How to Make Passive Income On Amazon (5 Quick Tips)

1

Making passive income on Amazon can feel daunting when you’re first starting. But, with some work, you can generate a modest income (or one that even lets you quit your full-time job).

We’ll show you how to find more financial freedom with a profitable online business because we’ve done it ourselves.

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2What Is Passive Income?

Passive income is revenue generated from a system requiring little or no ongoing active effort. 

Some examples of passive income are:

• Dividends from stock market investments
• Ad revenue from YouTube videos
• Rent payments from real estate tenants

3Can You Really Make Passive Income On Amazon?

Yes, earning passive income on Amazon is very simple when you know what you’re doing. 

The best way to earn passive income on Amazon is through the Amazon Associates affiliate program. All you need to do is recommend products you like to your audience using special links, and you’ll earn a commission fee for any sales. 

4How to Make Passive Income On Amazon

Here are five Amazon business models you can use to make passive income:  

1.  Amazon Associates

Amazon Associates is Amazon’s affiliate program, where publishers can monetize their content with unique tracking links. If someone clicks on your link and makes a purchase, you’ll earn a commission. 

The reason Amazon Associates is the best way to make passive income on Amazon is that the conversion rate is so high. Even though Amazon often cuts its affiliate commission rates, it’s worth it for the extra conversions.

Once your content starts getting traffic, you just add the Amazon affiliate links where they make sense, and wait for your site to start earning money passively.

How Does the Amazon Affiliate Program Work?

We wrote a step-by-step Amazon Associates guide, but here’s the 5-step process in a nutshell:

1. Create your Amazon Associates account
2. Get your tracking ID
3. Create affiliate links
4. Promote Amazon products on your site
5. Earn commissions every time someone clicks your affiliate link and makes a purchase

Becoming an Amazon affiliate is easy and is a perfect route for beginners because the barrier to entry is low. But how do you make money? 

The main way you make money with Amazon Associates is by writing product reviews, top ten lists, etc. Then you insert your affiliate links, and when your readers use them to buy something, you get paid.

This is exactly how our founder Andrew has made money with his niche sites. You can read more about that in this Twitter thread.

I have built two niche sites that have generated over $2.6M million in *just* affiliate revenue since Jan 2018.

That’s an avg of $51.4k/month for 4+ years. 🤯

I’m going to share what I’ve learned.

My first thread 🧵👇

— Andrew Fiebert (@andyfieb) June 6, 2022

Want to make it even easier to make money as an Amazon Affiliate? Then you need Lasso.

Lasso is a WordPress plugin for affiliate marketers that makes it easy to add Amazon links and displays to your niche site. 

It also scans your site for broken links and out-of-stock products, so you can have peace of mind knowing Lasso is maximizing your site’s earning potential.

Best Plugin for Affiliate Marketers

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Lasso is the best WordPress plugin for affiliate marketing. If you want to earn more affiliate income and grow your niche site, you need Lasso!

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Further Reading:

• 9 Tips for Earning More Amazon Affiliate Income

2. Amazon FBA

FBA (Fulfilled By Amazon) is an ecommerce model where Amazon manages your product listings, sales, payment processing, inventory, and order fulfillment. 

Put another way, it’s a done-for-you ecommerce business.

All you need to do is send Amazon your inventory, which they store in their warehouses, and create your product listings. 

When a customer buys one of your products from Amazon, they take care of everything, and you just keep the profit.

Here’s how you start:

• Find products 
• Locate a supplier
• Order the products
• Package and ship them out

All you have to worry about is product sales and keeping your inventory stocked.

3. Amazon KDP

Amazon KDP (Kindle Direct Publishing) is an easy, low-cost way to become a published author.

KDP lets you self-publish ebooks, paperbacks, and hardcover books for free. You only pay a fee after someone buys your book.

After you publish your books with Amazon, they’ll fulfill any orders you receive and send you your royalty payments. 

There’s no upkeep or input required from you beyond the initial setup for each book. That’s the definition of passive income.

4. Amazon Merch On Demand

Merch by Amazon is a print-on-demand business model that lets you create unique designs and sell them.

To get started with Amazon Merch On Demand, just create an account and upload your designs. 

Next, choose a product where you’ll display it (e.g., coffee mugs or t-shirts). 

Finally, write a product description.

Amazon handles the rest. You’ll have a product page on Amazon so people can buy directly, and they will automatically print and ship the products as soon as a customer orders it.

All you need to do is upload the design, write the description, and wait for sales. Then the passive income will start rolling in.

5. Retail Arbitrage

Retail arbitrage is buying inexpensive products and selling them for a profit.

For example, buying an item for $2 and selling it for $10. It’s the classic adage: buy low, sell high. Doing this on Amazon is pretty simple.

To start, you’ll need to:

• Find products to sell
• Create an Amazon seller account

Next, you’ll want to get the Amazon seller app. This lets you scan products you find in retail stores. Then, it’ll populate your feed with product data, including its sales rank and whether you’re allowed to sell it on Amazon.

But its most attractive feature is determining the profitability of your item based on how much you pay for it.

Then, you buy the item and send it to Amazon to handle through FBA. 

Once you have enough products in inventory, all you have to do is wait for the sales to start coming in.

5Tips for Making More Passive Income On Amazon

When creating your passive income stream, there are other things you can try to boost earnings. Since our primary method is affiliate marketing, this section outlines a few strategies you can use.

Sidenote: Some of these tactics work regardless of the business model you choose, so keep reading.

Find Desirable Products In Amazon’s Trending Section

You can find this section by clicking “Best Sellers” in the upper left corner across the top menu bar. You’ll see Best Sellers, New Releases, and Movers & Shakers when you click it.

Chances are, you’ll find products here related to your niche.

Once you’ve sourced products, create a Best Sellers page. It can be a real revenue booster. Much like the Resources page on our site, Listen Money Matters generates 10% of our affiliate income.

A best sellers or popular products page serves the same function.

Further Reading:

• Create An Insanely Profitable Resources Page In Under 10 minutes

Leverage “Amazon Explore” In Your Niche

Amazon Explore offers live streaming experiences. In addition, the platform provides an assortment of virtual classes and experiences from the comfort of your laptop.

The commission is currently 10% which is the second-highest rate.

Tip: Find high ticket experiences by setting the filter to “$75 and above.” If you find ones your audience will love, you can promote them. And if there’s enough, you could create a best list of these online classes and workshops in your niche.