Setting up store on Amazon: 5 ways to make money on Amazon!

Setting up store on Amazon: 5 ways to make money on Amazon!

This article explores the best ways to make money through Amazon. Plus, there’s a step-by-step guide at the end on how to build a successful Amazon business!

5 Ways to Make Money on Amazon  

Everyone has spent money on Amazon at one time or another, but what about the opportunities to make money on Amazon? The truth is, there are different ways to do it. Some bring you extra income, while you can build a long-term business with others. This section outlines five proven ways that everyone can benefit from Amazon’s growth and influence.

Setting up store on Amazon: 5 ways to make money on Amazon!
Setting up store on Amazon: 5 ways to make money on Amazon!

1.) Become an Amazon FBA merchant 

From kitchen products to gardening equipment to groceries, the selection of products on the online giant’s platform is virtually limitless. Amazon founder Jeff Bezos’ early vision of a “universal store” has long been a reality. In Germany alone, the platform offers more than 500 million items. What many people don’t know, however, is that most of the products sold don’t come from Amazon itself. The company has long since moved beyond its initial phase as a purely online store and offers its platform as a marketplace for retailers to sell their products. This allows third-party retailers to offer their products to the world through Amazon and have them shipped themselves or shipped through Amazon.

The latter is widely known under the Amazon FBA program, an acronym for Amazon Logistics. In addition to storing and shipping products, Amazon also handles returns management and customer support. Amazon FBA is the world’s oldest business model – a transaction, just online. Items are sourced at bargain prices and sold under the private label (own brand) after all costs are deducted, with 20% to 30% margins.

You can think of the whole thing as a mini marketplace where you can rent stores and sell your products to visitors. Depending on the category, Amazon charges a small fee for offering a “store,” between 7% and 20%. So Amazon FBA is about selling physical products online. This is a representation of the various steps of the Amazon FBA process. It will be explained in detail in the next section.

Make money with Amazon FBA.

The question now, of course, is what the process behind Amazon’s FBA business looks like and how best to get started. First and foremost, Amazon FBA is one of the best ways to build a business and make massive amounts of money. Having the proper knowledge is crucial to success. You should check out the live reports if you want to know how feasible Amazon FBA is. 

To sell and offer your products on Amazon, the first step is to research the product and the niche. For this, you do not need innovative product ideas. There is a lot of potential, and there are still many niches in which you can position yourself with high-quality products. Once the research is done, the next step is product development, then importing the merchandise and placing the effect on the platform. The whole process consists of several areas which should be handled one after the other. There are detailed blog posts for each step with practical tips that you can use to build a successful business selling on Amazon.

Product Research: Finding the right products to sell on Amazon is the starting point for your own Amazon FBA business. 

USP Development: The second step involves developing and implementing a USP, or unique selling proposition, for your product. 

Sourcing: After finding the product, the search for a suitable manufacturer and product development begins.  

Certification: To be approved for sale in Germany, the product needs to be provided with the appropriate test certificates depending on the material or application.

Packaging and design: Packaging is more than just design. Legal issues such as disposal and labeling are also important.

Product calculation: One of the most critical steps in calculating the product. This is the only way to know if the product is profitable or not.

Import: How do you import your goods? Point 7 is about quality control, customs, and importing goods into Germany.

Product pictures: What is a good product picture? Learn why product images are so important and the guidelines to follow.

Creating listings: Learn all about how to present your products brilliantly on Amazon and optimize them for maximum conversions. 

 Launch: What to look for when starting to sell and how to use the Amazon algorithm for yourself. You can find all that here. 

With Amazon FBA, starting e-commerce has never been easier. It is possible to set up your own company with a start-up capital of 3,000 to 5,000 euros, which gives you a high income and freedom. 

Setting up store on Amazon: 5 ways to make money on Amazon!
Setting up store on Amazon: 5 ways to make money on Amazon!

2.) Make money with Amazon goods

Anyone who has ever searched for a product on the Amazon platform will sooner or later come across clothing with a suitable logo for the related search term. The possibility of printing your designs on T-shirts and selling them over the Internet has long been known. With modern print-on-demand solutions, retailers can handle the entire process online, from production to delivery to the customer. Ultimately, you only have to worry about design and marketing. Especially in marketing, success is ultimately determined by failure because you can have the most beautiful designs. Still, if customers can’t find them on the Internet, they won’t generate sales.

This is where Merch by Amazon or MBA for short has a considerable advantage. Millions of customers already trust the online giant’s platform, and merchants can quickly sell their products on Amazon and enter online transactions. Starting in the summer of 2018, Amazon’s print-on-demand service will also be available in Germany. 

But how does the process behind Amazon Merch work? The first step is to develop a design, which is then printed on different pieces of clothing. You can create your own or hire a designer. However, if you do not have in-depth knowledge of design, it is not recommended that you make your designs. A sample design will be uploaded to the platform if the MBA approval is successful. Now all you have to do is create a marketplace for long-term offers (colors, t-shirts, hoodies, etc.) through Amazon SEO. Amazon takes care of product images, production and purchase, shipping, and customer support. Once the item is sold, the vendor receives a commission on the sale (about 25%). 

