Reselling On Amazon: A Comprehensive Guide On Buy From Amazon and Resell
Amazon is a vast marketplace, and it offers a great opportunity for resellers to create a solid source of revenue. With the rising popularity and competition, it is essential to learn how to buy from Amazon and resell the products to make a good profit. You have to research several aspects of your business, from planning and proper setup to stand your ground in the competitive domain of reselling on Amazon.
There are several steps involved in the whole business of reselling from Amazon, which can easily overwhelm the new entrepreneurs. However, in this guide, we have explained everything in detail so that you get answers to all your queries related to buying from Amazon and reselling.
So, without any further ado, let us dive into the exhaustive guide.
Who is an Amazon Reseller?
An Amazon reseller, often referred to as an “Amazon third-party seller,” is an individual or a business entity that uses the Amazon platform to sell products to consumers. These resellers source products from various suppliers, including manufacturers, wholesalers, or distributors, and then list those products for sale on Amazon’s marketplace. Amazon provides multiple selling options, including Seller Central and Fulfillment by Amazon (FBA).
Amazon resellers can follow different business models. Some purchase products in bulk and store them in their own facilities or use Amazon’s FBA service to handle storage, shipping, and customer service. Others may engage in dropshipping, where they list products on Amazon without physically handling inventory. When a customer places an order, the reseller purchases the product from a third-party supplier who ships it directly to the customer.
Success in reselling Amazon products depends on various factors, including product selection, pricing, marketing, and customer service. There are several resellers use Amazon as a platform to reach a wide audience and tap into the e-commerce giant’s extensive customer base, making it a popular choice for entrepreneurs and businesses looking to expand their online presence.
How To Become An Amazon Reseller?
Can you resell Amazon Products? A hot burning question in the minds of several entrepreneurs looking to leverage the power of this platform to widen their reach. In this section, we will explain all the steps that you need to follow to become an Amazon Reseller.
Step 1: Research About The Products For Reselling On Amazon
The first step on the road of reselling from Amazon is to research the products that you are going to target for reselling. It depends on the deals that you are able to grab for the products. However, it is vital to look into proper research data before picking the product type because some products are highly competitive and pretty hard to sell.
Even if you are offering a highly lucrative deal while reselling Amazon products, you have to make sure that customers buy your products and that you go through actual sales. If you are not able to sell the products at the end of the day, you are going to lose money while reselling on Amazon or any other marketplace.
There are several online tools that you can use to research the products and pick the type that you find attractive. Make sure you are in the reselling business to make a profit, so plan your strategy according to it while researching everything.
Step 2: Complete The Registration Process Of The Amazon Seller
Once you have completed your research, it is time to sign up as an Amazon seller. You can click here to directly visit the official site to start the process. There are two ways to progress further in the registration process. Let us discuss their details properly.
- Register As A Professional Seller
When you click on the sign-up button, you can register as a professional seller, which will cost you 39.99 dollars per month. The subscription comes with several excellent tools and features that will give you an edge over your competitors.
- Register As An Individual Seller
You can register as an individual seller without spending even a single penny from your pockets. The account is completely free. However, you will not have access to the premium tools and features of the Amazon seller platform. Moreover, you have to pay a fee of 0.99 dollars every time you sell an item on Amazon through this account.
If you are a beginner, then you can opt for the individual account and get familiar with everything. However, if you are able to resell 30 to 50 items on Amazon, then you can switch to a professional account and reap better benefits.
Step 3: Find Suppliers And Stores For Your Products
There are different ways for reselling on Amazon, like arbitrage, wholesale, reselling used products, etc. You have to find the correct supplier or stores to get your products so that you can resell them on Amazon. Let us go through the details of all the ways for reselling on Amazon.
- Retail Arbitrage
The retail arbitrage strategy revolves around purchasing products from physical retail stores and reselling them online marketplaces like Amazon to make a profit. This practice capitalizes on price differences between in-store and online prices, clearance sales, or limited-time discounts. Retail arbitrage requires keen market awareness, the ability to spot profitable opportunities, and adherence to store policies.
Resellers focus on clearance, discounted, and overstocked items while purchasing the products. You can install the Amazon Seller app to compare the prices of the products and get all the essential data like price, ranking, and information on other sellers.
- Online Arbitrage
Online arbitrage is a retail strategy involving the purchase of products from one online source and then reselling them for a profit on another, typically larger, online marketplace. This practice leverages price discrepancies between different e-commerce platforms, exploiting opportunities created by varying prices, discounts, or sales. Resellers often utilize tools and software to identify profitable items, compare prices, and track market fluctuations.
For example, you can opt for large online retailers like Walmart or pick some local online stores. You can even opt for online platforms like Facebook Marketplace and eBay to order your products.
While online arbitrage can be a lucrative venture, it requires careful research, good decision-making, and adherence to platform policies. Additionally, as e-commerce markets continually evolve, successful arbitrageurs need to stay agile, adapting to changing market conditions and competition.
- Reselling Products Made By Manufacturer
There are several resellers that have good relations and direct links with the manufacturers. They purchase products from the manufacturers, which cuts the middleman cost, and buy authentic products at higher margins for reselling on Amazon.
Some manufacturers allow private business to add their labels to the products with which they can enjoy unique branding and full control over the merchandise. Generally, manufacturers go with businesses that set bulk orders, so you must have ample storage to store the products and the required capital to place the bulk orders.
- Wholesale Reselling
Wholesale reselling is another strategy to buy and sell on Amazon. You can buy products in bulk, which will allow you to negotiate a price with a higher margin with the wholesaler as compared to retail arbitrage. Moreover, you have the assurance that you care about buying products from an authentic brand. However, you have to make sure that you have proper storage space to store the bulk order. As it is a bulk investment, you should have a proper selling strategy so that you can sell large quantities quickly and make a good profit.
