Make Money on Amazon in 2021
It’s a digital era. Now the trends have shifted from traditional physical shopping to online shopping. Especially after this pandemic, there is a boom seen in online shopping. So if you are thinking to earn money online with the help of e-commerce so you are at the right place. There are several Ecommerce platforms where you can start your online store like eBay, Shopify, Walmart, etc. We have seen the likeliness of sellers towards Amazon as it is considered to be one of the best online selling platforms.
So fasten your seat belts, here we are going to discuss how to make money on Amazon. It’s a great opportunity for those who want to get into the eCommerce business. In the last year, Amazon’s revenue was $3.86 billion. That’s a huge amount but the surprise is that half of the contribution was by third-party sales.
But how to get started on Amazon? Well, there are several methods to earn money on Amazon, so to help you we have emphasis on the top ways to make money on Amazon in 2021.
Let’s get to it!
1. Start selling with your own label
One of the best ways to start making money on Amazon in 2021 is through private label sales using Amazon’s Fulfillment-by-Amazon (or FBA) network. Almost 71% of the people on Amazon are selling their using the private label method.
What is a Private label?
It is a process in which people produce or improvise existing products with their branding and sell it to consumers. It is also called White-labeled products 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. Target’s Mainstays brand and Walmart’s Great Value are the two biggest examples of private label brands.
Amazon makes private labeling even easier thanks to a number of advantages:
- First, Jungle Scout is a tool used for the all-in-one platform for selling on Amazon — to estimate the sales your product will make once it’s on Amazon.
- The second thing is, it’s easy to source and manufacture your products with the help of platforms like Alibaba or Jungle Scout’s Supplier Database.
- The last one is when you created your product now you can sell it on Amazon using FBA. You don’t even have to ship your own orders!
How much can I make money by selling private label products on Amazon?
One can make money around $625 to $1,875 per month per product.
On Amazon, almost half of private-label sellers that is 56% earn $5,000 or more in a month, and nearly two-thirds (59%) have profit margins over 16%. Among private-label sellers who have more than a year of selling experience, 31% have earned over $50,000 in lifetime profits and that’s a huge amount.
2. Publish your books on Kindle Direct Publishing
Amazon Kindle Direct Publishing (KDP) allows you to publish your books on Amazon, and this is my second favorite way to make money on Amazon. So, it is an amazing opportunity for the writers or those who are having an interest in writing can publish their books and make money.
It’s not only limited to the soft copies. If you want a hard copy of the book, Amazon Create Space offers you prints on demand.
The only catch with this option is that you usually need to write somewhat prolifically in order to find success. Though, it is possible to publish one or two wildly popular books, volume is the true name of the publishing game.
The more you write, the more you make.
How much money can I make writing for KDP?
You can earn around $40,000 per month.
I’ve heard that some authors make as much as $40,000 per month. These writers, however, tend to be prolific and write topically to gain notice.
Once you write the material, you don’t have to write it again! Nor do you have to worry about inventory.
3. Sell wholesale goods on Amazon
Wholesale includes purchasing in bulk to sell using Amazon’s network.
The difference between private label products and wholesale products is that here you don’t have to worry about manufacturing and branding. You are selling other companies’ products. Many sellers say that it’s the most popular way to make money on Amazon.
How much money can I make selling wholesale goods on Amazon?
You can earn around $3,000 – $4,000 per month.
However, wholesaling on Amazon is becoming very difficult but still, it is highly recommended. 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?
They might even pay you $10,000 to get started!
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 on Amazon working as a Flex driver?
You can earn around $100+ per day.
According to Flex’s homepage, Amazon pays drivers between $18 – $25 per hour and there are 5 hours working shifts and if the driver finishes the task early Amazon awards him some compensation. $100+ per day is a handsome amount.
5. Become a Blogger
Ever wanted to start a lifestyle blog, publish how-to videos or recipes, or otherwise get your thoughts and ideas published? You can make money from Amazon while doing that!
Picture this. You find a cool product on Amazon, send your friends the link, and–if they buy it–you get paid a commission. On your blog (or social media page or even in email), that link goes out to quite a few more folks, so you can make quite a bit more money in commissions.
That’s how Amazon’s Associate’s program works. Amazon Associates is an affiliate program where you sign up to get special links that only you can share. Once you share the link and a purchase is made, you earn a percentage of the sale.
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 of sales commissions will be difficult.