Can I really make passive income on Amazon? I get this question a lot. My answer is simple, Amazon is not just an online store but a money-making machine. Amazon has quickly become the leading e-commerce site in the United States and has expanded to nearly every country in the world. With such a large user base, it’s no wonder that so many people are looking for ways to make money from home with Amazon.
As an online retailer, Amazon allows third-party sellers to list their products on their website so that customers can make purchases directly from them. If you have great products that other people will want to buy, you can set up your own Amazon store and start selling those products as an affiliate.
This article will give you a step-by-step breakdown of how to do just that, as well as some general information about making passive income on Amazon as an affiliate.
Before we get into the simple steps, it's important to talk briefly about what makes Amazon unique and what affiliate marketing is for those who are unfamiliar with the concept but want to start exploring the opportunity Amazon's affiliate program offers.
Why Amazon is Unique
Amazon is unique for several reasons. One of the most significant reasons is that it is one of the largest and most successful e-commerce companies in the world. This allows it to offer a wide range of products and services to its customers, including everything from books and electronics to clothing and groceries.
Another reason why Amazon is unique is that it has a strong focus on customer experience and satisfaction. The company offers several services and features that make it easy for customers to find and purchase the products they want, such as Amazon Prime, which offers free two-day shipping on eligible items, and the Amazon Marketplace, which allows third-party sellers to offer their products for sale on the Amazon website.
Additionally, Amazon is unique because it has diversified its business model over the years to include not only e-commerce, but also cloud computing, digital streaming, and artificial intelligence. This has allowed the company to grow and expand into new markets, providing even more value to its customers.
Overall, Amazon's size, customer focus, and diversified business model are just a few of the reasons why the company is considered unique.
What is affiliate marketing?
In short, affiliate marketing is a type of online marketing where you earn money by promoting other people’s products. When someone clicks on your link and purchases the product that you’re promoting, you get a percentage of the sale.
Amazon and Affiliate Marketing
Most of the time, to make passive income on Amazon, you need to become an Amazon affiliate and earn a commission on sales that you bring to Amazon. To do this, you need to understand the basics of affiliate marketing, which is the practice of earning a commission by promoting other people's or companies products.
To better understand how affiliate marketing works, let's consider a simple example. Imagine that you own a website that covers a particular topic that you are passionate about, such as gardening. You could sign up to become an Amazon affiliate and earn a commission on sales of products that are related to gardening, such as gardening tools or books.
To do this, you would first need to create links to Amazon products on your website. When a visitor to your site clicks on one of these links and makes a purchase on Amazon, you earn a commission on the sale. This commission is typically a percentage of the sale price of the product.
For example, let's say that you have a blog post on your website that discusses the best gardening tools for beginners. You could include links to Amazon products within the post, and when a visitor clicks on one of those links and makes a purchase, you would earn a commission on the sale.
This is just one way that affiliate marketing can help you earn passive income on Amazon. By understanding the basics of affiliate marketing and how it works, you can begin to explore opportunities for making passive income on Amazon through the Amazon affiliate program.
4 Steps To Making Passive Income On Amazon
In this section, we’ll break down the process of making passive income on Amazon by looking at each step of the process. We’ll cover the following:
- Build a brand and generate traffic to your website
- Create an Amazon store
- Drive traffic to your Amazon store using PPC ads
- Make your final earnings estimate
Let’s get started.
1. Build a brand and generate traffic to your website
One of the best ways to make money from home with Amazon is to build a brand. You may be wondering how building a brand will increase your Amazon affiliate earnings. As explained earlier, Amazon is a big company with a huge customer base. The more people who shop with Amazon, the more money the company makes. Amazon is always looking for new people to shop on their site, but they can’t just force people to buy from them. Amazon provides affiliate programs to websites in order to increase sales.
If you sign up to be an Amazon affiliate and include a link to their site in one of your blog posts, you’ll earn a percentage of the money Amazon makes from that sale. Building a brand on your website will help you earn more affiliate sales. If people like reading your posts, they’ll click on the link to Amazon as a way to say thanks.
