How to Earn Money on Amazon and Create Real Profit
If you want to earn money on Amazon, you have to unlearn and relearn things you already know.
The question is, do you have the patience and the right mindset to make it happen?
Today, we will be discussing different ways to earn money on Amazon and other ways to make money online.
Let’s get it started.
How to Earn on Amazon: Sales Versus Profit
Most get into selling online to make a profit. And it’s easy to see why.
Amazon is the leading e-commerce retailer in the US.
Recent studies show that Amazon attracts nearly 50% of all online product search traffic. Americans also have more than 70% of its population buying from it in the past six months.
This makes Amazon the most powerful e-commerce platform in the world today. And it is expected to hit the e-commerce market share by 50% by 2021.
Some would think that Amazon is already a saturated market. But the truth is today is the best time to start selling and making money on the platform.
Statistics also show that electronics and media make the highest sales, followed by furniture and appliances and food and personal care.
While we might think it’s easy to earn money on Amazon, there are still some things you need to consider before you get started.
We often equate making money to sales and profit and think these two are the same.
Chron defines sales as the start of the process of earning money. This involves clients purchasing the products and services you offer.
Revenue is the income you generate before the expenses are taken out. This is also called the top line.
Profit, on the other hand, is the difference between the amount you’ve earned after subtracting the cost of expenses.
It can also be defined as your financial gain.
As an aspiring Amazon seller, you must first understand the difference between these terms. This will help you set the right goals to get started with your Amazon business.
The focus should be to crank up profitability and have a good cash flow.
Good cash flow means segmenting your cash and allocating what’s available for what purpose.
Focusing on profit and cash flow will enable you to pay the necessary fees, stock up on products, and hit your target goals.
If done right, you will have money for yourself and the business. Profit keeps you engaged while adding value to your business.
Profit keeps you engaged while adding value to your business. And every business should aim to be profitable and have positive and free-flowing cashflow.
Read more about our five top tips on how to make money on Amazon.
- Amazon has enough room for all sellers, including new ones.
- The key to having a successful Amazon FBA business is finding the right goals for your business.
Redefining Success: How to Make Money on Amazon and Still be Fulfilled
Starting an Amazon business isn’t always easy.
Most people get into Amazon thinking it’s a way to make money fast. But it can also become a money drain if not done right.
And there are tons of stories that exist about Amazon sellers losing time and money.
Some sell the wrong products. Others spend too much on ad costs.
Others just don’t have the right goals to start with.
It might sound simple to you. But there are a number of Amazon sellers who quit altogether because of these mistakes.
Choosing the best products to sell, understanding your market, and finding the right keywords are examples of the fundamentals of an Amazon store.
Disregard these factors and it will surely give you devastating results.
That’s why it’s vital for each Amazon seller to define relevant goals from the get-go.
We at Real Coaching have learned a lot about goal setting and profits from best selling author, Mike Michalowicz.
His book Profit First has become one of our must-reads as Amazon FBA resellers.
In one of our recent podcast interviews with him, we got to talk about profit, productivity, and fulfillment for Amazon FBA sellers.
Most sellers get into Amazon sales with time and financial freedom in mind.
In the beginning, you would probably be a one-man show. You’ll learn everything from branding to product development, to sourcing products and running the numbers to make sure you’re getting enough profit.
And you tell yourself you do this because you want to hit your targets and meet your goals.
The problem is, most get stuck in this concept of productivity to the point of breakage.
This can result in burnouts and frustrations that can affect your results and overall fulfillment.
As an Amazon FBA seller, your goal should be to design outcomes. Another goal is for you to pass on the word to others so you could have the creativity to think of what’s next.
That’s why it’s important for you to remember that you can only handle as much.
Delegation is the key to running a successful business. It can also one of its greatest challenges.
It’s necessary for you to learn how to chunk tasks and choreograph people and resources well.
When your team knows that you trust them, the better and happier they become. It also makes them more accountable for what they do.
And then there’s the idea of finding fulfillment with what you do.
If your only goal is to create cash, then you’re in for a surprise.
It takes time to create actual profit from an Amazon business. And to succeed, you’ll need tons of patience to make it happen.
People usually experience a good start on Amazon because of the sales and numbers. But true success lies in the intention of a business that supports your lifestyle and gives you joy.