MBA offers many advantages for print-on-demand retailers, as it can add additional revenue without significant start-up capital. Goods do not have to be pre-financed, and there is no risk of leaving the product behind. There is light, there is shadow, and the MBA is like that. The first obstacle is access to the MBA program, as not everyone is licensed to sell. Interested parties can apply using the form and then receive (unfortunately very random) acceptance or rejection. In addition, you should be very familiar with SEO to generate income in cases where you can forgo your main activity.

Setting up store on Amazon: 5 ways to make money on Amazon!
Setting up store on Amazon: 5 ways to make money on Amazon!

3.) Amazon Kindle and eBooks

Making money with your eBooks is already a popular way to build an excellent extra income. Thanks to platforms like Amazon and its Kindle program (Kindle Direct Publishing, or KDP), it’s never been easier to publish your work, as the battle for publishers in offline deals is more challenging than ever. According to Statista, the book trade generated €9.29 billion in annual sales in 2019 alone.

With Amazon’s Kindle program, anyone can now get a share of this market by selling their books on Amazon. It is not necessary to write a 500-page novel yourself. Ghostwriters who take over the writing of the work can be found on well-known freelance platforms such as Fiverr or Upwork.  

Once the book is complete, it’s time to upload it to Amazon. The work must be provided in a simple file format such as Word. There are some requirements regarding formatting, and these are clearly described in the help area. Professionalism should also be relied upon when creating the cover, as this is the first thing the customer will see on the surface. As with the content of this book, there are specific requirements for the cover, which can be found in the help area below. 

The question, of course, is how much money you can make with Kindle Business. Like any other field, product quality is only half the battle; marketing is the other half. Royalties, or commissions per piece, are pretty high compared to offline transactions. The bonus option can be chosen between 35% and 70%. Each of these two options comes with specific terms and conditions, which can be found in Amazon’s “eBook Royalty Options.”

Unlike print books, e-books are subject to 19% VAT. 

Setting up store on Amazon: 5 ways to make money on Amazon!
Setting up store on Amazon: 5 ways to make money on Amazon!

4.) Trade well-known (used) books through Amazon 

When Jeff Bezos founded Amazon in 1994 in his garage in Seattle, his vision was to create the world’s largest bookstore. At that time, there were about 3 million copies of this book, of which the largest bookstore had only 150,000. Jeff Bezos saw a massive opportunity in this area because the guiding principle of “category as growth” that Bezos has followed ever since has helped him build the world’s largest bookstore with the help of the Internet. According to Statista, Amazon captured a staggering 15% of total retail sales in the books and office supplies category in the second half of 2019.

Even today, the book category still generates significant sales, and third-party retailers can benefit from it. Selling books on Amazon is not ideal for building a long-term business, but it is a great way to create seed money for getting started with Amazon FBA. In addition, you can use this method to get an initial experience with the platform and familiarize yourself with essential tools, such as Amazon’s Seller Central. 

But how do you make money selling books through the online giant’s platform? It’s similar to the principle of Amazon FBA. It’s a simple transaction. We try to buy books as cheaply as possible and then sell them at a profit after all costs are deducted. The real work is to get good books at a reasonable purchase price. Platforms such as wholesalers, bookstores with surplus items, or eBay are particularly well suited to this situation. Using this method, you can build up capital and then build your company by selling physical products through Amazon FBA. 

Setting up store on Amazon: 5 ways to make money on Amazon!
Setting up store on Amazon: 5 ways to make money on Amazon!

5.) Bonus: Amazon Affiliate Marketing  

Make money as an Amazon affiliate

Amazon even offers a way to make money without selling your products on Amazon. The Amazon affiliate program is probably the best-known thing in the field. With Amazon’s affiliate marketing program, it is possible to build a revenue stream. However, success depends on one thing – the scope. First, however, one should clarify what affiliate marketing is and how it works. 

The principle behind affiliate network marketing is the successful mediation of another company’s customers, leads, or sales. For each successful referral, the affiliate receives a predetermined fee assigned to them through a user-specific link and paid by the product provider. The whole process is straightforward. The member or middleman usually looks for an attractive product through the member network, and he wants to market that product to another company. He is now provided with a separate link to that product and can therefore distribute commissions to members for each successful purchase through this link. 

The most famous affiliate program is undoubtedly Amazon. The so-called Partner-Net allows you to create affiliate links for any product on Amazon, which can then be posted on YouTube videos. You can also advertise many other products under videos and posts, such as recording devices. 

To become an Amazon Affiliate Partner, you can sign up for free in the Partner Network. This can be done through the following link: Amazon Partner-Net.

After successful registration, affiliate links can be created and used for any online giant’s platform product. The great advantage of Partner-Net over other programs is that you can earn commissions from the entire shopping cart of your customers. With this program, you can earn commissions of up to 12% of the selling price.

Setting up store on Amazon: 5 ways to make money on Amazon!
Setting up store on Amazon: 5 ways to make money on Amazon!

However, if you want to enjoy freedom in the long run, Amazon FBA is the best way to go. In addition to the extensive range, shipping handling, and support, Amazon offers other advantages that make it easier than ever to get started in e-commerce. The most significant advantage of Amazon FBA over different ways to make money through Amazon is the company’s scalability. Of course, competition in this area is intensifying, but it’s not a disadvantage because there are more sellers and more customers. 

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