in real-time. According to scientific research on influencer impact, micro-influencers often achieve higher engagement rates than mega-influencers.
Video reviews are absolutely crushing it right now. Most beginners earn $50-200 monthly in their first three months, while consistent creators with 100+ videos can earn $1,000-5,000+ monthly after building their library.
The format is beautifully simple: keep videos between 1-3 minutes for optimal conversion. Follow a basic structure - intro, unboxing, overview, demo, pros and cons, then conclusion. Focus on products in the $20-200 range because they offer the best balance of commission potential and conversion rates.
You don't need expensive equipment to get started. A $20-40 ring light, a $15-30 lavalier microphone, a basic tripod, and your smartphone are plenty. Natural lighting and clean backgrounds matter more than fancy cameras.
One creator made $4,528 in a single month reviewing kitchen gadgets for just two minutes each. The secret? Consistency and choosing products with low video review competition. Be honest about pros and cons - people can spot fake enthusiasm from a mile away.
Amazon Mechanical Turk (MTurk) lets you complete small tasks like data entry, transcription, or surveys. Workers typically earn $6-10 per hour, which translates to $120-200 for a 20-hour week.
Amazon Trade-In gives you Amazon credit for used electronics, books, textbooks, and video games. While it's not exactly a business model, it's easy money for items collecting dust in your closet.
Amazon Services opens the door to offering professional services like home improvement, tutoring, or consulting. You set your own rates and schedule, and Amazon handles the payment processing.
The beauty of these "how to make money on Amazon" methods is that they can all work together. You might start with affiliate marketing, add video reviews as you get comfortable, then launch an Amazon Live show once you've built an audience.
You've launched your Amazon business and made your first few sales. Now comes the exciting part - scaling up and dominating your niche. This is where how to make money on Amazon transforms from a side hustle into a serious business venture.
Amazon's advertising ecosystem is your secret weapon for explosive growth. Think of it as your personal marketing team that works 24/7 to put your products in front of hungry customers.
Sponsored Products are your bread and butter advertising tool. They target specific keywords and products, delivering an impressive 18% average sales uplift. When someone searches for "wireless headphones," your ad appears right alongside organic results.
Sponsored Brands take things up a notch by showcasing your entire product portfolio. Instead of promoting just one item, you're building brand awareness across multiple products. This is particularly powerful once you have 3-5 related products in your catalog.
Sponsored Display ads are your retargeting champions. They follow potential customers around Amazon, gently reminding them about that product they viewed but didn't buy.
For serious sellers ready to invest bigger budgets, Amazon DSP offers programmatic advertising both on and off Amazon. This means your ads can appear on other websites, bringing external traffic directly to your Amazon listings.
Success on Amazon isn't about guessing - it's about using data to make smart decisions. Amazon provides incredible tools that most sellers underuse.
Product Opportunity Explorer is like having a crystal ball for market research. It reveals unmet customer demand and seasonal trends before your competitors catch on. You can spot gaps in the market and position your products perfectly.
Manage Your Experiments lets you A/B test everything from product titles to images and bullet points. Small changes can create massive improvements. One seller increased conversions by 23% simply by changing their main product image to show the item being used instead of sitting on a white background.
Brand Analytics tracks customer behavior and competitor performance in real-time. You'll know exactly which keywords drive sales, what customers search for after viewing your products, and how your competitors are performing.
The magic happens when you combine these insights with smart optimization strategies. A+ Content can increase your sales by 3-10% by providing richer product descriptions with improved images and comparison charts. Virtual bundles boost your average order value by suggesting complementary products.
Here's where most Amazon sellers miss a huge opportunity. They focus solely on Amazon's internal traffic when there's a massive world of potential customers beyond Amazon's walls.
Instagram brings 2 billion monthly users who love finding new products through stories and posts. TikTok's 1 billion users are constantly looking for the next trending product. Pinterest serves up 518 million users actively searching for solutions to their problems. Facebook connects you with 2.9 billion people worldwide.
The key is creating content that naturally flows from these platforms to your Amazon listings. Share behind-the-scenes videos of your products being made, customer testimonials, or creative use cases. More info about Make Money on Instagram.
Email marketing remains the champion of ROI, delivering an average return of 42:1. Build your email list through package inserts with QR codes, lead magnets on your website, and social media contests. When you launch a new product or run a promotion, your email list becomes an instant sales force.
Amazon even rewards you for driving external traffic through their Brand Referral Bonus program. It's like getting paid extra for promoting your own products - Amazon recognizes that external traffic is valuable and shares the love.
The most successful Amazon sellers think beyond the platform itself. They build ecosystems where their social media, email marketing, and content creation all work together to feed their Amazon business.
Starting your Amazon journey can feel overwhelming, but most concerns boil down to three key questions. Let's address them with real numbers and practical advice.
The honest answer? It depends entirely on which path you choose. The beauty of Amazon is that you can start with practically nothing or invest thousands - both approaches can work.
If you're bootstrapping with under $500, you've got several solid options. Amazon Associates costs absolutely nothing to join - you just need a website or social media presence to share your affiliate links. Mechanical Turk also requires zero upfront investment, though you'll be trading time for money at $6-10 per hour.
