If you’re worried that you’ve missed the e-commerce boat, don’t worry. It’s just getting moving.
Amazon is a huge opportunity for those who want to join the world of e-commerce. In 2020, Amazon raked in $386 billion in revenue — over half of which was fueled by third-party sales.
But what can you do to get a piece of the Amazon pie?
There are tons of great ways to earn cash on Amazon, so to help you find what method might work best for you, this article dives into the top ways to make money on Amazon in 2022.
1. Sell your own private label products on Amazon
The best way to make money on Amazon in 2022 is still through private label sales using Amazon’s Fulfillment by Amazon (FBA) network. Around 67% of all Amazon sellers run their business using the private label method.
Private label is a process of manufacturing a pre-existing item (preferably, with product improvements), putting your branding and logos on it, and selling it to consumers. Sometimes it is referred to as white labeling or brand creation. (The process has been around for years and is common in countless retail stores; Target’s Mainstays brand and Walmart’s Great Value are two examples of private label brands.)
Thanks to FBA, Amazon is able to deliver your products (typically in two days or fewer — what you likely know as Amazon Prime). This is how e-commerce business owners —l ike you and me — can list goods on Amazon and make money from the sales.
Amazon makes private labeling even easier thanks to a number of advantages:
- First, you can use a tool like Jungle Scout — the all-in-one platform for selling on Amazon — to estimate the sales your product will make once it’s on Amazon.
- Next, it’s easy to source and manufacture your products with the help of platforms like Alibaba or Jungle Scout’s Supplier Database.
- Finally, after you’ve created your product, you can sell it on Amazon using FBA. You don’t even have to ship your own orders!
How much money can I make selling private label products on Amazon?
Approximately $625 to $1,875 per month per product.
Over half (56%) of private-label sellers earn $5,000 or more in monthly sales, and nearly two-thirds (59%) have profit margins over 16%. Among private-label sellers who have more than a year of selling experience, 20% have earned over $10,000 in lifetime profits.
imilar to Private Label, selling wholesale involves purchasing bulk quantities of product to sell using Amazon’s FBA network.
The primary difference, however, is that you are selling other companies’ products. Therefore, you don’t have to worry about manufacturing and branding the products.
For a lot of sellers, it’s one of the most popular ways to make money on Amazon.
How much money can I make selling wholesale goods on Amazon?
Up to $3,000 – $4,000 per month.
While wholesaling on Amazon has become notoriously more difficult in the last few years, it’s still a great way to earn money.
Note that it is a lot more competitive than the private-label market — since you’ll likely be sharing the Buy Box with other resellers. So it can sometimes be a “race to the bottom” on prices where the only “lever” sellers have to compete with each other is through lowering their price relative to their competitors.
Plus, the profit is all in the buy. If you can’t buy your goods for a low enough price, you won’t make money.
Still, 61% of wholesale sellers on Amazon make $5,000 or more in monthly sales — which is nothing to sniff at.
4. Deliver goods for Amazon
By now, you probably know that Amazon has its own delivery service. But did you know that you can join Amazon’s delivery fleet as a driver?
Amazon’s Flex program allows you to do just that. All you have to do is answer a quick questionnaire, download their app, and if you’re accepted, you start making money.
Think of it as Uber, but for Amazon deliveries
How much money can I make as an Amazon affiliate?
This money-making method varies greatly in its returns.
The Amazon Associates program is probably the most popular affiliate program on the internet.
While the commission percentages aren’t particularly high – usually only 3-5% – the conversion rates and volume you receive from sharing those links make up for it.
The downside is that you need to be an internet influencer. If you don’t have a decent social media following (or blog), making a lot in sales commissions will be difficult.
7. Flip online retail store products using online arbitrage
With online arbitrage, you’re buying products to flip on Amazon from other e-commerce stores, versus buying products in-store as you would with retail arbitrage.
With retail arbitrage, you’re limited to physical stores in your area but with online arbitrage, the possibilities for purchasing inventory are nearly endless. There are opportunities to flip products from many online retailers such as eBay, Walmart, Target, CVS, Home Depot, and so on.