2. Create an Amazon store
Once you’ve established a brand on your website, it’s time to create an Amazon store. Amazon makes it easy to set up an online store so that you can sell the products that you want to promote.
To create an Amazon store, you will need to follow these steps:
- Go to the Amazon website and sign in to your Amazon account. If you do not have an account, you will need to create one.
- Once you are signed in, go to the Amazon Associates page, which is the page for the Amazon affiliate program.
- Click on the “Join now for free” button to begin the process of joining the Amazon affiliate program.
- Follow the instructions on the screen to complete the application process, including providing information about yourself and your website, as well as agreeing to the terms and conditions of the program.
- After your application has been approved, you will be given access to the Amazon Associates dashboard, which is where you can manage your Amazon store.
- To create your store, go to the “Build a Store” tab and click on the “Create a Store” button.
- Follow the instructions on the screen to customize your store, including choosing a design and layout, adding products, and setting up payment and shipping options.
- Once you have finished setting up your store, click on the “Save and Publish” button to make your store live on the Amazon website.
- You can then promote your store and earn commissions on sales that are made through your store.
3. Drive traffic to your Amazon store using PPC ads
When you’re first starting with Amazon affiliate marketing, you may not be making a lot of sales. That’s okay, it can take some time to build up your sales and start earning money.
In the meantime, you’re still paying bills, so how can you bring in some extra cash while waiting? To speed up the process of earning money with Amazon affiliate marketing, you can use PPC ads to bring in some extra cash while you’re waiting for your sales to pick up.
One way to drive traffic to your Amazon store is by using pay-per-click (PPC) ads. PPC ads are a form of advertising in which you pay a fee each time one of your ads is clicked. This can be an effective way to quickly drive targeted traffic to your store and increase sales.
To use PPC ads to drive traffic to your Amazon store, you will need to do the following:
- Sign up for a PPC advertising platform like Google AdWords or Amazon Advertising.
- Create an ad campaign and specify the keywords and demographics that you want your ads to target.
- Set a budget for your ad campaign and specify how much you are willing to pay for each click on your ads.
- Create your ads and link them to your Amazon store.
- Monitor the performance of your ads and make any necessary adjustments to optimize your campaign and improve your return on investment.
By using PPC ads, you can quickly and effectively drive targeted traffic to your Amazon store and boost your sales. Keep in mind that PPC advertising can be competitive and can require a significant investment, so it is important to carefully plan and manage your ad campaigns to maximize your return on investment.
If Facebook is your preferred means, I recommend you read The Simple Facebook Advertising Guide to Boost Your Business
4. Make your final earnings Estimate
Once you’ve followed the steps outlined above, it’s time to sit back and wait for the money to start rolling in. It can take some time to build up your Amazon affiliate earnings since you have to wait for sales to come in before you can start earning money.
To estimate your Amazon affiliate earnings, you will need to consider a few factors. The first factor is the commission rate that Amazon offers for the products that you are promoting. This commission rate can vary depending on the category of the product, with some categories offering higher rates than others.
The second factor to consider is the average price of the products that you are promoting. The higher the average price of the products, the more you will earn in commissions.
The third factor to consider is the conversion rate, which is the percentage of visitors to your website who click on your affiliate links and make a purchase on Amazon. A higher conversion rate will result in more sales and, therefore, higher earnings.
To estimate your earnings, you can use the following formula:
Earnings = (Commission Rate) x (Average Price) x (Conversion Rate) x (Number of Visitors)
For example, let's say that Amazon offers a 5% commission rate for the category of products that you are promoting, the average price of the products is $50, your conversion rate is 2%, and you receive 1000 visitors to your website per month. Using the formula above, your estimated earnings would be:
Earnings = (0.05) x ($50) x (0.02) x (1000) = $50 per month.
Keep in mind that this is just an estimate, and your actual earnings may vary depending on several factors, such as the products you are promoting and the traffic to your website.
Now that you know how to make passive income on Amazon, it’s time to get started. Follow the steps outlined above and start earning money from home. Once you’ve earned enough to cover your expenses, you can focus on growing your Amazon business and earning even more money.
Please comment below if you have any questions or suggestions. We're more than willing to assist you in any way possible.