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Making money online isn't super easy. A lot of people out there don't take it seriously enough and think they could get rich overnight.
It's not working. And that's the bad news.
The good news is that you can work hard to build an online business that makes thousands, tens of thousands or hundreds of thousands a month.
If you work hard for it, it will pay off.
That's the good news.
In fact, there are different ways to build an online business, such as dropshipping, blogging, affiliate marketing and so on.
However, an online business on Amazon is still one of the best ways to build a sustainable passive income.
In recent years, the eCommerce marketplace experienced an explosive boom:
And if you want to learn how to make money on Amazon in 2020, you've come to the right place.
This is a comprehensive guide to 19 awesome ways to make money on Amazon in 2020.
Here's what you will learn:
Selling Private label products on Amazon is one of the most lucrative ways to start a business on Amazon. But what does Private Labeling mean?
Private label products are products manufactured for a particular retailer and then sold under the retailer's own brand name.
This allows the retailer to coordinate certain product characteristics with the manufacturer and to build his own brand.
The trend of Private Labeling comes from the US and is especially popular among young entrepreneurs who want to establish their own brand.
But how can you sell Private label products on Amazon?
It's quite simple. Amazon provides an FBA service (Fulfillment by Amazon). Using this service, Amazon takes care of all the hard work, such as storage, shipping, returns or customer service.
As soon as a customer orders one of your products, it will be fulfilled by Amazon.
All you have to do is make sure that your inventory reaches an Amazon warehouse. Once your goods have arrived at a warehouse, Amazon does the rest for you.
Of course, for these services, you will have to pay a small fee to Amazon, the rest goes into your pocket.
Delivery and manufacturing are also very easy. You can order your products on Alibaba or Alieexpress online and let them be shipped directly to a department store.
You can also use other services, here're the best Alibaba alternatives.
There are many articles and instructions on different Amazon FBA strategies out there:
Here, we will break down the process to the essential steps and link to useful resources explaining specific topics in more detail.
Selling products on Amazon means running a business. You can even make hundreds of thousands a month, there are no limits set.
Yet, you have to deal with the whole process in detail to succeed.
Here are some useful articles that help you:
And here are the best Amazon FBA tools:
Amazon FBA tools are indispensable when you think about selling on Amazon. These, in my opinion, are by far the best tools on the market:
You can also read this post about Amazon Seller Tools.
Here are the best online resources about selling on Amazon:
The average product makes about $1000 to $3000 net profit per month. However, you can scale your online business and earn tens of thousands of dollars or even hundreds of thousands of dollars.
Selling wholesale goods is similar to selling private label products on Amazon. However, there is one difference: as a seller, you do not sell your own branded products, but rather the products from other brands out there.
That has an advantage. You don't have to worry about manufacturing, branding, certificates or other annoying tasks.
This saves you a lot of time and allows you to focus on growing your business.
Yet, selling wholesale goods on Amazon also has a serious disadvantage. The competition is much higher, and in recent years competition increased once again.
Moreover, this business model is not as scalable as Private Labeling. It's very competitive and sooner or later you will come to a limit.
The process is roughly the same as when selling Private label products. The only serious difference lies in the sourcing process.
You don't buy your products from a manufacturer who produces them especially for you, you buy products that have already been produced.
If you want to learn more about this topic, I recommend head over to The Wholesale Formula.
Dan Meadors & Eric Lambert are quite successful Amazon wholesalers and provide lots of tips and tricks for you.
As mentioned above, selling wholesale products on Amazon is not as scalable as selling private label products.
However, you will be able to earn a few thousand dollars a month.
This is a completely different approach to make money on Amazon. It's not about selling products. You have to deliver Amazon products to customers.
The Flex program of Amazon is quite simple. The first thing you have to do is to create a simple Amazon account.
With this account, you can sign in to Amazon Flex. After logging in, you'll need to watch some videos that show you the best practices.
