Earning passive income on Amazon is a trending topic these days. During pandemic days, people want to know about alternative sources of income that can help them to survive this period of agony.
Amazon is a worldwide company and offers full time or part time work from home.
- Don't Know What is Passive Income?
- Passive Income on Amazon: A General Myth to Clarify
- 1. Buy on Ebay And Sell on Amazon (Online Arbitrage)
- 2. Work From Home As An Amazon Representative
- 3. Publish Your Book on Amazon KDP
- 4. Become a Blogger
- 5. Mechanical Turk - Unique Amazon Passive Income Tool
- 6. Merch by Amazon - Design and Sell Your Own Shirts, Hats, Mugs
- 7. Provide Your Services Through Amazon Services
- Final Words..
Don’t Know What is Passive Income?
It’s as simple as ABC!
Take the example of house rent. After all the struggle and efforts, the landlord builds an asset (house, store) and now every month he collects rent, without doing any work. This house rent is an example of passive income.
In simple words, a passive income is an asset or a source of income that you develop spending time, money and energy and now it yields income every month without doing any work.
While there is nothing new in the concept of passive income, the term gets in the spotlight with the advent of the internet. The Internet truly revolutionizes the centuries-old concepts of making money and earning passive income. Now you can develop skills sitting on your favorite couch at home and can run your business globally.
Passive Income on Amazon: A General Myth to Clarify
While surfing and googling around, you’ll come across various courses and programs that claim to help you earn passive income online and that too by working only 1 or 2 hours a day – once you paid their fee around $1997 or $2997!.
Beware of such courses!
While it’s true that you can earn handsome passive income on Amazon and through other channels but this phase comes after a long and hard online struggle where, like the physical world, you gradually develop your asset and then earn income from that asset passively.
The point vendors of such courses intentionally missed to sell their paid courses is that this passive income can never be achieved in 30 or 60 days and neither by a working couple of hours per day.
While there are numerous methods of making passive income (like books, creating videos, selling your information products, affiliate marketing, creating a blog, selling on Etsy, print on demand, low content books on KDP, etc), I prefer to keep my focus on amazon.
Why is that?
Passive Income on Amazon is a Hot And Trending Topic
During Covid, lots of people want to know how to make passive income on Amazon. People are interested in amazon also because it’s a worldwide company and any work associated with it, can’t be illegal or fraud.
Below is the list of the 7 best and legitimate ways you can earn passive income on Amazon.
1. Buy on Ebay And Sell on Amazon (Online Arbitrage)
I like the saying, ”Have fun while you earn.”
That’s why I enjoy the concept of online arbitrage. You pick a product at a low price from one online market and sell it at a higher price on another market, doing everything sitting on your couch.
Isn’t it charming?
Find cheap products on eBay or Alibaba and sell them at premium prices at Amazon, while the delivery would be automatically done by Amazon and you don’t have to go outside your home.
You can easily earn somewhere $200 – $500 per month doing online arbitrage on the side.
If you are new to this concept, here is the article on Medium which shows you step-by-step details on how to do online arbitrage.
2. Work From Home As An Amazon Representative
Can you guess the number of employees working for Amazon?
Amazon is quickly becoming one of the largest employers in the world and now has approximately 650,000 employees.
Obviously, not all of these employees work at Amazon’s headquarters in Seattle, Washington. The majority of employees live in remote areas and work from the comfort of their own homes.
A quick search on Google shows that most of these jobs are in the fields of data entry and customer service.
Amazon established a $15 minimum wage in 2018. So, at the very least, you could make $30,000 per year as a full-time, work-from-home Amazon rep.
If you are interested to work as Amazon Rep, check out Amazon Jobs for details.
3. Publish Your Book on Amazon KDP
While writing a book seems scary, but there is a category in Amazon KDP where literally every person (who is serious about making passive income) can earn a handsome amount.
That category is ‘low content books’. Here are my two blog posts that explain each and every step of creating low content books from scratch.
KDP or Kindle Direct Publishing gives you the facility to publish your own books on Amazon. The books can be in digital format or in actual physical form, printed and distributed by Amazon itself.
The simple formula to achieve success on KDP is: The more you write, the more money you make.
The lovely thing about KDP is that you have to write a book once, and then book’s copies are available there, keep on selling on auto monthly. Plus, with Amazon, you don’t have worries relating to inventory or distribution.
