Is Amazon FBA a Good Way To Make Money? (8 best options!)

Is Amazon FBA a Good Way To Make Money
An Amazon FBA Store

Are you worried that the e-commerce cash cow will be dry and that you missed your window of opportunity? Don’t worry; it is just getting started. 

While e-commerce platforms like eBay, Etsy, and Shopify make it easy to sell online products, Amazon is a big deal if you want to make money online. On average, most Amazon sellers make at least $1,000 monthly, while some super third-party sellers earn more than $100,000 monthly. 

However, the question is- how do you have a piece of the Amazon cake? This article discusses practical methods to help you make money with Amazon. You might also enjoy reading: Which country is best for earning money? (6 best options!)

1- Sell Private-Label Products

One way to make money on Amazon is to sell private-label products through the Fulfillment by Amazon (FBA) network. It is an easy and more direct method to sell products, with approximately 59% of Amazon sellers using it to run their businesses. 

What does selling private-label products on Amazon involves? It involves improving a pre-existing product, repackaging it, and putting your logo on it before selling it to consumers. And since you are selling under FBA, you don’t have to worry about delivery. Amazon delivers the purchased goods within two or fewer days. 

You only need to create an online store with Amazon, list your private-label products, and make money from your sales. 

So, how much can you make with Amazon FBA private-label products? You can make between $500-5,000 on the lower end and tens of thousands of dollars in monthly profit. Super-sellers and brands can make hundreds of thousands of dollars in monthly profits. 

2- Affiliate Marketing

Are you looking for how to make money on Amazon without selling a product? Then Amazon Affiliate is an ideal choice. This affiliate program is a money-making machine for experienced sellers and beginners. 

If you have a huge online following, whether through a personal blog, website, or social media, you can make money with Amazon Affiliate. You only need to recommend appropriate products on Amazon by sharing affiliate links with your audience. 

And since your loyal audience trusts you as an authority in your niche, they will likely follow the link and make a purchase, thus allowing you to earn a commission. 

What percentage of commission do Amazon Affiliates make? Amazon Affiliate commission ranges from 1% to 20%, depending on your selling product. 

The table below shows fixed standard commission rates for different product categories. 

How hard is it to get an Amazon affiliate?

It is easy to qualify for the Amazon Affiliate marketing program and make money through the program. 

How to become an Amazon Affiliate:

  1. Create a website, page, app, or blog.
  2. Sign Up for the program from Amazon Associate home page.
  3. Enter your account details (name, address, and phone number)
  4. Enter a website or blog address.
  5. Choose your preferred store ID.
  6. Explain how you intend to draw traffic to your website.
  7. Choose your ideal payment method.
  8. Create Amazon Affiliate Links
  9. Include the links in relevant posts. 

As you can see, the process is direct, easy, and offers lucrative returns. 

3- Publish a Book on Kindle Direct Publishing

You can make money selling on Amazon by publishing your books on Amazon Kindle Direct Publishing (KDP). This platform allows you even to print the actual book. However, you must be a prolific writer to succeed. Your books should be valuable, wildly popular, and in large volumes to earn more money. So, if you want to earn more, write more. 

What if you love writing, but you aren’t a good writer? You can create low-content books in the form of journals, word-search books, coloring books, and planners. 

How much can you make with KDP? Amazon KDP offers a 70% royalty rate for books sold in the marketplace, with KDP distributing the paperback. KDP will then subtract printing costs depending on ink type and the page count. Some prolific authors claim to make as high as $40,000 per month. 

4- Retail Arbitrage

Retail arbitrage is a business model where you buy products from Amazon and resell them for a higher price on other marketplaces, such as eBay or their own websites.

The idea is to take advantage of discounted products, which can resell at a profit. You can also buy discounted products in other big box stores like Walmart and resell them on Amazon. Your job is establishing highly demanded goods on Amazon, checking if they’re discounted in other online markets, and buying and reselling at a profit. 

Retail arbitrage can be profitable, but it requires knowledge of market trends, pricing strategies, and a keen eye for spotting opportunities. Finding good deals and managing inventory can also be time-consuming and require significant effort.

However, if you delight in shopping for bargains, retail arbitrage can help you make money selling on Amazon. 

5- Deliver Goods for Amazon

We mentioned that Amazon delivers goods for sellers under its FBA program. You can join the Amazon delivery team and offer your services as a driver. 

