How to Make Money on Amazon: 15 Best Ways

With over 300 million active customers worldwide, Amazon remains a powerhouse for online sellers and entrepreneurs. 

Despite challenges like increasing competition and fees, the platform offers diverse ways to make money online. From retail arbitrage and private labeling to Amazon Handmade and Kindle Direct Publishing, sellers have multiple avenues to explore.

JungleScout reports that new sellers average $30,000 in annual profits, with 40% earning between $1,000 and $25,000 monthly. However, success isn't guaranteed: many sellers struggle with inventory management and standing out in a crowded marketplace.

The good news? Amazon continues to grow, with $575 billion in 2023 revenue and 12% year-over-year growth. Whether you're looking to build a full-time business or create a side hustle, here are 15 ways to make money on Amazon.

15 proven ways to make money on Amazon

Here are the top ways you can earn money on Amazon with any skill set or budget:

1. Launch your own private label products

Private label products are goods manufactured by one company but sold under another company's brand name. For example, Walmart sells many grocery products other companies manufacture under its Great Value label.

Private labeling is popular with Amazon sellers because you can sell a wide range of products, hold no inventory, and earn higher profit margins. Jungle Creations, for example, sold 400 units of its private-label washable pee pads in one month.

Amazon

Popular private label categories you can sell include:

• Health and wellness 

• Skincare and beauty 

• Pet supplies

• Fitness and sports equipment

• Home and kitchen items 

• Eco-friendly products 

• Baby products 

How much can a successful seller earn? In his first month selling toys, arts and crafts, and home and kitchen products, angel investor Manny Coats generated $75,762.35 in sales, which resulted in $57,033 in revenue after deducting Amazon discounts and fees. Overall, selling private label products on Amazon is a good way to start a home-based business. 

Stuck on where to start? Get product research services on Fiverr to find the best selling products.

🌱 Initial investment: $2,500 to $5,000 on average, but 14% of sellers start on $500 or less.

🎯 Skill level: Advanced. Requires product research, branding, sourcing, and marketing skills.

💰 Potential earnings: Most sellers earn at least $1,000 a month, but 40% earn $1,000 to $25,000 a month, and some earn over $100,000 monthly.

2. Leverage Amazon FBA (Fulfillment by Amazon)

The Fulfillment by Amazon (FBA) program allows Amazon sellers to outsource order processing and delivery to Amazon. By storing products in Amazon's fulfillment centers, sellers benefit from Amazon's logistics network, which handles picking, packing, shipping, customer service, and returns.

Using FBA offers several advantages. Sellers can provide free, two-day shipping for Amazon Prime members, boosting sales and customer satisfaction. Shipping costs are typically 70% lower than similar services, and sellers avoid the hassle of managing inventory and shipping.

However, FBA comes with fees, including fulfillment costs, storage fees, and returns and inventory disposal charges. To maximize profitability, focus on small, high-demand products, use automated repricing software, and forecast sales accurately to avoid excess inventory fees.

Expenses and income potential are comparable to private labeling. Amazon provides a revenue calculator to compare the profitability of using FBA with other fulfillment methods.

🌱 Initial investment: $2,000 to $5,000 on average, but $500 or less is possible.

🎯 Skill level: Intermediate. Involves understanding inventory management, listing optimization, and Amazon’s fulfillment process.

💰 Potential earnings: $1,000 to $25,000 a month is typical, but over $100,000 a month is possible. Amazon analytics software Helium 10 provides a free Amazon FBA calculator to help estimate profit margins.

3. Start retail arbitrage

Amazon retail arbitrage sellers buy discounted merchandise from retailers and resell it on Amazon at higher prices. This business model is easier than private labeling since you sell established brands. Costs mainly include product purchases, shipping, and Amazon fees. Using FBA for fulfillment can reduce expenses.

However, profit margins are low, requiring high sales volume for significant profits. Amazon charges either 99 cents per item or $39.99 monthly, which is ideal if you sell over 40 items. Arbitragers must obtain authorization to sell certain brands, typically requiring a relationship with manufacturers or distributors. Amazon's policies require sellers to document approval for certain brands and product categories.

