Top Strategies to Make Money on Amazon in 2025

November 8, 2024 Posted by LUCAS COOOKE
It is about top strategies to make money on Amazon in 2025

In 2025, Amazon is still ripe for the taking for entrepreneurs of all types — from selling physical products to leveraging digital platforms.

Learning the newest trends and tactics will get you a head start whether you are an Amazon newbie or if you have some experience under your belt and looking to make a shift.

We will look at the best methods to take advantage of on Amazon this year using established and fresh insights.

Is Amazon FBA Still Worth It in 2025?

Amazon FBA (Fulfillment by Amazon) remains a top choice for those aiming to expand rapidly.

This program allows you to store products in Amazon warehouses, let them do the packing and shipping and even handle customer service for you. The result? Sellers have extra time to focus on marketing and research of products.

Why Sellers Love FBA?

The primary benefits are the opportunity to tap into Amazon Prime shoppers and have their goods delivered speedily, when often this will be a key requirement for purchases. Fulfilling through FBA entitles the goods to be qualified with Prime label, which then again helps in boosting their exposure and finally, the sales probability.

What's New in 2025?

In the year 2025, everything is about optimizing listings, using predictive analytics and advanced keyword tools; By strategically choosing the products with lower competition and high demand, sellers can increase their profitability many times over.

Retail and Online Arbitrage: A Low-Cost Entry

Buying at deep discounts from brick-and-mortar or online stores and reselling on Amazon with a markup is known as retail arbitrage (RA) or online arbitrage (OA). This method is ideal for beginners with low capital who can invest less money upfront.

How It Works:

Sellers scan items and check profitability using Amazon's Seller App. In online arbitrage, you purchase products on various online marketplaces at a discount and sell them on Amazon.

Why It's Common:

It's a low-risk way to test the market without holding much inventory. Success in 2025 will hinge on using data tools to track price trends and outcompete rivals.

Arbitrage remains a lucrative way to get started with selling on Amazon, especially when combined with smart product research.

Private Labeling: Is It Still a Cash Cow?

For sellers that want more power over their product, private labeling is a highly lucrative strategy for building your own brand. This method is similar to the traditional model, but it requires a lot more work and time on your part sourcing products from manufacturing, branding them yourself, and selling them under your brand name on Amazon. Reselling your own brand means you make more money per sale, but you need to get an inventory upfront (much higher of an investment cost).

The secret to selling private labels is making sure the products are different. Different packaging, added features, and novel branding can all help you gain a foothold in an oversaturated marketplace. For private label sellers, Amazon's Brand Registry that provides better protection from counterfeiters is a must-have.

Here are some key pros and cons to consider when deciding if private labeling is still the right strategy for you:

Pros:
  • More control over product and branding
  • Higher profit margins per sale
  • Protection from counterfeiters through Amazon's Brand Registry
Cons:
  • Requires significant time and effort to source and brand products
  • High upfront investment for inventory

Is Amazon Handmade the Right Platform for Creators?

Amazon Handmade connects artisans and crafters with millions of buyers. You can use this platform to sell handmade, one-of-a-kind products such as jewelry, home goods, or other crafts. Handmade is designed for sellers who create their own products, unlike other Amazon selling plans where you can outsource production.

Key Pros:

No upfront listing fees—only a 15% referral fee per sale. Sellers can also take advantage of Amazon's massive customer base and use Fulfillment by Amazon (FBA) to simplify shipping.

One potential downside:

Amazon Handmade is that sellers may face stiff competition from other artisans, making it difficult to stand out in a crowded marketplace.

Looking Ahead to 2025:

The growing trend of buyers searching for unique, tailored products means that exploring niche markets within Handmade can boost sales. Environmentally-friendly or personalized products can help you stay ahead by tapping into rising trends.

Amazon Handmade is a great option for creative entrepreneurs wanting to build a thriving business around their art without dealing with infrastructure challenges.

