How to Make Passive Income on Amazon – 7 Fun & Actionable Methods

by | Jan 11, 2023

Do you ever dream of having a source of passive income that increases your wealth without breaking a sweat?

Sure, we all have!

As much as I’d love to indulge your fantasies, and at the risk of you clicking away and searching for an article which will likely make false promises, I’m afraid a sweat is required, at least in the beginning.

However, you can make it easier for yourself by capitalizing on one of the world’s largest and most successful online marketplaces!

With the right strategies, making passive income on Amazon is definitely achievable, even for the average Jo like me!

In this article, we’ll be exploring how to make passive income on Amazon, including all the different profitable business models you can start today.

I’ll also provide some tips for ensuring that you’ll be successful in your venture and the best practices to maximize your profits. Get ready to become a passive income maker on Amazon!

First…

What is Passive Income?

Passive income is a form of income that requires little to no ongoing effort to maintain. It’s typically associated with generating cash without trading time for money as with a traditional job.

Unlike traditional jobs, which are historically based on a 9-to-5 schedule, passive income sources allow you to generate a steady stream of income with minimal effort.

Some examples of passive income include returns from investments like stocks, bonds, and mutual funds, income earned through affiliate marketing, royalties from books and music, rental income, and income generated through online stores and e-commerce businesses.

Passive income can provide a source of steady income for years to come when combined with hard work and dedication, especially in the startup and beginning growth stages of your business.

And while at first you may have to put the effort in, your goal will be to systemize your business and employ the right resources so your business can run without you being involved in the day to day.

It is important to remember, however, that getting to the stage where your income is indeed ‘passive’ does require a fair amount of effort and dedication on your part.

You will need to research and understand the various income sources to make sure you choose one that will work for you. You’ll also need to create a plan to optimize your income streams, manage your money, and plan for retirement. Successful passive income generation requires dedication and strategic planning.

For now though, let’s look at all the ways you can start a business on Amazon which with time, forethought & clever planning can become an excellent source of passive income for you;

How to make Passive Income on Amazon; 7 Fun and Actionable Methods

1. Amazon FBA

amazon fba - how to make money on amazon

Amazon FBA is an acronym for Fulfillment by Amazon, which is an Amazon program that allows sellers to store their products in Amazon’s warehouses and have Amazon handle the shipping and delivery of their products.

It means that Amazon handles all the logistics of your business, including marketing (partly), customer service (partly), and fulfillment.

FBA is an attractive option for sellers because it is a more hands-off approach to e-commerce and allows you to focus on creating quality items without having to worry about some of the more detailed operations side of the business.

When you sign up for Amazon FBA, the first step is to list your products in your Amazon store. Amazon will then provide you with a code which will allow you to ship your products to their warehouses. After that, Amazon will take care of the fulfillment, packaging, and shipping of the orders you receive.

You will be responsible for pricing your products in order to stay competitive in the marketplace, however there are tools that can automate the pricing process for you.

You will also need to add to Amazon’s own marketing by promoting your listing separately, creating sales velocity & attracting reviews. And while Amazon deals with returns, you will be responsible for responding to customer queries & questions.

Fulfillment by Amazon is a great way to start your journey towards passive income and it can be incredibly rewarding.

With minimal effort, you can create a sustainable passive income stream on Amazon. Plus, it’s a great way to test the waters with a business idea without having to invest too much time and money.

If you are ready to get started and learn more about Amazon FBA, this guide will help you get off the ground quickly and start earning money on Amazon.

How We Built a 7 Figure Amazon FBA Business in 12 Months

2. Affiliate Marketing

Affiliate Marketing

Affiliate marketing is one of the most effective ways to make long term passive income on Amazon, although it will take time and effort to get started & create traction.

It involves promoting products and services on Amazon through special affiliate links that credit you with a commission when someone buys the product or service after clicking on the link.

This method can be extremely lucrative, as you can earn up to 10% commission on all products you promote on Amazon.

To get started with affiliate marketing, the first step is to register for an Amazon Associates account, which is free and easy to set up.

Once approved, you’ll be able to start adding affiliate links to your site or blog.

To maximize your earnings, you should search for products and services related to your niche and promote them to your readers or viewers.

Affiliate marketing can be a great way to make a consistent passive income on Amazon, as long as you take the time to learn the basics, find valuable products to promote, and drive traffic to your affiliate links.

