How to make passive income on Amazon in 2024

The dream of earning money while you sleep – that’s the allure of passive income. While it takes some effort to get things set up, ideal passive income streams continue to make you money with minimal ongoing maintenance. Amazon offers a variety of ways to achieve this very dream.

Ready to discover how to make passive income on Amazon in 2024? This guide will walk you through the best ways, from selling products with dropshipping and Print on Demand to Kindle Direct Publishing and earning Amazon Music royalties.

What is passive income?

Passive income is money you make with little ongoing effort. Unlike active income, where you trade time for cash, passive income keeps coming in after you’ve put in some time, money, or upfront work. 

Learning how to make passive income is an excellent way to achieve the financial freedom you want and increase your overall earnings.

How to make passive income through Amazon?

We’ve made a list of the best ways to generate passive income on Amazon. Each takes advantage of Amazon’s huge customer base and built-in tools to make you money without breaking a sweat.

Print on Demand (POD)

POD is a unique business model that eliminates the hassles of traditional inventory management. Sell custom-designed merchandise like t-shirts, phone cases, and mugs without having to store physical inventory. 

When a customer orders, the POD service prints and ships the item directly to them. You won’t have any upfront costs associated with stock storage, packaging, or fulfillment, letting you focus on design and marketing.

Here’s how to get started with POD:

1. Design Your Products: Create unique designs using graphic design software or hire a designer.
2. Choose a POD Service: Select a POD service that offers a wide range of products, like Printify.
3. Integrate with Amazon: Existing Amazon Sellers can connect a POD service with their Seller accounts by using third-party solutions like Shopify Marketplace Connect or Order Desk. If using Printify, you can integrate directly with Amazon US. 
4. Marketing: Promote your products through social media platforms and other marketing channels to generate sales.
5. Fulfillment: Sit back and relax! The POD service handles printing, packaging, and shipping for every order.

Dropshipping

Dropshipping lets you start selling physical products on Amazon without ever handling inventory yourself. It can be a great way to test product ideas, launch a business with minimal upfront investment, and generate semi-passive income. 

Here’s a breakdown of the dropshipping process:

1. Select a Niche: To maximize your chances of success, choose a product category with high demand and low competition.
2. Find Reliable Suppliers: Use platforms like AliExpress or other dropshipping sites to source profitable products and good deals. For a successful dropshipping business, you’ll need reliable suppliers who offer high-quality products and timely shipping.
3. Create an Amazon Seller Account: Register for an Amazon Seller account. There are some fees, so factor those into your pricing strategy to keep a healthy profit margin.
4. List Products: Add your dropshipping products to your Amazon eCommerce store, including high-quality product images and descriptions. Remember to use relevant keywords and optimize your listings for search engines.
5. Order Fulfillment (Not Completely Passive): When a customer orders, you’ll need to forward the order details to your supplier. While dropshipping offers many advantages, it’s important to note that it’s not completely passive. You do need to put effort into managing orders, communicating with suppliers, and keeping customers happy. 

Fulfillment by Amazon (FBA)

Fulfillment by Amazon (Amazon FBA) lets you tap into Amazon’s huge logistics network with little effort on your part. Just send your products to their warehouses, and Amazon handles the rest when someone orders.

This includes packing, shipping, customer service, and handling returns. Amazon FBA frees up your time and resources to focus on growing your business, but there are some fees for storage and fulfillment.

Steps to start with FBA:

1. Choose Products: Select products with good sales potential to maximize your return on investment (ROI).
2. Create a Seller Account: Register as a seller and join Amazon FBA to unlock its benefits.
3. Send Inventory to Amazon: Ship your products to Amazon’s fulfillment centers, following their packaging and labeling guidelines. 
4. List Products: Add your products to your Amazon storefront with detailed descriptions and high-quality images. Remember to include relevant keywords and search terms in your product titles and listings to increase their visibility in search results.
5. Monitor Sales: Amazon takes care of the rest, including fulfillment, shipping, and customer service, letting you focus on growing your business with minimal maintenance.

FBA is a convenient and scalable solution for businesses looking to outsource fulfillment. It frees up time and resources to focus on other aspects of your business, like improving your Amazon storefront or marketing your products.

Amazon Influencer Program

The Amazon Influencer Program is designed for content creators with a solid social media following or a popular blog. It’s a great way to start making passive income by sharing Amazon products with your audience.

As an Amazon Influencer, you’ll pick out products you love and share them with your followers using a personalized URL. You earn a commission every time someone clicks your link and buys something on Amazon. It’s an easy way of making money, even when you’re not actively creating new, engaging content.

Steps to join the Amazon Influencer Program:

1. Qualify for the Program: Amazon will check how many followers you have on your YouTube, Instagram, Twitter, or Facebook accounts before giving you the green light. 
2. Create Your Storefront: Set up a personalized Amazon storefront to showcase your recommended products.
3. Promote Products: Share your storefront link and curated product recommendations with your followers in engaging ways.
4. Earn Commissions: Sit back and watch your earnings grow as you receive commissions on qualifying purchases made through your affiliate link, contributing to your passive income stream.

The Amazon Influencer Program provides a rewarding path to earning passive income by leveraging your existing audience and promoting products you believe in.

Amazon Associates Program

The Amazon Associates Program, one of the oldest and most established affiliate marketing programs, is a fantastic way to start generating passive income. 

Like the Influencer Program, Amazon Associates lets you promote products on your website, blog, or social media platform. You include affiliate links in your content, and whenever someone clicks through those links and makes a purchase on Amazon, you earn a commission.

