5 Ways To Make Money On Amazon

Do you want to make money on Amazon but don't know? You'll want to read this.

Both Tatiana and I have had a lot of success using various business models on Amazon. In this blog, we share 5 ways that you can make money on Amazon.

We talk in-depth about each of these 5 Amazon business models so that you can decide which is the best for you.

More importantly, we tell you exactly what it takes to get started with each of them.

If you're ready to make money on Amazon and build your dream lifestyle, keep reading!

Watch the video below:

(Click here to watch on YouTube)

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Do you want to know how you can achieve your first $10,000 month with Amazon FBA? CLICK HERE to get instant access to my FREE Amazon FBA video training series! 

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Are you ready to get your slice of the Amazon pie?

Amazon has provided an incredible opportunity to make money on its platform. The pandemic has accelerated the growth of Amazon's marketplace. Today, shopping online has become the norm. Amazon is fast becoming the largest U.S. retailer in the world.

Analysts project that Amazon's overall revenue for 2022 will be $580.2 BILLION. If you've been wondering if now is the best time to start selling on Amazon, let these numbers be your proof that it is!

Some of the business models are more lucrative than others. Nevertheless, all 5 models can make you money online. Let's dive in!

1. Private Labeling 

When you private label a product, you're simply putting your brand name and logo on it. With private labeling, you're not inventing a new product to sell on Amazon. Rather, you're researching to determine which products are already selling well on Amazon.

Once you've decided on a product that you want to sell, you want to look for a manufacturer, locally or internationally, that is already producing that product. When working with a manufacturer, you will need to determine your ordering quantity.

Most suppliers have a minimum order quantity (MOQ). Depending on the number of units that you buy, you can negotiate the price with the supplier. Once you have placed your order with the supplier, you ship your products to an Amazon fulfillment center. You can find these centers all over the U.S., as well as internationally. Amazon fulfillment centers will then pick, pack and ship your products for you, at a price.

Private label selling is a hands-off process because you're doing a lot of the work from your computer. In reality, you don't even have to touch the product. Once you set up your Amazon listing, you can start selling and generate sales!

Amazon knows when an order has been placed for your product and they ship it to the customer. What's amazing about private labeling products is that you can buy them at a discounted rate and sell them at a higher price.

Typically, the profit margins are 30% and higher. What we love about private labeling is that you get to build your brand. When you're building a brand, you're building an asset. You can earn a big payday in the future if you decide to sell your brand. This is the model that Tatiana followed.

She built a 7-figure Amazon business by private labeling products from China. At one point, she made $500,000 in sales in ONE month. Recently, she sold that business. Her story is proof that private labeling is the most lucrative opportunity on Amazon.

If you want to learn Tatiana's best tips and strategies for building an eCommerce business on Amazon, I highly recommend that you subscribe to her YouTube channel. Similarly, if you want to dive deeper into the Amazon FBA process, check out my Amazon FBA YouTube playlist.

2. Amazon Book Publishing 

Amazon book publishing is an inexpensive and newbie-friendly business model. First, you need to sign up for an account on Amazon's self-publishing platform, called Kindle Direct Publishing (KDP).

On this platform, you can publish a Kindle book or a paperback version. They have another platform called ACX, which allows you to publish an audiobook version.

You can either write your book or hire a ghostwriter to write it for you. We highly recommend browsing for writers via Upwork. If you take the ghostwriting route, keep in mind that you still own the rights to your book. You can publish it under your name, a pseudo name, or a pen name.

Also, you'll need a book cover. You can design it on your own or you can hire someone fairly inexpensively on Fiverr to do it for you. Once your book is published on Amazon, you can utilize Amazon's search engine and its advertising platform.

Of course, you also have the option of marketing your book outside of Amazon. The one challenge with Amazon book publishing is that it's harder to scale because you're selling a low-ticket product. However, you can still make a couple of $1,000 per month in passive income.

This FREE training video that I created reveals how you can create a $10k month in passive income with Amazon book publishing.

Also, I created a course called Mastering Book Publishing that shares my step-by-step system for how you can make money from home publishing books on Amazon. If you want to learn more about how book publishing works, check out my Amazon Book Publishing YouTube playlist.