Success in arbitrage depends on smart product selection, sourcing, and pricing. Trending, seasonal, or discontinued items sell well, and tools can assist with choosing products and estimating profitability. While not the most profitable model, it’s a simple way to start selling on Amazon. Sellers like Gary Ray have found success, earning $117,000 in his first 100 days.

🌱 Initial investment: $100 to $300 for entry-level sellers.

🎯 Skill level: Beginner. Requires basic skills in finding and purchasing discounted items to resell for a profit.

💰 Potential earnings: One study found that 62% of Amazon retail arbitragers earn about $5,000 a month.

4. Master online arbitrage

Online arbitrage uses ecommerce marketplaces to source retail arbitrage suppliers. For example, a seller might find cheap books on eBay and sell them on Amazon for a higher price.

Online arbitrage offers the same benefits as retail arbitrage, with a wider range of suppliers and products. You can tap into ecommerce suppliers from anywhere in the world and buy larger quantities than retail arbitrage. Ecommerce intelligence tools such as BrickSeek help online arbitragers find profitable opportunities.

BrickSeek

With the right strategy, online arbitrage can be a profitable business model. Dave Hambrick makes $200 a day reselling used books on Amazon. He advises picking a niche category with top-end prices between $20 and $200. He explains in this article, "Any less than that and it’s hard to get around platform fees. Any more than that, and buyers scrutinize condition/quality a whole lot more."

🌱 Initial investment: $100 to $300 for new sellers.

🎯 Skill level: Intermediate. Involves sourcing products online, which requires more research and comparison skills.

💰 Potential earnings: The majority of online arbitragers (55%) earn $5,000 a month or less.

💡Tip: Starting an arbitrage business? Get virtual assistant services to manage product research, sourcing, and monitoring price trends. An assistant can help you stay ahead of trends and earn more profit. 

5. Build a wholesale business on Amazon

Wholesalers buy products from manufacturers at discounted prices and resell them to businesses for retail. Amazon allows professional seller accounts to sell items as case packs or pallets at wholesale prices. 

The Moda West Store, for example, sells items like backpacks in bulk to Amazon buyers.

Amazon

Other popular items to sell in bulk on Amazon include:

• Office supplies

• Pet supplies

• Health supplements

• Cleaning suppliers

• Home improvement items 

Advantages of wholesaling include selling in-demand products, which reduces marketing costs and offers higher profit margins than retail arbitrage. Fulfillment can be streamlined through FBA, dropshipping, or direct shipping. The Amazon Business suite also includes tools to support wholesalers.

Done well, wholesaling can be one of the most profitable Amazon business models. New entrepreneur Aymeric Monello earned $700,000 in his first year as an Amazon wholesaler. Monello sourced from brands that were already selling successfully on Amazon. He looks for opportunities with a 20% profit margin, saying in his YouTube video, "If you can get more than 20, it's a home run."

🌱 Initial investment: $2,500 or less.

🎯 Skill level: Advanced. Requires negotiating with suppliers, bulk purchasing, and managing larger inventory.

💰 Potential earnings: $5,000 a month or more.

6. Design and sell with Merch by Amazon

Amazon Merch on Demand is a print-on-demand platform that allows merchants to sell custom-designed products without handling inventory or shipping. 

Artists and entrepreneurs can upload artwork to be printed on various items, including t-shirts, hoodies, phone cases, and more. Amazon manages production, fulfillment, and customer service, paying sellers a royalty for each sale.

The platform offers a low-cost entry into e-Commerce, with royalty rates ranging from 12% to 37% depending on the product and price. Sellers start with a limit of 10 designs and can progress to higher tiers (25, 100, 500 designs) as they make more sales.

Major brands like Disney and Fortnite have also leveraged Amazon Merch on Demand to capitalize on trends and offer limited-editing merchandise. 

Amazon

How much you make with Amazon Merch depends on the quality of your art and your marketing efforts. Entrepreneur Ryan Hogue started making $1,000 a month on Amazon Merch after three months by selling designs based on current trends.