Typically to be successful as an Amazon affiliate, you’ll either need to master the art of SEO & create valuable keyword rich content that also promotes & links to relevant products on Amazon, or if you prefer video you can do the same on YouTube.

The added benefit of YouTube is that you can also become an Amazon Influencer which comes with its own set of benefits.

By using SEO/YouTube as your content hubs and traffic drivers, any content you create can be discovered for years to come, meaning you do the work once & get paid over and over. Passive income at its best!

In the early stages you should be sure to monitor the performance of your affiliate links, create high quality content to promote the products, and work to constantly increase your traffic to maximize your earnings.

If you like the sounds of this strategy, these guides can help you get started;

What is Affiliate Marketing and How to Crush It in 2023!
How to Make Money as an Amazon Affiliate from Anywhere in the World
How To Make Money As An Amazon Influencer

3. Amazon KDP

Amazon KDP Bestseller Books

Amazon KDP (formerly known as Kindle Direct Publishing) is a popular platform on which authors can easily self-publish their work as digital books.

KDP gives authors a great way to earn passive income on Amazon. For a book that’s enrolled in the KDP Select program, the author will receive 70% of the list price in royalties when the book is downloaded in certain eligible countries. This amount is then deposited directly into your Amazon account.

Authors can also enroll their books in Amazon KDP’s subscription service called Kindle Unlimited and receive payments in a monthly pool based on the number of pages read by Kindle Unlimited customers.

Books enrolled in this program receive an extra payment for each download within the first 90 days of the book’s launch.

If authors are looking for more control over the pricing of their book, they can also use Amazon KDP Print to make their books available for purchase on Amazon.com in both paperback and hardcover formats. With this option, authors receive 60% of the list price in royalties and can also select the retail price of the books.

In addition to getting your books out there, Amazon KDP offers various marketing tools like the Amazon Author Central service that allows authors to reach out to readers and update them about any new books and promotions. Taking advantage of these features can help move more books and, in turn, can help increase an author’s passive income potential.

For more info, check out this post – How to self publish on Amazon Kindle; 7 Easy to Follow Steps

4. Amazon Dropshipping

how to make passive income on amazon - dropshipping

Amazon dropshipping is a popular but extremely competitive passive income method on Amazon.

Dropshipping essentially involves you setting up a storefront on Amazon, then sourcing products from suppliers to sell at a markup. Whenever someone purchases one of your products, you’ll order the item from the supplier and have it shipped directly to your customer.

You won’t need to handle the item yourself, stock the products in an inventory system or make returns.

Dropshipping can be a great way to start earning passive income on Amazon.

By setting up your own store rather than just selling in the Amazon marketplace, you have full control over things like pricing and customer service. You also won’t need to worry about competing with other sellers on Amazon because your store will be the only one selling a particular product.

In order to get started with Amazon dropshipping, you’ll need to know how to find suppliers, negotiate prices and handle logistics. However, with a little bit of knowledge and preparation, anyone can learn the ropes of Amazon dropshipping and start earning passive income.

The downside to this model is the low barrier to entry. Because there’s little to no financial layout, the competition is steep and you’ll have to put the work in, particularly on the early days.

The upside however, is that if you love to create content or prefer marketing to logistics this is a great way to increase your income.

Here’s how to get started – How to Dropship on Amazon Without Money

5. Low Content Books

how to make passive income on amazon - low content books

Low content books might include notebooks, journals, travel diaries, coloring books, etc. Any type of book that isn’t a full on 50,000 word ebook or novel.

Low content books are relatively easy to create and low maintenance.

To create a low content book, start by selecting a cover template, pick a catchy title and description, create your internal pages using a graphics program like Canva and then upload your completed book, and set a price.

Once the book is listed on Amazon, your job will be to promote it alongside Amazon using whatever means available.

The key to success is to create and upload lots of books within the sand brand and cross promote.

Low content books are an affordable passive income opportunity. Start-up costs are minimal, as you’ll likely create the books in a free or low cost program like Canva or Word.

The time to create is minimal as you’re not having to sit down and write a novel or nonfiction masterpiece and they require minimal customization.

Plus compared to other passive income opportunities, there are few supplies or materials needed to make a low content book.

Overall, low content books offer an easy and affordable passive income opportunity that can be done quickly and with minimal investment.