After that, you will have to answer a short questionnaire and download the mobile app.
Once Amazon accepts you as a driver, you can start delivering products for them.
The Amazon Flex program has the following benefits:
The Amazon Flex app provides you with a cool user interface to track your revenue in real-time.
A good way to learn about Amazon Flex is the Amazon Flex FAQ.
The hourly wages are $18-$25. The shifts usually last five hours. I've heard from several Flex employees that even if they do shifts faster, they are paid all five hours.
Specifically, you can earn between $90 and $125 a day. According to Amazon Flex, you can work seven days a week.
That would mean that you can earn between $2700 and $3750 a month.
Amazon Kindle Direct Publishing (KDP) is a very popular way to make money on Amazon.
KDP allows you to publish your books and then sell them on Amazon.
You can even earn money with KDP without writing a book. To do this, you have to hire a professional author and purchase the rights of the book.
Here are great services to order an E-Book:
You can also sell the E-Book as a printed version on Amazon. Yes, Amazon prints the book for you and sends it to your customer.
The first step is to sign in to Amazon KDP here. Then you write a book or hire someone to do it.
Upload this E-Book to Amazon KDP, edit the cover, and you're good to go.
You should think carefully about what you want to write a book about. People should be interested in your book, and also, your covered topic shouldn't be too competitive.
Of course, such a topic is hard to find. But please don't write a book about a topic that has been covered a hundred times.
To solve this problem, you can use tools like Helium 10 or Jungle Scout. These tools show you how often a book sells and whether it's worth writing a book on a particular topic.
Here's a screenshot where we use Helium 10 XRay to check if selling a product is worth it or not:
You can see which data you can discover using Helium 10.
And here's what you have to keep in mind:
Here are more tools you can use:
If you want to learn more about Amazon KDP, I recommend this article.
Many authors make up to $40,000 a month. However, these authors are very professional, have hundreds of books on Amazon and regularly write new ones.
I would claim that you can make $1500 to $2000 per month with KDP.
Of course, you can hang in there and publish a new book every day. Then you will be able to earn more.
Affiliate marketing has been around for a thousand years. It is based on the concept that you refer a customer and get a commission for it.
This is exactly how the Amazon Affiliate Program works. You recommend a product and other people buy it via your affiliate link.
The average margin of the Amazon affiliate program varies from about 7% to 15%.
With the Amazon Affiliate Program, you can earn money in two different ways. Either you recommend products to your friends and they buy the product via your link, or you build an affiliate site or social media presence where you share your links.
In the first case, you will probably earn (much) less money, as the margins are not that high.
If you take it seriously, you should build your own affiliate site.
There are countless resources on the Internet about affiliate marketing. Affiliate marketing isn't just about creating a website and hoping people will buy products through your website. There is more to it, such as email marketing, CR optimization, etc...
Here're the best resources you can find about affiliate marketing:
Since Digital Marketing is very important for a successful affiliate marketing business, here're some awesome blogs that cover everything you need to know:
Depending on the size of your audience, you can make between $500 and $50,000.
According to Wikipedia, Amazon currently has around 798.000 employees (2019). A large proportion of these employees work from home.
So why not earn money from home as an Amazon employee?
Amazon has a minimum wage of $15 per hour. Check out this site for more information.
Have you ever heard of Amazon Alexa? Alexa is a virtual assistant who can help you with your everyday tasks, similar to Apple's Siri.
There's a store for so-called Alexa Skills. Alexa Skills are special skills you can buy for your Alexa version.
If you buy an Alexa Skill, your version of Alexa can perform this "skill" and you can use it every day.
Here are some examples:
"Alexa, open Sleep Sound" will automatically open the music player and play music to fall asleep.
But how can you make money on Amazon with Alexa Skills?
As a developer, you can develop your own Alexa skills and sell them through the store. You can determine the price of your skill by yourself.
