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Best Ways to Make Money with Amazon

Best Ways to Make Money with Amazon

Mansi B
Created on
August 28, 2025
Last updated on
August 28, 2025

You can become an Amazon seller and register with a valid GSTIN and an active bank account to start selling immediately.   You can sell anything from homegrown to well-known products and on an average 71% of new sellers will get their first sales within the first four weeks of starting their business.  Amazon has more than 3 million unique visitors per year and their network of sellers crosses 14 lacs and is still growing.

Amazon

But today we are going to tell you ways to make money with Amazon. So it doesn't matter whether you are a buyer, seller, casual customer or a reviewer. There will be something for every one of you out here in this post. So keep reading and stay tuned to find out the best ways to make money with Amazon.  

Best Ways to Make Money with Amazon That Work

Now let's cut to the chase. How do you make money with Amazon? There are many approaches you can take:

Sell Original or New Products

If you are planning to sell products, you can drive sales for a single product or diversify and offer a variety of products. If you are a small scale startup or business owner, you might want to dial down your efforts on a single product or niche. Focus your efforts on that and by using the insights you get from your sales, you can then scale up your business and adjust your brand or business strategy.  

So as an Amazon seller or dropshipper, there are a few things you want to keep in mind:

  • How much volume do you expect to sell out? 
  • What kind of demand is there for your products? 
  • Will you be able to turn in profits after you cover all your shipping expenses and anything else? 

There are many business ideas you can explore and models that require little investment, which means you can sell products on Amazon from your home and make money.  

Sell Refurbished Items

The next way you can make money by selling products online on Amazon is by selling refurbished products. These are items that are already repaired or pre-owned through Amazon Renew. You can do a bit of testing, get the necessary certifications and ship products that are backed by the Amazon Renew guarantee. These are products that your customers will trust. Some examples of refurbished products you can sell on Amazon are tech accessories, phones, cameras, power tools and books.

Make and Distribute Merch

Amazon's Merch on Demand program opens up an excellent opportunity for creative entrepreneurs who want to sell custom designs without managing inventory. You can upload your artwork to t-shirts, tank tops, hoodies, and other apparel items that Amazon produces and ships when customers place orders.

The process is straightforward - you create designs, upload them to Amazon's platform, set your prices, and earn royalties when products sell. Amazon handles all the production, customer service, and shipping, which means you can focus entirely on creating designs and marketing your products.

When it comes to earnings, successful sellers report varying income levels. One seller at tier 200,000 generated $361,500 in total revenue with $68,500 in profit during 2024, representing an 18.26% profit margin. However, starting sellers typically begin at much lower tiers with limited upload slots.

You'll need to get accepted into the program first, as Amazon operates Merch on Demand by invitation only. Once approved, you start with a limited number of design slots and can increase your tier by making consistent sales. The key to success lies in understanding popular trends, creating designs that resonate with target audiences, and optimizing your product listings with relevant keywords.

Sell Handcrafted Goods on Amazon Handmade

Amazon Handmade provides artisans and craftspeople with access to Amazon's massive customer base while maintaining the authentic, handmade appeal of their products. Unlike regular Amazon selling, every item must be genuinely handmade, hand-altered, or hand-assembled by you or your team.

You can sell across 14 different categories including jewelry, home décor, artwork, beauty products, and clothing. Amazon waives the $39.99 monthly seller fee for Handmade sellers, charging only a 15% referral fee on each sale. There are no listing fees or hidden charges, making it an accessible option for artisans starting out.

Try Wholesale Selling and Source Wholesale

Wholesale selling involves purchasing products in bulk directly from manufacturers or distributors and reselling them on Amazon. You'll need proper business documentation including a business license, EIN number, and reseller certificate to purchase products tax-free and establish wholesale accounts with suppliers.

The wholesale model offers several advantages over other Amazon business approaches. You're selling established brands with existing customer demand, which reduces the marketing effort required compared to launching private label products. Since you're buying at wholesale prices, you can achieve healthy profit margins while remaining competitive.

However, wholesale requires more upfront investment than some other models since you need to purchase inventory before making sales. You'll compete with other sellers on the same product listings, so winning the Buy Box becomes important for maximizing sales. Your price needs to stay within 2% of the current Buy Box price to remain competitive.

