If you’ve ever thought about how to make passive income on Amazon, you’re not alone. And while there’s no golden ticket to overnight riches, with dedication and the right tactics, Amazon massive customer base can be a goldmine for solopreneurs like you and me.
In this guide we’ll break down 7 actionable strategies to harness the biggest ecommerce platform in the world to help you establish passive income.
Let’s dive in.
How to Make Passive Income on Amazon – Overview
Here’s a quick summary of the 7 key strategies to make passive income on Amazon. Each strategy is broken down into more detail below.
- Amazon FBA
- Affiliate Marketing
- Amazon KDP
- Amazon Dropshipping
- Low Content Books
- Audible
- Online Arbitrage
What is Passive Income?
At its core, passive income is money earned with little or no effort. It’s all about setting up income streams that can run with minimal interference. For instance, Amazon products you’ve created or amazon affiliate links you’ve embedded in your website can continue to generate revenue while you sleep. This form of income is an excellent way to diversify your earnings.
Some general 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 retail stores, e-commerce businesses or an amazon business
Amazon passive income can provide a source of steady income for years to come when combined with hard work and dedication, especially in the business start up 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 passive income ideas and 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.
But enough of the introduction – let’s dive into the heart of how you can generate passive income on Amazon.
Learn How to Build Your Own 7-Figure Amazon FBA Business
Part of the Junglescout suite of excellent FBA tools, the learning academy is a comprehensive video training library containing hours of content, including training videos, webinars, and interviews with successful Amazon sellers.
Whether you’re just starting your business, or growing your brand, get expert training from Amazon sellers without the hefty price tag.
How to Make Passive Income on Amazon
One of the best ways to earn passive income on Amazon is through their affiliate marketing program, Amazon Associates. This program enables you to monetize your social media and other traffic channels by recommending and promoting products available on Amazon. Not only can you secure up to 10% in commissions, but you can also provide your audience with valuable product suggestions, enhancing their shopping experience.
This is just one of many different routes to generating passive income on this behemoth ecommerce platform. Here’s a breakdown of 7 different strategies;
1. Amazon FBA
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, this Amazon seller guide will help you get off the ground quickly and start to make money on Amazon.
2. Affiliate Marketing
Amazon 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 using the Amazon Associates Program, through special affiliate links that credit you with a commission when someone buys the product or service after clicking on your affiliate link.
This method can be extremely lucrative, as you can earn money; up to 10% commission, on all products you promote on Amazon.
To get started with the amazon affiliate program, 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 making money by adding affiliate links to your own website 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;
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 (formerly known as Kindle Direct Publishing) is a popular platform on which authors can easily self-publish their work as digital books or medium content books, and every sale nets you royalties. Tools like the Amazon ebook royalty calculator can help you project potential earnings.
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 sell ebooks 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.
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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
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 product listings 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, research tools 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
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 opportunities like passive income through vacation rentals, 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 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 transform your written content into audiobooks on Audible or diving into ACX publishing can tap into an audience that prefers listening over reading.
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
Amazon Online Arbitrage involves finding products at a lower price on one online marketplace and reselling them at a profit on Amazon. Also know as retail arbitrage, 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 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. Keyword research tools like Jungle Scout are ideal to help you find the most popular products being searched for.
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 FBA
Amazon FBA, which stands for Fulfillment by Amazon, is a remarkable service for those venturing into the e-commerce world. Instead of handling logistics and shipping, Amazon does it for you. But how can this translate into passive income?
- Find Your Niche Product: Dive deep into Amazon’s extensive product catalog and use tools like Jungle Scout to identify profitable deals and products to sell that resonate with your target audience.
- Reliable Supplier Relationships: It’s crucial to find a reliable supplier, negotiate a great wholesale price, and ensure a quality product. This initial investment will pay dividends as your product gains traction.
- Automate and Scale: The beauty of the Amazon FBA business model is automation. Once you’ve established your product and seen consistent sales, consider adding more products or even venturing into private labeling.
- Reviews and Reputation: Positive feedback will propel your listings. Encourage reviews and maintain a high-quality service to ensure repeat customers and consistent sales.
How to Make Passive Income on Amazon Audible
Audiobooks are soaring in popularity, making Amazon Audible an attractive avenue for passive income.
- Publish Original Content: Whether you’re an author or have rights to great content, transform written words into spoken ones. Investing in a professional narrator can make a huge difference.
- Promote Outside Audible: Use your social media accounts and website to direct traffic to your Audible listings, enhancing discoverability.
- Royalties are Key: With each sale on Audible, you’ll earn royalties. This Amazon royalty stream secret means that the more popular your content becomes, the more you earn without additional work.
- Stay Relevant: Trends change, so consider updating content or releasing new titles periodically to keep your audience engaged and to continue earning money.
How to Make Passive Income on Amazon Kindle
The realm of eBooks offers vast potential for passive income, especially with Amazon Kindle Direct Publishing.
- Write Once, Earn Forever: The beauty of eBooks is the truly hands-off passive income they offer. Once you’ve written and published your book, it’s available for countless readers without additional effort on your part.
- Harness the Power of Series: A single successful book can pave the way for sequels, turning one-time readers into dedicated fans.
