How To Make Money With Amazon FBA [2022]

How to sell on Amazon (for beginners)

Before you get started with that $1,000/month goal, you need to get set up to sell your products on Amazon. There are two options for ecommerce vendors: selling on Amazon with FBA or selling on Amazon directly. Here’s how to choose the best option for your business.

Selling on Amazon directly

Selling on Amazon directly is similar to selling your products on Etsy or eBay. Even as a side business, you can start selling on Amazon for $39.99 per month plus additional selling fees. The registration process is simple.

  1. Decide what you want to sell.
  2. Choose a selling plan.
  3. Register online.

The four-step setup process after registration is user-friendly and similar to Amazon FBA:

  1. List your products in the Amazon Marketplace.
  2. Sell items to customers.
  3. Ship the products to customers.
  4. Get paid directly by Amazon into your bank account.

You’re responsible for listing your product, managing the inventory, and shipping it to customers. When selling on Amazon directly, you have more access to contact customers to request a review or handle issues that may arise before the customer posts a negative review. This is important because you don’t want an issue with your customer experience strategy to negatively impact your brand.

5. Work from Home/Virtual Location

Work from home is a kind of freelancing opportunity that Amazon offers. On its virtual location page, Amazon posts a lot of job openings such as customer support representative, technical support staff, business development officer, etc.

The positions are for seasonal, part-time and full

The positions are for seasonal, part-time and full-time work. If you think you have some talent and can work from home then do check out their virtual location page for the latest openings.

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Potential Barriers to Getting Started

Restricted products

Amazon is an opportunity for anyone to become an ecommerce seller, but there are certain restricted items which are prohibited from being sold on Amazon. There are also certain categories of products which require pre-approval before you’re able to list them for sale.

Plus, when it comes to Amazon FBA, it’s important to know what products are suitable for the fulfilment process.

4. Sell Wholesale Products

Instead of targeting consumers, you can sell products in bulk via Amazon Business.

This is a B2B marketplace on Amazon. It provides business customers with special prices and the convenience of shopping with Amazon.

As a seller in the Amazon Business marketplace, you’ll have unique business features. For example, you’ll have the ability to accept requests for quotes. Amazon allows you to display different quality and diversity certifications on your page as well.

55 different Fortune 100 companies are Amazon Business customers. More than 50% of the biggest hospitals in the United States and 40%+ of local governments in densely populated cities buy from this B2B marketplace.

If you know a particular B2B vertical really well, you can move some serious product volume this way.

Pros of Amazon Business

  • You may be able to reach more customers than you could without the use of Amazon’s large platform.
  • The program includes access to unique features including the ability to offer quantity and business pricing.

Cons of Amazon Business

  • Amazon Business is best for established businesses, which may be a high barrier to entry.
Bonus: Want to work from home, control your schedule, and make more money? Download my FREE Ultimate Guide to Working from Home.

3. Work From Home as an Amazon Rep

You can get a job working directly for Amazon from the comfort of your own home. The customer service team supports 16 languages from over 130 locations worldwide.

Many of Amazon’s employees work remotely.

You can become a virtual customer service representative and do the same. If you want to help Amazon customers while sitting in your pajamas, this could be the job for you.

Amazon is constantly updating its Customer Service Associate jobs. Check this page to see if there’s a full-time or part-time job you meet the qualifications for. Then simply apply online.

Pros of working as an Amazon representative

  • You may have access to Amazon’s employee benefits like a 401k and healthcare.
  • You can work from home either part or full time.

Cons of working as an Amazon representative

  • You will have to apply for the job, and not everyone will meet the qualifications.’

Do I Need to Sell Something to Make Money on Amazon?

Not necessarily! There are ways to make money on Amazon that don’t require you to supply your own product at all.

One way to make money without selling a product or service is by joining Amazon’s associate program. This affiliate program lets you create affiliate links for your favorite products and earn an affiliate commission whenever someone purchases from your link. 

Here’s how the Amazon affiliate program works: 

  1. Sign up as an Amazon associate. 
  2. Get your affiliate link center set up.
  3. Find the products on Amazon you want to promote, then generate affiliate links for those specific products. 
  4. Promote your affiliate links wherever you like, but make sure you disclose that they are indeed affiliate links, per FTC guidelines
  5. Whenever people purchase items through your affiliate link, you’ll earn a small commission for every sale. 

