Amazon Prime is a membership program that offers buyers a variety of perks. More than 200 million customers in the US are Prime members.

Having the Prime badge on your listings as a seller allows you to leverage that extensive membership base, and using FBA will automatically qualify you. It is undeniably one of the best ways to sell on Amazon, and if you don’t outsource your fulfillment to FBA, you can still opt for Seller-Fulfilled Prime (SFP).

The pros for sellers: FBA automatically qualifies you. SFP allows you to fulfill orders yourself and still earn the Prime badge. Having that badge opens up your items to buyers looking to maximize their membership.

The cons for sellers: SFP is a tightly regulated program and you need to prove yourself. There is a waiting list to join, and a trial period – the length of which is not specified. Your Prime badge is applied to your listings after that period, and after you have met certain criteria.

Fulfillment by Amazon (FBA) and Multi-Channel Fulfilment (MCF)

FBA and MCF are two fulfillment programs by Amazon. Both allow sellers to outsource any or all of their fulfillment to the Amazon network and customer services team.

FBA is for Amazon sellers. MCF is for non-Amazon sellers.

The pros for sellers: An expert team with a far-reaching fulfillment network is handling your shipping for you. Customers get access to super-fast shipping times and any returns or complaints are handled by the Amazon customer service team.

The cons for sellers: Estimating and tracking the fees involved can be a challenge. You also need to pay to get the items to fulfillment centers, so understanding the costs involved and their impact on your profit margins is essential to ensure outsourcing to Amazon is still profitable.

Amazon Associates

Amazon Associates is the platform’s affiliate program. If you’re wondering how to make money on Amazon without selling on the platform, this could be it.

If you’re a content creator or blogger keen to make some cash sending readers to Amazon products, you’ll need to sign up with an Amazon account here. By joining the Amazon Associates program, you can sell Amazon products on your own website via affiliate links.

Amazon Vendors

Some sellers might be more interested in how to sell to Amazon directly, as a supplier. Amazon vendors have to start life as sellers on the platform first, earning a reputation and learning the systems before Amazon will consider them as a supplier.

The pros for sellers: You can sell through Amazon without dealing with customers – just the platform itself.

The cons for sellers: You need to earn a reputation as a seller first and be invited by Amazon. You then need to meet its requirements and are subject to its own rates. You can negotiate, but Amazon will ultimately have control.

Amazon Web Services (AWS)

Amazon Web Services is a cloud software service that powers some of the largest digital brands in the world, including Netflix, Facebook, LinkedIn, BBC, and ESPN.

If you are interested in designing your own software, app, or cloud service as another way to make money on Amazon, then AWS could facilitate this.