Beginner's Guide: Make Money on Amazon - Learn about selling online

Beginner’s Guide: Make Money on Amazon

Step 1: Understand Amazon’s Money-Making Avenues

Explore Amazon Affiliate Marketing (Associates Program)

Amazon Affiliate Marketing, also known as the Amazon Associates Program, allows you to earn commissions by promoting Amazon products. When a visitor clicks on your unique affiliate link and makes a qualifying purchase on Amazon within 24 hours, you receive a percentage of that sale. Commissions typically range from 1% to 10%, depending on the product category. This method doesn’t require you to handle inventory, shipping, or customer service. Your primary role is to drive traffic to your content (e.g., blog posts, YouTube videos, social media) where you feature Amazon products with your affiliate links.

Investigate Selling Products on Amazon (FBA/FBM)

Selling products on Amazon involves listing your own items for sale directly on the Amazon marketplace. There are two primary fulfillment methods:

Fulfillment by Amazon (FBA): With FBA, you send your products to Amazon’s fulfillment centers. Amazon stores your inventory, picks, packs, ships, and provides customer service for these products. This allows you to scale your business without managing logistics directly. Amazon charges FBA fees for storage, fulfillment, and other services.
Fulfillment by Merchant (FBM): With FBM, you are responsible for storing your inventory, packaging products, and shipping them directly to customers yourself. You also handle all customer service inquiries. While FBM offers more control and potentially lower fees for low-volume sellers, it requires significant time and logistical management.

Both FBA and FBM require you to source products, create compelling product listings, and manage your seller account.

Step 2: Choose Your Amazon Money-Making Path

Decide Between Affiliate Marketing and Selling Products

Your decision should be based on your resources, risk tolerance, and long-term goals.

Choose Affiliate Marketing if: You have strong content creation skills (writing, video production), prefer minimal upfront investment, want to avoid inventory risk, and are comfortable with potentially lower, but more passive, income streams initially. It’s ideal for those who enjoy building audiences and providing value through reviews and recommendations.
Choose Selling Products (FBA/FBM) if: You have capital to invest in inventory, are willing to learn product sourcing and supply chain management, desire higher profit margins per sale, and are prepared for the operational complexities of running an e-commerce business. FBA is often preferred for scaling, while FBM suits niche or custom products.

It’s also possible to combine both strategies over time.

Research Niche and Product Viability

Regardless of whether you choose affiliate marketing or selling, thorough research is crucial.

For Affiliate Marketing: Identify a niche with passionate audiences and a good selection of Amazon products. Use tools like Google Trends, AnswerThePublic, and keyword research tools (e.g., Ahrefs, SEMrush) to find popular topics with low competition. Look for products with good reviews, decent prices (to ensure meaningful commissions), and a continuous demand.
For Selling Products: Use product research tools (e.g., Jungle Scout, Helium 10, Viral Launch) to find products with high demand, low competition, and healthy profit margins. Look for products that are lightweight, durable, not easily breakable, and have a selling price between $15-$50. Analyze competitor listings, review counts, and BSR (Best Seller Rank) to gauge market potential. Consider sourcing from Alibaba or local wholesalers. Avoid highly saturated niches unless you have a unique selling proposition.

Step 3: Implement Your Chosen Strategy

Build Your Niche Website or Content Platform (for Affiliates)

For affiliate marketing, your platform is your primary asset.

Website/Blog: Purchase a domain name relevant to your niche (e.g., “bestcoffeemakers.com”). Choose a reliable web host (e.g., SiteGround, Bluehost) and install WordPress. Select a clean, responsive theme. Start creating high-quality, in-depth content such as product reviews, comparison guides, “how-to” articles, and gift guides. Integrate your Amazon Associates links naturally within your content, ensuring you disclose your affiliate relationship clearly as per FTC guidelines. Focus on providing genuine value and solving problems for your audience.
YouTube Channel: If you prefer video, create a YouTube channel. Produce video reviews, unboxings, tutorials, and product comparisons. Include your Amazon affiliate links in the video description and mention them verbally where appropriate. Optimize your video titles, descriptions, and tags for YouTube SEO to increase visibility.
Social Media: While direct linking can be limited on some platforms, you can use platforms like Pinterest, Instagram, or TikTok to drive traffic to your website/YouTube channel where your affiliate links reside. Create visually appealing content related to your niche products.

Source and List Your First Products (for Sellers)

For product sellers, this step involves bringing your product to market.