3. Reverse Sourcing Wholesale

With reverse sourcing wholesale, you are selling someone else's brand. The benefit of this business model is that you don't have to financially invest as much as you do with private labeling. To understand this business model, you have to understand how traditional wholesale works.

With traditional wholesale, you find a manufacturer, at which point they send you their catalog. Your job is to choose several products that you want to sell and place your order. The challenge with traditional wholesale is that you don't know if those products are going to sell.

Reverse sourcing wholesale does the opposite. It involves doing research on Amazon and finding products that are already selling well, or that have the potential to sell well. Once you find a product that you want to sell, you want to contact the manufacturer or brand owner.

You want to ask them if you can buy their products at a wholesale price and sell them on Amazon. This business model is risk-free, which is why it's a great way to get started selling on Amazon.

You don't even have to create your own Amazon listing. Rather, you just have to piggyback on what an Amazon seller has already created. Keep in mind that if you want to be successful with this model you have to contact A LOT of brand owners.

You've got to have a compelling reason as to why you want to sell their brand. The goal is to add value. This may look like helping brand owners build their social proof on Amazon or improve the quality of their listing.

Eventually, someone will say yes. However, it will take time and patience. Currently, Tatiana and I are learning how this business model works from Dylan Frost and Dan Meadors.

They are the founders of The Wholesale Formula Method. They have made $30 million in Amazon sales with reverse sourcing wholesale, proving that there is a lot of money to be made with this business model.

4. Amazon Affiliate Marketing 

Amazon has an affiliate program called Amazon Associates. Anyone can join. However, to be approved, you need to have a website. If you don't have a website yet, it is fairly easy to set one up.

Once you get approved for Amazon's affiliate program, you can earn an affiliate commission by promoting ANY product on Amazon. When people click on your affiliate link and purchase a product through you, you will earn an affiliate commission from it.

Unfortunately, the downfall with this business model is that affiliate commissions are quite low. Usually less than 5%. However, if you're promoting high-ticket products on Amazon, like TVs or jewelry, your commissions will be higher.

Also, with Amazon affiliate marketing, you need to get your own traffic. This means that you may have to set up a blog, write articles and learn how to attract people to your blog. Alternatively, you could promote Amazon products on a YouTube channel.

If you want to achieve success with affiliate marketing, you must learn how Internet marketing works. The great thing about Amazon Affiliate Marketing is that it complements any of the other business models.

If you're building a brand, you can recommend other similar products that complement yours, and be an affiliate for those as well. Oftentimes, Amazon Associates is used for people who are already selling on Amazon, whether that's through private labeling or books.

You can be an affiliate for your products. This is a great way to make some additional money. More importantly, it helps you set up tracking links to see where your Amazon sales are coming from. If you want to learn more about affiliate marketing, sign up for my FREE Affiliate Marketing Masterclass or check out my Affiliate Marketing YouTube playlist.

5. Retail Arbitrage

Retail arbitrage involves buying products at a discount from garage sales or thrift stores and reselling them online for a profit.

Amazon has an Amazon Sellers app where you can scan barcodes to see how many products are selling on Amazon. This will help you determine what your estimated profit would be if you bought a product at a certain price.

The challenge with his model is that you've got to hustle. There are no guarantees. However, it is a good way to make some extra cash.

A more scalable route is online arbitrage. It's similar to retail arbitrage except that you're doing it online. This involves going to websites like Walmart.com and looking for items in the clearance or sales section.

You want to determine how much profit you could make if you were to buy a product at a discounted price and sell it on Amazon at the full price. If the profit is significant enough, you can buy a certain number of units of that product on Walmart.com. From there, you would ship those products to an Amazon fulfillment center and sell them on Amazon for a profit.

This business model can be time-consuming, but it's a great side hustle if you're committed to it.

These are 5 proven ways to make money on Amazon.

If you want to create financial freedom, Tatiana and I both recommend that you pursue private labeling. Reverse sourcing wholesale is also a lucrative option. At the end of the day, you need to decide which model suits you best.

Whichever option you pursue, don't wait one day longer. Millions of people are making money on Amazon. It's time for you to take action and join them!

Do you want to know how you can achieve your first $10,000 month with Amazon FBA? CLICK HERE to get instant access to my FREE Amazon FBA video training series!