How to Earn Money from Amazon
A quick Google or Youtube search will uncover dozens of videos about how to earn money from Amazon. These videos will often set you up with unrealistic expectations of what you can earn and how quickly you can make money.
Unfortunately, the vast majority of these videos or search results are created by charlatans that are out to make a quick buck.
These fraudsters taint our industry and tar many genuine companies with the same brush. Very often, these scammers will stop short of telling you how to earn money from Amazon. To find that out, you will usually be asked to sign up for some expensive course that will cost you more money than you’d pay through trial and error.
This blog is designed for all of those that are fed up with all the scams and want some actual (free) tips on what you need to know when trying to set up a successful Amazon store.
What Stores Can You Open on Amazon?
The types of stores you can open on Amazon are many and varied. Below are just a small selection of stores that you can potentially set up on Amazon.
Bookstores: Amazon started out as a bookstore, long before other products became available on the site. Now it is possible for anyone who is motivated enough to sell books on Amazon. To do this, you will need to provide a number of personal details, including, citizenship, birth country, date of birth, identity, business address and phone number.
You will also need to provide your bank details, payment information, ISBN and book SKU number. Nowadays books can come in many forms, including physical, kindle and audiobooks. Selling rare books on Amazon can significantly increase your earning potential as these sell at a higher price.
The type of books you can sell also vary. For example, you can sell your own books, new titles, second-hand books and antiques. So if you fancy contributing to the world’s biggest bookseller, then opening up a bookstore may be the ideal inroads to realizing that goal.
Amazon Handmade: Or perhaps you love to make your own merchandise instead? Whether you make your own jewellery, clothes, pottery or anything else, you can sell all of these original, unique items on Amazon.
Once you have an approved Amazon selling account, you can submit an application to join its artisan-only community, where you can access support and resources designed for artists of all descriptions who wish to sell their wares on Amazon.
The advantage of selling on Amazon Handmade is that your products are naturally unique and cannot be easily replicated by rivals, meaning you would be justified in charging higher prices than you would be able to command for mass-produced goods.
Of course, keeping supply in pace with demand may be an issue for you. However, if you import handmade goods from other artists, keeping pace with demand may not be such a challenge.
Amazon Merch: Another popular item you can sell on Amazon is merchandise and clothes that have your unique branding. Setting up your own merch store on Amazon is easier than you think.
All you have to do is upload your artwork, choose a product type and color, and add a product description. Amazon will then create a product page on its platform and facilitate your product sales. You’ll also get a chance to join Amazon’s community of content creators.
Retail Arbitrage: This is just a fancy way of describing a business model centered around buying inventory at a discount from offline and online retailers such as Amazon, then reselling it online for a profit.
The only thing you would need to be wary of as a fully independent seller is the time, effort, and resources required to go back and forth between retailers, eyeing discounts, and jumping on sales. Of course, if you’ve been smart and used an Amazon operations management service such as Nextgen, then those issues can easily be avoided.
Amazon Marketplace: But don’t get it twisted. You can sell pretty much anything on Amazon as long as it is legal and meets its community standards of decency and good customer service.
So whether you want to sell electronics, household goods, food, wine or anything else, Amazon marketplace was built to help and support you to do just that. If you choose to have your products fulfilled by Amazon, you can also avoid the headaches associated with sending out orders and accepting returns too.
Why Amazon is a Good Starting Point for Investors
Amazon is one of the most popular, trusted and well-known brands on the internet. Thanks to the abundance of scammers and frauds out there, most people are naturally wary of parting with their hard-earned cash with unknown or new stores that they have not heard about.
It can take years of establishing that trust with willing customers. However, if you are setting up shop on a trusted platform such as Amazon that has strict rules and standards for its sellers, then you can build up your reputation and trust from customers relatively quickly due to Amazon being such a formidable and world-beating brand.
How to Get The Capital Needed to Earn Money from Amazon
Using a third-party Amazon operation’s management service isn’t cheap. You will need at least $30,000 in startup costs and you will need the ability to pay for your product inventory and tax costs.
While this will undoubtedly seem steep to some people, the truth is any worthwhile business will come with startup costs. And if you are serious about learning how to earn money from Amazon in a sustainable way, then it is well worth the cost.
In the long run, the money you would pay to set up your own store, buy your inventory, handle all the returns and sales by yourself and pay a bunch of employees to do the heavy lifting for you will far exceed the one-off costs you would pay for an Amazon operations service that can make life much easier for you.
One way you can raise the capital needed to invest in your business in this way would be to apply for a business loan or raise the borrowing limit on your credit card. While nobody likes to owe a debt, your future earning potential and profits will enable you to pay back any capital you have borrowed as part of the initial startup costs.
How to Increase Your Chances of Success on Amazon
Let’s face it. Setting up an Amazon store isn’t easy. While many fraudsters try to insult your intelligence by pretending that it’s easy to make millions from Amazon on your first try, the truth is that you’ll have a lot of hurdles before you can strike gold on Amazon.
Ensuring you submit the right documents correctly on Amazon, dealing with product returns and staying one step ahead of the many rules and regulations on Amazon can be an uphill task at the best of times.
This is where a service such as Nextgen can help. We take care of all the paperwork, the day-to-day operations and customer service so that you can focus on doing what you love the most.
This not only saves you money in the long run but provides you with a stress-free experience that saves you time as well.
Therefore, the best thing you can do to get started is to get in touch with our team to help you set up your Amazon store.
Schedule a free consultation today, with our friendly e-sales professionals who have helped hundreds of clients launch their online stores.