12 Ways to Make Passive Income on Amazon

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Passive Income on Amazon

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Have you ever thought about how to make passive income? Of course, you have, and you’re still thinking about it. Otherwise, you wouldn’t be reading this article.

I know the thought of how to make passive income on Amazon has been lurking in your mind and that of many others. But you probably don’t know how to go about it. Well, do not worry, because I am happy to tell you your search has come to fruition.

You’re looking for a method of earning money that doesn’t require too much effort as input. More like an effortless manner of making money through partnership, collection of rent or real estate investment, acquired shares, royalties, income from interest rates, sales on Amazon, and many more others. All these replace the need for daily work hours to get paid a salary.

This article properly explains this topic extensively by telling you: what passive income is;

best ways to make passive income on Amazon, tips for making passive income on Amazon, and also provide answers to the numerous questions surrounding this topic.

What Is Passive Income?

Passive income is simply defined as earning money seamlessly with little or no effort. And one of the most lucrative platforms for making passive income is Amazon.

With its global dominance in the e-commerce world and digital marketplace, there are many available options to make passive income on Amazon, ranging from the selling of products to affiliate marketing, Amazon KDP, and many more others. All you need to do is identify the one that best suits you and focus your attention on it. Follow along as we explore everything you need to know about how to make passive income on Amazon.

But before we begin, I’d like to bring to your attention that much work is required in setting up these methods of earning money passively. And once the automated system has been set up in the right order, everything concerning how to make passive income on Amazon follows swiftly.

Best Ways to Make Passive Income on Amazon Include:

  1. Fulfillment by Amazon (FBA)
  2. Buy a Fulfillment by Amazon (FBA) business
  3. Amazon Associate Affiliate Marketing
  4. Buy an Amazon Associate Affiliate Marketing Website
  5. Sell eBooks through Amazon KDP
  6. Pick the right product for the right market niche.
  7. Write A Properly Optimized Product List
  8. Set Your Product Price According To Market Competition
  9. Initiate a good marketing strategy
  10. Optimize to Monetize Your Amazon Store

1. Fulfillment by Amazon (FBA)

Amazon fulfilment,  Passive Income on Amazon

If you had asked me what the best way to make passive income on Amazon was, the Fulfillment by Amazon (FBA) program would be the first thing that came to mind. The Amazon FBA program allows you to sell your products on Amazon and have them fulfilled by the company. This means Amazon guarantees to take care of anything that concerns shipping and delivery of the product. You do not need to bother yourself with the rigors of storing and shipping your product to customers yourself.

Please, don’t get too excited just yet; there is still little work to be done. You have to select a particular type of niche product you want to sell and then get a reliable supplier that will be in charge of the provision of the product.

Your particular choice of product should be one in high demand. Why? Because the more people who like your product list and buy your product, the better its ranking on Amazon search results, What this means is that the more sales your product make, the more passive income you make on Amazon.

To begin the fulfillment by Amazon (FBA) program, you will need to create an Amazon seller account to get a storefront and then post your product list on the Amazon marketplace. After you have done that, the next thing is to take your products to the Amazon warehouse, where Amazon will take over and handle all of the fulfillment for you.

Keep in mind that you’d have to pay for the shipping of the product to Amazon’s warehouse and also handle the section of the customer query by yourself. Amazon is not 100% responsible for everything in the deal. But it’s still a good way to make passive income.

An added advantage of starting up an e-commerce store with Amazon is access to its large customer base.

Please read this also: Dropshipping For Beginners: Can Dropshipping Be Profitable?

2. Buy a Fulfillment by Amazon (FBA) business

Another brilliant way to make passive income on Amazon is to buy an already existing Fulfillment by Amazon (FBA) business. It’s probably the easiest way to make money on Amazon. This way, you do not need to go through the hurdles of starting up a new business on your own, as most of the work has been taken care of by the original owner.

The business and product list are well acquainted with the Amazon marketplace, so you need not bother yourself with coming up with a product niche. Your main objective here is to improve the running operations, monitor them, and optimize their efficiency so that you can make a good profit from the already existing store.

3. Amazon Associate Affiliate Marketing

Amazon affiliate marketing is another wonderful way to make passive income on Amazon. And guess what? You do not need to sell a single product to do that. You can make money simply by promoting and popularizing the products of brands and other businesses that are already selling on Amazon and getting a commission each time a sale is made via your affiliate link. It’s really that simple.

To tell you the truth, the payment doesn’t really amount to much, which is just about 2–6% of the total price of the product, depending on the category in which the product is placed. But there is a tendency for you to increase your profit by increasing your traffic.