🌱 Initial investment: There is no up-front investment if you make your own artwork, or you can commission original artwork for anywhere from $20 to $200 or more, depending on quality.

🎯 Skill level: Beginner. Involves creating and uploading designs, with Amazon handling the production and shipping.

💰 Potential earnings: Royalties up to $10.78 per sale for pullover hoodies in the U.S. Top-tier sellers can earn $1,000 or more per month.

7. Showcase your craft on Amazon Handmade

Amazon Handmade is a marketplace to sell hand-crafted products. You can sell a wide variety of products, including artwork, clothing, jewelry, and candles. 

Amazon provides a digital storefront to showcase your products and takes a 15% referral fee per sale. You can ship items yourself or use FBA. Products must be made, altered, or assembled by hand, like Laguna Candles, a high-end candle brand from Sharie Hendricks. 

Laguna Candles

Like private label sellers, Amazon Handmade sellers typically earn $1,000 or more monthly, but some earn significantly more. Emily Caroline used laser engraving to earn $6,700 in her first 90 days on Amazon Handmade and pay off her equipment costs.

🌱 Initial investment $39.99 a month for a professional selling account, plus the cost of materials for crafts.

🎯 Skill level: Intermediate. Requires craftsmanship and understanding of how to market and price handmade products.

💰 Potential earnings: $1,000 a month or more.

8. Publish and profit with Amazon KDP

Kindle Direct Publishing lets you self-publish digital or print books and sell them through Amazon's marketplace. You provide Amazon with files for your book's contents and cover. Amazon converts your files into books and pays you royalties for sales or views, depending on the arrangement you choose.

Tricia O’Malley’s author page on Amazon

When deciding how to make money on Amazon KDP, you have several options for publishing and compensation:

• Ebooks: Earn 35% or 75% royalties based on your book's content and the countries where it's sold. For books priced between $2.99 and $9.99, Amazon deducts digital delivery fees from your royalties.

• Kindle Unlimited: Distribute ebooks through this subscription program and earn royalties based on the number of pages customers read. Royalties are adjusted monthly by Amazon.

• Kindle Vella: Publish in serial format and earn 50% royalties from readers who use tokens to unlock episodes.

• Print Books: Earn up to 60% royalties on hardcovers or paperbacks, minus printing costs. Expanded distribution channels for paperbacks offer greater exposure but reduce royalties to 40%. Amazon handles order fulfillment and charges customers for shipping. You can also purchase discounted copies for distribution through other channels.

If you're a writer, book publishing through Amazon KDP offers a great way to make money with little investment. However, you don't have to be a writer to earn money through KDP. You can get book or ebook writing services to produce a book for you. 

Book layout design and typesetting services can give your book's interior a more professional look. If you're not an artist, you can hire a graphic designer to create a book cover design.

KDP profits depend on both demand for your book topic and how well you tap into that demand through marketing.Authors earn $150 a month on average, but top sellers can earn $20,000 a month or more. In 2022,thousands of authors earned over $50,000 in royalties, and 2,000 earned over $100,000.

🌱 Initial investment: No up-front investment required, although you may choose to hire a writer or graphic designer.

🎯 Skill level: Intermediate. Requires writing, editing, and understanding of self-publishing and marketing.

💰 Potential earnings: $150 a month on average, over $100,000 a year for top authors.

9. Earn through the Amazon Associates Program

Amazon Associates

Wondering how to make money on Amazon without selling your own products? Amazon Associates offers affiliate commissions for qualifying purchases from the Amazon marketplace. Brands like BuzzFeed, Fire Food Chef, and Impremedia all use the Amazon affiliate program to build an ecommerce business that serves their audiences. 

By promoting products with customized links, you can earn up to 10% when customers purchase through them. Content creators, bloggers, and publishers can join the program and use Amazon's link-building tools to offer deals, like discounts on products in categories such as electronics, books, and clothing.

Commissions range from 1% for items like groceries to 20% for Amazon Games. Certain events, like signing up for an Amazon Prime Video free trial, can earn you flat bounty rates.

