Given that they take a quarter of all online sales in the U.S, questions like “How to make money online” and “How to make money on Amazon” might seem rather similar! If you’re looking to start your own online business then it’s certainly worth considering where Amazon might fit in your plans.
But can you really make money on Amazon?
So anyway, there’s this crazy little website called Amazon – I guess you may have heard of it.
Who knows – it doesn’t really matter. The crazy part is that they turn over about $136,000,000,000 a year, basically from that one website.
If you’re new to online marketing you may wonder if that leaves any room for the rest of us to make money.
If you’re already of the entrepreneurial mindset then you’re most likely thinking: coooool – so how can I profit from that?
We’ll look at both of those, and how, specifically, you can make money on Amazon, but first…
Why you can make money on Amazon
Imagine this: It’s a hot day. You decide to make some money selling fresh, cold lemonade. Good plan so far.
So you set up a stall outside your house. How much will you sell?
Well how many people walk past your house every hour? And what are they doing?
Maybe 10 or 20 folks pass by every hour, on their way to or from work or running errands. Maybe 1 in 20 will buy a lemonade. So you sell one an hour at most.
Now suppose you move your stall to a busy shopping street or outside a supermarket. Perhaps 500 people go past every hour. Even if only one in 100 stop to buy then you sell 5 – that’s certainly better.
Well what if you set up stall at a big music festival? There are thousands of people going backwards and forwards past your stall every hour. Maybe 1 in 50 will buy from you. You might not even be there an hour before you sell out!
So why does that work so much better? Same day, same product, same sales pitch but much better results, right?
- The Power of Numbers
- Buyer Intent
The first is probably obvious – you have thousands more people seeing your product. The more people see it, the more you’re likely to sell. Simples.
The second is less obvious, but more important. The folks at a festival are already out with the intent of having a good time. They’re already spending money on things they don’t actually need. They just want to feel good.
Will a cold, fresh lemonade on a hot day make them feel good? Of course! And they’re already spending money – it’s an easy sale.
So, what the heck does that have to do with….
Making money on Amazon?
Same two things. The power of numbers and buyer intent.
- 6,000,027 people a day visit Amazon
- Most people who search for a product on Amazon do so with the intention of actually buying something, now or in the near future.
If you want to make more sales – take your product where people are already buying stuff – make sense?
You might have 1000 people read your blog post or watch a video where you mention a product and suggest they buy it – but how many were looking to buy something? Few, is the likely answer.
But if 1000 folks search up that product on Amazon, the place where they go to buy stuff? How many more sales are you going to make? Lots, would be the word you’re looking for.
So, what you want to know, I guess, is: How do I make money on Amazon?!
How to make money on Amazon
How do I make money? (on Amazon) – Let me count the ways
For they are many and various!
Become an Amazon Affiliate
The first, and best known, way to make money on Amazon is to join their affiliate program. Sign up as an Amazon affiliate to earn up to 10% commission on everything you sell. This is very versatile – you should do it whatever kind of business you’re planning.
Create a niche website, or a review site. Start a YouTube channel reviewing products. Mention relevant items on your existing blog or social media accounts and include your affiliate link etc etc.
List and Sell products on Amazon
Not so different to eBay really. Sign up for a seller account and list your products. Amazon notify you when you make a sale and you ship the goods to the customer.
Sell Private Label products with FBA
Fulfilled By Amazon – that means you source products, or have products manufactured, ship them to Amazon to sell, and let them deal with all the picking, packing and delivering.
Sell Directly to Amazon
If you make your own products you may be able to sell them directly to Amazon rather than listing them for sale yourself. That way Amazon take the risk by paying you up front. Nice.
Sell your Handmade Products on Amazon
Self publish with Amazon Kindle
Remember when Amazon used to be a bookstore? Well they still sell lots of books! Self publish eBooks with Kindle or, with CreateSpace, you can sell physical copies on demand and even have your writings turned into audiobooks.
Use Amazon as a Dropshipper
Create your own eCommerce site with products for sale at a higher price than listed on Amazon. When you make a sale you order the product from Amazon and have them ship direct to your customer.
Design T-shirts with Merch by Amazon
Plenty of ways to profit, eh?
Which just leaves the question: If Amazon are doing so much business then Everybody must be making money on Amazon already – is there room for me?
The Myth of Saturation
And the answer is Yes.
You can always create something new or unique. There’s space for you to carve out a niche. There are ways for you to reach customers who wouldn’t otherwise buy from Amazon.
New books, new music, new products. All are created every day, and there’s a hungry market, right there on Amazon, waiting and wanting to buy stuff.
Somebody has to sell them. Why not you?
What sort of Online Business do You want?
As an Amazon affiliate you can add an extra stream of income to an existing project with minimal effort. Amazon might never be your main source of revenue but can easily be a very nice bonus.
If you’re starting from scratch and want to create freedom as well as income then an Amazon based business could be the way for you to go.
With services like Kindle, CreateSpace and FBA you can build a substantial business that you can run from anywhere in the world without ever having to handle products.
Whichever way you go it’s likely there’s a way to harness the power of Amazon to your advantage.
Don’t be shy – dig in and start making some money on Amazon!
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