The first step to take in Amazon affiliate marketing is to sign up with an affiliate network like the Amazon Associates program. Immediately after the sign-up is complete, you will be given a unique affiliate link that you can use to promote Amazon products. Each time a customer clicks on your affiliate link and buys something, you will earn a commission on that sale. The amount of commission you earn is largely dependent on the category of the product sold.

The whole idea behind this is to get people to click on your affiliate link and make purchases through it. You can do this with link building, by creating a blog where you’d write product reviews about products while using proper SEO guidelines to optimize the content and make them rank better on Amazon search results.

Each piece of content you write should have your affiliate link included for the products you are promoting, making it easy for customers to click on your affiliate link and make a purchase through it. Or you can simply share your affiliate link on your social media platforms as a medium to promote products on Amazon.

4. Buy an Amazon Associate Affiliate Marketing Website

If buying an already existing Fulfillment by Amazon (FBA) business is a good way to make passive income on Amazon, I see no reason why the same cannot be applied to buying an already existing affiliate marketing website. Both are convenient ways to make money on Amazon.

If you have no idea about the rudiments of setting up, building and monetizing a website, this would be the best available option to choose.

Buying a site that already has a passive income stream via Amazon affiliate links You can make money in the form of commissions from the website’s traffic.

5. Sell eBooks through Amazon KDP

Selling ebooks through Amazon’s KDP is one of the easiest ways to make passive income on Amazon. Never in the history of mankind has it been so easy to make passive income from writing as it is today, and to a great extent, the Amazon Kindle Direct Publishing (KDP) program should be given some credit for that.

This program completely eliminates the need for big publishing houses by allowing you to self-publish as well as sell your books and earn royalties from them. To sell your ebook on the KDP, you first need to create an account and submit your book for the necessary approval.

With this brief explanation given, I believe it is more than clear that there is no stress that accompanies making passive income on Amazon with the Amazon KDP program. You can also get someone to ghostwrite for you, and the rights would be yours. After your book has been approved, it will be placed for sale on the Amazon Kindle store.

When anyone purchases a copy of your book, you will receive a commission on the sale. The price of the book determines the amount of money you’d receive as a commission.

6. Amazon Dropshipping

Dropshipping is yet another way to make passive income on Amazon, and it doesn’t require much work. What you need to do is find a good supplier and create a listing for the product. When someone buys a product, the supplier takes responsibility for getting the product to the customer. Your only job is to sell products that are shipped directly from the supplier to the customer.

First, you will start by finding a prolific supplier who will help ship products directly to your customers, and then you will need to create a listing for the product on Amazon. The job of the supplier is quite simple; the supplier will ship it directly to the customer that purchases a product, and you earn money as a commission for each purchase.

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5 Tips for Making Passive Income on Amazon

1. Pick the Right Product for the Right Market Niche.

Knowing exactly what product to sell is the most important factor that determines your success and the profit you make in the Amazon marketplace. It is very advisable to choose products with significantly high demand that you can source at low rates. It wouldn’t be possible in any way to make a profit from a high-demand product you source at a high cost.

The main difficulty in this task will be finding a unique product that can generate profits. The solution to this problem would be to find a market niche and source products that best satisfy your targeted audience.

A helpful guide that would help you with this is Amazon’s Best Sellers list. This list reveals to you the products that are mostly sold in the Amazon marketplace. This would make it easy for you to know and, as well, choose the right product you want to sell.

After you have done this, your next step should be to source for products by looking for a reliable supplier that would provide you with the chosen products at a very low cost that allows you to make a profit. Do well to contact as many suppliers as are available to compare their terms and costs before you come to a conclusion.

2. Write A Properly Optimized Product List

Creating a good product list requires some level of technical skill—or should I say SEO skill? And this aspect is very crucial to the success of your Amazon business. This is the part that involves the promotion and advertising of your product.

There are important things to consider when composing a quality product list. The first is the use of necessary keywords. And the others are the use of images and good product reviews that best describe your product, which optimizes your product list. All of these are geared toward persuading customers to see and buy your products.

The SEO skill I speak of here is the use of keyword research tools to carry out in-depth keyword research to acquire a keyword-rich title that will help your product rank better on Amazon search results. By virtue of a constant recurrence of your product list in the Amazon search results, there is a higher likelihood of customers purchasing your product and generating passive income for you.

3. Set Your Product Price According To Market Competition

In whichever marketing mix you choose to employ, “price” holds the title as the most important amongst them all, and it’s also an important aspect of your Amazon FBA business. You should make a proper assessment of your product price to match that of your competitors.

Amazon’s Best Sellers list doesn’t only provide you with a list of products to choose from; it also reveals the prices of similar products sold by your competitors.