New affiliate marketers earn up to $1,000 a month, according to industry tracker Influencer Marketing Hub. The majority earn up to $10,000 a year. Top-tier earners can generate over $150,000 a year. Successful Amazon affiliates research market trends and create content to capitalize on demand.

🌱 Initial investment: None, but the more you invest in promoting your affiliate links, the more sales you can generate.

🎯 Skill level: Beginner. Involves promoting Amazon products and earning commissions, requiring basic marketing skills.

💰 Potential earnings: Most affiliate marketers earn up to $10,000 a year, but you can earn up to $150,000 or more with a smart marketing strategy and hard work.

10. Deliver with Amazon Flex

Amazon Flex

Amazon Flex allows you to earn money by delivering packages with your vehicle. Through the Amazon app, you can reserve delivery time blocks, pick up packages at designated locations, and navigate to delivery destinations. Payments are made via direct deposit, with options ranging from daily to weekly.

You can work as much as you like, with the highest earnings possible during busy seasons like the holidays. Customers may also tip.

To join Flex, you must be 21 or older and live in an area where the service operates, currently available in over 100 U.S. cities. Income depends on location, tips, delivery speed, and other factors.

🌱 Initial investment: Requires an insured vehicle (mid-sized or larger), a qualifying smartphone (Android 10.0 or above or iPhone 6s or above with iOS 15 or higher), and a checking or savings account.

🎯 Skill level: Beginner. Requires basic driving skills and a smartphone to manage deliveries.

💰 Potential earnings: $18 to $25 an hour on average.

11. Complete tasks on Amazon Mechanical Turk

Amazon Mechanical Turk uses crowdsourcing to let individuals and businesses outsource processes and jobs to virtual workers. MTurk provides workers with repetitive yet not easily automated tasks, known as Human Intelligence Tasks (HITs). Employers, known as requesters, pay per task.

MTurk HITs encompass a diverse range of tasks, like:

• Interpreting images

• Verifying textual data

• Editing transcriptions

• Moderating comments

Requesters can hire workers for virtually any task that can be completed remotely. Employers must pay at least 1 cent per HIT. Most tasks pay 2 to 4 cents and take about a minute to complete. Longer tasks that take 45 to 90 minutes may pay $3 to $8. Requesters can opt to pay bonuses.

You won't get rich from Amazon Mechanical Turk; it takes time to unlock higher-paying tasks. But if you're looking for side hustle ideas, you can use MTurk to turn your spare minutes into extra dollars. 

🌱 Initial investment: None. You just need a computer with internet access. 

🎯 Skill level: Beginner. Involves completing simple tasks online, requiring basic computer skills.

💰 Potential earnings: Up to $8 per hour.

12. Profit from the Amazon Trade-In Program

Amazon Trade-In lets you earn discounts and gift cards when you exchange qualifying electronic devices for upgrades. 

Amazon Trade-In

Some purchases qualify for instant reimbursement at check-out. For others, after receiving your new device, you send in your old one. You then receive a 20% rebate plus a gift card for the trade-in value of your old device.

You can exchange Amazon products such as:

• Kindle

• Fire TV

• Echo

Amazon also allows trade-ins for certain other manufacturers, such as:

• Apple

• Bose

• Google

• Microsoft

• Samsung

• Sony

Amazon Trade-In offers a way to save money rather than earn cash. But as they say, a penny saved is a penny earned. Moreover, if you're looking to earn money, you can earn affiliate commissions to promote Amazon trade-ins. You get 4% of the trade-in value for each item customers using your affiliate links turn in.

🌱 Initial investment: Varies. You’ll pay for the cost of a new device for trade-ins and marketing costs for promoting your affiliate links.

🎯 Skill level: Beginner. Requires identifying eligible items and sending them to Amazon.

💰 Potential earnings: Rebates and affiliate commissions proportionate to the value of devices purchased and turned in.

13. Become an Amazon Influencer

The Amazon Influencer program offers commissions and support to affiliates promoting products on social media. Qualified influencers receive a personalized storefront on Amazon with a unique URL. By recommending new products to your audience, you earn commissions on sales generated.