- Engage with Kindle Promotions: Regularly participate in Kindle’s promotional events to boost visibility and attract new readers.
- Cross-Promotion: If you have other passive income streams on Amazon, cross-promote! Your eBook can promote your Audible content or even products you sell via FBA.
How to Make Passive Income on Etsy
While Etsy isn’t a part of the Amazon ecosystem, it’s a buzzing marketplace for unique crafts and products.
- Unique Products Shine: Etsy is a platform that rewards uniqueness. Handcrafted items, vintage goods, or even digital printables can find their audience here.
- Optimize Your Listings: SEO isn’t just for search engines. Ensure your Etsy listings use relevant keywords, high-quality images, and detailed descriptions.
- Build a Brand: Unlike Amazon, Etsy allows a deeper connection with customers. Engage with them, build a brand story, and leverage this connection for repeat business.
- Expand and Diversify: As you establish a foothold on Etsy, consider expanding your product range or even venturing onto platforms like Amazon Handmade to further boost your passive income potential.
Learn How to Build Your Own 7-Figure Amazon FBA Business
Part of the Junglescout suite of excellent FBA tools, the learning academy is a comprehensive video training library containing hours of content, including training videos, webinars, and interviews with successful Amazon sellers.
Whether you’re just starting your business, or growing your brand, get expert training from Amazon sellers without the hefty price tag.
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 the money you generate becomes passive income allowing you to achieve financial freedom and live your life exactly as you please!
The most important thing is to start taking action today. The faster you can start selling something to make money on Amazon, the faster you can build a fantastic source of income and live your best life.
Good luck!
How to Make Passive Income on Amazon – FAQ’s
Can you make $1,000 a month on Amazon?
Navigating the vast marketplace of Amazon can seem daunting, but many solopreneurs are finding success, especially with platforms like Amazon Handmade.
With the global reach Amazon offers, it’s entirely feasible for artisans to earn upwards of $1,000 monthly, even after accounting for Amazon’s fees.
The key is in understanding the market, selecting the right niche, and being consistent with product quality and promotion.
How to make $1,000 passive income monthly?
Amazon offers multiple avenues for generating passive income. Beyond Amazon Handmade, you might consider:
- Tapping into the Amazon FBA business model to sell products without handling shipping or customer service.
- Launching an information-rich blog or YouTube channel focusing on product reviews or tutorials linked to Amazon products.
- Collaborating with other Amazon sellers for cross-promotions.
- Exploring other passive streams outside Amazon like investing in dividend stocks or peer-to-peer lending.
Is Amazon a good side hustle?
Whether you’re exploring Amazon FBA, diving into Handmade, or leveraging other platforms within Amazon, it offers a robust side hustle opportunity.
The Amazon FBA business model, in particular, is seeing significant traction in 2023. By managing inventory and shipping logistics for you, Amazon FBA ensures you focus on what you do best – curating quality products.
So, as a side hustle or even a full-time gig, Amazon, especially Amazon FBA, is indeed worth considering.
How does the Amazon passive income system work for those starting their own Amazon business?
The Amazon passive income system revolves around utilizing platforms like Amazon FBA businesses, Amazon Merch on Demand, and Amazon Kindle Direct Publishing.
With Amazon FBA, sellers send their products to sell to an Amazon warehouse, and Amazon takes care of storage, packing, and shipping. The initial investment might involve finding a reliable supplier and perhaps private labeling your own products.
As for Amazon’s affiliate program and Merch on Demand, they allow individuals to earn through referrals and customized merchandise, respectively.
The dream of true passive income isn’t just a dream; with the right strategy, it’s attainable.
Is setting up an Amazon seller account complicated, and how much does it cost?
Setting up an Amazon seller account is straightforward. Amazon offers two types: Individual and Professional.
Individual accounts are for sellers who plan to sell fewer items, while professional sellers expect to sell more. The cost varies, with professional accounts having a monthly fee, while individual accounts pay per item sold.
While there’s very little money required upfront, remember to consider potential shipping fees and Amazon’s cut from sales.
Can I truly achieve completely passive income on Amazon without any work?
Achieving completely passive income is a goal, but in the beginning, there’s work to be done. Whether you’re selling on Amazon directly, using the Amazon FBA program, or exploring Amazon Kindle Direct Publishing, there’s initial effort involved.
From product research, understanding your target audience, to refining your e-commerce store and managing your products. However, once set up, many processes can be automated or outsourced, transitioning into more hands-off passive income.
How do I maintain profitability while avoiding pitfalls like intellectual property claims or low sales performance?
Maintaining profitability involves a mix of research, monitoring, and responding to changes. Utilize analytics services provided by Amazon to track your sales performance.
Always ensure you have the rights to products you sell, and be proactive about addressing intellectual property claims. Moreover, diversify by exploring different product categories and sourcing products at a wholesale price to maintain a competitive edge.
What are the best ways to make passive income on Amazon with minimal initial investment?
There are several ways to make passive income on Amazon without breaking the bank.
Amazon Kindle Direct Publishing allows for minimal cost book publishing, while Merch and Amazon Influencer Program capitalize on your social media accounts and online presence.
Additionally, the Amazon Associates Program lets you recommend products and earn without needing to stock items. While there’s always some work involved upfront, the goal is to create passive income streams that require less effort over time.
