Sell on Marketplace or build your own eCommerce
How to make money on Amazon
Amazon is one of the world’s largest retailers with worth over $140 billion and which continues to grow. Now Amazon is not just an online shopping place, it now produces TV shows and movies. Amazon owns Zappos, IMDB, Audible, Goodreads, and Twitch Tv.
Amazon has expanded vastly since its starting stage. Through this expansion, Amazon became more capable and presented a lot of earning opportunities to its users. The number of third-party sellers continues to rise on Amazon. Its eCommerce market share is expected to reach 50% by 2021. So, this is the perfect time to launch your brand on Amazon and generate revenue through Amazon.
In this article, we’ll take a look at some of the different ways that can help you to make money on Amazon and how to be successful at it.
- Sell a product using Amazon’ FBA
FBA means Fulfilled By Amazon, with this service of Amazon, retailers and sellers have to ship their product inventory to the Amazon’s warehouses and it will take care of shipping products to its buyers.
Some merchants avoid using FBA to avoid hefty Amazon charges. But if your product sells in high volume, it is best to use FBA for shipment. The awesome thing about Amazon is that the number of potential customers that visit the website to view your product and have greater chances of buying that product.
- Private Label Your Product
Private labeling of the product means the sellers have opted to label their items with their brand. Basically, private-label products are generic products that you resell with your own unique packaging and logo. This helps in avoiding some competition on Amazon. One positive outcome of selling your own branded product is that you always have full control for your listing.
- Possibility of passive income.
- Potential for high-profit margin.
- No need to constantly look for items to sell.
- Build a brand that is a long-term asset.
- Retail Arbitrage
Retail Arbitrage means the buying of products at low cost and then reselling them with a profit. This approach is the complete opposite of private labeling of your products instead you will be involved in buying and selling products from a variety of different brands.
Some sellers have made this a lucrative niche for themselves and earn enough to make their living. Sellers spend a lot of time searching for cheap deals on almost everything that could be sold on Amazon. This approach can be quite profitable, but will just have to look for best deals every time.
- You can get started quickly
- No need to build a brand of your own.
- You don’t need to worry about things like product reviews.
- Writing eBooks
Amazon is a great marketplace for selling books, including ebooks through the Kindle program. There are millions of customers looking for ebooks on Amazon, so there is plenty of opportunities.
Creating your own ebook isn’t as difficult as it may sound. You can use free software to format your writing or hire someone on a site like Fiverr who can format it into an ebook that you can sell.
A successful ebook can continue to generate passive income for months or years to come. Some people write one or two ebooks and make a small, passive income every month. Others choose to grow their business by constantly writing more ebooks.
Pros Ebooks on Amazon
- No need for inventory.
- Potential for passive income if your ebook continues to sell.
- Option to scale the business by writing more ebooks.
- Merch by Amazon
Merch by Amazon is the online trail store. You can upload your design on the platform and use its promotional tools to make sales and profit. Merch by Amazon holds the advantage of millions of Amazon users at its disposal.
At the moment Merch by Amazon is not open to the public. You can only sign up and request an invitation in the hope of getting Amazon Customers.
- Amazon Associates
Amazon refers to its affiliate program as “Amazon Associate”. Affiliate marketing is a brilliant way to make some positive income if you have a website and generates a decent volume of traffic. You can become an Amazon affiliate and earn a commission by putting affiliate links to various Amazon products.
The idea is to promote products that align with your blog or website’s mission. Each time someone who comes through your website clicks on the affiliate link, you’ll earn some money.
- Apply to Amazon Handmade
If you make and sell handmade items, like bags or jewelry, you can try selling your wares on Amazon Handmade. One major benefit of using Handmade is that the general reach is large and their commission fee reflects that.
Handmade’s fees are much higher than Etsy as they charge a 15% commission and $1 referral fee while Etsy charges 3.5% commission and 20 cent item listing fee. Handmade products don’t show up on Amazon’s main search results. Customers have to click over to the handmade category on the site.
How to make money by your own eCommerce store
People are making a lot of money with their online stores and living a great life. The internet is a huge storehouse of information that you can utilize it very well to find various ideas and opportunities.
One of the main sources of making money online is through the eCommerce website. If you have some clits and product rich websites. Retail eCommerce sales have steadily increased from 2015 to 2021.
This makes it look tricky to monetize your site. But don’t worry, the purpose of this guide is to walk you through how you can start in this lucrative industry.
- Direct Banner Advertising
You can sell the white space of your website to some advertiser in the return of money. It is the most popular method of earning through your own eCommerce website. Most eCommerce businesses rely on paid ads to generate sales.
- Create a blog that drives traffic.
Every content marketing plan should overview of the customer research journey. It includes thinking about what your prospective customer is looking for, the questions and problems they have.
The amount of traffic which you will generate for your eCommerce store will depend on the amount of money. All you need to do is input the amount of money you want to earn and the number of days you want to take to earn it in.
- Use shopping ads from the start
Getting sales from the get-go is vital for your long-term growth as an eCommerce company. One of the best ways to get sales is from shopping ads. To utilize the most of your investment in shopping ads you must study the market and know your customer’s behavior, demographics, and interest to precisely target your niche customers. If everything is done correctly, you will be surprised to see the overwhelming results.
- Sell your own products
You can sell your own items on your web store. For that, you need to create a product catalog on your eStore which people can browse and select the product of their choices for purchase. When you start selling your own product, you can also build your brand image among the customers in the process.
- Automate your processes to grow faster
The more you can automate your eCommerce processes, the faster you will grow. From accounting to order fulfillment to market it’s best to automate everything you can to ease the functionalities and it return save your time. The more your automate your functions the less you have to pay attention to and you can free up yourself for other important business activities.
- Affiliate Marketing
Affiliate marketing is a method that connects merchants with idependent marketers who are willing to invest time and money to sell a merchant’s products. In other words, it connects a business that has product to sell with a marketer who can sell it. It is a type of agreement between one or more affiliates and the merchant.
An affiliate promotes the product and earns a piece of the profit form each sale they make. As the customer clicks on the product and buys it, you are paid a share of the profit that is earned by the merchant. Some of the popular affiliate marketing programs are Google Adsense, Click bank and so on.
- Distribute your products on multiple channels
Growing an eCommerce company starts with a diversification strategy, backed with clear channels of distribution and legal enforcement.
Growth and expanding are one of the biggest challenges most companies face. eCommerce companies need to optimize and list their products on multiple channels.