Another alternative is the Price Checker Pro and Amazon’s automated pricing tool, which would help you price your products competitively. The functionality of this pricing tool is to compare your prices to the prices of other Amazon sellers and let you know if your price is too high or too low. And then you can fix or adjust your product price to attract customers.

4. Initiate a Good Marketing Strategy

You cannot just wake up one morning and start a business to make passive income on Amazon without a well-thought-out plan in place. The start-up, growth, development, and success of your Amazon business are anchored to your marketing strategy.

A marketing plan, a sourcing plan, and a pricing plan are the three active ingredients in your marketing strategies that would greatly help you on your journey to making passive income on Amazon. as your Amazon business would not thrive if anyone among the three marketing plans was exempt.

5. Optimize to Monetize Your Amazon Store

If you strictly adhere to every one of the above-listed tips on how to make passive income on Amazon, it would not be that much of a challenge to monitor, optimize, and monetize your Amazon store.

Not much work is required here. Track your sales, traffic, and conversion rate; these are the only three things that are required of you to monitor, optimize, and monetize your product on Amazon. And with keen observation, you’d be able to implement changes where needed to improve your business.

Now that you have this information at your disposal, it is up to you to decide which of the above you want to focus on. Do not forget that some level of work needs to be put in place to make your dream of earning income passively a reality.

Make sure to get experts who have proper SEO knowledge to help optimize your product list with images and keywords. And also guide you on the digital aspect of your business.

How Do I Make Passive Income on Amazon?

There are quite a number of ways to make passive income on the Amazon marketplace. And it takes just three simple steps to make this a reality. The first is to identify the kind of product you want to deal with. The product should be of peculiar quality for a targeted market niche, and it should be in high demand.

The second is getting an Amazon storefront by registering for the fulfillment by Amazon program. which would help in no small way by bringing your product to a larger number of customers. This aspect doesn’t require so much stress, as Amazon takes the load off your hands at this point.

The third, which is a very important part, is leveraging your SEO knowledge to promote and advertise your product. Your product cannot automatically sell itself if people know about it. Bring your product to the attention of a wider audience by using keyword research tools to rank keyword titles, pictures, and descriptions to optimize your content. All veered toward generating good traffic.

Does Amazon’s Passive Income Work?

Yes, Amazon’s passive income businesses work. If it didn’t, you would not see so many people cashing out, you would not see so many people cashing out. The main idea behind it is the product: quality products in high demand.

Making passive income on Amazon by selling products that are in high demand is as easy as it can be. Make a good product list and find a supplier who will supply the products to you at a lesser price than you can sell them for and still make a profit. Make a product list with appropriate product prices, and then you’re good to go.

From this point, starting up a storefront with fulfillment like Amazon FBA  wouldn’t be a problem.

While all of these are in place, make sure that your products and product list are properly optimized so that you can make sales. Without proper optimization of the product list, your business would not succeed. One thing you should understand is that as long as there are products to sell, there are customers who are ready to buy.

Is Selling on Amazon FBA Profitable?

Yes, selling on Amazon FBA is very much profitable. The amount of profit you’ll make from your Amazon FBA business is dependent on quite a number of important factors.

Your product should be in high demand and sold at an affordable rate. Getting your product from your supplier at a low cost allows you to set the price at an affordable rate.

And when the price is set at an affordable rate, you’d make more sales, which means more profit. Take into consideration the fees associated with your supplier, Amazon FBA, and other analytics services.

Another factor that contributes to the profit of your FBA business is the optimization of your product list. People can’t buy what they don’t see. Using proper SEO skills; which is infusing necessary keywords and images to describe your product, makes it more visible to a larger audience on Amazon search results.

In summary, the profitability of your Amazon FBA business is rooted in your marketing strategy and your excellence as a seller.

Can I Become Rich by Running a Business on Amazon?

With proper planning and execution of your marketing strategy, there is a possibility of you making a minimum of $1,000 and a maximum of $1,000,000 or more per month from your product sales. I don’t know about you, but to me, I can become rich with that.

There are important factors in the form of tips that govern your business’ success in the Amazon marketplace. While implementing your marketing strategies, do well to obey the Amazon guidelines to avoid any activities that would bring problems to your account in the long run.

Final Thoughts

Amazon, being a global and world-leading digital marketplace, is structured in such a way that it allows people who are interested in making money to take advantage of the available opportunity to make passive income.

There are quite a lot of ways to make passive income on Amazon, but just a few were mentioned in this article. The ones mentioned in the article are the easiest to delve into, and their instructions are simple. The rules guiding them aren’t difficult to apply.