It’s also easy to compare yourself to successful people. And this also affects how we view ourselves and our success.
Most sellers are willing to share their sales results as proof of their success. But not everyone freely shares their actual profit.
Whether you’re starting out or already selling on Amazon, it’s necessary for you to think of your profit first.
Think of it as saving for a rainy day, or a payment you make for all the time and energy you’re spending on your business.
It also helps you feel good about your business and helps keep your purpose in check.
Learn more about how to set the right goals and other valuable business tips for Amazon resellers. Listen to the podcast here.
- Avoid comparing your journey with others. Take the best parts of their journeys to enhance yours.
- Do not be afraid to take vacations. Assign tasks when you are gone. The people involved will feel more trusted and will work harder.
- Take action, do not overthink. Opportunities pass by when you delay.
- Put 1% of your profit to an account. See that account grow and stay engaged in your business.
Other Ways to Earn Money on Amazon
There are other ways to earn and make money on Amazon besides selling physical products.
And the good thing is, you can make money online with the skills you already have or services you already know.
Here are some of the best ways to make money online.
- Sign up for Amazon handmade. Amazon handmade lets artists sell their handcrafted goods online. These products include clothing, accessories, and jewelry. This method is a dream for aspiring and pro artists looking to reach Amazon’s large customer base.
- Become an Amazon affiliate. This is an affiliate program that where you get referral fees when you recommend Amazon products to an audience. It is a simple way to earn if you run a blog or a website with an audience following.
- Merch by Amazon. Design your own Amazon merch and sell them online. Generate a decent income at no cost to you.
- Earn through KDP. Kindle Direct Publishing is another way to earn on Amazon. Publish your digital books and get up to 70% royalties on total sales.
- Sell via Amazon FBA. With the help of Amazon FBA, you can make money without having to worry about customer support, packing, and shipping. Amazon will do the heavy lifting while you focus on what products to sell.
- Amazon Mechanical Turk. The AMT program is a gateway for outsourced tasks. Get paid for completing various tasks.
- Buy offline and sell on Amazon. Buy discounted products in physical stores and resell them on Amazon for a profit. Retail arbitrage is a means for avoiding the shipping cost of importing products.
- Sell a professional service on Amazon. Skilled individuals like tutors can offer their services on Amazon. The platform will connect you to people who need your services. Earn by helping others.
- Create a private label brand. Private Label Brands mean adding your own brand and logo to an existing product and listing it in the marketplace. This method is one of the most profitable opportunities and gives you full control over your listings.
Adopting one of the methods above can open up a revenue stream. Be consistent, go all in, and commit to your goals.
Get more details on how to sell on Amazon here.
Tips on How to Make Money Online
Creating opportunities on Amazon goes beyond cash and sales.
Instead, it’s all in the intention.
The products, skills, and services that you choose to offer people through Amazon lie in the intention you make for yourself.
Some of us want to get out of the rat race. Others want to feel fulfilled with their life as business owners.
There are also those who believe their products make the world a better place.
That’s why it’s important for you to set your intentions early on and align your goals to this intention.
Doing so will help you find your true north when the going gets tough.
It also helps to honor your personal journey and be more appreciative of your progress.
While it’s good to follow influencers and industry leaders, it’s also important to focus on what you learn from them.
Emulate their best advice and apply it to your business.
Speaking of applications, focus on learning by doing and applying the concepts you’re learning about.
Sure, it’s necessary to make plans and prepare for what’s to come. But it also helps to be flexible with your process to get you faster to your goals.
Most aspiring Amazon sellers get stuck in learning and preparation that they tend to seek perfection instead.
Overthinking and delaying make you lose opportunities. And you don’t want that.
That’s why it’s important for you to set goals beyond money. Having a bigger purpose and joy in your business is what will make you feel fulfilled and content.
- Success isn’t all about money. Your success should also be connected to what’s relevant for you.
- Having a plan is good. But being flexible with your plan and learning by doing is also important.
- Create a business that supports your lifestyle and gives you joy. Your micro goals should also be based on this purpose.
Every seller wants to earn money on Amazon. But it takes more than money to feel happy and fulfilled in your business.
To do this, you need to focus on your intention, your journey, and being flexible with the processes you take to get to the results.
Are you ready to start your Amazon FBA business? Check out the free training here.