If you have driving experience and knowledge of your area, you can answer some questions from the Flex program. If you pass, you download their app, wait for acceptance and start making money. 

You can think of it as Uber for Amazon. 

How much money can you make with Amazon as a Flex driver? Amazon pays delivery drivers between $18 and $25 per hour. With shifts lasting 5 hours, you can make around $100 per day. And the best part is, you get compensated for the whole 5 hours even if you finish your shift early. 

6- Become an Influencer

The Amazon Influencer program is part of the Amazon Associate program, where you dedicate your Amazon storefront to products and services you recommend.

How do you go about Amazon influencer business? You can create stellar product review videos and embed them on the actual product listing on the platform. 

But how do you earn from being an Amazon Influencer? If someone buys the product after watching the video, you earn a percentage of the proceeds as a commission. Most Amazon influencers create popular TikTok, YouTube, or Instagram videos and profit from them.

And Amazon can approve you for the program even with a relatively small following. So turn your social media fame into a money-making machine with Amazon. You can make money from your account, whether it is Facebook, Instagram, TikTok, YouTube, or Snapchat

And like all Amazon Associate programs, you will earn between 1% and 20% per sale, depending on the product category you promote. Hundreds of thousands are waiting for you; it all comes down to the amount of work you put in. 

Is Amazon FBA a Good Way To Make Money
Influencer Making Video

7- Sell a Service

Many people think they must sell an Amazon product to make money online. However, you can also offer a service and earn a decent income on the platform. 

For instance, you can tutor a school subject or musical instruments, and Amazon can connect you with clients. 

What do you need to sell services on Amazon? You need a $ 1,000,000 occurrence cap of general liability insurance and a business background check certificate. 

Amazon will also require background screening for services you offer homeowners from the platform. How much you pay Amazon for selling your services on the platform depends on the amount you charge and the services you provide. 

Besides products, potential customers look for service providers on Amazon. And since competition is relatively low and no advertisement cost, you can make good money. 

8- Sell Wholesale Goods on Amazon

While wholesaling on Amazon has become challenging recently, it is still an ideal way to make money. Amazon often offers competitive prices because they have a vast network of wholesalers. 

As a wholesale seller, you can buy products in large quantities at a lower price and sell them at the most affordable prices on Amazon. And since you may trade at a lower price to outperform the competition, play with economies of scale to ensure you make profits. 

The advantage of wholesaling is that you don’t need branding and manufacturing because you sell other manufacturers’ products. 

How much can you make as a whole seller on Amazon? Although competition is stiffer than in the private label market, you can make between $3000 and $4000 monthly. Some wholesale sellers claim to make above $5,000 monthly on Amazon. 

That is no small money to make online. 


Can You Actually Make Money From Amazon FBA?

Amazon FBA business is one of the best ways to make money online. You can sell your products and allow Amazon to deliver them to the customer. If you do it right, you have a lot of money to earn on the platform. 

How Profitable Can FBA be?

65% of third-party sellers show over 10% profit margin from Amazon FBA, while 32% report a profit margin above 20%. If you work hard and smart, you can make between $1,000 and $25,000 monthly. 

How do you make up to $10,000 monthly on amazon without selling physical products? The most obvious way is to do affiliate marketing. Amazon Affiliate program has a fair remuneration package that allows you to make $10,000 per month, depending on the products you sell. 

You can also sell on-demand services and get paid vast amounts of money based on what you sell. 

How Hard Is It to Make Money on Amazon FBA?

Making money on Amazon FBA (Fulfillment by Amazon) is not easy, but you can make a decent income with the right product and marketing strategies. 

Understand your product niche well and establish what sells most on the platform. In-demand products with less competition are gold mines and can help you reap hugely. 

What to read next:

Is Amazon FBA an Excellent Way to Make Money? 

Yes, you can make money selling products or services on Amazon. But even with a product, you can promote other people’s products through an affiliate marketer and make millions of dollars. I hope this article has helped you leap into the e-commerce bandwagon. 

Share your thoughts in the comment section below.


Welcome all! I am Altiné. I am SO excited you are here! I am the guy behind The Entrepreneur Journey. I am a blogger, Amazon private label seller, and I share everything I have learned along this journey with YOU

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