Do Dropshipping on Amazon

Amazon dropshipping allows you to sell products without holding inventory, as your suppliers ship directly to customers. This model requires lower upfront investment since you only purchase products after receiving customer orders, making it attractive for new entrepreneurs with limited capital.

Amazon permits dropshipping but has specific requirements you must follow. You must be listed as the seller on all packaging and invoices, removing any third-party supplier information. The customer experience must remain consistent with Amazon's standards, and you're responsible for all customer service issues.

Average dropshipping income varies significantly, with surveys showing Indian dropshippers earning between ₹40,000 to ₹1,50,000 per month. JungleScout reports that Amazon dropshippers average around $10,000 monthly revenue, though individual results depend heavily on product selection, supplier reliability, and marketing efforts. You can use Dropshiptool’s competitor research tool to spy on your competitors and steal their profitable strategies. Make them your own and see the profits roll in soon.

Join the Amazon Influencer Program

The Amazon Influencer Program allows content creators to earn commissions by promoting Amazon products through their social media presence. Unlike traditional affiliate marketing, influencers create their own Amazon storefront and share a single link across all platforms rather than creating individual product links.

Eligibility requires a substantial social media following on platforms like Instagram, YouTube, TikTok, or Twitter. Amazon reviews applications based on follower count, engagement rates, and content quality. Once accepted, you can earn commissions ranging from 1% to 20% depending on product categories.

Earnings potential varies widely based on audience size and engagement. Influencers with 1,000-10,000 followers can earn up to $1,000 monthly, while those with larger audiences can make significantly more. Luxury beauty products offer the highest commission rate at 10%, while electronics typically pay around 3-4%.

Make Money as an Amazon Affiliate

Amazon's affiliate program, also known as Amazon Associates, enables website owners and content creators to earn commissions by promoting Amazon products. You earn a percentage of each sale made through your affiliate links, with commission rates varying by product category.

Commission rates in 2025 range from 1% to 10% depending on the product category. Luxury beauty products offer the highest rate at 10%, followed by digital music and physical books at 5% and 4.5% respectively. Electronics typically pay around 3-4%, while groceries pay approximately 1%.

Through platforms like EarnKaro, affiliate marketers can earn up to 10.8% commission on certain categories. The program requires no upfront investment - you simply create content, insert affiliate links, and earn commissions when people make purchases through your links within 24 hours.

Make Money with Amazon KDP

Kindle Direct Publishing (KDP) allows authors to self-publish ebooks and print books, earning royalties up to 70% for ebooks priced between $2.99 and $9.99. You can publish fiction, non-fiction, journals, planners, and other low-content books without any upfront costs.

Recent changes effective June 2025 have adjusted royalty rates for print books, reducing them from 60% to 50% for books priced below certain thresholds. Despite these changes, many authors continue earning substantial income through KDP by focusing on high-value content and strategic pricing.

You can create book series or develop multiple titles within profitable niches. High-profit niches include self-help, business, health and wellness, and educational content. Focus on consistently publishing quality content and optimizing your book listings for Amazon's search algorithm to notice.

How Much Money Can You Realistically Make on Amazon as a Beginner?

50% of Amazon FBA sellers earn between $1,000 to $25,000 per month. However, beginners should expect to start at the lower end of this range while learning the ropes. Around 46% of Amazon sellers achieve success rates between 11% and 25%, with about 64% becoming profitable within their first 12 months. Dropshipping might generate quicker initial sales since it requires less upfront investment, but profit margins tend to be lower. Wholesale and retail arbitrage can generate sales within weeks, while private label products typically take 3-6 months from initial research to first sales. Affiliate marketing and KDP can take several months to build meaningful traffic and income streams.

How Much Money Can You Make by Selling Private Label Products on Amazon?

Private label selling on Amazon offers some of the highest profit potential among Amazon business models, with successful sellers reporting profit margins between 30% and 50%. Over 54% of private label sellers report margins above 20%, significantly higher than wholesale or arbitrage models.

The most successful private label sellers achieve remarkable income levels. Studies show that 63% of established private label sellers generate more than $100,000 monthly revenue. Many efficient operators push past the $500,000 monthly mark, though reaching these levels requires substantial experience, capital, and operational excellence.

However, private labeling requires the highest upfront investment among Amazon business models. You'll need capital for product development, initial inventory orders (typically $5,000-15,000 for first orders), packaging design, photography, and marketing. The payoff timeline is longer, usually 6-12 months from initial product research to achieving consistent sales.