You get 70% of sales when a customer buys your Alexa Skill. 30% goes to Amazon.
It is up to you whether you set a one-time price or whether you demand a monthly payment.
If you want to develop an Amazon Alexa Skill, this is your first step.
That depends on how many customers you have. For example, Nick Schwab developed an Alexa Skill with 10.000 paying customers.
The average price of the Premium subscription is $0.99 to $1.99, which is $9.900 to $19.900 per month if you have 10.000 paying customers.
I think that if you put work into this thing, you can quickly earn $1,000 to $2,000 a month.
We've talked about how you can make money on Amazon by publishing your E-Books via Amazon KDP.
This chapter is about publishing audiobooks and making money on Amazon through them.
Many people out there prefer to listen to content instead of reading it. According to Google Trends, interest in audiobooks has fallen from 2004 to today, but I think that by creating some audiobooks, you can still reach more than enough people out there to make money.
From my own experience, I can claim that many of my friends listen to audiobooks, for example when driving a car, because they want to use the time effectively.
To create an audiobook on Amazon, first, go to the Amazon Audiobook Creation Exchange.
Here you can find professional speakers who produce your audiobook or upload your audiobook yourself.
What's interesting is that you can either pay the speakers for your audiobook a one-time fee or share later earnings with them.
The profit margins on Amazon ACX are somewhat more complex and are structured as follows:
For production by a spokesperson with a one-time fee:
Production by a speaker without a one-time fee:
Retail Arbitrage is based on the concept of buying items in retail stores such as Walmart, Target, Barnes & Noble, etc... and then reselling them on Amazon for a higher price.
For example, you buy a product for $9 and sell it on Amazon for $25. After deducting all fees and delivery costs, you earn a profit of $8.
OnlineSellingExperiment generated total sales of $2 million in 2019 with Retail Arbitrage products.
You can also sell your products on other marketplaces such as eBay. However, it's proven that you can make the most profit on Amazon.
That's why you can reach many more people with Amazon than with other online sales channels.
According to Statista, Amazon has an average of 209.7 million website visitors per month in 2019, while eBay has only 65.91 million website visitors and Etsy 39.4 million active users.
Below, you can see the development of web search for Amazon and eBay (2004-today, worldwide):
Here's how to proceed:
List of popular Retail Arbitrage Stores:
Unfortunately, retail arbitrage has become very competitive in recent years. Also, Amazon is making it harder to sell well-known brands. So there is a risk that you will end up sitting on your products.
However, with a little effort, I think you can earn $100 - $2000 a month.
Online Arbitrage is based on the same concept as Retail Arbitrage with an important difference.
You don't buy your products in retail stores but on other online marketplaces like eBay.
What's the step-by-step process?
Online Arbitrage works similar to Retail Arbitrage. The only difference is that you buy your products on eBay or other E-Commerce marketplaces.
You can also find a detailed article about Online Arbitrage here.
Just like Retail Arbitrage, Online Arbitrage has the same problems. It's hard to scale and you have plenty of competition.
Yet, you will definitely be able to make $100 to $2000 per month.
Amazon's Mechanical Turk Program is a crowdsourcing platform that enables companies to outsource their processes to professional workers.
These tasks can include everything from simple data validation and research to tasks such as survey participation, content moderation, and more.
Mechanical Turk enables companies to leverage the collective intelligence, skills, and insights of the whole world.
Organizations can streamline their business processes, accelerate data collection and analysis, and drive machine learning development.
It is well known that the future of work will change. A large part of this change will be influenced by crowdsourcing.
There are already freelance platforms such as Fiverr or Upwork where companies can buy services.
With the Mechanical Turk program, Amazon jumped on this train and now provides its own crowdsourcing platform.
Online reports claim that Mechanical Turk workers can expect to earn between $6 and $10 per hour.
Are you creative? Amazon Handmade enables artisans to offer and sell their products on Amazon.
