How to Start Earning Passive Income on Amazon with Ease

In 2025, the concept of passive income has evolved from a distant dream to a tangible financial strategy that anyone can pursue. The digital era has opened up numerous opportunities for people to earn money passively, offering flexibility and financial freedom.

Whether you're looking to supplement your income or eventually replace your day job, the possibilities are endless. This article delves into the best ways to make passive money on Amazon and methods to start building your own automated income streams.

7 of the Best Ways to Make Passive Money on Amazon

The beauty of passive income is that once you set it up, you’ll continue to generate revenue with minimal ongoing effort. In this section, we’ll explore seven of the best methods to make passive money on Amazon. Each method has own its unique advantages, and with the right tools and strategy, you can build a sustainable income stream that works for you.

1. Amazon FBA (Fulfillment by Amazon)

Amazon FBA allows sellers to store their products in Amazon's fulfillment centers, where Amazon handles all aspects of storage, packaging, and shipping for you. FBA is an ideal way for entrepreneurs to scale their businesses without having to worry about logistics or customer service.

The pros of making passive money with Amazon FBA:

Amazon takes care of storage, packing, and shipping, freeing you up to focus on other aspects of your business.
You can tap into Amazon’s vast customer base, which is one of the largest e-commerce platforms in the world.
Sellers can benefit from Amazon's reputation for reliability and customer service.

The cons:

FBA requires an upfront investment in inventory, which can be risky.
You must account for all storage and shipping fees, which can eat into your profits.
There's competition in many product categories, which means you'll need to optimize your listings and marketing strategies effectively.

Amazon FBA is a powerful option for anyone who’s looking to scale their business without the headaches of logistics and customer service. Although it requires an upfront investment, (especially for inventory), once it’s set up, FBA can provide a steady stream of passive income. With the right product optimization strategies and research tools offered by Jungle Scout, Helium 10, AMZScout, and SellerApp, you can continue to generate revenue while Amazon handles the heavy lifting.

2. Amazon KDP (Kindle Direct Publishing)

With Amazon KDP, you can publish e-books, paperbacks, and even audiobooks on Amazon’s Kindle platform. This method allows authors to publish their own works without the need for traditional publishers or costly printing services.

The pros of using Amazon KDP:

You don’t need to manage any physical inventory, and Amazon takes care of all printing and distribution.
You set the price, and Amazon pays you a royalty for each sale, which can become a stream of passive income once your book gains traction.
E-books are easy to update, allowing you to make improvements or revisions as needed.

The cons:

The market is saturated, so it can be hard to stand out without proper marketing efforts.
Writing and publishing a book can take time, making this a slower route to generating income compared to some other methods.
Your royalties depend on sales of your book, which means earnings can be unpredictable.

The beauty of this method lies in its scalability and the fact that you don't need any inventory or a physical storefront. If you have a passion for writing or expertise in a specific area, KDP allows you to publish quickly and begin earning royalties. Success requires dedication to creating quality content and ongoing marketing efforts, but the potential for passive income through book sales is significant.

3. Merch by Amazon

Merch by Amazon is a platform that allows you to upload your own designs for T-shirts, hoodies, and other apparel. Amazon then handles production, shipping, and customer service, leaving you to focus on creating designs.

The pros of Merch by Amazon:

You don’t need to manage any inventory or shipping logistics.
Once your design is uploaded, you can earn royalties passively each time your product sells.
Merch by Amazon offers a wide variety of products, so you can cater to different niches and customer preferences.

The cons:

You need to create unique, high-quality designs that appeal to Amazon's vast audience.
There’s a lot of competition, so it can be challenging to gain visibility without a solid marketing plan.
Each royalty per sale can be low, and scaling up requires substantial volume.

Merch by Amazon offers a creative and profitable opportunity for designers. If you have a flair for graphic design or can tap into trending themes, this program allows you to create apparel with minimal effort. While competition can be fierce, with consistent high-quality designs, you can build a passive income stream that grows over time.

4. Amazon Affiliate Program (Amazon Associates)

The Amazon Affiliate Program allows you to earn commissions by promoting products listed on Amazon. You can share affiliate links through your blog, social media, or YouTube channel to earn a percentage of each sale made through your referral.

The pros of The Amazon Affiliate Program:

You don’t need to create or manage any products.
You earn commissions for sales made through your referral links.
There’s no cost to join, and it can be done from anywhere with an internet connection.