Your earning potential depends on product selection, market demand, competition levels, and your ability to differentiate your products. Successful private label sellers focus on products they can improve or differentiate rather than competing solely on price. Building a recognizable brand allows you to command premium pricing and develop customer loyalty.

Typical profit margins break down as follows: successful products often achieve 25-35% net profit margins after accounting for all costs including Amazon fees, advertising, and operational expenses. Top-performing products can reach 40-50% margins, particularly in specialized niches with less competition.

Is Publishing Books and Selling Them on Amazon Profitable?

Yes, it can be! You can start with low-content books like journals, planners, and activity books that require less writing but can generate consistent sales. You can also develop series of related books to build author authority and cross-promote titles.

Royalty rates significantly impact profitability. Ebooks priced between $2.99 and $9.99 earn 70% royalties, while books outside this range earn 35%. Recent changes to print book royalties (reduced from 60% to 50% for books under certain price thresholds) affect profit calculations, making pricing strategy crucial.

Many publishers earn $1,000-10,000 monthly after building a catalog of 10-50 books. However, individual book sales can range from a few copies monthly to thousands, depending on market demand, competition, and their marketing efforts.

What Else to Expect When Getting Started and Some Tools that Can Help

Here are some resources that can help and what you can expect when getting started:

  • Setting up your business properly from the beginning saves headaches later. You'll need a Professional seller account ($39.99 monthly), business registration, tax ID numbers, and potentially sales tax permits depending on your state requirements. 
  • Free tools provide excellent starting points for new sellers operating on limited budgets. Amazon's own FBA Revenue Calculator helps estimate fees and profitability for different products. This tool compares FBA versus merchant fulfillment costs and shows estimated profit margins.
  • Helium 10 offers a free Chrome extension that includes product research, keyword analysis, and profit calculation. Its free tools provide essential data like sales estimates, competition analysis, and listing optimization suggestions. The extension works directly on Amazon product pages, giving instant insights while browsing.
  • For product research, tools like AMZScout, Jungle Scout, and SellerApp offer free versions with limited features that help identify profitable products and analyze competition. You can also use Dropshiptool’s Ad Spy Tool and Sales tracker tools to get an edge over your competition online.
  • Keepa provides free price history tracking, helping you understand pricing trends and seasonal patterns for potential products. This information proves valuable for timing inventory purchases and setting competitive prices.
  • For inventory management and accounting, tools like SellerBoard provide free trials allowing you to test profit tracking, inventory monitoring, and PPC management features. 

Conclusion

Amazon provides multiple legitimate pathways to generate income, whether you're interested in selling physical products, creating digital content, or promoting existing items through affiliate marketing. Focus on providing real value to your customers, dial down on your niche and products, and you’ll do fine. Give it some and set good timelines. Don’t expect fast results because anything worthwhile takes time and work.

Ways to Make Money with Amazon FAQs

How much can beginners realistically earn on Amazon in their first year?

Most beginners can expect to earn $500-2,000 monthly within their first 6-12 months, depending on their chosen business model and investment level. Dropshipping and wholesale typically generate quicker initial income, while private label requires longer development time but offers higher profit potential. Success depends on consistent effort, proper product research, and understanding Amazon's policies and fee structure.

What is the minimum investment needed to start selling on Amazon?

Investment requirements vary significantly by business model. Affiliate marketing and KDP require virtually no upfront investment, while dropshipping might need $500-1,000 for initial testing. Wholesale typically requires $2,000-5,000 for initial inventory, and private label usually needs $5,000-15,000 for product development, inventory, and marketing. Professional seller accounts cost $39.99 monthly across all models.

Which Amazon business model offers the highest profit margins?

Private label products typically offer the highest profit margins at 25-50%, followed by Amazon Handmade at 20%+ margins. Wholesale and dropshipping usually achieve 10-25% margins, while affiliate marketing and KDP can provide 35-70% commission rates but require significant traffic or content volume to generate substantial income.

How long does it take to see profitable results on Amazon?

Timelines vary by business model: affiliate marketing and dropshipping can generate income within weeks, wholesale within 1-3 months, while private label typically takes 6-12 months. KDP and Handmade fall somewhere between, requiring 3-6 months to build momentum. Consistent profitability usually develops after understanding Amazon's ecosystem and optimizing your approach through experience.

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