How to Invest in Amazon and Earn Money: Minimum Amount, Taxes & Returns
Amazon’s stock, traded under the ticker AMZN, gives investors direct ownership in the company and exposure to its financial performance.
Amazon generates revenue from
- E-commerce
- Third-party seller services
- Advertising
- Subscriptions, and
- Amazon Web Services.
Its stock price reflects investor expectations about the company’s future earnings and growth, as well as broader market conditions.
How to Buy Amazon Stock: Step by Step
You can purchase shares through a brokerage account, and you don’t need enough money to buy a full share if your broker supports fractional investing.
Step 1. Open a brokerage account
You first need to open a brokerage account with a broker such as
- Fidelity
- Charles Schwab
- Robinhood, or
- Another brokerage that lets you trade U.S. stocks.
Step 2. Deposit money into your account
Once your account is approved, transfer money into it from your bank.
You don’t necessarily need enough money to purchase one whole Amazon share.
If your broker supports fractional shares, you can invest a specific dollar amount instead.
For example, you could invest $100 or $500 in Amazon rather than buying a whole share. Fidelity and Charles Schwab currently offer fractional investing in eligible U.S.-listed stocks, while Robinhood also supports dollar-based fractional purchases.
Step 3. Search for Amazon’s stock
Log in to your brokerage account and search for Amazon or its ticker symbol, AMZN.
Before placing your order, make sure you’re selecting the correct security.
Step 4. Decide how much Amazon stock you want to buy
You can generally enter either the number of shares you want or, if your broker supports it, the dollar amount you want to invest.
Step 5. Choose your order type
You’ll usually have a choice between a market order and a limit order.
| Order Type | What It Means | Example |
|---|---|---|
| Market Order | Buy at the best available price now. | AMZN is $225. You place an order, and it fills at $225.10. |
| Limit Order | Buy only at your maximum price or lower. | AMZN is $225. You set a $220 limit, so it buys only at $220 or less. |
Step 6. Review your order
Before you submit the trade, check the details carefully.
Make sure:
- Ticker says AMZN
- Verify the number of shares or dollar amount
- Review the order type and price
- Confirm that you’re using the correct brokerage account.
Step 7. Submit your Amazon stock purchase
Once everything looks correct, submit the order.
If you’re using a market order during regular trading hours, it will generally be sent for execution as soon as possible.
A limit order may remain pending until Amazon’s stock reaches your specified price.
Ways to Earn From Amazon Stock
Amazon investors can potentially earn money from AMZN through several strategies, from simply holding shares to using options.
| Way to Earn | How You Make Money | Example |
|---|---|---|
| Capital Gains | Sell AMZN shares for more than you paid. | Buy at $200, sell at $250 = $50 gain per share. |
| Call Options | Profit if a call increases in value as AMZN rises. | Buy a call for $500; sell it later for $800 = $300 profit. |
| Put Options | Profit if a put increases in value as AMZN falls. | Buy a put for $400; sell it later for $600 = $200 profit. |
| Covered Calls | Collect premiums by selling calls against your AMZN shares. | Sell a call and collect a $300 premium. |
| Dividends | Earn cash payments from Amazon. | No current dividend from AMZN. |
| Short Selling | Profit if AMZN falls after you sell borrowed shares. | Short at $200, buy back at $150 = $50 gain per share. |
For most investors, buying and holding shares focuses on potential stock-price appreciation, while options and short selling use more complex strategies with different payoff structures.
How Much Money Do You Need to Invest in Amazon?
Most major brokers now charge $0 on stock/ETF trades, including Amazon.
Some brokers may still charge $5–$10 per trade; always check.
Buying fractional shares is typically free.
| Cost | What You’ll Pay | Example |
|---|---|---|
| Trading Commission | Often $0 at major brokers | Buy $500 of AMZN → $0 commission |
| Fractional Shares | Depends on the broker | Invest $50 instead of buying a full share |
| Account Minimum | Often $0 | Open a brokerage account with no initial deposit |
| Bid-Ask Spread | Usually a small difference between buy and sell prices | $225.00 bid / $225.02 ask = $0.02 spread |
| Other Fees | Depends on your broker | Transfer or regulatory fees may apply |
Are You Taxed on Your Amazon Stocks?
Yes, but generally not just for owning Amazon stock.
| Amazon Stock | Taxed? | How It Works |
|---|---|---|
| Buy Amazon Shares | No | Buying shares isn’t taxable |
| Hold Shares as They Rise | No | Unrealized gains generally aren’t taxed |
| Sell Shares for a Profit | Yes | Capital gains tax may apply |
| Sell Within 1 Year | Yes | Generally taxed as short-term gains |
| Sell After 1 Year | Yes | May qualify for lower long-term rates |
| Receive Dividends | Yes | Dividends may be taxable |
In a taxable brokerage account, you typically owe tax when you sell Amazon shares for a profit or receive taxable dividends.
