3 Steps How to Make Passive Income on Amazon for Beginners

October 26, 2022

How to Make Passive Income on Amazon – Having a passive income is a great way to secure your financial well-being. But not everyone knows how to do it. And it’s no surprise either as it can be a bit tricky getting this magical thing called passive income.

Thankfully nowadays, there are a lot of things you can do to earn a steady stream of passive income and we’re going to talk about exactly that today in this article on How to Make Passive Income on Amazon.

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Understanding Passive Income

In order to gain a better understanding of how to make passive income on Amazon, we first have to understand what passive income is and how it works.

Passive income is income that you make with little effort. While this might sound like an impossible dream, in reality, it can be done quite easily through a number of different methods.

And one of those methods is through taking advantage of the online marketplace such as Amazon. There are of course other ways you can earn passive income.

For example, you can also go with freelancing or other types of other self-employment work.

But for the purpose of this article on How to Make Passive Income on Amazon, we will be zeroing in on Amazon specifically.

The Many Ways of Earning a Passive Income on Amazon

1. Reselling products

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Source : Unsplash

One of the best ways how to make passive income on Amazon is through reselling products.

The process is simple: find cheap products (usually around $10 or less) and buy them in bulk. Once you have the products, you need to sell them on your Amazon store.

Then, you mark them up a bit (but not too much) and sell them on your Amazon store. The great thing about this is that you don’t have to spend hours choosing products, sourcing products, and branding your products.

You just buy them and sell them again! The downside to reselling products on Amazon is that it’s not as passive as the other ways since you have to actively manage your inventory.

There’s also the risk that you run out of inventory and can’t sell any products. Though it is a great side gig if you have the time for it.

2. Write and Publish an eBook through Kindle

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Source : Unsplash

If you’re a writer, this is the perfect passive income method for this article on how to make passive income on Amazon.

There are a lot of self-publishing platforms out there, but Amazon’s Kindle is the best. Now, Kindle is a great platform and the process of publishing a book is actually pretty straightforward.

You just need to write the book and format it with their guidelines. Once you’re done, you can publish it on Kindle and start earning passive income.

The good thing about this method is that you don’t really have to worry about marketing your book or even acquiring customers. You just publish the book and Amazon’s platform will take care of everything.

Kindle also gives you the publicity you need as an up-and-coming author. Because otherwise, trying to market your book as a new author can be pretty uphill at the start.

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3. Understanding Amazon FBA

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Source : Unsplash

And finally, the best method how to make passive income on Amazon, and the method everyone chooses, is through Amazon FBA (Fulfillment by Amazon).

FBA is a service where Amazon stores, packs, and ships your products for you. So, it’s like a hybrid between reselling and owning your own products.

You find a product that has a high demand and low competition and then sources it from a manufacturer. Once it’s ready, you ship it to one of Amazon’s warehouses and they take it from there.

The great thing about FBA is that Amazon has millions of customers, which means more profits for you. The bad thing is that there is a monthly fee associated with FBA.

So compared to other methods in this guide on how to make passive income on Amazon, there’s a significant investment upfront if you want to succeed. Other than that, it’s a pretty recommendable way how to make passive income on Amazon.


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In this article, we discussed the many ways to earn passive income on Amazon. Starting from reselling products on Amazon, writing an eBook through Kindle, and finally using Amazon’s FBA.

There are a lot of ways and you can choose the one that suits you the best. Once you’ve chosen and followed one of these three methods, you’ll be well on your way to creating passive income.

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