Selling on Amazon has become a popular way for regular people to make extra money, either as a side hustle or even as a full-time business. The massive reach of Amazon’s marketplace provides access to millions of potential customers for your products. Digital marketing promotes small businesses. In this guide, we’ll cover the ins and outs of making money online through selling both physical and digital products on Amazon, and how to use digital marketing to promote small business on Amazon.
Table of Contents
Overview Of Selling On Amazon
Amazon allows you to sell new or used physical products, digital products, or services via their marketplace. As an Amazon seller, you list your products for sale and handle the storage, shipping, and customer service when an order comes through.
Amazon takes a commission on each sale, which varies based on the product category. They handle payment processing, provide the platform and exposure for listings, and offer Fulfillment by Amazon shipping services.
To sell on Amazon, you need:
- An Amazon Seller Central account
- Tax information established for your business
- A product or digital file to sell
- Packaging and shipping capabilities (for physical products)
Amazon has an individual selling plan for $0.99 per item sold as well as professional plans. There are resources available in Seller Central to guide you through account setup and listing your first products.
Selling Physical Products On Amazon
One major opportunity to make money on Amazon is by reselling physical products. This involves sourcing inventory, packing and shipping orders, providing customer service, and handling returns. Here are some tips for getting started selling physical products on Amazon:
Choose a Product Category
Amazon has restrictions on certain categories like jewelry, food, and health/beauty items. Start with an allowed product type that fits your interests and knowledge base such as books, electronics, toys, or collectibles.
Source Inventory
Secure inventory by purchasing wholesale, liquidating stock, finding deals, or arbitraging products. Use tools like Jungle Scout to assess demand and competition. Consider starting with a small batch of 50-100 units.
List Your Products
Create detailed listings with optimized titles, high-quality photos, full descriptions, and accurate details. Take advantage of Amazon promotions when available. Drive external traffic to your listings through marketing.
Handle Shipping & Storage
Use FBA or ship yourself. If you self-fulfill orders, ensure fast shipping and provide tracking. Use an inventory management system to stay organized. Store extra stock properly.
Provide Great Customer Service
Communicate order status proactively. Respond quickly if issues arise. Offer returns and refunds per Amazon’s policies. Follow up with customers for feedback and reviews.
Top Products To Sell on Amazon
Almost any physical product can sell on Amazon, but some evergreen niches to consider include:
- Books – From modern bestsellers to rare collectibles, books attract avid Amazon shoppers.
- Toys & Games – Take advantage of trendy toys, educational games, party supplies, and more in this huge market.
- Electronics – Resell refurbished or wholesale-sourced gadgets, accessories, video games, and tech devices.
- Home & Kitchen – Kitchenware, small appliances, home decor, furniture, cleaning supplies, and more have high demand.
- Clothing & Accessories – Trendy, vintage, handmade, or private label clothing can flourish on Amazon.
Benefits Of Selling Physical Products On Amazon
Selling physical products on Amazon provides a number of advantages:
- Built-in Customer Base – Tons of buyers actively search and purchase on Amazon daily. Tap into high intent-to-purchase shoppers.
- Fulfillment Options – Offload shipping and storage to Amazon through FBA or ship yourself. Flexible fulfillment models available.
- Prime Eligibility – Products can qualify for Prime 2-day shipping which boosts sales. Customers love fast, free delivery.
- Product Visibility – Listings appear in search and can be promoted through Amazon ads. Increased discoverability versus standalone ecommerce site.
- Trust Factor – Customers trust buying on Amazon thanks to the brand name and purchase protections.
- Scalability – Grow your physical product business to meet demand. Leverage tools like FBA and automated PPC ads.
Selling Digital Products On Amazon
In addition to physical products, you can also make money on Amazon by selling digital products and services. Here are some tips on tapping into this business model:
Types of Digital Products
Popular digital products sold on Amazon include:
- eBooks
- Audiobooks
- Printables (templates, planners, journals, etc)
- Stock media (photos, videos, graphics)
- Software, video games & apps
- Online courses & tutorials
Almost any digital asset delivered electronically has potential. Think about your interests and expertise to identify a related digital product to create.
Creating Your Digital Products
Use tools like Canva, Creative Market, Fiverr, Upwork, and ConvertKit to outsource or produce your own information products. Focus on solving problems or teaching skills valuable to your target audience.
Format the deliverable files for easy access – for example, PDFs for printables or MP3s for audiobooks.
Listing on Amazon
Sign up for Kindle Direct Publishing (ebooks) or Audiobook Creation Exchange (audiobooks). Provide title, description, cover, and upload your file while following Amazon’s guidelines.
Enroll in KDP Select for promotions and perks. Publish quickly with a concise, optimized first ebook or audiobook.
