How to make money with Amazon? The 6 best opportunities!
Introduction
When you think about how to make money on the internet, most people think of Amazon.
This is not surprising.
The internet is full of successful sellers who have managed to develop a solid business by selling items on Amazon.
- Can we still make money with Amazon?
- Is it possible to earn additional income with Amazon?
- What are the opportunities to make money with Amazon?
The answer is simple: there is a multitude of opportunities to make money on Amazon.
If I were to start an online business, it is on Amazon that I will have the best opportunity to make money.
But first, let's see why Amazon is the best platform to launch an e-commerce business.
How to make money with Amazon?
It is becoming increasingly difficult for merchants to sell through a website.
Competition on search engines is more intense than ever.
Amazon gives sellers the opportunity to make their products known to a wide audience.
In addition, this audience visits the platform with the intention of buying.
How many people visit Amazon every month?
In 2020 (first quarter) there were 29 million unique visitors per month, which represents 47.3% of the French population.
The french offer an excellent opportunity to merchants, most do not even search for products on Google anymore.
Becoming a third-party seller on Amazon is not free. Amazon receives a commission on every sale made through the platform.
There are other ways than selling products on Amazon to make money.
You can use the Amazon affiliate program or Merch By Amazon.
Which of these means is the most profitable?
It depends on your goals and the effort you are willing to make.
1. Amazon Retail Arbitration
Detail arbitrage is the easiest way to make money with Amazon.
It involves buying items from a physical retail store and then reselling them at higher prices on Amazon.
Stores like Action or Noz are some examples of places where you can find items.
You can search for products, open a free account on Amazon, and start selling.
What's great about this technique is that you can test without having to put a lot of effort into it at first.
You don't have to buy in bulk from a wholesaler and pay the shipping costs.
Simply go to the store, purchase the products, and ship them to your customers or an Amazon warehouse (FBA).
If this business model has a simple process to follow, it is also risky.
Essential information to remember
You must provide proof of purchase
To sell at retail, you must prove that you purchased the product from the distributor (the retail receipt is not approved).
Amazon allows you to list products without proof of purchase, but you may encounter problems with some manufacturers.
While some manufacturers don't care who sells their products, others may report you to Amazon.
Register products as "used"
As you cannot provide invoices for the products you sell, you must register the products used, otherwise, they will be prohibited.
Avoid big brands
Well-established brands like Apple, Nike, Samsung, etc. are clearly banned.
Avoid restricted categories
Some categories are restricted. Before making a decision, you must therefore pay attention to the products you want to sell.
The category of books is the safest
Books remain the safest product to sell in retail arbitration. Although it is very competitive, the resale of books works for many sellers.
Barters and fleas and garage sales remain the best solutions to find books.
Due to the low margin, selling books won't bring you much.
For example, if you bought a book for 8 euros, and you double its price to 16 euros, after all the Amazon fees, you will have 3 or 4 euros left.
Book retail arbitration is a good approach if you want to supplement your income.
Competition can be fierce
Even if you buy products at a discounted price, you can also buy them directly from the manufacturer, which some of your competitors do.
As your competitors invest less, they have no problem lowering their prices, you will no longer be able to keep up.
It's not a sustainable business model
It's hard to hold on to in the long run.
You won't have sustainable suppliers, so you'll have to buy different products on a regular basis.
If some sellers make money through retail arbitrage on Amazon and are very successful.
Most merchants turn to wholesale or Private Label products.
If you sell outside of France, this method may not be worth it because, with such a low-profit margin, the shipping costs will be very high and you will not make any profit.
Conclusion
With all this in mind, beware of retail arbitration.
While this one may seem like a good idea, it comes with risks, and it's not a sustainable business model.
Most sellers turn to wholesale because it's more profitable and safer.
2. Amazon Online Arbitration
Online arbitration, like retail arbitration, is about becoming a reseller on Amazon.
By buying online stores and reselling on Amazon at a higher price.