Being an Amazon associate is a way to earn passive income without having to set up your own Amazon business. You can have hundreds of affiliate links for products you like. You can share those links in various places online and make as much money as you want without having to manage any one physical product on Amazon.

Processes You Should Automate and Software to Help

Many new sellers make the mistake of focusing on the small stuff.

They are so eager to succeed on Amazon that they put all their effort into fine-tuning a single or handful of listings even though it makes almost no difference to the customer.

There is no software program that reshuffles your product images in different orders, rearranges your bullet points and A/B tests “cozy” versus “comfy” as adjectives in your listing title.

Yes, you want good listings with beautiful pictures. You want to generate some reviews.

But, with competition always on the same page and just a click away, remember that five minutes negotiating a better price with your supplier or using a cheaper shipping service is more valuable than spending 100 hours perfecting an Amazon listing.

Here are some tools you can use now.

1. Repricing

Automatically change your price for an item (with parameters you set up front) to optimize sales velocity.

  • Appeagle: Inexpensive way to automate pricing, but very limited. Basically, it lowers your price from a base level if your competition lowers theirs.
  • Feedvisor: Very expensive algorithmic repricer that optimizes your margin by trying to win the Buy Box most of the time and takes into account other factors that affect who wins the Buy Box aside from price. Unlike any other repricer, it will raise your price (again, within limits) if you can still win the Buy Box despite the higher price. It also has a bunch of other great reporting and tools.

2. Inventory management

Keep track of your Amazon vs. non-Amazon inventory and know when to reorder from suppliers.

  • Stitch Labs: Great integration of sales and inventory when selling across multiple channels, like a BigCommerce site and Amazon.
  • RestockPro: Simple but accurate and customizable methods for knowing where your Amazon inventory is, how much it is worth and when you need to reorder more.

3. Feedback management

Keep your product and seller reviews frequent and positive.

  • Feedback Five: Automatically send emails to buyers requesting feedback.

4. Logistics snafu recovery

Get credited when shippers or Amazon make mistakes.

  • Refund Retriever: Scans your FedEx and UPS bills for charges that should be waived due to them not honoring their guarantees. 100% variable cost (they simply get a portion of what they recover).
  • Refunds Manager: Audits your inbound shipments to Amazon to file claims for discrepancies (and they do happen). 100% variable cost (they simply get a portion of what they recover).

5. Shipping

All ground services available for orders from all channels on one screen.

  • ShipStation: Easy set up, few bugs and integrates with any existing shipping accounts. Also, allows non-Amazon orders to be fulfilled with inventory at Amazon fulfillment centers with one click. I ship orders from my phone with their app daily.

6. Sales tax

Compile sales tax data and file all in one place.

  • TaxJar: Simple, effective and low cost. Not what you associate with taxes.

7. Warehousing

Store or even process your Amazon inventory as needed.

  • Flexe: Rent local storage space for as little as $5 per day. Take on larger orders or stock up for the holiday season without flooding your store or warehouse.
  • FBAPrep: Send your items (even straight from overseas) to be organized, QA’ed, packed and shipped directly to Amazon’s warehouses according to Amazon’s requirements.This allows you not even to touch the products you sell on Amazon.

8. Competitive research

See how your product sales stack up.

  • Jungle Scout: Follows your Amazon searches and seamlessly provides data regarding estimated monthly sales volume. Use this to find new products or estimate your market share.

2. Sell your own private label products on Amazon

The best way to make money on Amazon in 2021 is to start your own private label business and sell the products using Amazon FBA. Around 71% of sellers run their private label business on Amazon. 

So what is a private label business?

In this method, you will manufacture a generic product (preferably, with some improvements) and put your brand and logos on it, and sell it to customers on Amazon. 

Sometimes, this is referred to as white-labeling. 

This process has been around for quite some time. Even Amazon has its own line of private label products including Whole Foods, AmazonBasics, etc. 

Besides, There are quite a few benefits of selling private label products using Amazon FBA. 

  • First, you will have decent tools and services like SellerApp that will help you in your entire selling journey from finding the right product to scale the business using advertising solutions. 
  • Second, you will create a brand that will be sustainable over a period of time. You can always expand your private label business to other online platforms or sell your business if you are not interested to continue further. 