Merch on Demand is another free option, but it's application-based and Amazon can be picky about who gets accepted. Amazon Services might need $100 for basic tools, but you're essentially monetizing skills you already have.
The $500-$2,000 range opens up more opportunities. Retail arbitrage works well with $500-$1,000 for initial inventory - think hitting clearance sections at Target and reselling on Amazon. Online arbitrage needs similar investment plus tools like Keepa for price tracking.
Kindle Direct Publishing fits this budget too. While you can technically publish for free, investing $100-$500 in professional covers and editing makes a huge difference in sales.
If you can invest $2,000 or more, private label becomes viable. Most successful private label sellers start with $2,000-$10,000 for inventory, branding, and initial marketing. Wholesale typically requires $1,000-$5,000 for your first inventory purchases.
Don't forget the $39.99 monthly Professional selling plan - it's essential for most serious selling activities and opens up tools like bulk listing and detailed analytics.
This question comes up constantly, and the data gives a clear answer: yes, for most sellers. The numbers don't lie - FBA sellers typically see 30-50% sales increases compared to fulfilling orders themselves.
Here's why FBA works so well. Prime eligibility is huge - Prime members convert at much higher rates and Amazon gives FBA listings preference in search results. You're also getting professional fulfillment and customer service without hiring staff.
The time savings alone can be game-changing. Instead of packing boxes and dealing with shipping issues, you can focus on finding new products and growing your business.
FBA fees break down like this: Monthly storage runs $0.83-$2.40 per cubic foot, fulfillment fees range from $3.22-$8.13 per item depending on size and weight. The scary one is long-term storage fees - $11.25 per cubic foot for items sitting over 365 days.
Amazon's FBA Revenue Calculator takes the guesswork out of whether fees make sense for your specific products. Generally, if you're selling items over $15 with decent margins, FBA usually pays for itself through increased sales velocity.
The main exceptions? Very large or fragile items, extremely high-margin products where you want to maintain packaging control, or if you're just starting out and want to minimize fixed costs.
This is where things get tricky, and I want to be crystal clear about Amazon's rules. You cannot get paid directly for writing Amazon reviews - doing so violates Amazon's terms of service and can get your account banned.
However, there's Amazon Vine, which is completely different. Vine is Amazon's invitation-only program where trusted reviewers receive free products in exchange for honest reviews. The key word is "invitation-only" - you can't apply or pay to join.
Amazon looks for reviewers who have:
If you're invited to Vine, you'll receive free products but there's a catch - you must pay taxes on the retail value of items over $600 annually. Amazon reports this to the IRS, so keep good records.
The best approach? Focus on writing genuinely helpful reviews for products you actually purchase and use. Build a reputation for quality, detailed feedback. If Amazon notices, they might extend a Vine invitation. But never pay for reviews or accept payment for them - it's not worth risking your account.
How to make money on Amazon involves building sustainable, compliant businesses that serve customers well. Taking shortcuts with reviews might seem tempting, but it's a fast track to getting banned from the platform entirely.
Learning how to make money on Amazon opens doors to an incredible world of possibilities. What started as an online bookstore has evolved into a comprehensive income ecosystem where millions of people earn everything from side hustle cash to life-changing revenue streams.
The beauty of Amazon's platform lies in its flexibility. Maybe you're a busy parent who wants to earn extra income through affiliate marketing during naptime. Perhaps you're a creative soul drawn to Kindle Direct Publishing or Merch on Demand. Or maybe you're an entrepreneur ready to dive into private label products and build a scalable business.
Whatever path calls to you, success on Amazon isn't about finding a secret hack or get-rich-quick scheme. It's about choosing the right method for your situation and committing to doing it well. The independent sellers who averaged over $290,000 in annual sales didn't get there overnight - they built their success through consistent effort and smart decision-making.
Start where you are, with what you have. If you've got $0 to invest, begin with Amazon Associates or apply for the Influencer Program. Have a few hundred dollars? Try retail arbitrage or publish your first Kindle book. Ready to invest thousands? Private label might be your ticket to six-figure success.
The most successful Amazon entrepreneurs understand that customer satisfaction drives everything. Amazon's algorithm rewards sellers who make customers happy, which means focusing on quality products, honest reviews, and excellent service always pays off in the long run.
Diversification is your friend. Don't put all your eggs in one basket. Combine affiliate commissions with FBA sales, or pair your Amazon business with content creation on other platforms. Speaking of content creation, if you're building an audience through blogging or social media, platforms like Valued Voice can help you monetize that audience through brand partnerships while maintaining your editorial freedom.
Remember to stay compliant with Amazon's changing policies. It might seem restrictive at first, but these rules protect both buyers and sellers, creating the trust that makes Amazon's marketplace thrive.
Your Amazon journey starts with a single step. Pick the method that excites you most, create your account, and begin. The platform that connects you with millions of potential customers is waiting for what you have to offer.
The question isn't whether you can make money on Amazon - it's which method will work best for your goals, skills, and timeline. Your future self will thank you for starting today.