The difference between retail arbitration and online arbitration is that instead of buying in physical retail stores you buy products online.
One might think that this does not work and that customers can also find lower prices.
In reality, people prefer to buy on Amazon for the quality of their service rather than looking for lower prices.
Essential information to remember
What applies to retail arbitration, also applies to online arbitration.
Monitor prices
You need to follow the evolution of prices on Amazon.
To take advantage of online arbitration, you need to find products that you can buy at lower prices than those on Amazon.
Since Amazon is a competitive marketplace with ever-changing prices, you need to remain very vigilant.
Find cheap products for substantial margins
You need to find products that you can buy for at least half the price of the products sold on Amazon in order to maintain substantial margins after adding Amazon's fees and shipping costs.
Avoid big brands and protected brands
Some categories may not be protected, but this does not mean that some trademarks in these categories will not be protected.
It won't make you rich
While you can make money on Amazon through online arbitration, it's not a business that will make you rich. It's more of a little extra money.
Conclusion
Online arbitration, like retail arbitration, is a great way to start selling on Amazon with a minimum investment.
While it's a simple business model to use, I don't recommend it in the long run.
3. Wholesale
Selling wholesale means buying products directly from the manufacturers and reselling them on Amazon with a profit.
You buy goods from an established brand and resell them. You don't need to create your own brand.
Essential information to remember
You need a license
To be allowed to sell products wholesale, you must provide proof of license in order to familiarize yourself with the requirements of your country.
Strengthening relationships with manufacturers
Basically, put a lot of effort into building good relationships with manufacturers.
A strong relationship ensures you stability of suppliers you can count on to get the best price for your product, and you may be able to enter into an agreement whereby the supplier will also affix a CUP or FNSKU label to your product.
You must purchase the product from the manufacturer of the brand
For example, if you try to sell Nike shoes but don't buy them directly from Nike, you'll be selling a counterfeit product that won't pass.
Some manufacturers sell their products directly on Amazon
Chinese manufacturers are starting to sell their products on Amazon themselves, so you need to find those that are not sellers on Amazon.
There is no need to create product listings
Since you don't add new custom products to the marketplace, these items can already be listed on Amazon.
This means you don't need to create your own listings, buy UPC barcodes, or provide high-quality images.
Stay away from what Amazon sells
Competition with Amazon is impossible.
Amazon sells products that will always rank higher in search and get better visibility, after all that's their platform.
You can create a profitable business by buying in bulk, you have higher margins than retail arbitrage or online arbitrage, which means your profits are higher.
Wholesale is one of the most advantageous ways to make money with Amazon while building a solid business.
Conclusion
Wholesale can be a viable business model if you do it right and are willing to train and work hard.
The first step in wholesale is to get your license and find a reliable manufacturer to buy products.
In order to grow a successful business and make a lot of money from selling on Amazon, it is essential to learn how to find profitable products.
4. The Private Label on Amazon
One of the best ways to make money on Amazon is to sell products on Private Label.
What does this mean?
You find a generic product, then you look for the manufacturer who can make the product at a low price and you will have your logo printed directly on it.
It's as simple as that, or you can choose to bring a new and improved product to market.
How to sell products under a Private Label?
Manufacturers use their own products to improve the quality of best-selling items and design unique products
It's actually better to improve the product, not just put your brand on products sold by hundreds of other sellers.
Although you have products from different brands, Amazon still sells a large number of similar products, the only difference being the brand name. Why do customers choose other similar products?
Essential information to remember
The cost of these items is very low
You can get products from Chinese manufacturers at very low prices, which gives you a high-profit margin and tells you where that money comes from.
You will develop your own brand
Not just a distributor, you'll have your own unique product to sell under your own brand.
Developing a brand and establishing your name is very useful for a successful business.
You will get your own list of products
So no direct competitors for.
Since you will be the only one selling an item, it has no competition.
You can improve the quality of your products
By selling private label products, you can find products that already sell well and improve their quality to make them better.