You can expect to earn easily $2000 to $3000 per month once you start applying this method.
4. Become a Blogger
Blogging is the most widely used term these days. The latest software made blogging as easy as writing your diary daily.
Everyone has some interests, passions, hobbies, and favorite pass times. You can blog daily and share your learning with the world. You can also start blogging to make money from Amazon!
Initially, this would involve a learning curve and you have to invest some time .. but if you stick to the idea, the results would amaze you!
How does this program work?
Amazon Associates is an affiliate program where you sign up and get a special affiliate link. What you have to do next is:
Identify an area of your interest
Conduct research on Google Keyword Planner
Select a topic.
Search Google to know more about the topic.
Note down key points.
Since this is your area of interest, so write a blog post on that topic of around 1000 words. Add your side of the story and also add up some of the points of your research.
Go to Amazon and select a product related to that topic.
Send the link of the post to your friends, share links in FB posts and in other social media channels. When someone buys the Amazon product through your link, you’ll earn a commission.
All over the internet, the Amazon Associates program is surely the most popular affiliate program.
While the commission percentages aren’t particularly high–usually only 3-5%–the conversion rates and volume you receive from sharing those links make up for it.
Want to learn more?
On Udemy, there is a free course offered by Jungle Scout that teaches how to make money being an Amazon affiliate.
5. Mechanical Turk – Unique Amazon Passive Income Tool
Mechanical Turk (MTurk) is a unique tool used for amazon passive income.
The name Mechanical Turk is inspired by “The Turk”, an 18th-century automated chess machine invented by Wolfgang von Kempelen toured Europe, beating Napoleon Bonaparte and Benjamin Franklin, both.
It was later revealed that this was not an automated machine, but actually, a human chess master was hidden inside controlling the movements of the dummy.
Jeff Bezos used the same concept and created Amazon Mechanical Turk. A client submits an order to a computer that is difficult for the computer to accomplish (e.g. writing a product description).
The computer automatically outsource it to remote human employee who then performed this task at a very low price. Apparently, the client assumes that the task is done by the computer while originally a human completes the project.
You are paid very little per gig (sometimes as low as $ 0.05), but you can quickly do these tasks. For example, you may be asked to point to a picture or type a specific text. When I was in college, I used to do these songs in class and earn money while writing notes.
How much money can be made on Amazon with the Mechanical Turk program?
About $130 to $200 for a 20 hour work week. However, according to online reports, Mechanical Turk workers can expect to earn between $6 and $10 per hour.
How to learn more about this program?
Here is the link. Click here to learn more about Amazon’s Mechanical Turk program.
6. Merch by Amazon – Design and Sell Your Own Shirts, Hats, Mugs
Do you have a great idea for a shirt or a coffee mug but don’t have the money to make hundreds of them?
Then Amazon Merch is for you – another great passive income on amazon strategy.
Merch is a print-on-demand platform that allows you to store your designs in the Amazon database. Then, you can use these designs on shirts, mugs, bags, hats, coffee mugs – wherever you want!
When an order is placed and a sale is made, Amazon does all the jobs for you. It creates the item, packs it, and finally ships it, and sends you your commission after deducting its charges.
According to Merch by Amazon expert, a seller can earn $1.50 per product listed on the Merch platform.
Unfortunately, Amazon has limited the number of retail products that retailers can handle at any one time in 50 designs.
7. Provide Your Services Through Amazon Services
Amazon is not just an e-commerce platform. They jump into the gig economy, too.
In fact, Amazon Services allows entrepreneurs to sell their services online.
So, whether you are a plumber, a lawn mower, a dog walker, or a pianist, Amazon Services can help you connect with people who need your help.
The sky is the limit! What you do is what you ask for, if the market is willing to pay for it.
Yes, they can be competitive.
With the right mindset and persistence, however, you can quickly measure your service-based business using the Amazon services platform.
Visit their website to learn how to make money with Amazon Services.
It gives you the information you need to get started, as well as all the required application forms: Selling your professional resources on Amazon.
These are the 7 best methods to make passive income on Amazon in my opinion.
What I advise you is not to hop from one method to another in search of some shortcuts or try to earn some quick buck. Instead, select the ONE method and focus on it for a month or two.
Read about it, watch as many Youtube videos as you can, take notes, join forums and reddit – in short do whatever you can to maximize your knowledge.
Put consistent efforts and implement what you learn side by side. If you do all this, I can guarantee your success right now!