See my guide here on how to make money with low content books – How to Make Money Online with Low Content Books; 10 Creative Ideas

6. Audible

Audible landing page

Audible is an online platform that gives users access to an extensive library of audio books, short stories, and music.

With Audible, users can purchase and stream audio books from their smartphone, tablet, or computer. You can even download & listen to Audible stories when offline with the mobile app.

Using Audible as a way to make passive income on Amazon is an excellent way for authors to reach a wider audience.

By registering as an author or narrator on Audible, you can share and sell your audio books, allowing Audible to market and promote your work.

In addition to registering as an author, you can also choose to narrate your own audio book, creating a voice and tone that is unique to you. Just make sure to have a clear, distinct voice and to be consistent throughout the entire narrative. If you are familiar with audio editing software, you can make sure that your audio book sounds professional.

Creating an audio book will require a certain amount of time and effort, but once it is launched, you have the potential for long-term passive income.

Amazon has a variety of ways to promote your work and it is typically easy to reach a large number of potential readers with their services. As with any online passive income endeavor, it’s important to continue promoting your book in order to maintain ongoing sales.

Learn more about this opportunity here – How to Make Money on Audible; 4 Actionable Methods.

7. Amazon Online Arbitrage

how to make passive income on amazon - online arbitrage

Amazon Online Arbitrage involves finding products at a lower price on one online marketplace and reselling them at a profit on Amazon. This is a great way to create a passive income stream, as you don’t need to do the actual selling, just fulfill the order.

Amazon will do the bulk of the work for you – from listing the product to shipping the item.

The best way to get started with Amazon Online Arbitrage is to research products in other online marketplaces. Look for any sales and discounts, and use a price comparison tool to quickly find the items with the lowest prices.

When you find an item that you can resell on Amazon at a higher price, buy it and then list it on Amazon as soon as possible. Don’t forget to factor in shipping costs and other fees when calculating your potential profit.

Be sure to choose products with high demand to ensure that they will sell quickly. This means doing keyword research and looking at customer reviews. You want to find products that customers want, so they’ll be willing to pay the price you’re asking.

Another smart method to make more money from Amazon Online Arbitrage is to use automated software that will alert you when prices drop. This will allow you to quickly spot new opportunities and take advantage of them.

With a little bit of research, you can start making passive income through Amazon Online Arbitrage in no time. Start today and reap the rewards tomorrow.

Here’s how to get started – Make Money With Amazon Online Arbitrage – 5 Easy to Follow Steps

Tips for Making Passive Income from Amazon

Generating passive income from Amazon can be daunting, but it doesn’t have to be. With some careful planning, the right strategies and some serious elbow grease, you’ll start to wake up to new sales!

Here are a few tips to get you started:

1. Do your research

The key to building successful passive income from Amazon is to find the best products to promote and market. Take time to research the different products on Amazon and find out which ones have the most potential for generating sales.

2. Focus on Quality

When it comes to building a brand and generating sales on Amazon, quality is key. Find or create products that are reliable, well-made and offer solutions that help customers. Promote items with good reviews and a track record of success.

3. Invest in Advertising

One of the best ways to generate income on Amazon is to invest in advertising. This will help get more visibility for your products, which means, provided your product is quality and you have an attractive listing, more people will buy. Consider PPC ads and selling on other channels to help increase your reach and drive more sales.

4. Utilize Automation

Automation can be a huge timesaver when it comes to generating passive income from Amazon. Look into using tools that can help speed up the process of publishing, tracking, and managing your products.

How to Make Passive Income on Amazon – Summary

By taking the time to do your research and using the right strategies, generating passive income from Amazon can become a reality.

You will have to put the work in up front. There’s no getting away from that.

But as your business grows, you can start to add in systems and resources to lessen your workload and allow you to spend less time in or on the business.

With careful planning and management, over time, you can create a scenario where you perhaps meet with your team once a month and all your income becomes completely passive allowing you to live your life exactly as you please!

The most important thing is to start taking action today. The faster you get started, the faster you can build a fantastic source of income and live your best life.

Good luck!

Please share with anyone you think this might benefit. Thank you 🙂

Disclaimer: Please note this post may contain affiliate links, from which, at no additional cost to you, I may earn a small commission. I only recommend products and services I’ve used or would use myself. If you choose to purchase from any of my links, thanks so much for your support! 😊