Amazon is not just an e-commerce site but also allows for income diversification and job creation. Here’s how!
Amazon is not only one of the most popular e-commerce sites around, but it is also a platform where you can increase your earning potential. With an average of hundreds of millions of active users on the platform, it is effectively one of the most visited websites in the world.
Inside you can find products and services of all kinds, from technology to furniture and well-being. Thanks to the Prime option, the aforementioned products can be received directly to your home in a short time, often at a low price.
But did you know that it is also possible to experiment with different earning methods with Amazon? Well, there are solutions for making money depending on what your reference sector is. Let’s find out everything there is to know.
Is making money with Amazon possible?
Users wondering how to make money with Amazon are increasingly numerous, and there are equally numerous methods that can be experimented with. It is therefore possible to earn money thanks to the popular e-commerce site.
The paths available offer a variety of options, each requiring specific skills to be applied. They can be quite satisfying, especially in the short term. Those who, however, want to aspire to a real profession, will have to be able to create a solid and lasting structure over time.
Thanks to the tools offered directly by the platform, users are allowed to earn through various methods, from affiliations through to sales of actual products. Those just reported are just two of the numerous examples that can be given.
How to make money with Amazon
Making money with Amazon is within everyone’s reach, as long as you know the subject and have various transversal skills. The amount of earning methods that the popular e-commerce allows you to apply means that this business model is suitable for all possible tastes. In this regard, here is a list of the most common and profitable earning methods of all.
1. Affiliate marketing
By definition, affiliate marketing consists of a collaborative relationship between a company and its collaborators (or affiliates), who will receive a percentage of the sale for each sale of the product or service in question.
It is a form of marketing that has a double advantage. On the one hand, the company will be able to use external collaborators for the promotion and sale of its products. On the seller’s side, you will be able to associate your name with an important brand, in this case, Amazon.
The well-known online shop is one of the main promoters of this commercial approach, offering its affiliates programs of absolute economic interest.
Depending on the commissions applied to the product category, you can earn up to 12% of the total amount.
Ideally, this approach consists of sharing the link to the product in question with anyone interested, obviously keeping in mind that the affiliate will earn a small commission from the sale of that product.
By inserting an affiliate link on your website, you will also be able to monitor metrics such as the opening rate and sales performance, so as to improve any critical issues.
2. Sale of products
Selling products is a very complex procedure, but at the same time, it is also one of the most profitable methods on this list. The first thing you will need to do will obviously be create a seller account, with different functions from ordinary accounts.
Once the procedure is completed, you will finally be able to create or directly put on sale the products in your database. Those who prefer greater convenience can also use the special app for smartphones called "Amazon Seller".
There are various types of accounts within the seller section. To be precise, a base account and a Pro account.
Thanks to the basic version you will be able to sell up to 40 products per month, with a fixed closing commission corresponding to 0.99 dollars. The Pro version, however, allows you to sell on the platform in a much more professional way, without paying additional commissions and above all by working with a dedicated VAT number. The service costs 39 dollars per month, and is suitable for those who sell large quantities of products.
Every single ad can and must be filled out by providing the potential buyer with as many details as possible, from the number of units available to the weight of the packaging, the dimensions of the package, and so on.
3. Dropshipping
Thanks to Amazon FBA, it is possible to do dropshipping following the dictates of one of the most famous companies in the world. One of the fundamental aspects of this mentioned business model is to focus on selling the most interesting products without having to handle logistics.
It will therefore not be necessary to have a large warehouse available for storage, nor to deal with shipping and any returns that the sale of products online entails.
Every single collaboration process with Amazon is facilitated by the fact that it is a solid and well-built company, and that, net of a small commission on each sale, its structure can be easily exploited, with all the resulting benefits.
Also in this case, you will have two different accounts available, where the basic one will cost 0.99 dollars for each shipment, while the Pro one will have a fixed monthly cost worth 39 dollars, just like in the case of the seller account.
The FBA service necessarily requires the opening of a VAT number and can be seen as a valid alternative for expanding your business by reducing numerous costs due to logistics and increasing your margins depending on the product selected.
4. Investing in Amazon shares
A method of earning that tends to be less accessible is to invest in Amazon shares. To do this, an investment account with an online trading app or bank must be opened. As long as these two figures provide online trading services.
The cost of e-commerce actions made in USA strongly depends on the market trend, as well as on the commissions that the broker or the bank in question offers to their customers.
Those who have small amounts of money at their disposal may encounter some difficulties. This is due to the high entry price that certain shares require for each investment. An investment which by nature is not able to provide any guarantee.
5. Self publishing
If you talk about making money with Amazon, you can’t help but mention self-publishing. It is a business model that consists of publishing a book and selling it within the platform. It is a method of earning suitable especially for emerging writers, mostly struggling with their first publications.
The website provides users with an editor to write, layout, and publish their books. The amount that the author will receive from any sales will be deducted from the commissions imposed by Amazon.
Without a doubt, it is one of the most expensive models due to production and promotion costs. However, if it were possible to intercept the right trend and the right audience, considerable economic satisfaction would also be obtained.
How much you earn with Amazon: the most profitable sectors
Depending on the options selected, thanks to Amazon you can earn very interesting amounts.
On average, those who sell using the platform earn an amount not far from 30,000 dollars per year.
This figure holds no specific value, but management costs and tax-related expenses need to be subtracted from the reported amount, which could still result in an equally promising profit.
Speaking of sales, some products are much more profitable than others. For example beauty products and those relating to children, which usually aim at a target of people who use Amazon daily, to save money and obtain more discounts.
You can find out all this by carrying out an in-depth market analysis. But, in general, one of the methods mentioned in the previous paragraphs will be able to give a lot of satisfaction, if approached seriously and professionally.
Original article published on Money.it Italy 2024-06-10 13:22:45. Original title: Come guadagnare e fare soldi con Amazon
