Do you want to know how to make money with Amazon?
Many of us are familiar with Amazon as a convenient platform where you can purchase virtually anything you need. However, for some individuals, it represents more than just a shopping site – it presents an opportunity to generate income. Let’s delve into how this is possible.
While it’s widely known that Amazon is a convenient website for shoppers, what remains less recognized is the ease with which you can earn a steady income through the platform, not limited to selling alone.
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Selling products is undoubtedly one of the most prevalent methods to make money on Amazon, and we have a plethora of tips below to help you maximize your profits as a seller. Yet, selling is just one of several avenues available. Remarkably, you can even generate passive income through the site, enabling you to earn money while you sleep!
Continue reading to discover comprehensive information on how to sell on Amazon, along with our curated list of the most effective approaches to earning money from the site, regardless of whether you choose to sell or not.
Amazon offers two selling plans for sellers to choose from:
- Professional Selling Plan: If you anticipate selling more than 35 products per month, the professional selling plan is a suitable option. It requires a monthly fee of £25 (excluding VAT), along with additional fees (outlined below).
- Individual Selling Plan: For those who sell fewer than 35 products per month, the individual selling plan is generally more favorable. This plan does not involve a monthly subscription fee, but there is a charge of £0.75 per item sold (excluding VAT), in addition to other applicable fees (detailed below).
When deciding on an Amazon selling plan, consider whether your monthly sales volume and product prices justify opting for the professional plan. If not, sticking with the basic plan might be more advantageous.
If you are uncertain about the number of items you will be selling each month, starting with the individual plan is a sensible choice. You can always upgrade to the professional plan later if it proves to be worthwhile.
However, if you do opt for the professional selling plan, it is worth considering the Fulfillment by Amazon (FBA) service. While there are additional fees associated with FBA, it allows you to reach a broader customer base, and Amazon takes care of packaging and delivery.
Amazon selling fees
When it comes to selling on Amazon, it’s important to be aware of the various fees involved. In addition to the individual plan item fee (£0.75) and the professional plan monthly fee (£25), there are additional fees that apply to both plans. Here are the key seller fees to consider:
- Referral Fee: The referral fee is determined by the type of product being sold. It is calculated as a percentage of the total sales price, which includes the product price, delivery charges, and gift wrapping fees. Typically, there is a minimum referral fee of £0.25 per item, although this may vary.
- Closing Fee: For most media items such as music, DVDs, video games, and software, there is a closing fee of £0.50. Books, on the other hand, have a closing fee of £1.
- Refund Administration Fee: If a customer requires a refund and you have already received payment, your referral fee will be refunded. However, a refund administration fee will be deducted from the refund amount. This fee is either £5 or 20% of the referral fee, whichever is less.
- High-Volume Listing Fee: Unless you are selling a large number of products, this fee is unlikely to apply to you. If you have over two million active stock-keeping units (SKUs), there will be a fee of £0.0003 per SKU. SKUs are unique reference codes assigned to each product you list.
It’s essential to consider these fees when pricing your products and calculating your potential profits on Amazon.
Apply for Amazon Launchpad
If you have unique and innovative products to sell, along with an intriguing brand story, you may want to consider applying for Amazon Launchpad.
Please note that applications for Amazon Launchpad are evaluated on a case-by-case basis, and acceptance is not guaranteed.
However, if your application is successful, you’ll gain access to additional selling features. These include customer engagement tools, the opportunity to showcase your brand on the Amazon Launchpad homepage, and strategic support from an onboarding manager to assist you in growing your business.
Related: How to make money from Fiverr
It’s important to be aware that selling on Amazon Launchpad comes with an additional 5% referral fee on top of the standard referral fee for each item sold.
If you believe your products and brand align with the spirit of innovation and want to benefit from the enhanced exposure and support offered by Amazon Launchpad, it’s worth considering applying for this program.
Sell old belongings on Amazon
Wondering how to make money by selling items on Amazon? Take a look at your old belongings! Chances are, you have numerous unused items that can be sold online.
Selling your old belongings on Amazon can be an excellent opportunity for several reasons. Firstly, it ensures that your pre-loved items find new homes instead of ending up in landfills, which is an important environmental consideration in itself.
Moreover, selling your own possessions allows you to avoid the costs associated with buying or creating new items to sell. Instead, you can generate profit from items you already own.
For instance, after completing a module at university, you can sell your used books on Amazon to help finance the purchase of any new ones you may need.
Remember to provide clear and honest descriptions of the condition of your used items when listing them on Amazon.
If you need some ideas and inspiration, be sure to check out our comprehensive guide on the best second-hand items to sell.
By selling your old belongings on Amazon, you not only declutter your space but also have the potential to earn some extra money in the process.
Start affiliate marketing
If you’re looking to make money on Amazon without selling products directly, one of the most effective methods is to participate in Amazon’s affiliate marketing program.
Affiliate marketing entails sharing product links online, such as on social media or your personal blog. When people make purchases through those links, you can earn a commission from the sales without any additional cost to the buyer.
Alternatively, if you have a substantial following on your social media profiles, you might consider applying to become an Amazon Influencer. This allows you to promote products and earn commissions from sales, but with the added benefit of having your own dedicated page on Amazon where you can curate and showcase the items you choose to promote.
For more options, check out our list of the best sites that pay you to sign up.
For a comprehensive understanding of how affiliate marketing works and how to get started, refer to our detailed guide on the subject.
By venturing into affiliate marketing on Amazon, you can capitalize on your online presence and influence to generate income through product recommendations and referrals.