How to Generate Passive Income on Amazon?

If you want to achieve true financial freedom, you will have to focus on modern methods of generating passive income. Amazon, the most popular eCommerce platform in the world, is one of the best ways of earning passive income through its different programs and strategies. 

Even if you have a steady job, you should consider reading about the following strategies to make passive income on Amazon. It can be an easy and quick process if you are familiar with the best strategies of utilizing the global brand recognition of Amazon to your advantage and making a significant amount of money. 

Amazon Affiliate Store

Many people assume that they have to build an eCommerce store from scratch to start selling products online. However, Amazon makes it easy for you to build an affiliate store that is similar to any other eCommerce platform. 

Once you set up the Amazon Affiliate Store, you can easily start adding products to it and promote it to make money by selling them. This kind of passive income on Amazon is suitable for small-business owners and individuals who are just starting out in the competitive eCommerce industry. 

Fulfillment by Amazon (FBA)

Fulfillment by Amazon (Amazon FBA) is one of the most popular ways of generating money from Amazon by selling products to a wide range of customers. A significant advantage of using Amazon FBA is that it helps you in selling products without worrying about inventory management. 

All you have to do is register for the Amazon FBA program and start selling products. Amazon will take care of the entire order fulfillment and storage process in exchange for a certain amount of charges. 

Generally, all types of businesses can use Amazon FBA to sell their products and benefit from the massive distribution and shipping network that is capable of delivering products almost all over the world.  

Amazon Marketing

Amazon’s marketing and affiliate program is one of the best ways of generating passive income on Amazon. This method is suitable for social media influencers, bloggers, or any other individual who has the power of reaching people online. It involves recommending products on Amazon that attract your audience. 

For example, if you have a blog in which you review different electronics, you can review modern gadgets and provide the affiliate link to that product. If your audience makes a purchase through the provided affiliate link, you will generate a certain commission. 

Typically, the commission is anywhere between 4% and 10% of the product’s sale price. All you need is an online audience, and you should be able to sell your products and generate significant passive income on Amazon.  

Amazon Handmade

Etsy is not the only online marketplace on which you can sell handmade products because Amazon Handmade is another popular platform that offers clothing, jewelry, accessories, and various other handmade products.

The good thing is that Amazon Handmade provides you with a custom URL through which people can easily reach your online shop. Furthermore, the features of Amazon Handmade make it easy and affordable for people to sell their handmade products. You can choose to pay a monthly fee of $39.99 per month to get a professional selling account, or another option is to pay a 15% referral fee on the total sales price.

Amazon Merch

If you are an artist or a designer, you can use Amazon Merch to create some attractive designs and start selling your products. You can sell a wide range of products via Amazon Merch, such as t-shirts, hoodies, and many other products, depending on your designs and interests. 

Moreover, you do not have to pay any additional fee to sell your merchandise through Amazon. It will handle all of the important order fulfillment processes like printing, shipping, packaging, and customer support. Your profits will be dependent on the selling price of the product and the money it costs Amazon to sell the product. 

Kindle Direct Publishing

Using Amazon to sell short stories or even full-fledged novels is another efficient way of making money. Kindle Direct Publishing is a reliable platform for writers or for someone having a team of writers. You do not have to worry about getting the attention of a major publishing house. Instead, you use Kindle Direct Publishing to publish your books. You will get 70% of the royalties of the total sales. 


These are some of the most efficient and reliable ways of generating passive income on Amazon. Ultimately, the choice is dependent on your skills and the kind of product you want to sell online. Generally, Amazon has many different programs, platforms, and ways of selling a wide range of products, so you can definitely rely on it to make a significant amount of passive income. 

Ellen Hollington

Ellen Hollington is a freelance writer who offers to ghostwrite, copywriting, and blogging services. She works closely with B2C and B2B businesses providing digital marketing content that gains social media attention and increases their search engine visibility.