Beginner Guides / Monetization

How to Make Passive Income On Amazon with A Simple Niche Site

There are countless ways to earn money online. We'll show you a simple way how to make passive income on Amazon month after month.

Sean Brison January 8, 2022
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Making passive income on Amazon can feel daunting when you’re first starting. But, with a bit of work, you can create a simple niche website that generates 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.

Let’s go!

Can You Really Create Passive Income On Amazon?

The short answer is yes. Their e-commerce platform is ripe with opportunities to make money online, and there are various business models to try.

Many have found the Amazon FBA program lucrative, while others pursue dropshipping. Some buy products at a discount then flip them for a profit (aka retail arbitrage). However, we’ve found heaps of success with affiliate marketing.

We’ll show you how to make money with this strategy because it’s our bread and butter.

We like it because we have no physical overhead to worry about nor customer service issues to solve – we only promote other people’s products we think our readers will find helpful. What’s also great is that you can set your own hours (perfect for new side hustles).

So, let’s dig into the nuts and bolts.

What Is An Amazon Niche Site?

Amazon niche sites promote products for sale on amazon.com in a specific product category. When someone clicks your link and makes a purchase, you earn a commission and make money.

These website owners get paid via Amazon’s affiliate program. Because Amazon’s platform is colossal, we’ll show you a couple of ways you can get started creating your site by:

Further Reading:

Choosing the Right Products for Your Amazon Business

Once you’ve chosen your niche, you’ll need to find products. One of the easiest ways is to start with a broad keyword (aka seed keyword), then narrow it down.

Amazon makes this easy. When you visit their site, browse merchandise by category.

To do it, head to the upper left corner of the navbar and click “All.” A sidebar appears on the left side of your screen. Scroll down to “Shop By Department.”

amazon's shopping by department section on its website in left side bar

 

Amazon has 17 departments, narrowing it down into over 50 commission-paying product categories. So start with your broad term, then follow Amazon down the rabbit hole.

Let’s look at an example.

A Crash Course On Niching Down, So You Make More Money & Never Run Out of Content Ideas

Lets’s say your business idea will focus on the outdoors niche. That’s a broad category with a lot falling under it, for example:

Let’s pick one to see what else we find.

For instance, choosing camping and hiking on Amazon’s site presents you with an even granular list of items; tents and shelters, camp sleep, and camp furniture.

When choosing “tents and shelters,” Amazon prompts you even further, showcasing seven more subcategories, including 2-person tents, backpacking tents, and rooftop tents.

Takeaway: Start broad, then narrow your focus to a single subcategory. It’ll make creating content easier because you’ve applied constraints and makes the process less overwhelming.

If you were creating a simple niche site about the best tents, for example, you could start with these groups:

Then you could expand this list to include tents by size (i.e., best 4-person and 6+ person tents) and best tent accessories.

List posts are great content types to create because they carry a higher conversion rate. People searching for terms like “best rooftop tents” are ready to buy.

Rounding up these products into a single list article should earn you more commissions.

Lasso displays are lean, responsive, and SEO-friendly. We’ve seen more enhanced search results with our List displays that have resulted in more traffic and affiliate commissions (more on that below).

Here’s one example of our List displays showcasing some of the best SEO tools.👇💥

  1. Yoast

  2. Yoast

    Yoast is a WordPress plugin that helps you create SEO-friendly posts and pages. It displays your on-page metrics, readability, schema markup, and gives you a preview of how your post will display on social media. We use Yoast in tandem with Clearscope to ensure our content creations are optimized.

    Try Yoast

Another idea is to take one of those tent brands and write a step-by-step guide or a product review explaining how it works. These actions should provide you with an easy way to start churning out high-converting content.

Sidenote: One of our sites is in the gifting niche, monetized almost exclusively with Amazon products, is filled with List posts, and earns multiple six-figures annually.

Use Amazon’s Advanced Filters to Refine Your Product Selections

Amazon has a suite of filters on its site, which can help you target specific products in the left sidebar.