Driving Sales
Amazon will suggest your digital products to relevant buyers. Promote through social media, SEO, emails, and run Amazon PPC ads.
Build your author name and expand your catalog over time. Take advantage of being first to market in a niche.
Managing Rights
When publishing on Amazon, they have exclusive rights to sell and distribute your digital product – you cannot sell it elsewhere. Make sure you are comfortable with this arrangement.
Best Selling Digital Products On Amazon
In addition to physical products, you can also make money on Amazon by selling digital products and services. Here are some tips on tapping into this business model:
Types of Digital Products
Popular digital products sold on Amazon include:
- eBooks
- Audiobooks
- Printables (templates, planners, journals, etc)
- Stock media (photos, videos, graphics)
- Software, video games & apps
- Online courses & tutorials
Almost any digital asset delivered electronically has potential. Think about your interests and expertise to identify a related digital product to create.
Benefits of Selling Digital Products on Amazon
Key upsides to selling digital products on Amazon:
- Low Startup Costs – No physical inventory needed so minimal initial investment to create a digital product.
- High Margins – Digital products have much higher profit margins since no per unit cost like physical items. Pure profit after the initial creation work.
- Passive Income Potential – Digital products can earn money month after month with little ongoing work required once published.
- Global Reach – Amazon makes your ebooks, audiobooks, and other digital media available worldwide to hundreds of millions of shoppers.
- Credibility – Increases authority and trust to be a published Amazon author or creator.
- Scalability – Easy to replicate digital product model with more titles, series, or updated versions.
Challenges of Selling Digital Products on Amazon
Challenges to be aware of:
- Need to create compelling digital product from scratch
- Exclusive rights means you cannot also sell directly or on other platforms
- Promoting without Amazon ads requires external effort
- Must drive lots of reviews quickly to gain momentum
- Kindle Unlimited payments may eat into royalties for ebooks
- Creating additional digital products takes further time investment
- Straightforward process but still demands effort to succeed
Put thought into your initial digital product idea and commit to publishing consistently to maximize your sales and royalties over time.
Launching Your Digital Products On Amazon
Follow these steps for launching a digital product successfully on Amazon:
- Pick a niche – Identify underserved needs and interests that match your expertise. Research competing books.
- Develop a minimum viable product – Create an outline and draft core content for your first digital product. Start lean.
- Optimize listing – Craft title, description, and keywords to attract your target audience. Include informative details.
- Publish and promote – Release your digital product. Share on social media, run ads, and get reviews. Interact with your niche community.
- Analyze performance – Track sales velocity, conversions, and reviews. Identify opportunities to improve listing or pivot product.
- Expand catalog – Use the initial product as a springboard to more titles, updated versions, and box sets. Create consistent assets.
With a strategic approach and commitment to releasing high-quality digital products, you can build a passive income stream on Amazon.
Best Practices for Making Money on Amazon
Some final best practices for earning consistent profits selling on Amazon include:
- Clearly understand Amazon’s fees, policies, and restrictions to operate a compliant business
- Choose a focused product category that fits your interests and allows adequate margins
- Source quality inventory from reputable suppliers; build relationships
- Ship orders promptly; communicate proactively with customers
- Promote your Amazon listings through multiple channels – PPC, email, social media etc.
- Stay up-to-date on Amazon’s algorithm and best practices for SEO and conversions
- Develop new products and continually optimize existing listings
- Track detailed analytics on sales, profits, ROI, reviews to inform business decisions
- Reinvest profits into growth – buying more inventory, creating more digital assets, expanding capabilities
Selling successfully on Amazon is an ongoing process. With hard work and smart strategies, you can build a lucrative business on the world’s largest online marketplace.
What Is Challenges Of Selling Physical Products On Amazon?
While selling physical products on Amazon has many upsides, some key challenges include:
- High competition on many popular products
- Need to source quality inventory at good prices
- Amazon fees eating into tight profit margins
- Storage and shipping logistics
- Managing inventory across multiple sales channels
- Customer support and quality control workload
- Getting reviews and sales momentum when first starting out
- Using NordVPN to access global suppliers and manage cross-border operations
Having an organized process, tracking profits diligently, and focusing on efficient operations can help overcome these obstacles.
Conclusion
Amazon provides a massive opportunity to make money online by selling physical and digital products. Tap into the built-in demand on Amazon Marketplace by offering products that serve your chosen niche.
Carefully source inventory or create high-quality digital assets, set up optimized listings, promote your products proactively, delight customers, and continually refine your business.
Use Amazon’s tools and services combined with your own branding and marketing to scale your earnings over time. With the right expectations and approach, selling on Amazon can become a steady money-making endeavor.