Can You Really Make Passive Income with Amazon Affiliate Marketing?

Amazon Affiliate Marketing offers another way of getting commissions that avoids inventory management.

By signing up as an Amazon Associate, you can promote products via your blogs, social media, or YouTube and earn a commission whenever someone uses your unique link to make a purchase.

Why It Works:

The success here lies in having a niche audience. If you have a tech gadgets blog, or your YouTube channel is about home decoration, how successful you are at influencing purchasing decisions will directly affect how much money you make.

2025 Outlook:

Choose TikTok and Instagram for product advertising as these are the platforms to be on as the digital space grows. You can create short-form videos on trending Amazon products that will help in bringing traffic and thereby increasing your affiliate earnings.

Here are some key pros and cons to help you decide if Amazon Affiliate Marketing is the right path for generating passive income:

Pros:
  • No inventory management or upfront costs
  • Potential to earn passive income through commissions
  • Ideal for bloggers, YouTubers, or social media influencers with niche audiences
Cons:
  • Earnings depend heavily on audience engagement and influence
  • High competition among affiliates
  • Requires continuous content creation and promotion to drive traffic

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What's the Easiest Way to Start on Amazon? Consider Dropshipping

Dropshipping is another highly effective method to make a profit on Amazon without big upfront money. One main difference from FBA is that you don't have to touch inventory when it comes to dropshipping. Rather, you work with vendors who send products straight to your customers.

Shady sides:

While dropshipping provides a way to avoid owning stock, the profit margins are usually lower. There can be stiff competition, and sellers must ensure that their suppliers deliver goods on time to keep customers satisfied.

How to Be Distinct:

Go after product niches with less competition. By using keyword research tools, you can determine high-demand, low-competition products and increase your likelihood of sales on the marketplace.

How Can You Profit from Self-Publishing with Kindle Direct Publishing (KDP)?

For anyone with a gift for the written word, Kindle Direct Publishing (KDP) can change your life.

It allows you to easily self-publish books (eBooks, paperbacks, even hardcover books) on Amazon without the traditional publishing loop.

Income Potential:

Successful authors can earn significant money with each sale—up to 70% per sale if within Amazon's desired price range. Even if you are not a novelist, low-content books such as journals, planners, or coloring books can be a source of passive income.

Advice for 2025:

Use your book listings as an opportunity to capture and hook readers of similar books who are already searching; craft each descriptor accordingly. You could also try running Amazon ads to help improve visibility when you first launch, which can lead to some initial sales and reviews.

If you have a talent for writing, Kindle Direct Publishing (KDP) can help you turn that into profit.

Pros:
  • High earning potential with up to 70% per sale
  • Easy access to self-publishing for eBooks, paperbacks, and hardcovers
Cons:
  • Success often depends on effective marketing and visibility efforts

Are Wholesale Goods Still a Good Idea?

Wholesale is still a great option for people that can invest a little more upfront. This model is about buying in bulk and selling through Amazon. This cuts back on the branding side of things, unlike private labeling, but at the same time, introduces other brands into the mix and potentially additional competition.

The Challenge:

Wholesale selling at scale is a highly competitive market with many other sellers vying for the Amazon Buy Box. While achieving this top spot can result in greater sales, it also depends on offering competitive pricing and maintaining high seller performance.

Winning the Amazon Buy Box is essential for boosting sales in the highly competitive wholesale market. Here are the key strategies you need to follow:

1- Competitive Pricing: Your product’s landed price (the total price including shipping) should be competitive. It doesn’t always have to be the lowest, but it should offer value compared to other sellers. Utilizing a repricing tool can help automatically adjust your price to stay competitive without sacrificing profitability​.

