how to make money on Amazon

How To Make Money On Amazon: The Ultimate Guide 2022

Elena Hudgens
By Elena Hudgens 14 Min Read

Amazon is the world’s largest retail website that sells everything from books to shoes. This year, Amazon has a market cap of $380 billion. They are also the second most valuable company globally, right after Apple. You can make money on Amazon by selling products on their site. Keep reading to learn how to make money on Amazon and start earning a nice passive income!

Read more about 12 business ideas that you can try.

How to Make Money on Amazon? 

The first step in the process is creating a seller account:

If you already have an account, you can skip to the next part of this article.

Once your account is set up, you need to list your product. You should include at least 10-15 pictures of the product and write a description that makes customers want to buy it. You can also include a video of someone using or displaying the item you’re selling if it helps better show what it looks like and how it works.

The next step is pricing your items for sale: 

As with any retail website, customers are looking for low prices when shopping on Amazon so they can get more bang for their buck! This is the main step to making money on Amazon. 

Figure out what kind of shipping rates customers prefer:

After you have priced your items, figure out what kind of shipping rates you want to offer customers. This is the 2nd step on how to make money on Amazon. You can take advantage of Amazon Prime by offering free 2-day shipping or even one-day shipping if possible! 

Selling on Amazon:

If you are new to selling on Amazon, the first thing you should do is set up an account. You can go here and just sign up for a free trial of their professional seller plan. When you’re asked, how to make money on Amazon, this is the best way to get started.

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Once your account has been set up, feel free to start pricing your items. They have plenty of options for both individual items and bulk listings which you can find by clicking on the “listing” tab at the top of the page. 

If this is your first time selling on Amazon, they also have a helpful article on using Fulfillment by Amazon (FBA). You can learn more about how to make money on Amazon and FBA from the link below. 

You can read more about that by clicking here!

Amazon Basics

In order to learn how to make money on Amazon, you need to understand the basics of this website.

  • Amazon has a marketplace called “fulfilled by Amazon” where you can have your products listed for sale. Your products are then shipped and stored by Amazon. You only pay for the shipping list and storage fees for these products.
  • You can also sell your products as an “individual seller” on the Amazon marketplace. In this case, you would have to ship and store your own inventory. 
  • In order to learn how to make money on Amazon, you need to thoroughly follow the products offered on Amazon which are sold at a fixed price which may include shipping costs or not.
  • There are three types of Professional accounts: Individual, Distributor, and Manufacturer. You should keep a note of these in order to learn, how to make money on Amazon. 

Sellers Account 

Seller accounts are created by sellers who want to list their products for sale on Amazon.com, and have been verified by Amazon. 

There are two types of accounts: Individual and Professional.

Individual account holders can list an unlimited number of products for sale across 16 categories. Their individual listings will be displayed in the product detail pages associated with their category. Amazon charges a monthly subscription fee of $39.99 (plus tax) to create and maintain this listing. 

In order to learn how to make money on Amazon, you must also know that there is no monthly subscription fee for manufacturers or distributors as they sell wholesale through a Professional account holder to retailers and consumers on Amazon’s site.

Product Research and Selection 

Amazon has grown to become the largest retailer in the world. With over 90 million products, it’s hard for a regular shopper to know where to start and how to make money on Amazon. 

You may find yourself scrolling endlessly through Amazon’s search bar or scrolling through the never-ending lists of products. This article will teach you how to research and select the best product off Amazon by using their website and its features and likewise how to earn money on Amazon. 

Product research and selection is vital to success on Amazon. When you find out the best type of products to sell, you can start narrowing down your product options. The first step would be to identify what type of products you want to sell. 

Once you’ve identified the type of products, identify specific products to sell in that category. Does the product have a broad appeal? If so, this is a good sign that it will do well on Amazon.

The Basics of Amazon

Amazon is a popular website that sells over 90 million products. You can find all sorts of items, from clothing to furniture and more. Amazon is a good place to buy anything you need.

They also have Prime membership, which gives you free two-day shipping, free video streaming, unlimited books from the Kindle Lending Library, and so much more! In order to learn how to make money on Amazon, you need to know the basics of Amazon. Below are some points:

How to Search for a Product on Amazon

Amazon is a great resource for finding products to sell, but it can be difficult to know where to start. The best thing you can do is spend some time browsing through different categories on Amazon. If you’re looking for a product but don’t know what kind of category it belongs to, try using one of the many filters found on the left side of the screen.