4. Affiliate Marketing

Earn money by leveraging your existing blog or website with the Amazon Associates program.

You saw a cool product on Amazon. Let your friends know about it. If they buy it, you earn a commission on it. It’s that simple. 

All you need is to have a blog or website or social media pages, or as simple as email/WhatsApp groups. Pick a product that aligns with your blog, website, or social media page. 

This is a good way to make money on Amazon without actually selling anything. You can earn up to 10% in advertising fees from qualified purchases.

The idea is to promote products that align with your blog content or website niche. So if you have a blog or channel on health and lifestyle, you can promote yoga mats, gym supplies, etc. 

Here’s a peek into how Amazon commissions work. 

Product CategoryCommission rates
Luxury beauty, Amazon coins, etc.10%
Digital music, physical music, handmade, digital videos5%
Physical Books, Kitchen, Automotive4.50%
Amazon Fire Tablet devices, Kindle, Amazon Fashion, Luxury Stores Fashion, Apparel, Amazon Fire TV Devices, Amazon Echo Devices, Ring Devices, Watches, Jewelry, Luggage, Shoes, and Handbags & Accessories, etc.4%

You can find more details about the commission interest rates here.

Along with products, you can also promote services like Amazon Prime, Amazon Audible, Amazon Prime, etc. 

Wrapping Up 

For many, earning passive income is a dream. It’s an opportunity to earn money without having to actively work at the venture you’re engaged in. While it does require some work up front, setting up a passive income stream can help improve your financial well-being in the long term and enable you to achieve your financial goals. 

Setting up an Amazon store is a common way to earn passive income. This is because, with Amazon’s FBA program, you can essentially outsource the shipping logistics and customer service aspects of your company to a business with far greater resources. 

To get a headstart in creating a sustainable source of passive income, use Helium 10. Helium 10 provides sellers with a suite of tools that help maximize efficiency and profits. From keyword research to listing optimization to Amazon product research strategies, Helium 10 has the tools you need to get your products in front of the right audience. 

In Summary: Its All in the Research

There’s no pulling the wool over your eyes – competition to sell products on Amazon is high. On the flip side, some would say that’s just the nature of business.

The best things to sell through Amazon FBA depend on a multitude of factors including consumer behavior at the time, profitability of products, fees involved and more.

If you take the steps to make a well-informed decision about which product to sell, source good quality items, and put tools in place to help you automate any time-consuming, manual processes, there’s no reason why your business can’t be a success.

You’ve set yourself up for success right from the start – now all that’s left is to make yourself some money.

Start Making Money on Amazon Today

Amazon is worth it because you’re selling to a customer base that already trusts the marketplace. You have various ways to earn passive income, and you can make money in your spare time. Selling on Amazon can be a side hustle that grows into something more – and you might be able to start making money on the platform sooner than you think.

Do your research, focus on action, and eventually you’ll have a new income source that can become significant as time goes on.

7. CamperForce

This is a great earning opportunity for someone who owns an RV. Amazon CamperForce is a program to earn some quick seasonal money.

The duty of a CamperForce associate is to select a

The duty of a CamperForce associate is to select a seasonal task in a location. When the season arrives, Amazon will assign an area then you will have to store, pack and receive Amazon packages within the designated area in your RV.

For your services, you can earn up to $550 per campsite. Check out this page for more CamperForce detail.

Now, go make money by selling on Amazon!

Making a profit by selling on Amazon is possible if you think smart, implement a well-planned strategy, and effectively market your business.

Identify your process, (whether you’re shipping products yourself or using FBA), engage in Amazon SEO, optimize your product pages, market your brand effectively, and price your items to sell.

Because remember, even if you can’t beat ’em, you can join ’em—and make $1,000 each month selling on ’em if you follow these steps.

Can You Earn Passive Income on Amazon?

Yes, Amazon can be a great place to earn passive income. Amazon in particular is so good for passive income because they make it easy to fulfill orders and have systems in place that allow the seller to be more passive in the process. 

Keep in mind, though, that setting up an eCommerce store on Amazon will require some work, to begin with. You’ll have to find a unique product to sell, reach out to a supplier, and take steps to make sure your product listings rank highly for desired keywords. 