Of course, you have a little more work to do here, because you have to create products yourself.
But with Amazon Handmade you can reach a huge target group and sell your products all over the world.
An artisanal application and audit process to ensure that Amazon is building a business for real needlework.
Participation in Amazon Handmade, creating your store, and listing your products is free. Amazon Handmade deducts a 15% referral fee on a sale
Your craftsman profile has a custom URL so customers can easily find your store.
The fees on Amazon are higher than the fees on eBay or Etsy. However, as an artisan, you can reach a much larger audience with Amazon Handmade than on eBay or Etsy.
Amazon Handmade even offers the opportunity to promote your products with sponsored ads.
Unfortunately, I have no personal experience with Amazon Handmade so I can't tell you exactly how much you can earn.
We found out that resources related to Amazon Handmade are limited. Yet, here're some useful articles:
Originally, Amazon started as an online marketplace for products, but now the company also offers services.
Essentially, Amazon Services enables entrepreneurs to sell their services online.
As you can see, Amazon Services is mostly about the following tasks:
To use Amazon Services, you must provide services. Whether you're a gardener, a plumber or a craftsman, Amazon Services lets you connect with people who need you.
You can offer as many services as you want. The only important thing is that customers are willing to buy your services and pay your prices.
To learn more about Amazon Services, I recommend you visit the Amazon Services home page.
Amazon employees pick, pack, store, and ship products for Amazon and its third-party sellers.
Working in an Amazon warehouse is a tough job, but the wages are fair.
Amazon has a minimum wage of $15 per hour, but you can earn significantly more. To work in an Amazon department store you have to apply here.
You can also find more information about a job at Amazon here.
Amazon has established the CamperForce program to provide a job to RV travelers.
In seasonal rushes, these workers help out. The campers have two advantages. They earn money and get to know other enthusiastic campers.
As a Camper Force employee, you can also choose your tasks from different locations depending on availability.
CamperForce employees can perform tasks such as picking, packing, stowing and receiving parcels.
Amazon CamperForce allows you to drive across the country, do a job at Amazon, earn money, and then drive to your next vacation destination.
Amazon has an hourly wage of $15, and as a CamperForce employee, you will also be paid your pitch for your RV.
Also, you have many more advantages. You can find them in the following screenshot or directly on the CamperForce homepage.
Amazon strives to create honest and unbiased reviews for products and services.
That's why Amazon has introduced the Vine program, which allows customers to receive free goods from Amazon and its third-party-sellers in exchange for reviews.
You won't get paid for your reviews, but you can get products for free and then resell them.
Many Amazon Vine testers turn around and sell the products on eBay to make money.
To get free products from Amazon and test them, you need an invitation.
My recommendation is to write meaningful reviews on Amazon over a few weeks.
You have to establish yourself as an expert in a certain field. Then you will most likely be invited to join the Amazon Vine program.
That's what Amazon says about the admission requirements:
Are you creative? Do you have a good idea for a particular garment or logo, but don't want to invest in making your idea a reality?
In this case, you should immediately take a closer look at Merch by Amazon.
Merch by Amazon is a print-on-demand service that prints your logos and patterns on a specific garment or bag when a customer orders something.
Every sale made on Amazon earns you money.
According to some statements, a seller can earn an average of about $1.50 per product and per month.
So if you have 100 designs, you can earn about $150. If you have 1.000 designs, you can earn about $1.500 a month, and so on.
The trade-in program is not a way to make money on Amazon. The program allows you to exchange used goods for Amazon vouchers.
No matter what you don't need anymore, you can send anything to Amazon and get vouchers that you can redeem for great Amazon products.
So Amazon's trade-in program is more of a way to exchange old products for new ones, rather than making money with them.
What is positive, however, is that Amazon credits you with about 25% of the purchase price. Not bad, I'd say.
But you have to keep in mind that Amazon does not accept every "scrap". Amazon is very careful to only accept useful products.