Welcome to a world brimming with opportunities! If you’re looking for a way to increase your income or even start your own business from scratch, you’ve probably heard about making money on Amazon.
But wait, before you imagine complexities and mysteries, let me reassure you: it’s simpler than it seems, and this guide was written specifically to take you by the hand, step by step.
Why Choose Amazon to Start Your Profitable Journey?
You might wonder, with so many platforms and ways to sell online, what makes Amazon so special, especially for beginners? Let’s take a closer look:
It’s like opening your shop on the busiest commercial street in the world. That’s Amazon! Millions of people from different cultures and with diverse interests browse it daily, looking for products.
The word “Amazon” itself means a lot to buyers. They trust its secure payment processes, return policies, and overall service quality.
Amazon won’t leave you stranded. It provides you with an easy-to-use “Seller Central” dashboard to manage your products and sales. More importantly, services like “Fulfillment by Amazon” (FBA) can handle storage, packaging, shipping, and even customer service for you.
You don’t need huge capital to start. You can begin small, in a way that suits your budget and time, then gradually expand as you gain experience and achieve success.
Your Basic Preparations to Get Started: What Do You Really Need?
Before you dive into the details of making money on Amazon, there are some basics you need to prepare.
Understanding Seller Account Types:
Amazon offers two main types of plans for selling on Amazon:
1- Individual Plan:
- If you plan to sell only a few items per month (less than about 40 items), or if you’re still exploring and unsure of your sales volume.
- There’s no fixed monthly subscription. Instead, you pay a small fee for each item you sell (in addition to other selling fees).
- Pros: Low startup cost, ideal for experimenting.
- Cons: Some advanced features are unavailable, such as the ability to add new products not already on Amazon in some categories, or use advanced advertising tools.
2- Professional Plan:
- If you plan to sell more than 40 items per month, or if you’re serious about building a business on Amazon and want access to all features and tools.
- A fixed monthly subscription (varies by the Amazon country you sell in). You don’t pay the per-item fee that Individual plan holders pay, but other selling fees still apply.
- Pros: Access to all product categories, ability to create new product listings, use of advanced advertising tools and reports, better chance of competing for the “Buy Box.”
- Cons: Fixed monthly cost even if you don’t make sales.
Required Documents and Information:
To register a seller account on Amazon, you’ll typically need to prepare the following:
- A valid bank account: It must be an account that can receive payments from Amazon. Ensure you have all account details (bank name, account number, SWIFT code if selling internationally).
- A chargeable international credit or debit card: Amazon will use this to collect any fees you owe (like subscription or advertising fees). The card must be in your name or your business’s name.
- Valid personal identification: Such as a national ID card or passport. The information must be clear and match the name you register with.
- Tax information: Depending on your country of residence and its laws, you may need to provide a tax identification number or other relevant information.
- Phone number and email address: For communication and account verification.
If you don’t want to use your real number, get a temporary number from Non-voip!
Steps to Create an Amazon Seller Account:
The registration process itself is fairly straightforward:
- Visit the Seller Central website for your target marketplace (e.g., https://sell.amazon.com or https://sell.amazon.eg).
- Click on “Start Selling” or “Sign Up.”
- Enter your email address and create a password.
- If you don’t want to use your real number, get a temporary Amazon number from Non-voip!
- Enter your business information (individual or company).
- Provide identity verification documents (passport, ID card, utility bill, etc.).
- Enter your bank account and credit card information.
- Wait for verification and receive a verification postcard (in some marketplaces).
- Complete the verification process and start managing your seller account.
Read More: How to Create an Amazon Account Without Phone Number 2025
Best Ways to Make Money on Amazon
Now we’ve reached the fun part! Let’s explore the most popular ways to make money on Amazon together, and see how you can get started with each one to profit from selling on Amazon:
1- Retail Arbitrage
You buy products at a low price from physical stores (discounts, clearance) and resell them at a higher price on Amazon. Your profit is the difference.
Who is it for? For beginners on a limited budget, and for those who have time to browse stores.
Quick Start Steps:
- Use the Amazon Seller app to scan product barcodes in stores and see their price and potential profit on Amazon.
- Look for products with significant discounts in clearance sections or special offers.
- Buy in small quantities at first, then list them on Amazon under the existing product listing.
- Set your price and decide on the shipping method (FBM yourself or FBA via Amazon).
2- Online Arbitrage
The same idea as retail arbitrage, but you search for deals and buy products from other online websites to resell on Amazon.
Who is it for? For those who prefer to work from home and have good online research skills.
Quick Start Steps:
- Browse major retail websites and coupon sites for discounted products.
- Check their selling price on Amazon and accurately calculate profitability (including shipping costs and fees).
- Buy the product and list it on Amazon once it arrives.
3- Wholesale
You buy products in large quantities (wholesale) directly from manufacturers or authorized distributors of existing brands, then resell them on Amazon.
Who is it for? For those with relatively larger capital and good negotiation skills, who want to build a more sustainable business.
Getting Started:
- Obtain the necessary business licenses.