You can also click on any category and browse through all the products in that category. For example, if you were looking for books, you would click “Books” and choose from the many different pages of book options.

How to Find the Best Price for a Product

Amazon has a price tracker that alerts you when the price of your desired product drops. If you’re looking for a specific item, comparing prices can help you find the best deal. 

Amazon’s tracker will let you know when prices are slashed, so that way you won’t miss out on a hot sale. 

Amazon’s app also has a bar code scanner which simplifies your search by scanning the bar code of the desired product. All in all, Amazon makes it easy to find the best price for any product! So In order to learn how to make money on Amazon, the price tracker would be of great use. 

How to Figure Out What’s Good and What Isn’t? 

The first thing you need to do is figure out what kind of product you want. Amazon has everything from electronics, clothing, and toys to kitchen items, so it’s important to know what category of product you’re looking for.

Look for reviews: Once you’ve figured out the category, you’ll want to start looking at reviews. People are always posting reviews on Amazon and they can be a great way to get a quick overview of the quality of a certain product. 

The more reviews that have been posted about the product, the more accurate it becomes as every reviewer has their own opinion. In order to learn how to make money on Amazon, reviews are also something that you need to take care of. 

Below each review will also be a button that says “See all my reviews”. This will help you see how other customers felt about the product.

Once you’ve found a few products that interest you, scroll down and look at the number of stars each item has received from other reviewers. You can sort by rating if necessary: 5 stars being the highest rating and 1 star being the lowest possible rating.

When you’re in the process of learning, how to make money on Amazon, whichever product is receiving many lower ratings than higher ratings or it doesn’t have any ratings at all, you should stay away from buying it because it’s likely not worth your money or time!

Keyword Research and Competition Analysis 

The first step to selling on Amazon is to do some keyword research. For learning how to make money on Amazon, keyword research is a process that involves analyzing the keywords people search for when they’re looking for what you’re selling. It’s also essential to do competition analysis. You need to know if anyone else sells what you want to sell. If it seems like there are many other sellers with the same product, you might want to reconsider your idea and find something else.

How to List Your Items for sale, in order to learn how to make money on Amazon:

Step 1. Go to the Amazon Seller Central.

Step 2. Fill out your business information and accept the terms of service.

Step 3. Add an item on Amazon by adding a name, description, price, condition, and photo of the product.

Step 4. After you have added an item, you will be given a chance to enter in shipping and payment information or choose from pre-filled options if you had previously listed the same item on Amazon before.

Promotions and Fulfillment by Amazon (FBA) 

Amazon allows you to sell your products using their fulfillment by Amazon (FBA) program. This service is designed for entrepreneurs who do not have a lot of time to pack and ship orders. FBA provides a way for you to make more sales without having to handle the shipping process yourself.

Sellers can list their products, store them in Amazon’s warehouses, and ship them as orders are received. This takes care of the work of packing and shipping your products, so you don’t have to worry about dealing with them yourself. 

When an order is placed on Amazon, the seller’s product gets picked, packed, shipped, and delivered from an Amazon warehouse. That means your products will be eligible for free two-day shipping with Prime-eligible orders! You also get access to customer reviews on your items since these will come from buyers who purchase your items through Amazon.

In order to learn how to make money on Amazon, you can also use Amazon’s Promotions feature to offer deals or discounts on certain products.

For example, if it is summertime and you sell sunscreen as a seasonal item then you could offer 20 percent off sunscreen during this time period. 

Finally, you can use Amazon Fulfillment by Amazon (FBA) to sell your products so that they are eligible for free two-day shipping with Prime-eligible orders!

Read more about the online marketplaces you should look into today

Conclusion

There are many ways to learn how to make money on Amazon, and you can do so without ever selling a single product. This is the ultimate beginner guide for how to make money on Amazon. 

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Posted by Elena Hudgens
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Elena Hudgens is an entrepreneur with 10+ years of experience. She started her journey by building her own e-commerce website on Shopify and turned her $1000 savings to millions in just 2 years. Soon she started different ventures in which she failed and succeeded. And now, she's on a mission to help other entrepreneurs with her life and business lessons.
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