The cons:

Commission rates vary by product category and can be quite low, so it can take a significant amount of traffic to generate substantial income.
You need a platform (blog, website, or social media) to share your links and drive traffic.
The Amazon Affiliate Program has specific rules and restrictions on how you can promote products.

If you have a website, blog, or social media following, affiliate marketing allows you to monetize your content without the need for product creation or management. Although the commission rates can be low, the key to success lies in driving traffic to your referral links. With a targeted approach, you can create a steady stream of affiliate revenue with little ongoing effort.

5. Selling Digital Products

Instead of selling physical products, you can offer digital items through Amazon like printables, templates, or guides. Digital products don’t require inventory management, which makes them an ideal option for creating a source of passive income.

The pros of selling digital products:

There's no physical inventory or shipping involved.
Once they’re created, digital products can be sold infinitely, providing a truly passive income stream.
You have complete control over your pricing and product offerings.

The cons:

The market for digital products can be crowded, so you need to create high-quality items that stand out.
Marketing your products is key, as simply listing them on Amazon doesn’t guarantee sales.
You need to create a variety of products to build a consistent income stream.
Selling digital products through Amazon allows you to generate income without having to manage any inventory or fulfillment. The key is to identify a market need and create high-quality products that people are willing to pay for. Whether it’s printables, templates, or guide jobs, this method offers a scalable and profitable way to earn money passively on Amazon.

6. Amazon Audible & ACX (Audiobook Creation Exchange)

With Audible and ACX, you can create and sell audiobooks through Amazon's Audible platform. You can either narrate your own book or hire professional narrators to create a polished audiobook.

The pros of Audible and ACX:

The audiobook market is growing, and selling through Audible allows you to tap into a large, dedicated audience.
Once they’re produced, audiobooks can generate revenue passively as long as they remain available for sale.
Audible pays you royalties on a per-sale or per-listen basis.

The cons:

The process of creating a high-quality audiobook can be time-consuming and require an upfront investment in equipment or professional services.
You may face competition from other established authors, making it difficult to stand out.
Royalties can vary, depending on the distribution rights you select.

With the growing popularity of audiobooks, Audible and ACX provide a unique opportunity to earn passive income by creating and selling audiobooks. Whether you choose to narrate your own book or hire a professional, audiobooks have the potential for long-term residual income.

7. Amazon Handmade

Amazon Handmade is a marketplace where artisans can sell handcrafted goods like jewelry, home décor items, and accessories. This is a great alternative for creators who want to sell their products without managing a full e-commerce store.

The pros of Amazon Handmade:

Amazon provides exposure to a massive audience, increasing your visibility.
You can focus on creating unique, handmade items while Amazon handles your shipping and customer service.
No need to manage a separate website or platform.

The cons:

Competition with other artisans can be fierce, especially in popular categories.
Handmade products often have lower profit margins than mass-produced items, so you need to price your goods carefully.
Amazon charges fees for listing and selling on their platform, which can reduce your profits.

Amazon Handmade offers a fantastic platform for artisans who want to sell their handcrafted goods on a global scale. While you need to create and manage your own inventory, Handmade allows you to tap into the growing market for unique, handcrafted products. With the right marketing and unique offerings, you can build a sustainable and profitable business on Amazon Handmade.

In case you have any additional questions, we’ve answered some common ones below.

FAQs

How can I make money on Amazon without selling anything?

You can earn passive income on Amazon without selling physical products by utilizing the Amazon Affiliate Program, Kindle Direct Publishing, or creating audiobooks through Audible. These options allow you to earn commissions or royalties from referrals and content creation.

Can I really make passive income on Amazon?

Yes, it’s entirely possible to generate passive income on Amazon. However, it often requires initial effort when setting up your business, creating high-quality products, and driving traffic. Once you have systems in place, your income can become more passive and automated over time.

How can I make money on Amazon from home?

All of the methods mentioned above can be done from home. Whether you're publishing e-books, creating designs for merchandise, or promoting products as an affiliate, you can run your Amazon business remotely with just an internet connection.

Can you tell me how to make passive income on Amazon without selling any physical products?

To earn a passive income on Amazon without selling any physical goods, you can focus on digital products (e-books, templates, audiobooks), or affiliate marketing, where you promote existing products and earn commissions on sales.

Conclusion

Tracking Amazon price history is essential for making informed purchasing decisions. By using specialized tools like JungleScout, AMZScout, and SellerApp, you can view historical pricing trends, track fluctuations, and identify the lowest prices over time. Whether you're a seller who’s looking to optimize your pricing strategy or a buyer who’s searching for the best deal, these tools will help you stay ahead of the market.

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