How to Make Money Selling on Amazon Seller Central
Of course everyone by now has heard of Amazon but many small businesses like clothing brands who sell physical goods may not yet know that they can actually use Amazon's platform to not only sell their goods but do advertising for their business. If you’re worried that you’ve missed the e-commerce boat, don’t worry. It’s just getting moving. While several ecommerce companies like Ebay, Shopify, Walmart, and Etsy can make selling products online easy, in my experience, the best way to make money online is with Amazon.
Amazon is a huge opportunity for those who want to join the world of e-commerce. In 2020, Amazon raked in $386 billion in revenue — over half of which was fueled by third-party sales.
But what can you do to get a piece of the Amazon pie?
There are tons of great ways to earn cash on Amazon, so to help you find what method might work best for you, this article dives into the top ways to make money on Amazon in 2023.
Sell your own private label products on Amazon
The best way to make money on Amazon in 2023 is still through private label sales using Amazon’s Fulfillment by Amazon (FBA) network. Around 67% of all Amazon sellers run their business using the private label method.
Private label is a process of manufacturing a pre-existing item (preferably, with product improvements), putting your branding and logos on it, and selling it to consumers. Sometimes it is referred to as white labeling or brand creation. (The process has been around for years and is common in countless retail stores; Target’s Mainstays brand and Walmart’s Great Value are two examples of private label brands.)
Thanks to FBA, Amazon is able to deliver your products (typically in two days or fewer — what you likely know as Amazon Prime). This is how e-commerce business owners —l ike you and me — can list goods on Amazon and make money from the sales.
Amazon makes private labeling even easier thanks to a number of advantages:
- First, you can use a tool like Jungle Scout — the all-in-one platform for selling on Amazon — to estimate the sales your product will make once it’s on Amazon.
- Next, it’s easy to source and manufacture your products with the help of platforms like Alibaba or Jungle Scout’s Supplier Database.
- Finally, after you’ve created your product, you can sell it on Amazon using FBA. You don’t even have to ship your own orders!
How much money can I make selling private label products on Amazon?
Approximately $625 to $1,875 per month per product.
Over half (56%) of private-label sellers earn $5,000 or more in monthly sales, and nearly two-thirds (59%) have profit margins over 16%. Among private-label sellers who have more than a year of selling experience, 20% have earned over $10,000 in lifetime profits.
How To Sell Products and Services with Amazon
The following tactics for making money on amazon are all about selling. While selling isn’t the only way to make money on Amazon, it’s one of the most common, and there are several different ways to do it. Even if you don’t want to sell a physical product, read on. You may find a method of selling on Amazon that surprises you!
Sell Products With Amazon FBA
One of the best ways to make money on amazon is to sell products with Amazon FBA.
FBA stands for “fulfillment by Amazon.” FBA is beneficial to sellers because it puts the force of Amazon’s distribution network behind your products. To sell with FBA, there are a few steps you need to take:
- Find and source your product. A popular way of selling products on Amazon is to use Alibaba or a similar platform to source items that you can then private label with unique branding.
- Become an Amazon seller. You can join Amazon Seller Central for $39.99/month.
- Send your products to Amazon. Ship your inventory to an Amazon fulfillment center so that they can distribute it for you.
- Wait for customers to buy. When someone buys your product directly from the Amazon platform, Amazon will deliver the order for you. You could always ship the products yourself to avoid extra Amazon fees, but FBA is the best way to sell products at scale.
If you can buy products for a lower price and mark them up, you can make money with Amazon FBA.
Pros of Amazon FBA
- Amazon handles the entire distribution process for you, eliminating the need to worry about shipping.
- Your products are hosted on the Amazon platform where millions of people shop every day.
Cons of Amazon FBA
- You need to sell a physical product in enough volume to turn a profit. This can be a barrier to entry for some sellers.
Sell Handmade Goods
There is a high demand for handcrafted goods. If you’re crafty and have a passion for making things at home, you can join Amazon Handmade.
Sellers from more than 80 different countries are selling handcrafted products via Amazon.
Amazon has an artisan-only application and audit process. This ensures that the products are genuinely handcrafted.
The pricing for handmade sellers is very straightforward. There are no hidden fees or listing fees at all. You’ll just pay a 15% referral fee to Amazon for each sale made.
Amazon Seller Central Reviews
Sites like sitejabber and trustpilot actually do not have very good reviews from customers about using Amazon Seller Central but clearly Amazon has thousands of vendors & sellers using their platform who make tons of money. So perhaps the ones who are doing well are not the ones leaving reviews but that doesn't mean that there aren't merits to the unhappy customers experiences.