Amazon’s Profit Hubs

Amazon has many different revenue streams that have made it one of the most profitable online businesses in history. Their strategies have made them the powerhouse they are today.

Let’s take a look at some of the different revenue models Amazon have developed, and how you can use them to your advantage.


Amazon Prime



Amazon Prime is a program Amazon debuted a few years ago. Initially, the program’s primary advantage to customers was tremendous savings on shipping costs on products sold by Amazon.com, but it has evolved to offer other benefits as well.

The program lets people get overnight shipping for $3.99 per item, and 2-day shipping FREE! An Amazon Prime membership costs $79 per year, but considering overnight shipping can cost $20 or more for a single item without an Amazon Prime membership, the savings can add up quickly.

One thing that makes Amazon Prime so powerful is that people tend to order a lot more from Amazon once they become a member. It’s hard to order an item from another retailer when standard shipping from that retailer would potentially be $7-$10 and the item would take a week to arrive, when you could get FREE shipping and have the item in two days or $3.99 and have it in 24 hours. This means Amazon Prime members are prone to do most, if not all of their online shopping with Amazon instead of their competitors.

But Prime members get other benefits, as well. Amazon keeps adding new benefits regularly. Here are a few of the current benefits of Amazon Prime

membership:


1. Access to thousands of streaming television episodes and movies included with membership. Currently, Prime Members have over 38,000 episodes and movies to choose from.
2. The ability to borrow one Kindle book each month for free.
3. Free 2-day shipping on millions of different items.
4. Overnight shipping for $3.99 per item.


These benefits alone could be worth thousands of dollars, so you can see why so many people pay $79 per year to receive them.

While you can’t make money directly from the Amazon Prime program, it will benefit you enormously by making it much easier to get people to buy the things you are selling, because many people (especially Prime members) will already be loyal to the company.


Kindle Direct Publishing (KDP)


One of the most popular programs Amazon has developed in recent years is their KDP program. KDP stands for Kindle Direct publishing. Their program allows authors and publishers to make their content available for sale through the Kindle platform and receive huge commissions on sales.

There are two commission structures:


1. Earn 70% commission on products between $2.99 and $9.99.
2. Earn 35% commission on products between $0.99 and $2.98 and on products $10 and up.

As you can see, the most lucrative prices for your books would be between $2.99 and $9.99, but if you’re interested in bulk sales you could certainly price at $0.99. Just remember that you would have to sell six books at $0.99 to get paid as much as a single sale at $2.99.

You can publish nearly anything on the KDP platform. Here are some examples of products people publish on Amazon:

Short stories and story collections
Children’s picture books
Cookbooks
How-to books
Novels
Poetry collections

Amazon does have fairly strict quality standards, but perhaps not as strict as you might expect. They don’t really pay a lot of attention to the quality of the story or the content itself, but they do care about things such as formatting, length, spelling and grammar. Don’t expect to publish a 5-page report full of typos and get away with it.

Once you publish something on the platform, it will be available to anyone who has a Kindle device, as well as anyone who downloads the Kindle app to their computer or mobile device. The Kindle app is available for both Mac and PC computers, as well as many different devices including iOS (for iPad and iPhone)

and Android.


When people purchase your publication, Amazon will give you a commission. Commissions are paid monthly approximately 60 days after the end of the pay period. So it will be a couple of months before you receive your first payment, but you’ll receive payments monthly after that.


CreateSpace


Amazon also has a program that will enable you to publish your content in print format, as well. This program is called CreateSpace, and it will let you choose from a variety of different paperback sizes and then publish your content in print.

While most people don’t earn as much money with their printed material as they do digital, making your content available in print helps expand your reach to those who prefer printed material, which can increase your visibility considerably.


Amazon Advantage


If you have content you have already published in a physical format somewhere other than Amazon, you can use the Amazon Advantage program to sell it through the Amazon website. This program costs $29.95 per year plus a 55% royalty to Amazon for every sale. However, taking advantage of this program could drastically increase your visibility and it could be well worth it to get such a lucrative new distribution channel.

In order to qualify for the Amazon Advantage program, your content must:


1. Be in physical format, not digital. (Example, CDs, DVDs, printed books, etc.)
2. Have a scannable ISBN/EAN/UPC barcode.


Amazon WebStores


Amazon now makes it easier than ever to open your own e-commerce store without having to spend a fortune doing so. With Amazon WebStores, you can open your own online store quickly and easily at a cost of between $9.99 and
$49.99 per month plus a small commission on sales. For this fee, you can create as many stores on Amazon as you like, and you can even supplement your offerings with products from Amazon’s own catalog if you like.


Amazon aStores


If you don’t have your own product(s) to sell on your website or on an Amazon WebStore, you can still have your own e-commerce site by selling Amazon products as an affiliate through an Amazon aStore.

Setting up an aStore is very simple as an affiliate. You just choose some design aspects, choose products, and you get a link to your aStore you can send people to. You earn a commission on sales just like any affiliate.

Amazon’s Profit Hubs Amazon’s Profit Hubs Reviewed by mahmoud ali on July 26, 2020 Rating: 5

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