How to make money with Amazon 2 options

How to make money with Amazon: 2 options

How to make money with Amazon is not only one of the essential Internet companies globally. It is also a way for individuals, professionals, and companies to make money. You have several ways to do it, but they can be summarized in two: sell your products or get paid for recommending Amazon products. Let’s start with what, in principle, is the simplest for any individual, the affiliate model, before moving on to the various ways to sell your stuff on Amazon.

1 The affiliate system

Amazon is probably the largest online store with a referral system. That is to say that the company pays you a commission if you bring them people who end up buying. This works with encrypted links and cookies. A small file called a cookie is registered in the computer of the person who has followed your link, and if that person then buys something on Amazon, the online store attributes it to you and pays you a commission.

How to make money with Amazon 2 options

How much do they pay?

It is very variable; in this link, they mention, for example, that they pay 1% for TVs and smartphones, 3% for computers, 10% for fashion and accessories, and in general, 5% for most products. There are more categories with different percentages, but it doesn’t make much sense to list everything here as it may change. The best for you is to go to their page to check it out.

But to give you an example: if someone comes recommended by you and buys a Smartphone worth 200€, you will get 2€ (which is tiny, let’s admit it), while if someone buys a pair of pants for 40€, you will get 4€ (which is not bad). Using Amazon’s affiliate system to earn money online is more attractive depending on your sector and influence. If you have a fashion blog with many followers, you may charge quite a lot, while if you talk about cell phones for an equivalent audience, you will charge much less.

But it’s not just the % you charge that counts. The difference between what Amazon pays for clothing and Smartphone may come precisely from the fact that it is easier to sell a Smartphone online than to sell clothing. People are less hesitant because they already know the features, the phone’s design, and so on, while with clothes, you never know if it’s going to fit.

A few weeks ago, I wrote a comprehensive article about three ways to make money online. In it, I explain in detail how you can choose a niche market and then promote Amazon products and earn an attractive income.

It is a step-by-step guide, so do not hesitate to consult it calmly and share it with anyone who wants to make money with Amazon.

How to make money with Amazon 2 options

2 Sell your products

2.1 Publish your book

If you are an excellent author of children’s stories or an expert in any subject, you might want to try your luck selling a book. The advantage of Amazon is that it was created at the beginning as an online bookstore, and it is still one of its strong points today. They sell their e-reader, the famous Kindle, and have an almost infinite number of references.

In the beginning, the best thing for you may be to try the electronic format, since apart from the time to write the book, which is a lot, you don’t have to invest in anything else, nor pay a printer.

It is as simple as writing your book, finding an excellent cover, and uploading it on Amazon. The website charges quite a lot of commission on sales, but it is an extraordinary showcase.

However, it must be recognized that there is a lot of competition. And ebook sales are not yet as developed. Most people still prefer paper. I don’t think you can make a lot of money with an ebook, but it can serve to make you known and move to paper format.

How to make money with Amazon 2 options

2.2 Selling your products on Amazon

If you consider selling things on Amazon on a small scale as an individual, one option is to use the individual seller plan that the company has prepared. It’s effortless; as long as you sell less than 40 items per month, Amazon charges you 0.99€ for each sale closing. Then you can become a professional seller and pay €39 for closing sales. But these are not the only fees they charge you.

They also charge you a referral fee, which varies according to the product type (from 5% to 45%, with a fixed minimum that is usually 0.50€). In addition, there is also a commission called a variable fee per item sale.

Assuming you sell a product in the baby accessories category for sale in Spain as an individual account, and the selling price is €30. It is as simple as writing your book, finding an excellent cover, and uploading it on Amazon. The website charges quite a lot of commission on sales, but it is an extraordinary showcase.

You charge £30 and £2.99 shipping, and you have to pay a £4.5 referral fee, £0.99 closing fee, and £0.45 variable selling fee, plus the cost of shipping. You have to calculate if it’s worth it.

Anyway, selling on Amazon can be a first step to setting up your online store, especially if it is as simple as writing your book, finding an excellent cover, and uploading it on Amazon. The website charges quite a lot of commission on sales, but it is an extraordinary showcase.

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