After the initial setup, you can use the Fulfillment by Amazon (FBA) program to fulfill your orders with minimal effort. When you use FBA, Amazon will handle the bulk of shipping logistics, thus minimizing the time and effort you have to put into your business. 

Ideas and Services That Can Use to Outsource

Divide and conquer.

Hire and work with independent consultants and freelancers to help take work off your plate.

Here are a few places where you can find quality freelancers.

1. Use Fiverr

Fiverr is easy to set up, has great results and is only $5.

  • Need the backgrounds removed for some product shots? 5 bucks.
  • Want someone to research relevant keywords and add them to your listing? Just 5 dollars.
  • Need someone to scrape data from your site to add to your Amazon listing? $5.

EDITOR’S NOTE

This site also has a bad rap for having been the destination to get fake product reviews.

Do not pay for product reviews on Amazon.

2. Use UpWork

Thousands of people with Amazon experience are available for custom jobs through Upwork.

The general process is:

  1. Search for people with a particular skill set or simply post a job description and wait on applicants –– usually you will have two dozen within 24 hours.
  2. Select candidates, submit any interview questions.
  3. Choose a person to hire.

There are extensive reviews on most freelancers and Upwork has programs that allow you to monitor progress and keep the workers honest.

Many are well-versed in Amazon-specific tasks and can be hired for a single job or on an ongoing basis.

Users can create a stable of new freelancers that have delivered well in the past, helping you to build a network that is more and more efficient over time.

The productivity gains here are substantial.

3. Use FreeeUp

Don’t have time even to worry about hiring people for specific Amazon activities? Of course not, you have been reciting your mantras.

Freeeup was created by an Amazon expert who created a corral of hundreds of Upwork freelancers. Freeeup assigns and manages your team freelancers based on the complexity of the Amazon services.

If you need to create listings, fulfill orders, advise on reorders and handle customer service, you can try to recruit all those people or just send a message to Freeeup and they will handle it all.

3. Hire a consultant

Software and outsourcing services can help you execute your plan, but what if you need help developing your plan?

This book should give you a working knowledge of how to concoct an Amazon strategy, but invariably each business has its complexities and complications.

There are a handful of good Facebook groups and message boards, but for tailor-made solutions, consider reaching out to someone who walks the walk.

Some Words of Caution for Amazon Sellers

Although selling on Amazon presents some great opportunities, there are also some details that I want to point out for anyone who is considering this. I don’t do this to discourage you from trying it, but I want you to be informed of some of the downsides instead of learning them the hard way.

Sales Tax Laws are Changing Quickly

As a third-party seller on Amazon, you will have some responsibility regarding sales tax (at least for now). The laws vary by state and are changing quickly as states seek to ensure they’re not missing out on tax revenue that should be collected.

Amazon has fulfillment centers all over the U.S., and if you’re selling your products via FBA, that means that you could have inventory in any state. In general, having inventory in a state creates a nexus, which means that you’ll be responsible for collecting, filing and paying sales tax for sales made to residents of that state.

Some states have passed laws that require sales tax to be collected and paid regardless of where your inventory is stored.

Staying on top of sales tax and the changing laws can be a challenge. And then actually filing the appropriate sales tax reports is another challenge.

I’m not a sales tax expert, so I recommend that you speak with a CPA or e-commerce sales tax professional that can advise you for your own specific situation. Some states are passing laws that place more of a burden on Amazon than on third-party sellers, so if that trend continues, sales tax for third-party sellers could get a whole lot easier.

Liability Insurance

It’s highly recommended that sellers get a liability insurance policy that will protect them in case of a lawsuit related to one of their products. Amazon’s terms require you to have liability insurance when you reach a certain threshold in sales, but I would recommend that you get insurance right away if you’re looking to make this a legit business. In most cases, the cost of the insurance premiums is not that high.

Don’t Rely on Amazon

When you sell on Amazon’s platform, you’re at Amazon’s mercy. They can take down your listings, restrict your seller account, or permanently close your seller account — and there’s not much you can do about it.

Amazon is a great platform for sellers, but you need to keep in mind that your control is limited. If you plan to make this a long-term business, I would highly recommend that you also work to build up your business on other platforms, most specifically your own e-commerce website.

You can use Shopify or another e-commerce platform to start selling on your own website. It will take time and effort to build up your business, but you’ll have more control and you won’t need to split revenue with another party.

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