There are about 2 million active sellers on the platform, and over 60% of them are small and medium-sized businesses. Earning on Amazon is real, but DiFFreight experts will tell you the truth about starting out. We’ll review the most popular strategies, discuss how much you need to invest, and how to “set up” sales on the marketplace.
A brief analysis of the main models — how they work, how much investment is needed to launch, and what kind of profit to expect.
This strategy involves reselling by purchasing products from other online stores. The profit is made from the price difference — you buy cheap, sell at a higher price. Key points of arbitrage:
The minimum margin should be 10%. Although the model doesn’t require large investments (some start with $500), it’s unstable. You might lose your supplier due to rising prices, get restricted by Amazon, or spend too much time searching for the right product.
Average income from online arbitrage: $1000–5000.
This is a classic trading model. You find a supplier, buy at wholesale prices, and sell with your markup on the marketplace. Unlike arbitrage, you buy directly from suppliers or large wholesalers.
Key points:
Average profit is high — from $5000 and above.
This means launching your own brand — you list products created based on your designs and specifications, or brand pre-made samples. Manufacturing in China is usually the most profitable.
Key features of this model:
Average income on Amazon: $1000 to $25,000.
Dropshipping is possible if you are the seller of record. That means all invoices and packing slips must be in your name. Dropshipping involves the supplier sending goods directly to the customer. Your business doesn’t invest in purchasing, storing, or delivering the product.
But there are several nuances:
It’s the easiest model to start, as it requires virtually no investment. However, due to its limitations and challenges, it’s not ideal for beginners.
Average profit: $1000–5000.
Where beginner entrepreneurs usually get burned:
It’s hard for newcomers to compete in saturated niches with strong competitors. Price dumping without considering all expenses leads to losses or, at best, breaking even.
New business owners may not factor in all the costs — especially Amazon’s numerous fees (referral, FBA storage, picking and packing), and return costs. Capital may run out before the product becomes profitable.
Unprofessional, poor-quality, and uninformative images or renders drastically reduce conversion rates. You also need to optimize the text description to answer all customer questions while ranking well with keywords and relevant terms.
Beginners often lack a clear plan to encourage customers to leave reviews, which slows down sales growth and reduces Amazon's income.
The platform has very strict rules for sellers, which you accept upon registration. Violations result in immediate bans with no chance of recovery.
Many start with the idea of making “easy money.” But selling on Amazon is a multifaceted business that includes market analysis, advertising campaigns, and investment.
This is a common and dangerous mistake. The desire to "beat" competitors will quickly reduce your margin to zero, and in the long run — lead to losses. Instead, focus on brand image, finding unique products, and selling them at competitive yet profitable prices.
Earning on Amazon is not instant: around 64% of sellers become profitable within 12 months. It's a full-fledged business that requires time, effort, and investment.
The answer to the question “How to make money on Amazon without investment?” is clear — you can’t. Dropshipping is very risky, and for product-based business models, you need at least $500–800 to start. A separate budget is required for marketing, Amazon fulfillment services, and other expenses.
But with the right approach, launching is worth it! It’s a stable market with 100 million buyers, mainly in the U.S., and around 45 million in the EU. That’s why shipping goods from Ukraine to Europe is important if you’re targeting the European market.
Use DiFFreight’s services:
Making money on Amazon is more than real, but a successful start requires initial capital. Investments in product sales pay off if you choose the right niche, understand your target audience, run ads, and work on gathering positive reviews to raise your ranking. Trust logistics to professionals — DiFFreight knows everything about selling on Amazon!
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