seller
- What changed
- Eight ways to earn through Amazon, compared
- When
- Updated October 2026
- Who it affects
- New sellers, creators and existing businesses
- What to do
- Pick one model that fits your capital and skills, then test small
Key takeaways
- Choose a model by the capital, time and skills you have, not by income claims.
- Product sellers pay a plan fee plus referral fees of 5% to 45%, and FBA fees if used.
- Start small, track profit after every fee, and scale only what works.
Amazon business models compared
| Capital | Effort | Risk | |
|---|---|---|---|
| Private label | High | High | High |
| Wholesale | Medium to high | Medium | Medium |
| Arbitrage | Low to medium | High | Medium |
| KDP | Low | Medium | Low |
| Merch on Demand | Very low | Medium | Low |
| Associates | Very low | High | Low |
| Handmade | Low | High | Low |
| Services | Low | High | Medium |
Start with honest expectations and real fees
Amazon is a marketplace, not a money machine. Every model below has costs, competition and failure rates, and earnings vary widely. You will see income claims online; ignore any that do not show costs, fees and time. The right question is which model fits the capital you can risk, the hours you have and the skills you already own. Our guide on is selling on Amazon worth it covers the trade offs in more depth.
If you sell physical products, you choose a selling plan. Amazon's Individual plan costs $0.99 per item sold; the Professional plan costs $39.99 a month plus selling fees and unlocks bulk tools, Amazon Ads and Automate Pricing. Referral fees are a percentage of the total price, from 5% to 45% depending on category, with many categories carrying a $0.30 minimum. FBA fees apply if Amazon stores and ships your stock. Amazon also advertises incentives for new sellers and new to Amazon brands, so check current offers when you register.
Amazon selling costs
1. Private label: build your own brand
You design or customise a product, have it manufactured, and sell it under your own brand. It needs the most capital, for inventory, samples, images and launch advertising, and carries inventory risk if the product does not sell. In return you control the listing and price, can register a trademark and join Brand Registry, and build an asset that can be sold later. Read our Amazon private label guide before ordering stock.
2. Wholesale: resell established brands
You buy branded products in bulk from the brand or an authorised distributor and resell them on existing listings. There is no product development, but margins are thinner, you compete with other sellers for the Featured Offer, and some brands and categories need approval. Supplier relationships are the real asset. See Amazon wholesale for how to open accounts.
3. Retail and online arbitrage
You buy discounted products from stores or websites and resell them on Amazon for more. It needs little capital to start and teaches the marketplace quickly, but it is hard to scale, margins move fast, and invoices from retail stores may not satisfy Amazon if a brand complains. Treat it as a learning route. Our Amazon reselling guide explains the risks.
4 and 5. KDP and Merch on Demand: creative routes
Kindle Direct Publishing lets you publish ebooks and print books for free. On Amazon.com, the 70% ebook royalty option applies to list prices from $2.99 to $12.99, a range Amazon widened from $9.99 effective July 7, 2026; other prices earn 35%. The investment is mainly your time, editing and cover design. Most books sell few copies, so series, niches and marketing matter. See how to sell ebooks on Amazon.
Merch on Demand works for designers. You upload artwork, choose product types and colours, and Amazon creates the product page and sells the item with its shipping and customer service. Amazon describes it as having no out of pocket costs. Your royalty is based on the price minus tax and Amazon's costs. The program uses an application and a tier system, and design rights and trademark rules are strictly enforced.
6. Amazon Associates
Associates pays website owners and creators a commission when shoppers buy after clicking their links. You need no inventory, but you need an audience: a site, channel or social account with original content. Commission rates vary by category and are published by Amazon, and new accounts must make qualifying sales to be reviewed. Our Amazon affiliate program guide covers rates and rules.
7. Amazon Handmade
Handmade is for makers whose products are handcrafted, hand altered, hand designed, repurposed or upcycled. You apply, and once approved Amazon waives the $39.99 Professional plan fee after the first month. The referral fee is 15% or $0.30, whichever is greater. Custom or personalised items must be fulfilled by the seller, not FBA. Capital needs are low, but income is limited by how much you can make.
8. Selling services to Amazon sellers
Every Amazon seller needs listings, images, advertising, bookkeeping and logistics. If you have a skill, such as photography, copywriting, PPC or accounting, you can sell it to sellers as a freelancer or agency. Amazon's Service Provider Network lists vetted providers that sellers can find through Seller Central. Capital needs are low; the challenge is winning and keeping clients.
Which model should you choose?
Match the model to what you have. If you have capital and patience, private label builds the most durable business. If you have supplier access, wholesale is faster. If you have writing or design skills, KDP and Merch cost little to test. If you have an audience, Associates fits. If you have a craft, Handmade is built for you. Whatever you choose, start small, track profit after every fee and grow what works. Our how to start an Amazon business guide covers setup.
- Most capital: private label, then wholesale
- Least capital: Associates, KDP, Merch, services
- Most control over price: private label, Handmade
- Fastest to learn: arbitrage
| Needs inventory | No inventory | |
|---|---|---|
| Private label | ||
| Wholesale and arbitrage | ||
| KDP and Merch on Demand | ||
| Associates and services |
Handmade needs materials but not bulk stock.
Where PPC Spider helps
PPC Spider works with product sellers and brands. Our Amazon account management service runs listings, ads and inventory, with target ACoS set from margin after fees and SpiderOS monitoring bids, budgets, search terms and stock. Already selling? A free Amazon audit shows where profit is leaking.
Sources
- Amazon: Selling plans and fees (sell.amazon.com/pricing)
- Amazon: Amazon Handmade (sell.amazon.com/programs/handmade)
- Amazon KDP: eBook royalty options (kdp.amazon.com/en_US/help/topic/G200634560)
- Amazon Developer: Amazon Merch on Demand (developer.amazon.com/apps-and-games/merch)
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