Amazon is a titan of industry when it comes to selling products online, offering a huge global customer base, sophisticated logistics, and multiple money-making opportunities. It’s a potential goldmine if you’re looking for ways to make money online.
But what exactly does Amazon offer sellers, entrepreneurs, and anyone else looking to cash in? And – even more importantly – how much can you really make? Here, we take a deep dive into how you can make money on Amazon. We take you through all the main opportunities and how much they each pay.
The list includes selling physical and digital products. However, we also show you how to make money on Amazon without selling anything (except your time).
So, read on to learn how to make the ecommerce platform work for you – whether you’re seeking a casual side-hustle or want to tap into Amazon’s global resources and build a lucrative online business.
How to Make Money on Amazon in 6 Different Ways
1. Sell eBooks via Kindle Direct Publishing
We start with one of the best-known ways to make money online with Amazon – selling eBooks.
Amazon's Kindle Direct Publishing (KDP) platform remains a top choice for self-published authors – or “authorpreneurs” – who want total control over their work and their income.
The KDP platform offers a suite of tools to help you publish fiction and non-fiction eBooks. Your books will be listed on Amazon, with users able to buy them for download on to their Kindle.
KDP also has lots of resources to show you how to publish a book on Amazon and start selling your work.
There are several options for pricing a book on Amazon:
- Books priced between $2.99 and $9.99 = 70% royalty
- Books priced below $2.99 or above $9.99 = 35% royalty
- Print books = 60% royalty
Most eBooks are priced at $5.99 or less, which sounds low. However, success is partly about volume – both the number of books you publish and the number you sell. The other part is developing effective marketing strategies to promote your work.
There are other opportunities to make money on KDP, such as its Select and Kindle Vella programs. You can also sell audiobooks and create series which can be bundled at a discounted price.
The main advantage and disadvantage of KDP is essentially the same – it’s open to anyone. That means you enjoy low barriers to entry but face high competition.
However, don’t forget that once you’ve got to grips with how to publish a book on Amazon and make money on the site, you can sell your work on other platforms. The only restriction is the Select program, which requires Amazon exclusivity for 90 days.
How much can you make?
Top KDP authors make between $10k and $50k per month. Mid-tier authors make up to $1k a month.
Want to get started? Watch this video that guides you through creating and selling an eBook.
2. Sell Physical Goods on Amazon
If you’re focused on selling physical products, Amazon offers access to a global customer base of 310 million active users, with around 250 million based in the U.S.
Amazon supports selling physical goods in multiple categories across all price points. Sellers also get to tap into its well-developed logistics system, including the option of using Fulfilment by Amazon (FBA).
FBA takes away some of the stress of inventory management and delivering your goods to customers (for a fee).
Send your products to Amazon to store and when a customer places an order, the item is packed and shipped for you via the ecommerce giant’s network of fulfillment centers.
What can you sell on Amazon?
You can sell a wide range of physical goods (and digital products), from homeware and electronics to clothing and beauty products. However, there are some restrictions on what you can sell on Amazon and it’s important to familiarize yourself with these categories before you sign up.
Given the competition on Amazon, choosing the right products is key. You want a niche or category where the margins are good and demand is consistently high. You also need to think about sourcing and shipping (if you don’t use FBA).
Learning how to make money selling on Amazon also means understanding the different opportunities and business models available. They include:
Private Label: This is essentially a partnership between you and the manufacturer, under which they make the products and you market/sell them under your brand name.
Amazon Handmade: Similar to Etsy, this is a marketplace focused on gifts and hand-crafted products. You have to apply to join Handmade. A 15% fee applies to sales.
Reselling: This is a large umbrella, which covers several selling models. Essentially, you act as a middle-person, buying goods from one place and selling them elsewhere (ideally for a profit). Types of reselling include dropshipping and arbitrage, which we cover in more detail below.
How do you start selling on Amazon?
The first thing to do is decide on which type of selling plan suits your needs. There are two main options for selling goods on Amazon.
You can sign up as an Individual seller and pay $0.99 per sale or choose the Professional plan, which costs a flat $39.99 a month. Both offer access to FBA but the Professional plan is oriented to volume sales. You then create a seller account.
How much can you make?
Making $1k a month is realistic, with 40% of Amazon sellers making between $1k and $25k. So-called “super-sellers” rake in $100k+ a month.
3. Arbitrage
Arbitrage has emerged as one of the more popular ways to make money online with Amazon. It might sound complicated but arbitrage is just a type of reselling, which involves buying products at a discount and selling them elsewhere at a higher price.
There are low barriers to entry but success requires patience and knowledge of your market or niche. It can also be subject to significant revenue volatility.
Typical profit margins you should target are between 15% and 30%. Start-up costs can be up to $1k but many people get going with less than $500.
Amazon has advantages when it comes to arbitrage:
- Large customer base
- Wide range of products
- Availability of FBA
There are also disadvantages:
- Competitive
- High fees
- Need to be approved as a seller on Amazon
There are two types of arbitrage:
1. Retail arbitrage
Retail arbitrage involves buying products from physical stores, such as Walmart, and reselling them. For this type of arbitrage, you visit the store and use a product scanner or app to find out if items are being sold below their market value. As you can guess, it’s time-intensive and comes with the problem of inventory management as you scale.
2. Online arbitrage
This type of arbitrage is simpler and less time-consuming as you research the market and source products from online marketplaces and websites. You then list them at a higher price. The challenges here include the fact that you cannot see the items before you buy. It also has a higher level of competition, which can eat into your profit margin.