Here’s how to get started:

1. Sign Up: Register for the Amazon Associates Program for free.
2. Create Content: Develop engaging content, like blog posts, videos, or a website, focused on specific products or niches that appeal to your target audience.  
3. Generate Affiliate Links: Use Amazon’s user-friendly tools to generate unique affiliate links for your recommended products.
4. Drive Traffic: Attract potential customers with high-quality content and affiliate links on your chosen platforms.
5. Earn Commissions: Sit back and watch your bank account grow as you earn commissions on qualifying purchases made through your affiliate links.

The Amazon Associates Program is a flexible way to earn passive income by promoting Amazon’s huge product range and trusted brand.

Amazon Kindle Direct Publishing (KDP)

KDP (Kindle Direct Publishing) is an excellent way to generate Amazon passive income by self-publishing your ebooks and print books.

Once you’ve written and formatted your book, KDP lets you self-publish on Amazon and other platforms, giving you access to a huge audience. 

Here’s how it works:

1. Write Your Book: Enjoy the creative process as you put your time and energy into crafting a book readers won’t be able to put down. 
2. Format Your Book: Format your manuscript following Amazon’s requirements for a professional look and enjoyable reading experience. While this might require some technical skills, tools and services are available to make it easier. You could even hire a freelancer on Fiverr to take care of this for you. 
3. Publish on KDP: Upload your manuscript and cover design to KDP for publishing.
4. Set Your Price and Earn Royalties: Choose your royalty plan (percentage of the sale price you earn) and set a competitive price to maximize your profits.
5. Promote Your Book (Optional): While promoting your book can significantly increase sales, it’s not essential for generating income on KDP. Once your book is published, readers can find it through Amazon’s search engine and browsing features. 

KDP lets you profit from your creative work long after it’s complete. With your book available on Amazon, you can generate Amazon passive income from royalties for years, all without the hassle of inventory or shipping.

Audible audiobooks

Wondering how to make passive income on Amazon from your books aside from publishing written versions? Create an Audiobook! 

Amazon’s Audiobook Creation Exchange (ACX), known as Audible, makes it easy to turn your written work into a new revenue stream with minimal ongoing management. It’s a great way to reach a broader audience that prefers listening to books over reading. The platform will even help you connect with narrators. 

Here’s how it works:

1. Create Your Audiobook: Write and record your audiobook. This is what will require the most time and effort. 
2. Upload to ACX: Upload your finished audiobook for publishing.
3. Set Your Price and Earn Royalties: Choose your pricing and royalty options through ACX. This determines how you’ll get paid. 
4. Promote (Optional): While promoting your audiobook can increase sales, you can still make money on Audible without it. Once your audiobook is uploaded and available, Audible will handle distribution and customer service.

With minimal ongoing effort, your audiobook can continue to earn money over time, offering an awesome passive income stream for writers. 

Amazon Music

Musicians can upload their music to Amazon Music and earn royalties whenever someone streams their songs. 

Here’s how to get started:

1. Create Your Music: Record high-quality music tracks that’ll get stuck in your listeners’ heads.
2. Connect With a Distributor: Use a music distributor that partners with Amazon Music.
3. Upload Your Music: Follow your distributor’s instructions to upload your music and ensure it’s available on Amazon Music.
4. Promote Your Music: Use social media and other platforms to drive traffic to your Amazon Music profile.

How to earn passive income on Amazon with Printify?

Here’s how to use Printify to open up passive income streams on Amazon by selling custom-designed merchandise.

1. Sign up for Printify: Create an account on Printify to access beginner-friendly design tools and a huge Catalog of over 900 popular products.
2. Design Products: Unleash your creativity and design unique products using our Product Creator or upload your own artwork.
3. Integrate and List: Printify has a direct integration with Amazon US, letting you connect your accounts for seamless listing and order fulfillment.

4. Fulfillment: Printify takes care of everything after a sale. Once a customer places an order, our Print Providers will print and ship each item directly to them. Opt into Printify Choice to get your customers the shortest shipping times and maximize your profits. 
5. Promote Your Products: Once your product listings are live, use social media marketing to attract organic traffic, partner with influencers to expand your reach, or set up Amazon cost-per-click (CPP) advertising to promote your products and generate sales.

Why choose POD to generate passive income?

Print on Demand is an excellent way to generate passive income for many reasons.

Automated order fulfillment

Say goodbye to managing inventory and shipping. With POD, the fulfillment process is entirely automated once you create your products and integrate your store. This means you can earn money without active involvement in order management, inventory, or shipping.

Low startup costs

POD has minimal upfront costs compared to traditional retail models. You don’t need to purchase inventory in advance, which reduces financial risk. 

You only pay for the product when a customer makes a purchase, making it accessible for anyone looking to start an online business with limited funds.

Extensive product Catalog

Printify offers over 900 customizable products, from apparel to home goods. This variety lets you cater to different niches and expand your product selection without additional overhead costs.

Final thoughts

Making passive income on Amazon in 2024 is a realistic and achievable goal with the right approach.

Earn extra income with little or no effort by starting an Amazon business doing Print on Demand, dropshipping, FBA, the Amazon Influencer Program, and other ideas we explored in this article.  

Printify makes generating passive income easier than ever with Print on Demand, offering automated fulfillment, low startup costs, and a broad product range. Build a business that works for you – even while you sleep.

Tap into Amazon’s massive marketplace and business opportunities to create a sustainable and profitable passive income stream.