Source Your Product: Contact suppliers (e.g., via Alibaba, Trade Shows, direct manufacturers) for your chosen product. Request samples to verify quality. Negotiate pricing, minimum order quantities (MOQs), and shipping terms. Ensure your product meets all necessary safety and compliance standards.
Create Your Amazon Seller Account: Go to sellercentral.amazon.com and register for a Professional Seller account (recommended for FBA) or Individual Seller account. You’ll need business information, a credit card, a phone number, and tax information.
Prepare Product Listing: Write compelling, keyword-rich product titles, bullet points (key features/benefits), and detailed product descriptions. Hire a professional photographer for high-quality product images (at least 7-9 images, including lifestyle shots, infographics, and size comparisons). Consider A+ Content (formerly Enhanced Brand Content) if you’re brand registered.
Choose Fulfillment Method (FBA/FBM):
- For FBA: Create a shipping plan in Seller Central, prepare your products according to Amazon’s strict packaging and labeling requirements, and ship them to the designated Amazon fulfillment center.
- For FBM: Store your products securely. When an order comes in, pick, pack, and ship it promptly using a reliable carrier (USPS, UPS, FedEx). Provide tracking information to the customer.
Set Pricing: Research competitor pricing and factor in all Amazon fees (referral fees, FBA fees, storage fees) to ensure profitability.

Step 4: Optimize and Scale Your Amazon Earnings

Drive Traffic and Conversions to Your Affiliate Links

Getting eyes on your content and clicks on your links is paramount for affiliates.

SEO (Search Engine Optimization): Optimize your website content (titles, headings, meta descriptions, body text) for relevant keywords. Build high-quality backlinks to your site from reputable sources. Improve site speed and mobile responsiveness.
Content Marketing: Consistently publish new, valuable content. Promote your content on social media, in relevant online communities, and via email newsletters.
Email Marketing: Build an email list by offering a lead magnet (e.g., a free guide, checklist). Send regular newsletters with product recommendations, deals, and new content.
Paid Traffic (Optional): Consider running targeted Google Ads or social media ads to drive traffic to your high-converting affiliate content, but only after you’ve proven your organic strategy works.
Conversion Rate Optimization (CRO): Ensure your calls to action are clear. Place links strategically. Write persuasive copy that highlights product benefits. Use comparison tables and clear product images.

Optimize Product Listings and Manage Inventory (for Sellers)

Continuous optimization is key for Amazon sellers to maintain and grow sales.

Keyword Optimization: Regularly review your listing’s keywords. Use Amazon’s Brand Analytics (if brand registered) or third-party tools to find new relevant keywords. Incorporate them naturally into your title, bullet points, and backend search terms.
PPC Advertising (Amazon Ads): Run Sponsored Products, Sponsored Brands, and Sponsored Display campaigns to increase product visibility. Start with automatic campaigns to discover new keywords, then move to manual campaigns targeting high-performing terms. Monitor ACOS (Advertising Cost of Sale) and optimize bids.
Inventory Management (FBA): Use Amazon’s inventory planning tools in Seller Central to monitor stock levels. Send in new inventory well in advance to avoid stockouts, especially during peak seasons. Monitor storage fees and consider removing slow-moving inventory.
Customer Reviews: Actively encourage customers to leave reviews (e.g., via Amazon’s Request a Review button). Respond professionally to all reviews, positive and negative. Reviews are critical for product ranking and customer trust.
Pricing Strategy: Monitor competitor pricing and adjust your prices dynamically to remain competitive while maintaining profitability. Consider using automated repricers.
Monitor Performance Metrics: Regularly check your Seller Central dashboard for key metrics like sales, profit, order defect rate, and customer feedback. Address any issues promptly.

FAQs

Q1: How long does it typically take to start making money on Amazon?

A1: The timeline varies significantly. For affiliate marketing, it can take 6-12 months to build an audience and generate consistent organic traffic that leads to meaningful commissions. For selling products, you could potentially make your first sale within weeks of listing, but achieving consistent profitability and significant income usually takes 3-6 months as you optimize listings, run ads, and manage inventory. Both methods require patience and consistent effort.

Q2: What are the biggest risks involved in selling products on Amazon (FBA/FBM)?

A2: Key risks include: inventory risk (products not selling, leading to storage fees or losses), competition (price wars, new entrants), intellectual property infringement claims, account suspension (due to policy violations), negative reviews impacting sales, and unexpected Amazon fee changes. Thorough product research, quality control, and adherence to Amazon’s policies can mitigate many of these risks.

Q3: Do I need a large upfront investment for Amazon FBA?

A3: While not always “large,” an upfront investment is definitely required for FBA. This includes product sourcing (inventory), shipping costs to Amazon’s warehouses, professional seller account fees ($39.99/month), and potentially initial advertising spend. A realistic starting budget for a single product could range from $1,000 to $5,000, depending on the product’s cost and MOQ. It’s advisable to start with a modest investment and reinvest profits.

Q4: Can I do Amazon affiliate marketing without a website?

A4: While a dedicated website offers the most control and long-term stability, it is possible to do Amazon affiliate marketing without one. You can use platforms like YouTube, Pinterest, Instagram (with a Link in Bio tool), or even a Facebook group to share affiliate links. However, always check the specific platform’s terms of service regarding direct affiliate linking, and remember that you’ll be building your audience on someone else’s platform, which carries its own risks (e.g., policy changes, account suspension).