How To Make Passive Income On Amazon?

by Money Published on: 28 November 2022 Last Updated on: 25 April 2023

How To Make Passive Income On Amazon

The concept of passive income has gained popularity in recent years. Who doesn’t adore the thought of earning cash while they sleep? Unfortunately, very few people ever get that concept.

However, passive income is absolutely feasible if you work hard enough to achieve it. Simply having a good concept and having the right amount of dedication is all you need.

To assist you, we have compiled our definitive list on how to make passive income on Amazon, including tools like ShopKeeper. Most of them wouldn’t require significant capital outlays and would be ideal for novices.

How To Make Passive Income On Amazon?

The best methods to learn how to make passive income on Amazon are:

1. Fulfillment By Amazon (FBA)

Fulfillment By Amazon (FBA)

First of all, FBA is a tool that enables sellers to use the platform’s warehouses to their advantage. Simply ship the goods to AMZ, and when the item sells, the online retailer will deliver it to your customer.

You may generate reasonably passive income with the FBA solution since you simply need to focus on locating products to sell. You don’t have to stress about completing orders and delivering your goods to customers every day.

In reality, all you need to do is find your products. The platform then tells you where to deliver your goods once you tell it what things you wish to sell on AMZ. If you inform the customer service agents how many parcels you require, the marketplace will provide you with shipping labels.

You are finished after you package up all the items and mail them. When the moment is appropriate, the platform will procure, package, hold, and distribute your items. Yes, it is simple.

2. Fulfillment By Merchant (FBM)

With this option, sellers are still in charge of doing their own fulfillment but can shift their products to Amazon. The AMZ warehouse and other amazing services that the marketplace offers are not accessible to merchants.

The FBM could come to mind as a retailer on several online stores like eBay. You have a certain amount of time to deliver the item when a customer orders your goods and places the purchase.

You must thus consider where to store all of your goods. Unfortunately, because the market favors FBA merchants, your things won’t sell nearly as quickly. However, because there are fewer commissions involved, your profit margin is higher. This is how you learn how to make passive income on Amazon!

3. Retail Arbitrage

Retail Arbitrage

In retail arbitrage, products are purchased from retail stores at a little discount. You can come upon items that are significantly reduced and sell them for a profit. You typically scan clearance items. However, occasionally, you might find items to sell that are normally priced.

The drawback of this technique is that finding great offers might be highly time-consuming. Additionally, you may be reported for counterfeit goods or infringement by some brands. To refute such allegations, the market would need a buy order. Therefore, your supermarket receipt is useless.

Read More: The Best Way to Create Passive Income with Crypto Coins

4. Dropshipping


It enables AMZ customers to obtain a significant number of items in a remarkably short length of time. To generate money, they don’t even need to touch these products. The middlemen in dropshipping are the sellers. This is how you learn how to make passive income on Amazon.

A straightforward illustration of dropshipping is finding a $10 product in, say, Home Depot. The item might then be listed as FBM on AMZ for $30.

You go to Home Depot and buy the merchandise when a visitor buys it on the platform. Then you send that item immediately to the addresses of your clients.

Because they don’t need to store a single product, most users like this strategy, you may manage the business from the comfort of your home thanks to dropshipping. But it’s not entirely passive because you still need to monitor your operations every day.

The drawback of dropshipping is that consumers dislike paying too much for things. I will be able to identify this business as the source of my AMZ purchase if it comes to me in packaging with the retailer’s logo. Some customers could be upset about having to pay $30 for something they might have bought for $15. This is a great way to learn how to make a passive income on Amazon.

5. Wholesale Retail

Wholesale Retail

The process of purchasing items you want to resale wholesale entails going to manufacturers or wholesale suppliers. You may purchase some items at a discount or at wholesale cost. After that, you can sell the goods for the suggested Amazon retail price.

Moving wholesale products might prove to be quite profitable for vendors. Consider finding the product that will earn you $1,000 each month. The benefit of this strategy is that you may keep placing recurring orders for the same items.

The drawback of wholesale retail, on the other hand, is that it could take a while to find a distributor ready to do business with you. The majority of wholesale providers prefer to remain undiscovered, while some may reject your business.

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6. Sell Your Own Products

Sell Your Own Products

You may use a Private Label to manufacture and market your products on the site. It’s a labor-intensive and complicated business model. However, if done correctly, you will have full rights to transport these goods, putting a stop to your rivals.

For instance, you may locate a manufacturer to produce T-shirts for your merchandise. The products will be created and delivered to your home. Then, you must build a product listing for your remarkable product on the marketplace.

With conventional items, several suppliers offer the same product in an effort to win the Buy Box. However, if you design a product from scratch, you may be the only retailer of this good.

7. Amazon Association

Amazon Association

This is a program that aids users in marketing products on the marketplace in exchange for a certain commission. If you recommend customers to AMZ, you get paid. Consequently, you should have a means of product promotion, such as a YouTube channel or a personal blog.

Consider the case where you run a fashion-focused blog on Instagram. Link to certain ASINs on AMZ when discussing trends and the individual product. If a client hits one of your links and makes a purchase, you will be paid for recommending the transaction.

You may utilize this commission structure on Amazon to determine how much of a sale’s overall revenue you will receive. You will earn $2 if you sell $100 worth of AMZ video games or books.

The Amazon Associates program’s drawback is that the platform’s rates have decreased and might do so in the future. It slashed charge prices in half last year without prior notice. As a result, consumers who previously made $2,000 per month through Amazon Associates are now making $1,000.

The market will determine just how much you receive. AMZ Associates, however, may be your passive source of income. A single YouTube video, for instance, has the potential to generate revenue repeatedly.

Frequently Asked Questions (FAQs):

People have asked questions regarding how to make passive income on Amazon like:

Q1. Is Selling On Amazon A Passive Income?

Ans: Being an Amazon FBA employee is a relatively passive source of income. But you’re still in charge of finding the products to deliver to the platform’s storage facilities. We cannot refer to other techniques as such because they take considerably more time and effort, such as Amazon FBM.

Q2. Is It Possible To Get Rich Running A Business On Amazon?

Ans: If you know what you’re doing, selling on AMZ is one of the ways to become rich. Hundreds of users rely on the marketplace for at least their primary source of income. You do not, however, own the business. Therefore, you do not have total control. To prevent your account from getting suspended, remember to review all the policies.

Start Earning More NOW!

When you operate a business on Amazon, you may make a lot of money. For some entrepreneurs, it even has the potential to change their lives.
You can see that passive income actually exists. Although it could require some initial work, the payoff is worthwhile. What are you still holding out for? Try one of these ways how to make passive income on Amazon now!

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Debamalya is a professional content writer from Kolkata, India. Constantly improving himself in this industry for more than three years, he has amassed immense knowledge regarding his niches of writing tech and gaming articles. He loves spending time with his cats, along with playing every new PC action game as soon as possible.

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