Entrepreneurs and side hustlers keep discovering multiple tips on how to make passive income on Amazon. Indeed, it is estimated that 47% of all Amazon sellers have made over $100,000 in lifetime earnings on the platform.
This guide will provide detailed information on how to make passive income on Amazon. There’s no point mincing facts about how easy it can be. Indeed, there is no explicitly passive source of income that requires no active interfacing. However, we shall explain how to incorporate Amazon as one of your channels for income accumulation. It may require dedication and time, but the reward is worth the effort.
Understanding Passive Income
For clarity, passive income sources are businesses that generate revenue with minimal effort or active involvement from the owner. Contrary to what has been peddled on several online platforms, passive income sources still require tangible input and work. However, owners of such businesses don’t have to exert themselves as much as a 9-5er or a full-time entrepreneur.
Passive income sources often require an upfront investment of time and resources that does not immediately yield returns. So, making passive income is not as easy as it is usually paraded. In addition, even after the concern starts generating revenue, active maintenance is usually needed to keep the business yielding.
Similarly, selling on Amazon could become a source of passive income, albeit hard work and consistency are essential prerequisites for the business owner.
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5 Ways To Make Passive Income With Amazon
Let’s have a quick run-through of five legit ways to make passive income on Amazon.
1. Audiobooks on Audible
Making money on Amazon could be a breeze for folks with excellent oratory skills and expertise in narrations and voiceovers. Let us explain. People with this niche of expertise could hop on Audible’s Audiobook Creation Exchange (ACX). This will require an upfront investment of time and effort, and most likely, individuals with such skills already have the gear and set up for voice recordings.
2. Kindle Direct Publishing
The Kindle Direct Publishing (KDP) passive income source remains one of the most prolific on Amazon. It works best for creatives who enjoy writing but have never monetized the skill or turned it into a side hustle.
KDP is a self-publishing platform courtesy of Amazon that allows writers to publish and sell books to interested readers around the globe. The exciting thing about KDP is that beyond the initial effort to write the creative piece, writers don’t incur any expense when they self-publish, either in paperback or e-books. They only pay fees when the creative commodity starts gaining traction in sales. KDP is like the intro to making passive income on Amazon Kindle.
3. Amazon Influencer Program
Even influencers are hopping on the Amazon passive income bandwagon. The Amazon influencer program is an offshoot of Amazon’s affiliate program. Amazon does not specify the number of social media followers required to qualify for their influencer program. However, with as few as a couple of hundred followers, you can start making passive income through your social media accounts.
Here’s how it works. Influencers simply create an Amazon storefront that comes with a personalized URL. All the influencer needs to do is help their followers see the benefits of a product selling on Amazon. With each purchase, the influencer earns a commission.
4. Amazon Associates Program
This passive income source involves affiliate marketing; all you need to do is learn how to make money on Amazon affiliate programs. It involves using high-traffic platforms like blogs or niche websites to drive sales to specific Amazon products.
Many blog posts start with a disclaimer that reads, “This post may contain affiliate links. For more information, please see our affiliate policy.” If any of the links in the post takes visitors to an Amazon product, it simply means the page earns some commission through the associate’s program.
5. Amazon Merch on Demand
Amazon’s Merch on Demand is the graphics equivalent of the KDP program. The creator makes a custom-designed product and uploads it to their print-on-demand (POD) profile.
Such products include mugs, plates, T-shirts, and phone cases. Of course, the owner of the graphics design does not own any of these items. However, when a customer places an order, Amazon automatically uses the design to print them a custom product and have it shipped to their address. The creator’s passive income is dependent on the number of ready designs they have and how often customers place orders.
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Is Amazon FBA Passive Income?
Amazon FBA (Fulfillment by Amazon) is not an outright source of passive income because it still requires considerable involvement. Amazon FBA largely involves outsourcing the e-commerce aspect of a business. For example, new businesses could produce a large tranche of their products and warehouse them with Amazon. Amazon then handles the logistics involved in marketing, sales, delivery, and customer service. When entrepreneurs adopt this business model, they are said to dropship their products.
Nonetheless, the business owner still needs to create and produce the flagship item. Of course, it is possible to outsource these activities. However, it is advisable for startups to do it themselves as it helps them learn the rudiments of making passive income on Amazon FBA.