Selling after more than one year may qualify the gain for long-term capital gains tax rates.
| Tax Topic | What It Means | Example |
|---|---|---|
| Capital gains | Sell AMZN for more than you paid → you may owe capital gains tax. | Buy for $10,000, sell for $13,000 → $3,000 gain |
| Holding period | More than 1 year generally means long-term; 1 year or less generally means short-term. | Hold AMZN for 2 years → long-term gain |
| Selling at a loss | Losses can offset gains. Up to $3,000 of excess net losses can generally offset ordinary income. | $5,000 gain − $7,000 loss → $2,000 net loss |
| Wash sale | Selling at a loss and buying substantially identical securities within 30 days can prevent you from deducting the loss immediately. | Sell AMZN at a loss, then buy it back within 30 days → wash-sale rules may apply |
| Dividends | Amazon does not currently pay a regular dividend. | Own AMZN → no Amazon dividend income |
| 1099-B | Your broker reports relevant stock-sale information, including proceeds and cost basis, on Form 1099-B. | Sell AMZN → check your 1099-B for the transaction |
| Retirement accounts | Taxes work differently inside accounts such as IRAs and 401(k)s. | Sell AMZN inside an IRA → the sale generally isn’t taxed as a capital gain at that time |
AMAZN Historical Stock Price
Amazon’s share price has historically grown dramatically. It often delivered double-digit annual gains, albeit with significant volatility.
Long-term, U.S. stock market returns average roughly 7–10% per year, and Amazon, as a high-growth tech leader, has outperformed the broad market over many decades.
Amazon Stock Performance Over the Past 10 Years
AMZN annual stock returns, 2017 through 2026 year-to-date
Source: Historical AMZN annual return data. 2026 is year-to-date through September 16, 2026.
Amazon Stock vs. Amazon ETFs vs Other ETFs
Amazon stock gives you direct exposure to one company, while an ETF can give you exposure to Amazon alongside other investments.
| Investment | Ticker | Amazon Exposure | Fee | Main Trade-Off |
|---|---|---|---|---|
| Amazon Stock | AMZN | 100% | None | Higher single-stock risk |
| SPDR S&P 500 ETF | SPY | 3.7% | 0.0945% | Less direct Amazon exposure |
| Vanguard S&P 500 ETF | VOO | 3.6% | 0.03% | Less direct Amazon exposure |
| Invesco QQQ ETF | QQQ | Varies | 0.18% | More concentrated in large Nasdaq companies |
| Vanguard Total Stock Market ETF | VTI | 3.2% | 0.03% | Amazon is a smaller part of the portfolio |
| ARK Next Generation Internet ETF | ARKW | 3.8% | 0.76% | Higher fee and more concentrated |
The main difference is that an Amazon investment through an ETF represents only a portion of the fund’s portfolio, while AMZN represents direct exposure to Amazon’s stock price.
How to Sell Amazon Stock and Take Your Profit
- Log in to your brokerage account.
- Find your Amazon shares (AMZN).
- Select Sell and enter the number of shares.
- Choose a market or limit order.
- Review the order and submit it.
- Confirm that the sale was executed.
- Check your cost basis and calculate your taxable gain.
- Report the sale on your tax return if required.
The money from the sale can remain in your brokerage account or be transferred to your bank account, depending on your broker.
Buying Amazon (AMZN) Stock FAQ
No. Amazon does not currently pay a cash dividend and has historically reinvested its earnings in the business.
Amazon completed a 20-for-1 stock split in June 2022.
Yes. Many brokers allow you to buy fractional shares of Amazon, so you can invest less than the price of one full share.
A market order buys at the available market price, while a limit order lets you set the maximum price you are willing to pay.
Amazon can experience larger price swings than broad market indexes such as the S&P 500, particularly around company news and earnings.
Your broker generally provides Form 1099-B showing the sale, which is typically reported on Form 8949 and Schedule D.
Buying Amazon directly gives you exposure to one company, while an ETF provides exposure to Amazon along with other investments.
Yes. Amazon stock and eligible ETFs can generally be held in accounts such as IRAs and 401(k)s, subject to the account’s investment options.
Issuing additional shares can dilute existing shareholders because each share would represent a smaller percentage of the company.
You can track Amazon’s share price, earnings reports, company news, and other information through your brokerage or financial websites.
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