Building A Six-Figure Amazon Side Hustle
I first started selling on Amazon in 2013 after learning a method of making money online called affiliate marketing. Affiliate marketing involves earning a commission whenever a product is sold through your referral link — and it can be a great way to make money on amazon fba online.
But there was one problem: I couldn’t find an affiliate program for Amazon. I could only find information about how to become an Amazon seller. And that’s how my Amazon journey began.
My first product was something small and inexpensive, so I didn’t think much of it when I sold my first two items within the first week. But by the end of the month, I sold over $700 worth of inventory! That’s when I realized this was more than just a side hustle — this could be a full-time business. So I decided to quit my job and go all-in with Amazon FBA (Fulfillment by Amazon).
Over the next three years, my new business grew into a six-figure passive income stream!
The best way that I found to make money on Amazon is to sell your own stuff.
I’m not talking about creating a dropshipping business where you buy products from a wholesaler and then send them out to people who purchase from your site. For example, if you are selling on Amazon, you can ship the items yourself or use FBA (fulfillment by Amazon).
I’m talking about creating your own private label product and selling it on Amazon.
Amazon has some neat features that allow you to sell your own stuff with little-to-no inventory risk. These include:
Fulfillment by Amazon (FBA)
You can store your products in the Amazon Fulfillment Centers, which means that Amazon will handle the shipping without any additional fees from you. You simply ship your products directly to an Amazon warehouse and they will do the rest.
Amazon Seller Central
This is the tool that you will use to manage all of your orders, products, inventory, etc. It is somewhat confusing to use at first because there is so much information available, but once you get used to it, it is pretty straightforward.
One of the first things I noticed was that Amazon was making money on my sales. The second thing I noticed was that they were doing it in a very sneaky way.
Time to make some adjustments.
I found out that Amazon had a program called Fulfillment by Amazon (FBA). On this program, Amazon would store my products in their warehouses, pick, pack and ship products to customers when they bought them, and also handle returns and customer service.
In return for all of these services, I would pay a monthly fee for storage of my products (called inventory storage) and a per-item fee for each product sold (called a fulfillment fee).
I did the math…and if the cost of using FBA was lower than what I was spending paying employees to do the same things, I would be profitable. I decided to try it.