How much can you make?
It varies, but $5k a month is possible. Some sellers make less, while others make considerably more. Factors include the time commitment, choosing the right niche, and learning how to optimally price your products.
4. Become an Amazon Affiliate
It’s probably no surprise that Amazon has an affiliate program. Sign up to Amazon Associates and earn a commission on each sale made through your affiliate links.
The current commission rates are:
You can promote Amazon products and programs via your website and other channels.
As well as sales, commission may be payable if customers complete an action, such as signing up for a free trial through your affiliate link. For example, you get $2 if someone takes a trial of Amazon Prime Video and $15 for a trial of an Amazon Business account.
You can apply to join Amazon Associates for free. Amazon will assess your eligibility. Once approved, you can access the customized linking tools to promote Amazon products.
How much can you make?
Affiliate revenue varies, depending on your niche and how successful you are in driving quality, converting traffic to Amazon. The top Amazon Associate affiliates earn over $100k a year, with a mid-range of around $75k.
5. Join the Amazon Influencer Program
Designed for content creators, this program is an extension of Amazon Associates. It offers another route to content monetization.
You build a storefront on Amazon, where you can create content around the products you list, such as shoppable videos and posting reviews. You get a personalized URL and affiliate links to share.
The same commission rates apply to Amazon Associates. However, the idea is that Amazon influencers have a far wider reach and can therefore generate more sales.
Eligibility includes a requirement to have a YouTube, Instagram, Facebook, or TikTok account. Amazon will take the number of followers you have into consideration when deciding whether to approve you for the program.
How much can you make?
Again, this varies. It will depend on your followers and how effectively you promote Amazon products. Influencers have reported making anywhere between $1k and $150k a month through the program.
6. Work for Amazon
If you want to learn how to make money from Amazon without selling, another option is to work for the company.
Whether you want a full-time, part-time, or seasonal job (or a casual side hustle), there are options available. These include delivery drivers, warehouse operatives, and customer service representatives.
Drivers can sign up to deliver via the Amazon Flex app. They reserve an available delivery block and use their own vehicle to make deliveries.
Other hourly-paid and salaried opportunities are advertised on the Amazon.jobs page.
If you want a more established career, you can start your own business, with Amazon’s Delivery Service Partner (DSP) opportunity. This is a full-time role where you manage a team of drivers, supported by Amazon’s logistics infrastructure and expertise.
DSP requires a financial commitment, including evidence of $30k of liquid assets. Estimated start-up costs are $10k.
How much can you make?
- Amazon Flex delivery drivers earn an average $18 to $25 an hour
- Warehouse operatives earn an average $15 to $18 per hour
- Customer service pay rate starts at $16 per hour
- DSP salaries range from $55k to $130k+ per year
Even More Options to Make Money With Amazon
Still not inspired? Here are more ways to make money online with Amazon.
Build apps
Amazon has options for developers to sell their apps. You can develop skills and device integrations for the Alexa voice assistant or offer software solutions in the AWS (Amazon Web Services) Marketplace.
Alternatively, sell Android apps in the Amazon Appstore. This has a customer base, which spans 236 countries and territories, and 200 million+ devices. Amazon offers an 80/20 revenue share (for developers earning less than $1m).
Amazon Ads
If you already have a business, you can leverage Amazon Ads to generate more sales. Amazon Ads is available even if you don’t sell on Amazon. Options include Sponsored Products, Sponsored Brands and Sponsored Display. It works on a cost-per-click basis.
Given its large customer base, this can be one of the more effective ways to make money online with your existing business.
Monetize streaming
Amazon offers several ways to monetize streaming activity:
1. Twitch: Gamers can use Amazon’s tools to livestream gaming on Twitch and generate revenue from subscribers. Income depends on subscriber numbers and rates.
2. Prime Video Direct: Filmmakers can make their (original) content available to buy or rent on the Amazon Prime video platform. Creators get 50% of the net revenue from their content.
3. Amazon Music: Artists can apply to add their music to the Amazon Music platform via a digital distributor, such as TuneCore or UnitedMasters. Royalties vary but are around $0.004 to $0.008 per stream.
Merch on Demand
Content creators who want to know how to make money selling on Amazon should check out Merch on Demand. As well as individual creators, Merch on Demand works with the likes of Disney, Marvel, and Universal.
It offers a platform to upload digital artwork and access to a print-on-demand infrastructure. Your art can be printed on things like T-shirts, mugs, and bags. Amazon handles all the logistics, including Prime delivery, and pays you a royalty on each sale.
As Amazon does all the heavy lifting in terms of getting your products to customers, the royalties on offer are pretty meager (e.g. a $1.93 royalty on a $15.99 t-shirt). So, making good money here is a high-sales volume game.
Make Money Online With Whop
Now you know how to make money online with Amazon, it’s time to get started. Whop has all the resources and communities you need to start earning – from finding the right side hustle to reselling on Amazon (and anywhere else).
At Whop, we give you the tools and support to boost your chances of success and supercharge your revenue by learning from the best. From online courses to expert-led communities, you can learn everything you need to know about ecommerce, including Amazon FBA. Just head to the Whop Marketplace to find the right fit for you.
But selling on Amazon is just the start…
In fact, when you’re ready to build your own online business, you can take advantage of our all-in-platform which supports selling all kinds of digital products. You can set up your very own whop – your own slice of the internet – in minutes and start building your community and making money.
Build your audience and control your future with Whop – your one-stop shop for making money online.