- Find suppliers or brands (especially emerging ones) and contact them to open a wholesale account.
- Order products in bulk at wholesale prices after analyzing profitability.
- Add your offers under the existing product listings on Amazon and compete for the “Buy Box.”
4- Selling Products Without Owning Them (Dropshipping) on Amazon
You list products for sale on Amazon without buying or stocking them. When a customer orders a product, you purchase it from a third party (supplier or manufacturer) who then ships the product directly to the customer.
Your profit is the difference between your selling price and your purchase price from the supplier.
Who is it for? For those with limited capital, who don’t want to deal with inventory and shipping, and possess good marketing skills.
Getting Started:
- Find reliable suppliers who offer dropshipping (like AliExpress or local suppliers).
- Choose products with good demand and a reasonable profit margin.
- List these products on your Amazon account (adhering to Amazon’s dropshipping policy: you must be the seller of record, be identified as the seller on all shipping documents, and be responsible for returns).
- When you receive an order, pass it on to your supplier with the customer’s details.
- The supplier ships the product directly to the customer.
- You handle customer service.
How to Start Earning from AliExpress – 5 Proven Methods
5- Earning Passive Income Through Amazon Affiliate Marketing
This method doesn’t involve selling your own products directly. Instead, you promote products available on Amazon through your website, blog, YouTube channel, or social media accounts.
You use special tracking links (Affiliate Links). When someone clicks your link and buys the product (or any other products) from Amazon within a certain period, you earn a commission. This is one of the most prominent indirect ways to make money on Amazon.
Who is it for? For content creators (bloggers, YouTubers, influencers) who already have an audience, or for people with skills in search engine optimization (SEO) and creating engaging content.
Quick Start Steps:
- Sign up for the Amazon Associates Program – it’s free.
- Choose products that interest your audience and fit your content.
- Get unique tracking links for these products from your Amazon Associates dashboard.
- Integrate these links naturally into your content (product reviews, “best X” articles, recommendations, etc.).
- Clearly disclose to your audience that you’re using affiliate links (this is a legal requirement and an Amazon policy).
- Track your earnings and clicks through your dashboard.
6- Making Money by Publishing eBooks on Amazon Kindle
If you’re a writer or have expertise or a story to share, you can publish your eBooks (and even print-on-demand paperbacks) for free through Amazon’s KDP platform.
Your book will become available to millions of readers worldwide via the Kindle store. You earn a percentage of the profits (royalties) for each copy sold.
Who is it for? For authors (novels, short stories, poetry, children’s books, educational books, and practical guides), experts in a particular field, or anyone with valuable written content.
Quick Start Steps:
- Write and edit your book.
- Format your manuscript to suit Kindle devices (Amazon provides guides for this).
- Design an attractive cover for your book.
- Create a free KDP account (kdp.amazon.com).
- Upload your book file and cover file.
- Enter book details: title, author name, description, keywords, and choose appropriate categories.
- Set your book’s price and royalty option.
- Publish your book! The product will typically appear in the Amazon store within 24-72 hours.
- Promote your book (via social media, your personal website, Amazon ads for books, etc.).
KDP gives authors a fantastic opportunity to independently publish their work and reach a global audience, thereby making money on Amazon through their passion for writing.
Important Considerations and Potential Challenges
While selling on Amazon offers tremendous opportunities to make money on Amazon, it’s also important to be aware of some considerations and challenges you might face.
Advance preparation and a realistic understanding of these aspects will help you overcome them successfully:
Amazon Fees: Understanding the Cost Structure
- Amazon takes a percentage of each sale (Referral Fee), and this percentage varies by product category.
- If you use the Professional selling plan, there’s a monthly subscription.
- If you use FBA, there are fees for storage and fulfillment.
- There may be other fees (like advertising fees, long-term storage fees, return processing fees in some cases).
- Tip: Use Amazon’s FBA Revenue Calculator to accurately estimate all fees before pricing your products. You must have a clear understanding of all costs to ensure profitability.
Competition: You’re Not Alone in the Arena
Amazon is a huge marketplace, which also means there are many other sellers. Competition can be fierce in some categories.
How to deal with it?
- Try to offer a unique product, better quality, or exceptional customer service.
- Build a strong brand (especially in the Private Label model).
- Competitive pricing (but not necessarily always the cheapest).
- Get positive reviews.
Amazon Policies: Playing by the Rules
- Amazon has a wide range of policies that all sellers must adhere to. These policies cover everything from product quality and listing presentation to customer communication.
- Failure to comply with Amazon’s policies can lead to warnings, temporary suspension of your product listing, or even permanent suspension of your seller account.
- Tip: Dedicate time to read and understand Amazon’s seller policies. Stay updated on any changes to these policies. “Ignorance of the law is no excuse.”
In the End:
We’ve come a long way together in exploring the world of making money on Amazon! From understanding the basics to diving into various ways to make money on Amazon, and finally, facing the challenges.
Whether you choose retail arbitrage as a quick start or decide to build your own private label brand as a long-term goal, the key is to start and keep learning.