Try filtering by:

Use the filters to find more ideas.

For example, if you’re writing a piece on the best premium 2-person tents, scroll down to the “Price” filter in the left sidebar and set it to “$200 & above.”

If you’re writing a “best 2-person tents on a budget” post, set the filter to “Up to $25.”

filtering tents by price in the left sidebar

 

Find for More Content & Money Making Ideas with Google Search

Sticking with our 2-person tent example, when I Google “2-person tent,” Google displays an image carousel of the Top 16 2-person tents with filters above, including:

image carousel results in google search with filters above products for an enhanced search

 

Read the customer reviews to gain more significant insights about the product and the language customers use when talking about it.

Metrics To Consider When Picking Products

When choosing products, examine the following:

You can also see how new the reviews are when sorting by “Most recent.” New reviews indicate people are still buying the product. This is a good sign.

Plug Your Findings into A Keyword Research Tool, So You’re Writing About Things People Are Searching for

Finding products is the first step; the second is seeing if anybody’s actually looking for it. If they are, there’s a better chance you’ll make money.

Sidenote: We use Ahrefs for this task, but you can also try MOZ or SEMrush for finding keyword metrics.

When I plug the above terms into Ahrefs, I want to look at:

  1. Keyword difficulty (KD): This tells you how hard it will be to rank
  2. Volume: Shows you the number of people searching for your query

So, for the terms I mentioned above, you can see they all have search potential with low KD:

ahrefs keyword reports of terms with low volume and ranking difficulty

 

If you’re a brand new site, you might want to tackle “best waterproof tent” first because it’s got the lowest KD score of “6.” Try to get as many quick wins as possible when you’re starting to help you gain traction with search engines and attract visitors.

Sidenote: You can target keywords with higher difficulty scores, but don’t expect to rank for them immediately with a new site. It might take a year or longer to hit page one of Google.

Further Reading:

3 Ways to Boost Your Site’s Success & Earn Extra Income with Lasso

We’ve learned a few tactics in our 10+ years of building profitable online businesses. Here are a few to get you started on the right foot.

#1. Create List Posts that Nab Google’s Featured Snippet (for More Traffic)

We discovered Google loves lists and likes to use them as Featured Snippets in search results. Landing this positions your post at the #1 spot and gets more traffic to your site.

We also learned that these posts convert higher than regular content. Higher conversions = higher commissions.

We began making minor HTML tweaks and coded it into the structure of every list post we wrote. Then eventually turned that into a “List Display” feature when using our plugin, Lasso (no coding required).

You can see our gift list site has captured multiple Featured Snippets when we open the Top Pages report in Ahrefs.

ahrefs top pages report showing our gift sites featured snippets rankings in the search results

 

More snippets = more traffic & commissions.

You can easily create a List Display with Lasso by organizing your affiliate links into Groups. For instance, if you wrote a List post about the best backpacking tents, you could create a group for it in Lasso.

adding a group in the lasso dashboard

 

Then, add all of the links from that post into your Backpacking Tents group to showcase in your listicle. We get more impressions to pages using this display type than any other style.

Further Reading:

#2. Detect & Replace Busted URLs & Out-of-Stock Products, So You Don’t Lose Money

When you promote products as an affiliate marketer, it’s not a matter of if you’ll link to an out-of-stock product, but when. 

What if you could see which of your links pointed to broken URLs or products that were out-of-stock. What could you do with that?

We quickly found that our sites were LOSING MONEY because a portion of the affiliate links we were using wasn’t working.

We started tracking which links were busted and built link alerts into Lasso’s functionality to combat this and avoid future losses.

Lasso lets you see broken links and out-of-stock products from the dashboard. If you monetize your blog with Amazon products, this is a game-changer.

link alerts appearing in lasso dashboard

 

These checks run on Lasso’s servers so that they won’t slow down your site.