You will then have a significant advantage in a competitive market with plenty of similar products.
You will have a unique product
If you design your own, your offering will stand up to other sellers, resulting in increased engagement and sales.
5. Amazon Affiliate
Another way to make money through Amazon is to sign up for Amazon's affiliate program.
If you want to make money on Amazon without having to sell items, the affiliate program is for you.
Plus, if you already own a niche site and are looking to use it to make money, an Amazon affiliate could be a great asset.
How does Amazon's affiliate program work?
By becoming a member, you can select the items you want to sell, and you will receive a special link containing a unique tracking ID.
You can then share this link on your website or on social media.
Every time you make a sale through your unique link, you will receive a sales commission.
Amazon affiliate commissions can be as high as 10%.
Since Amazon changed its commission structure, the commissions you receive now are based on the category to which the product belongs.
The commissions you earn through Amazon's affiliate program.
Related Article: 11 Smart Ways to Promote Your Affiliate Links
Essential information to remember
Finding a profitable niche
The key to using Amazon's affiliate program to make money is choosing the right niche to promote.
You will need to build a website or content for social networks around a certain theme.
Some niche markets are more profitable than others and you also need to think about how many topics you want to address.
The ideal situation is to find a lucrative and exciting niche market because, in order to promote it, you need to write many articles.
Optimize your website
Once you've found the right market, you need to rank your website higher in Google search so that people can find it.
To do this, you need to find the right keywords that can convert people into customers.
The best keywords are the ones people use when they're considering buying, not general search queries.
For example, "wireless blue headset under €100" is better than "wireless headset" because the user has set a budget and provided more details about what they are looking to buy.
6. Merch By Amazon
The Merch By Amazon program is another way to make money without having to take care of selling the products yourself.
You can upload t-shirt designs to the platform without prior payment.
Amazon will produce and ship t-shirts every time customers buy.
Once you have sent the design, it is you who set the color and price.
The amount you can win in this way depends on the price you set for the t-shirts, and royalties are based on that prize.
To participate in the Merch by Amazon program, you must submit an invitation request as it is not open to the public.
After you make your request, Amazon will decide if you are fit to perform this function.
The downside is that once you submit your application, you'll be placed on a waiting list until there's a spot, which means you can wait a few months.
It's best to apply for an invitation as soon as possible and use the approval wait time to design the t-shirts.
Essential information to remember
Conduct market research
You may tend to choose your favorite pattern and think that others will like it too.
The fact is, just because you love them doesn't mean they'll sell.
If you want to make money on Amazon, you need to provide items for sale.
You don't want to upload a random design, but you want to do some research and find a t-shirt with a minimum sales ranking (ABS: Amazon Best Sellers) below 100,000 and create a similar design.
Get inspired by popular designs, don't copy them!
Use your design skills
If you have good design skills, this is an opportunity to use them to make more money on Amazon.
Search for professional graphic designers
Another way is to find professional graphic designers at UpWork or 99designs who will design excellent visuals that can be used.
In-depth keyword research
In addition to choosing the best-selling design, another key step is to find the right keywords.
Without SEO, you won't see an increase in sales because customers won't find your items.
A better ranking in Amazon search engines means an increase in sales.
You need to invest a lot of time in keyword research to get decent search volume and uncompetitive search queries.
So, can you make money on Amazon?
As you can see, there are several opportunities to make money on Amazon.
To either develop a profitable business in the long term or to earn a little extra money to supplement your income.
There are opportunities for merchants who sell products and website owners who want to make some money from blogging.
How much money can you make on Amazon?
This will depend on the work you're willing to do, and at the speed or training you to understand how Amazon works.
There are many free resources online that will allow you to learn everything you need to know to sell on Amazon.
Or to successfully use affiliate programs.
If you want something simple that doesn't require web research, you can invest in training.
In both cases, success is possible, and it all depends on your desire to grow.
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