How to make money on Amazon in 2021: effective ways
Many people know Amazon as a retail giant that seems to sell everything. However, in addition to the online marketplace, Amazon offers potentially lucrative opportunities for the average American to generate additional income. Oberlo says his trading floor is actively used by more than 2.5 million sellers.
Interestingly, after learning about how to make money on Amazon, it may surprise many that some sellers don’t even have their own products. Amazon also offers job opportunities ranging from regular jobs to optional appearances that employees can do at their leisure.
Direct sales to individuals
Selling products is one of the most common ways to make money with Fulfillment by Amazon. This is simple because the seller makes a profit by selling the product for more than the value of the items sold plus Amazon’s commission.
The customization process is straightforward and you can ask a wholesaler like Alibaba for the product. Once the seller receives the item, they must prepare it for sale and send it to Amazon. In most cases, Amazon will charge a fee for use of the fulfillment center, as well as storage, deletion and return fees. However, if the seller can retain a significant portion of the revenue after deducting costs and commissions, a sale through Fulfillment by Amazon can generate a significant profit.
Arbitration involves buying a product in bulk for a retailer and selling it on Amazon at a premium. You can buy these products from a retail store like Walmart, or you can search for such a product on an online site like eBay.
Some might describe retail arbitrage as a form of Amazon FBA sales. However, this differs from standard online sales as it involves selling products that are only available once. Moreover, given that anyone can sell in this way, price competition may leave sellers with marginal margins.
For those with writing skills, Amazon Kindle Direct Publishing can help authors publish books. KDP serves as a platform through which readers can find and buy eBooks. When an author completes a book, the writer can publish their work in less than five minutes. The Kindle will then make the book available in the Kindle stores within 24 to 48 hours.
Authors can set prices, retain control over the rights of their publications, and can make changes to their books at any time. These privileges allow the author to use other services to publish physical copies of a book or audiobook. Through KDP, royalties reach 70%.
In their quest for how to make money on Amazon, some are turning to cross-enterprise sales through the Amazon Business site. The service spans multiple industries to serve small businesses, larger enterprises or the public sector. This allows you to optimize costs by offering assistance with cost reduction strategies.
Amazon also offers a service called Business Prime. Like Amazon Prime for consumers, it provides additional services for an annual fee. Business Prime from $ 69 / year for smallest businesses offers one-day shipping, discounts and other services to make the purchasing process smoother.
Sellers can offer affiliate marketing services through Amazon Associates. It caters to those who want to sell without having a product. With Amazon Associates, content providers can monetize site traffic by earning money from commissions and ad fees.
Bloggers, publishers and content providers can apply to see if they qualify. Once accepted, marketers share products using Amazon’s custom linking tools. They can receive up to 10% commission on both programs and related purchases.
Selling professional services
Amazon Home Services serves Amazon customers who need help with new products. Home Services provides a white glove service to assist customers with the assembly or installation of specific products and other customer service needs. Examples of services provided are home theater services and home appliances installation.
Amazon Home Services sometimes closes this service for new job seekers. However, interested suppliers can apply on the Amazon Professional Services website when vacancies become available.
Selling under private Amazon brands
Amazon can help those looking to launch their own brand. Through the Amazon Accelerator, sellers can get support, marketing assistance, and the ability to test products and get feedback from customers. In return, the entrepreneurs agree to sell their products exclusively through Amazon. Entrepreneurs have launched a wide range of products on Amazon Accelerator. This service is used by manufacturers of electronics, furniture.