#3. Get Instant Amazon Product Info

Staying compliant with Amazon’s TOS matters when using their affiliate program. If you’re showcasing your products with our beautiful product displays, it’s crucial that what you’re promoting is updated regularly.

When creating Amazon affiliate links, Lasso pulls all of the product data automatically, including:

This information gets updated every 24 hours to ensure your visitors have the most up-to-date product information.

And for spotting additional links you might’ve missed, you can enable Auto-Amazon in your Lasso Settings dashboard.

enabling auto amazon in lasso dashboard

 

It detects all Amazon links on your site, monetizes them, and adds them to Lasso so you can see them in one place.

Further Reading:

Get Instant Amazon Product Info

If Amazon changes the price or image, Lasso refreshes every product display with that price or image across your site. Plus, you'll get an alert if your product is out-of-stock.

Get Instant Amazon Alerts

Are There Any Tips for Making More Passive Income On Amazon?

When creating your passive income stream, there are other things you can try to boost earnings.

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 generates 10% of our affiliate income.

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

Further Reading:

Sidenote: The Movers and Shakers are the biggest gainers in sales, updated every 24 hours.

Leverage “Amazon Explore” In Your Niche

Still, in Beta, 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 the high ticket experiences by setting the filter to “$75 and above.”

If you find experiences that 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.

filtering by price in amazon explore in left sidebar

 

Increase Clicks with More Affiliate Links Per Post

Boost your chances of someone clicking your affiliate link by giving your readers more opportunities. Instead of only using text links, add links to images, buttons, and header tags (h2s and h3s).

Our gift site uses three affiliate links per list item with great success, adding them to our h3s, images, and buttons.

annotated lasso display with affiliate links in h3 image and cta button

We’ve tested methods like this against millions of impressions, so we know what converts best – and this is one you can adopt to your list posts to boost conversions.

Further Reading:

Omit the Price to Capture the Click

If people are interested in your product, they’ll click to get more details (e.g., the price). This lets you capture the tracking cookie so even if they don’t buy that product that instant, it’s still attached to your reader’s browser for 24 hours.

Something else worth noting is when a website visitor adds an item to their cart (but perhaps don’t buy right away) it extends the window to 90 days (as opposed to 24 hours).

Takeaway: You’ve just increased your odds of earning a commission.

The alternative to hiding the price would be showing the discount with the higher original strikethrough price next to it. This way, your reader sees they’re getting a bargain.

In one study between Claremont Graduate University and Coupons.com, displaying discounts to shoppers was shown to boost oxytocin levels and reduce stress, driving more sales.  

example of the strikethrough price on a display

 

You can do this by enabling Lasso’s Discount Pricing feature with the flip of a toggle.

where to find the discount pricing feature in lasso 

Target Products Featuring the Amazon’s Choice Badge

Amazon’s Choice badge attracts more clicks because shoppers trust it. Therefore, the more significant amount of these products display in your posts, the likelihood your conversions will increase.

Look for the badge appearing alongside your products like this one:

the amazon's choice badge advertising products

 

This study revealed the “Amazon’s Choice” badge increased conversions by 25%. 

How Does the Amazon Affiliate Program Work?

We wrote a detailed guide explaining how Amazon’s affiliate program works which you can visit below. But in a nutshell, the 5-step process works like this:

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

It’s easy to become an Amazon affiliate and is a perfect route for beginners because the barrier to entry is low. The only caveat is you must make three qualifying sales within 180 days or Amazon will close your Associates account.

Further Reading:

Last Words

Learning how to make money online is a slippery slope when first starting. But even if you’re a beginner, there are frameworks you can follow to smoothen the process. Researching your niche, picking the right products – are all concepts you can apply.

Passive income ideas come in all shapes and sizes, from real estate investing to self-publishing to selling products on eBay; any one of these can become a new revenue stream.

We focus on affiliate marketing because that’s what we know best and where we’ve found financial success over the years.

Would you like to see how else Lasso can help grow your small business? Have a look here.

Recommended Reading

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