Amazon is a great way to earn passive income. Passive income through Amazon can be a great way to develop a new source of income or supplement your existing salary. As for how to make passive income on Amazon, it will take some upfront work.
Before you can start make passive income on Amazon, you need to lay the groundwork for your business. However, once you get started, you can sit back and earn an income without doing much. Read this article to learn more about how to generate passive income.
What Is Passive Income?
Passive income is a type of income from providing a product or service that requires little or no continuous work to generate income. Income from real estate or apartment properties, stock dividends, interest income, and royalties are some good examples of passive income.
However, if you can afford to automate your business, you can also earn a passive income from it. This can be the opposite of active income, which refers to forms of income that require constant effort and maintenance to produce results.
While positive income streams often have the potential to be more lucrative, they also require more time and effort to maintain. There are many ways to generate passive income, but one of the most popular is through online marketplaces like Amazon.
By selling products profitably on Amazon, you can earn a commission for every sale you make without any extra work. This makes it an ideal platform for those looking to generate income with minimal effort.
Can You Make Money on Amazon Passively?
Yes, Amazon can be a great place to earn passive income. In particular, Amazon is good at passive income because it makes order fulfillment easier and has systems in place that allow sellers to be more passive in the process.
However, keep in mind that setting up an e-commerce store on Amazon will take some work to get started. You’ll need to find a unique product to sell, contact suppliers, and take steps to make sure your product listings rank well for the keywords you want.
After initial setup, you can easily fulfil your purchases using the Fulfillment by Amazon (FBA) service.. When you use FBA, Amazon handles most of the shipping logistics, minimizing the time and effort you need to devote to your business.
Great Ways To Make Passive Income On Amazon In 2023
Here are some great strategies you can adopt to start make passive income on Amazon.
1. By way of Amazon FBA
FBA, or Fulfillment by Amazon, is a program that allows you to sell your products on Amazon and get them done by the company. This means you won’t have to worry about storing or shipping your products.
Being an e-commerce retailer on Amazon is great because you have access to its huge consumer base. In addition, you can benefit from all the infrastructure that has been developed by Amazon, such as same-day delivery or free two-day shipping.
If customers like your products, your listing will rank higher on Amazon and you will definitely have more visibility, which will drive sales. To get started with FBA, you need to create an Amazon seller account and list your products on the Amazon marketplace. Once your product is listed, ship the product to an Amazon warehouse and Amazon will take over and handle the entire fulfillment process for you.
You can start to see more sales and make money with your business as soon as things start to work. You will just have to wait for your commissions to arrive for Amazon FBA passive income.
Since you still need to manage inventory, customer complaints, and ship products to Amazon, the business won’t be completely passive, but it can still be a semi-passive business. good. However, you can make Amazon FBA even more passive by hiring a customer service representative to answer questions and resolve issues.
FBA is a great way to generate passive income on Amazon because it requires you to do very little. All you have to do is find great products, create a product listing, and Amazon will do the rest.
2. Affiliate Marketing with Amazon Associates
Want to learn how to make passive income on Amazon without selling any products? No inventory risk, and no liability. Affiliate marketing promotes products from other brands that are already sold on Amazon, then you earn a small commission if someone makes a purchase on Amazon through your link.
This concept is very simple. Instead of creating an Amazon storefront, you insert affiliate links on your own website or social media accounts that point to the product listings you want to promote. Someone clicks your link, makes a purchase, and you get a 1-3% commission from Amazon. In order for you to earn a commission, the customer must pay within 24 hours of clicking your affiliate link.
To earn passive income with this method, you need to invest heavily in content, SEO, and link building so that your content ranks on Google.
One of the great benefits of affiliate marketing with Amazon partners is the high conversion rate because online shoppers trust the Amazon marketplace. However, there are also some disadvantages. With low commissions, you’ll be happy with Amazon’s policies, as well as navigating Google’s algorithm changes where your site can rank.
It helps AMZ users to get a significant amount of goods in a very short time. They don’t even need to touch these assets to make a profit. With dropshipping, the seller is the middleman.
A simple example of dropshipping is sourcing products from Home Depot that are currently on sale for $10. You can then list the item as FBM on AMZ for $30. When a visitor purchases this item on the platform, you will go to the Home Depot and purchase the product. You then ship the item directly to the customer’s address.
Most users prefer this model because they don’t need to keep a single product. Dropshipping allows you to run your business from the comfort of your home. However, you have to check your trades daily, so it’s not 100% passive.
The downside of dropshipping is that customers don’t like to pay too much for goods. If my AMZ purchase came with store-branded packaging, I will know it was purchased from that store. Some customers may be angry that they paid $30 for something they could have bought for $15.
4. Retail arbitrage
Retail arbitrage involves sourcing goods from retail stores at a discount. You may stumble across products that are heavily discounted and then move them around the market to make a profit. Usually, you check the customs clearance and can sometimes find regular priced products to return.
The downside of this model is that it can be tedious to find good deals. Additionally, some brands may report infringement or intellectual property claims to you. The market will require a buy order to deny such claims, and your grocery bill will not work.
5. Sell eBooks Through Amazon KDP
If you’d rather write books than blog posts, you can make money selling your books with Amazon KDP. Amazon has democratized the publishing world, and you no longer need your manuscript approved by one of the major publishers to sell your book. Simply self-publish with Amazon KDP.
The best part is there is no fee to get started (although Amazon does take some of your ongoing sales)
Like blogging, writing a book takes a lot of work initially, but once it’s done and you list it on Amazon KDP, you can start earning royalties from selling your books. It’s super passive. Also, in my opinion (maybe it’s the nerd in me), I think it’s nice to be able to say you’re a published author.