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How To Make Money on Amazon as an Ecommerce Business

How To Make Money on Amazon as an Ecommerce Business

Last Updated:  
March 18, 2024

According to Bloomberg research, more than half of consumers start their product search on Amazon. The world-famous marketplace offers users a platform from which eCommerce businesses can capitalize on, thanks to its vast market potential – when done correctly. In this blog post, we’ll explore how to make money on Amazon by utilizing Amazon’s fulfillment services, product reviews, and paid advertising.

Amazon's fulfillment services

Not only does Amazon have a massive audience of buyers, but it also offers an extensive suite of fulfillment options that can help sellers get their products in front of those buyers quickly and easily. In addition to traditional fulfillment services like shipping and order management, Amazon also offers a range of more specialized services that can be helpful for online sellers. These services include Fulfillment by Amazon (FBA), Seller Fulfilled Prime (SFP), and Amazon Web Services (AWS).

Fulfillment by Amazon

You may be wondering how to make money on Amazon FBA. FBA is one of the most popular Amazon fulfillment services, and it allows sellers to store their products in Amazon's warehouses and have them shipped out when orders are placed.

This service is popular because it takes care of all the logistics for sellers, including packing, shipping, and customer service. If you want to know how to make money on Amazon, FBA is the answer. The service also benefits buyers, by guaranteeing fast shipping times and free returns on most products.

A photo of a man loading up cardboard boxes into the back of a van.

Seller Fulfilled Prime

SFP is another popular Amazon fulfillment service that allows sellers to offer Prime-eligible products to buyers. This service is helpful for sellers who want to know how to make money selling on Amazon by taking advantage of Prime's audience of buyers.

By allowing sellers to offer their products through Prime without having to go through the hassle of setting up their own shipping operations, SFP is an option that you shouldn’t ignore. Another perk is that sellers can take advantage of Prime's 30-day trial period, which can be a great way to attract new customers when wondering how to make money on Amazon.

Amazon Web Services

AWS is a comprehensive cloud computing platform offered by Amazon. It allows sellers to host their websites and applications on Amazon's servers. This is helpful for online stores that want to know how to make money on Amazon and experience high traffic volumes. AWS is also useful for sellers who want to take advantage of Amazon's extensive suite of machine-learning capabilities.

Product reviews and ratings

How how to make money selling on Amazon? Use the power of transparency and trust that the platform offers with its reviews.

Product reviews and ratings provide consumers with a wealth of information about a product, such as its quality, durability, and customer satisfaction. They can also help potential buyers determine if a product is a good fit for them – you can incentivize reviews with discounts or other perks to increase customer engagement and at the same time, encourage new customers to convert!

Using paid advertising on Amazon

It's no secret that Amazon is a powerhouse when it comes to online retail. With more than 300 million active users, there’s massive potential to reach a large audience. However, how to make money on Amazon amid the gigantic competition? Getting your products in front of the right people can be difficult. Luckily, paid advertising on Amazon can help you do just that.

Paid advertising allows you to place your products in front of potential customers who are already interested in what you're selling. You can target your ads using keywords, interests, demographics, and more, so you're sure to reach the right people. If you’re unsure how to make money selling on amazon, paid advertising is one of the steps you can take to get there.

Amazon's referral program

When a customer signs up for Amazon's referral program, they are given a unique referral link. This link can be shared with friends and family, who can then use it to purchase on Amazon. When someone makes a purchase using that referral link, the customer who referred them will receive a percentage of the sale price in the form of Amazon credits.

This program can be a great way to increase sales, as it encourages customers to refer their friends and family members to Amazon. In addition, it can also help build customer loyalty, as customers who participate in the referral program are more likely to return to Amazon in the future.

A photo of a phone on a table opening the Amazon app.

Leverage Amazon brand analytics data to advertise smarter

Amazon brand analytics data can be a powerful tool for businesses that want to know how to make money selling on Amazon. Leveraging Amazon's analytics data can help companies target customers based on their preferences and optimize their messaging and campaigns. By using this data to gain insights into the buying behaviors of customers, businesses can create more effective marketing campaigns to reach their desired audiences.

With Amazon brand analytics, businesses can access the most accurate and up-to-date reports on customer purchase history and items potential customers have viewed on their site. This information helps marketers understand which products are popular among certain demographics.

For example, if a company is targeting an audience that is 50+ years of age for a particular product, they can use Amazon brand analytics data to determine features of that product that are most appealing to consumers that are 50+.

Make money on Amazon with Triple Whale

There are a lot of product analytics tools out there. That said, experimentation is the only way to figure out what will work best for your eCommerce business when it comes to how to make money on Amazon - It may take a bit of trial and error, but when you find the right fit, it’ll be time well spent.

Be sure to define which analyses you want to focus on and choose the tool that best fits those needs. Triple Whale has a great cohort analysis and LTV calculations feature, for example. It’ll even allow you to segment each cohort by when they first purchased a product from you, used a discount code, etc.

If you’re looking to understand the different types of customers you have, the features they respond to, and why they return, Triple Whale may be a good fit.

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