To join, you need a business account on Instagram, Facebook, YouTube, or TikTok. Amazon evaluates applicants based on followers and engagement metrics. Commissions range from 1% to 20%, similar to the Amazon Associates program.

As an Amazon Influencer, you can promote products from clothing to hair care, fragrances and seasonal items, as Yellow Brick Home does through its Amazon storefront.

Yellow Brick Home

Some influencers earn extra payments of $2,000 to $9,000 monthly, with typical earnings of $600 to $1,000 per 100 product review videos. Factors like social media following, audience engagement, product selection, and posting frequency affect your earnings.

🌱 Initial investment: None, but you must have invested time in building a social media following and will need to invest additional time in content creation.

🎯 Skill level: Intermediate. Requires a social media following and the ability to create engaging content.

💰 Potential earnings: Up to $1,000 a month for high performers.

14. Offer your expertise through Amazon Services

Selling Services on Amazon, also called Amazon Home Services, allows professionals with certain skill sets to promote their business locally. You can promote services in dozens of categories, such as:

• House cleaning

• Window cleaning

• Lawn maintenance

• Moving and packing

• Carpentry

Amazon sends you job orders, and you get paid upon completion. Amazon deducts a revenue share for completed jobs, which varies by service type and price.

Earning potential varies by profession, experience, and location. You may be a new hair stylist who charges $25 an hour or an experienced plumber who charges $150 hourly.

🌱 Initial investment: Sellers must carry general liability insurance, which you likely already have as a business owner. 

🎯 Skill level: Advanced. Requires professional expertise in a service that can be offered to Amazon customers.

💰 Potential earnings: Varies by trade, experience, and location.

15. Join the Amazon Vine Program

Amazon Vine

Amazon Vine allows reviewers picked by Amazon to receive and review free products. You don't get paid for being a Vine reviewer. However, you do get free merchandise to review, which you can sell when you're done with them.

Amazon must invite you to join the Vine program. You're more likely to be invited if you regularly post insightful, honest, unbiased reviews.

🌱 Initial investment: None, but you must buy and review products to get invited into the program.

🎯 Skill level:  Intermediate. Requires being an established Amazon reviewer to receive and review products.

💰 Potential earnings: No payments, but you get free products to review and keep or sell.

Hire a freelancer to help run your Amazon business

Amazon offers diverse opportunities for making money, regardless of your skill set. But what if additional skills are needed for your chosen business model? 

For example, a writer wanting to publish a book on Amazon might lack the skills to design a cover. Or perhaps there's enough skill but not enough time—for instance, wanting to create arts or crafts but lacking time to promote them. 

Running a successful business involves knowing when to delegate. Fiverr’s online marketplace connects you with freelance experts who can assist with:

• Writing services

• Graphic design services

• Video editing services

• Website development services

• Digital marketing services

For more comprehensive support, Fiverr Pro  provides a business success manager to coordinate your e-commerce strategy, assemble a vetted freelance team, and offer project management services. With Fiverr, building and managing a successful Amazon business becomes more manageable.

Make money on Amazon FAQ

Can you realistically make money on Amazon?

Yes, in 2023, US-based Amazon sellers sold over 4.5 billion items,averaging over $250,000 in annual sales. There are many ways to earn money on Amazon with little upfront investment.

Can I make $1,000 a month on Amazon?

Yes, most Amazon sellers earn at least $1,000 a month, with 40% earning between $1,000 and $25,000 monthly.

How can you earn money on Amazon?

You can earn money on Amazon by selling products through programs like Amazon FBA, private label, retail arbitrage, or by leveraging services such as Amazon Associates, Amazon KDP, and Amazon Mechanical Turk. Additionally, you can offer your expertise through Amazon Services, deliver with Amazon Flex, or become an Amazon Influencer.

How can you make $5,000 fast on Amazon?

To make $5,000 fast, you need to sell a product or service with high demand, a high price point, or both. For example, you can use private labeling or arbitrage to source a product with trending demand and profitable margins. Or you could sell a high-priced professional service.