There is no denying that when it comes to making money online, Amazon is at the top. In the U.S. alone, Amazon’s share of the eCommerce market in 2021 is around 40%. This is not surprising at all, given that almost 300 million active customers flock to Amazon this year alone. As a third-party seller, learning how to make money on Amazon should be on top of your list.
For years, many beginners have asked “how to make money on Amazon?” While there are many success stories on Amazon, there are also many stories of failure. As a seller, it is your job to research ways on how to make money on Amazon before jumping into the hype. Hopefully, this article can answer some of your questions.
Make Money On Amazon By Selling
Of course, the best way on how to make money on Amazon is by selling. After all, Amazon is one of the world’s biggest marketplaces, right? However, there are two ways to sell on Amazon, and not many people know about this. Below are the two options that you can choose from when it comes to selling on Amazon.
Selling to Amazon Directly
The first way to make money on Amazon is by becoming a direct seller. By supplying Amazon the goods, you stop being a competitor and start becoming a partner to them. If you have a business that manufactures or distributes on a large scale, this is probably your best choice. Many businesses make their profits solely from selling directly to Amazon.
When you sell to Amazon directly, you sell wholesale to them as an Amazon vendor. Amazon will then resell these products to their customers under its brand name. With the direct selling model, you don’t have to worry about dealing with customers anymore.
Selling to Amazon’s Customers
If you are not a big retailer brand, selling directly to Amazon’s customers is your best bet. If you plan to do dropshipping or retail arbitrage, this is how to make money on Amazon the quickest way. There are different ways to sell to customers, as listed below:
- Private Label: Private label selling essentially means that you have to own a generic product and sell it under your brand name. You will have your unique packaging, brand name, and logo. It can be anything - shoes, bags, clothes, or household items. Private label is a great selling model because it will allow you to control your distribution and manufacturing costs. This means you can adjust your profit margins too.
- Dropshipping: Dropshipping means that you don’t maintain an inventory on hand. When a customer purchases from your store, you forward the order directly to your supplier or manufacturer. Upon receipt, the manufacturer then processes and fulfills the order. In other words, they will be the ones shipping the products to the customer, but under your name. Under this selling model, you need to ask for sample products and check for quality issues. Since you won’t be handling the products directly, you need to assess them first. This is to minimize the possibility of returns due to poor product quality.
- Retail Arbitrage: So you don’t have a big capital to start a private label? And you don’t like the idea of dropshipping? Well, there is always retail arbitrage for you. With retail arbitrage, you just buy items at a discounted price. Then you sell them at a profit. To do this, you need to pay a visit to your local discount stores and outlets to find bargain deals. It might sound daunting, but it’s basically just a buy-and-sell type of business.
Zonbase: The Best Software Suite For Amazon Sellers
If you seriously want to know how to make money on Amazon, information is the key. And to make huge profits as a seller, investing in an Amazon software tool is of utmost importance. There are many processes in Amazon that require accurate data and information sources to make data-driven decisions. For example, product research and finding the best items to sell cannot be done by guesswork alone. Choosing a low-demand, high-competition product will instantly kill your hopes of making profits. But choosing the right product will be your key to making 5-6 digits in one month.
Software tools such as Zonbase give you access to accurate data from Amazon’s database. With this information, you can easily make informed decisions. Zonbase has over 13+ tools and services designed to help you find that winning product.
So you want to know how to make money on Amazon through data-driven decisions? Then sign up for this free Zonbase trial today.
