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Make Money Online by Starting your Own Business on Amazon


Selling products online is a good way to start your own business and to make money. And if you want to sale it anywhere then the Amazon is the best place for you to sell your product.  Amazon has a massive market and community on it is growing faster as people shift to shopping online for almost any type of product.

According to a survey it is observed that two out of three people in American consumers shop on Amazon and most of them are loyal members of Amazon Prime.

About 63% of U.S Consumers relay for online purchasing on Amazon and they say if they have to purchase all the goods or products from a single store they will always prefer the Amazon for it.

In 2021, Amazon was the largest ecommerce retailer in U.S who was 50% responsible for the U.S ecommerce spending with the market share of 38%.

You can become a seller with Amazon’s Fulfillment-by-Amazon (FBA) program. What is Amazon’s FBA program is already discussed in this blog (open to read).

 To start your career as an Amazon FBA you have to know about some basic things of business.

What are Amazon Business Models?

There are some business models on Amazon which are following you having to know about them.

  • Private Label:   Creating your own product label or brand comes into private labels.
  • Wholesale:     When you have to buy some products in bulk and directly from any brand or from any distributor with some extra stock in order to sell on Amazon then you uses this business model.
  • Arbitrage or Reselling:  In this you buy some products on discount through retailers or online to sale them on Amazon.
  • Drop shipping: In this you buy some products directly from a manufacturer who fulfills the order and ships directly to the customer.
  • Handmade: Creating or crafting your own products to sell them on Amazon.

Selling private label products on Amazon FBA:

With private label you find or produce bulk products to sell under your own brand or label. This method is the most common method to sell products on Amazon and about 71% of all the sellers use this method to sell things. For starting selling private label products you have to do following steps:

  • Product Researching: Researching such products that have high in demand but have low competition on Amazon has a great opportunity for profit.
  • Product Sourcing: In this you have to find such a supplier or manufacturer which creates your product at right cost. The supplier can ship your products directly to Amazon’s warehouse.
  • Listing the Products: In this you have to create a list of your products within your seller Account and have to brand your product.
  • Shipping and Promotions: You have to promote your product after you launch it. Advertise it to stand out among Amazon’s catalog of millions of products and rank in the product search results.
  • Launch and Sales Management: After launching your product you have to monitor your inventory and sales and scale your business to keep those profits coming in.

Finding some Profitable Products:

Searching such product which is high in demand and have low competition product will be consider as profitable product to sell on Amazon. For all products you’re considering, analyze them for:

1. Profitability:

Generally during buying some product you have to follow the “rule of 3’s” to estimate this. Each product’s sale is broken up into 1/3 for fees, 1/3 in landed cost and 1/3 for you. For example is the product sells for $15 you should expect to profit $5.

You can calculate potential profitability by assessing costs and revenue for each product opportunity.


Landed costs:

It is the collective costs to produce and transport your product to Amazon’s Warehouse.

  • Cost of inventory
  • Any preparation or inspection fees
  • Shipping
  • Duties
  • Amazon’s Fees
  • Referral Fee:     15% of you pay when a product sells for the Amazon’s Commission for each item you sell on the platform.
  • Selling Plan Fee: A Professional Amazon Seller has to pay monthly fee of $39.99 and a $0.99 per sale transaction. Fulfillment fee and storage fee are also pay for monthly storage fee or as long-term storage fees.

Other: Business costs may include advertising and packaging.

2. Demand of the Product:

The key point for selling some product on the Amazon is the Demand of the product. This question arises that, do people want this product?

Are they looking for it or is there a need for this product or this product could solve?

3. Competition:

The next thing is to evaluate the competition by considering how many similar products exists and whether there is an opportunity for them in the market that they will survive.

The main key metrics that help determine the competition is the number of products and the number of quality reviews and rating they have, in some other words we can say that are the products already listed on Amazon any good?

Some Most selling Products on Amazon

There is the list of top 10 most selling product categories on Amazon:

  1. Home and Kitchen
  2. Beauty and Personal Care
  3. Clothing, Shoes and Jewelry
  4. Toys and Games
  5. Health, Household and Baby Care
  6. Arts, Crafts and Sewing
  7. Sports and Outdoors
  8. Books
  9. Kitchen and Dinning
  10. Baby

These 10 categories are the highest and largest quantity of FBA sellers.

Strategies to grow your business on Amazon:

Selling on Amazon is not such a type of business to set it or forget it as you have to be careful about your inventory. If you are prepared and have right and data and tools then your success rate will also grow.

There are some steps through you can grow your online business on Amazon.

  1. Listing Management

Regular checking your listing both within seller central and on the live listing itself. Checking all your images and description details and make sure they should be okay. Answer the questions from the customer as it gives a right impression on the customer.

  • Advertising optimization:

You have to optimize your PPC campaigns every couple of weeks to ensure you have the highest performing ads possible.

  • Expend your Product Line:

Whether you’ve started with a single product or multiple you just have to expend your products

With the passage of time to maintain your position in the competition on Amazon.

  • Account Health:

Always keep track of your Amazon account Health to ensure your business is following the term and conditions of the Amazon. Always comply with product policies and avoid any product authenticity or safety complaints and providing positive overall customer service.

  • Hiring some Virtual Assistant:

You can also ensure your Amazon Account health by hiring a virtual assistant (VA). This will help you to focus on some high level tasks to grow your business as they will manage on your day-to-day account management.



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