2- Fulfillment by Amazon (FBA): Using FBA gives you a significant advantage since Amazon prioritizes fast shipping and reliability. FBA sellers are more likely to win the Buy Box because Amazon manages the logistics, ensuring customer satisfaction.​

3- Seller Metrics: Maintaining excellent seller performance is crucial. Metrics such as order defect rate, shipping time, and customer feedback all impact your chances. Consistently high performance can significantly improve your Buy Box share.​

By focusing on these factors—pricing, fulfillment, and strong metrics—you can improve your chances of winning and retaining the Buy Box in 2025.

Why It Works:

Sellers who really know how to price and get replenishable inventory can have great success. The better relationships you build with your suppliers, the more likely they are to cut you a good deal and ship things quicker.

How Can Merch by Amazon Turn Creativity into Cash?

Merch by Amazon is ideal for artists and designers (or anyone wanting to contribute).

You submit designs that they will pay for and sell on products like T-shirts or phone cases, then easily earn royalties by selling your products through Amazon.

The Upside:

No initial capital is needed, making it a good choice for those looking to earn passive income online. A great design could bring in steady income on Amazon, where millions of potential customers browse the site every day.

2025 Trends:

Focused niche markets, trending designs, and more can help boost sales. Properly marketing your products on social media and understanding how to SEO-optimize your listings can set you apart from the competition.

Amazon Influencer Program: Is It Worth the Hype?

Amazon gives social media managers and bloggers a commission for sales they can send to Amazon. This amazon influencer program allows influencers to build their own Amazon storefront and recommend products, unlike Amazon Associates.

Who Is It For?

For those who have a massive following on Instagram, TikTok, or YouTube, this is perfect. Influencers earn a portion of each purchase made by their followers through their unique storefront, earning commissions for referring sales and customers to the company.

Watch for in 2025:

The rise of niche, high-relatability influencers combined with a meaningful engagement rate tends to deliver better conversion results. Authenticity is key—recommendations that feel genuine, rather than manufactured sales pitches, are more likely to build trust with followers.

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What Are the Best Practices for Success on Amazon in 2025?

Being successful on Amazon in 2025 is all about strategic thinking and flexibility.

1- SEO and Keywords: SEO was important before, and it's even more so in 2025. Invest in tools that help you discover high-volume, low-competition keywords for your product listings.

2- Use Social Proof: People are prompted to buy based on reviews and ratings. Encourage positive reviews from satisfied customers, and respond quickly to any negative feedback.

3- Leverage Amazon Ads: Sponsored ads can significantly boost visibility, especially when launching a new product. Allocating a budget for advertising can give you an early head start and help get you noticed in the market.

4- Sustainability Sells: Consumers increasingly prefer eco-friendly products. Highlighting sustainable sourcing, such as eco-conscious packaging or reducing waste, can attract environmentally conscious buyers and enhance brand loyalty​.

5- Ethical Sourcing Builds Trust: Transparency in your supply chain matters. Ethical practices, like fair labor and avoiding conflict materials, foster trust and can improve customer loyalty, which directly impacts your brand value.

Stay on Top of Fees and Profitability

Many sellers are completely lost because Amazon changes rules and fees so often that they aren't sure what it's costing. All those small FBA fees, referral rates, storage charges, and shipping costs could eat away at your margins. You should stay ahead with a tool like Profit Cyclops, accurate Amazon profit calculator. It helps detect fees, figure real profitability, and adjust pricing to maintain competitive margins.

Continually evaluate your product margins and recalibrate pricing to account for fees without sacrificing competitiveness. Be prepared, avoid unexpected costs, and let Profit Cyclops keep your Amazon business profitable!

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Ready to Start Earning on Amazon?

If you do it right, Amazon will be your best money-making platform of 2025.

Regardless of the method you choose—private labeling (brand building), affiliate marketing (passive income), or custom designs—there is one for everyone. It is about staying updated, using the right tools, and adapting to the evolving trends in the Amazon ecosystem. Utilize these insights and stay focused on what works, and you will be able to make Amazon profitable for yourself.

So… what is your next step for Amazon success?
Lucas Cooke
Marketing Associate