The last thing you want with wholesale reselling on Amazon is buying a product in large quantity and keeping it in your storage for a long time.
- Reselling Used Or Refurbished Products On Amazon
Another way of reselling from Amazon is to sell your used products. This strategy is suited for people who are liquidating some assets or downsizing their residential properties. However, the strategy comes with a shorter lifespan as you will go out of used products after a short time. If you need to move forward with this strategy, then you have to find good used or refurbished products constantly and fill up your inventory.
Step 4: Create A List Of The Products
Once you get your hands on your products, it is time to create lists on Amazon. You have to open your Amazon Seller account with the correct credentials. Now click on the Add a Product option under the Inventory tab.
You can either add the new product to an existing Amazon listing or create a new listing for the product. You can search for the product through the search through its name or ASIN (Amazon Standard Identification Number). You can add a single product at a time or add them in bulk according to your preference.
Let us discuss the details of adding a product to an existing list and a new list properly.
- Adding A Product With An Existing Amazon Listing
Generally, the product will have an existing product listing on Amazon. Unlike other online marketplaces, Amazon maintains one list for a product, and all the sellers for that particular product appear on it. If your product is listed already, then you can copy the ASIN and use the search facility to find it.
Now, you have to select the condition of the product that you are reselling. You will get three options, namely, new, used, and renewed. You can select the relevant option and then click on the Sell button.
Now, keep on adding the relevant information to complete the whole process, and at last, choose the method of shipping to add the product to your inventory. If you have selected the FBA as the shipping method, then your page and product will be activated when Amazon receives your inventory.
- Adding Product By Creating A New Listing
If you cannot find an existing listing for your product, then you have to click on the I’m adding a product not sold on Amazon option after you click on the Add a Product option. Now, you have to select the category of the product on the new page. Once you select the category, you have to fill in all the relevant information for all the next tabs like Vital Infor, Offer, Variations, Images, Description, Keywords, and More Details.
Once you have added all the images and relevant information for your product, you have to click on the Save and Finish button. If nothing happens after clicking the button, then you may have missed some fields in the previous tabs. So, recheck everything and fill in all the details to complete the adding process.
Step 5: Leverage The Power Of FBA
When you are looking to expand your business, you need a proper system for logistics and a seamless fulfillment strategy. The stress of packing all the orders and shipping them to the correct address will burn you out, and you will not be able to focus on other aspects of your business.
FBA(Fulfillment by Amazon) is an excellent program offered by Amazon that manages all the storage and shipment. You have to send your inventory to the Amazon warehouses, and it will manage everything, which reduces a lot of stress on your shoulders. Whenever an order is placed for your products by the customers, Amazon will ship the order directly to them. There is an additional fee for storage and shipment, but the degree of convenience compensates for the whole cost. You can check the prices and other details here.
Step 6: Go for the Win Box
At last, you have to strive for the Buy box, which refers to the Buy Now button on the Amazon listing page. As you already know, there are multiple sellers for every listing, so only one seller can grab the Buy Now option on Amazon for the product. There is a proper system laid by Amazon to determine which seller will grab the Buy box on the listing for different products. However, there are some pointers that you can keep in mind to grab the Buy box. Let us discuss the details.
- Avoid Shortage Of Product In Inventory
Try to have an ample amount of products in your inventory so that customers don’t have to go through any hassle while buying the product from you, and Amazon does not deny the customer due to this issue.
- Keep Competitive Prices
Conduct proper research on other sellers and try to offer competitive prices for the products so that you can attract more customers.
- Opt For A Professional And Strong Account
Having a professional account is mandatory to grab the Buy box for all the sellers. So, if you are running an individual account, then switch out and opt for the professional account on the Amazon Seller program. Moreover, offer good customer service and proper feedback from your customers to raise your chances of winning the Buy box.
Tips to Become a Successful Amazon Reseller
There are some elements that you need to consider to succeed while reselling from Amazon, especially if you are a beginner. Here, we will give you some tips to optimize those elements and reap better profit from your reseller business.
- Create A Brand
One of the biggest mistakes that beginners make in the reselling business is that they start reselling any product without considering their relevance to the brand. This is an attractive strategy for short-term goals, but it will not help you grow your business to new heights.
You have to remember that the products will change with time in the reselling business. So, you should always try to create a brand so that you can attract like-minded customers and expand your customer base. You can focus on one niche and target two or three sub-niches to create a solid brand in the reselling domain.
- Resell High-Quality Products
No matter the product type, you have to offer quality products to your customers to attract more traffic, expand your customer base, retain existing customers, and grow your reselling business. The low-quality products can send poor reviews on your way and increase the rate of returns. This will hurt your business in the long and short term.
So, it is beneficial to opt for high-quality products to improve your margins and enjoy better profit from your reselling business.
- Opt For Low-Competition Products
There are generally two approaches to reselling on Amazon. You can either opt for high-competition products or opt for low-competition ones that do not have an existing success record. Being a beginner, you should opt for the low-competition product category to create a name in the Amazon marketplace and stand apart from the whole crowd. You can rise among the ranks in this category and become a leader in the marketplace with the correct strategies. Moreover, you will be able to win the Buy box on Amazon easily in this category.
Getting the Buy box is crucial for beginners as it improves your visibility in the marketplace and offers a significant boost to your sales. This will further improve your brand name and seller rating in the marketplace.
However, you have to remember that others have not penetrated this category due to sole downsides like low margins, lack of a wider customer base, etc. So, you have to perform comprehensive product research and cover all the basics before you pick any category.
- Try To Offer Low Prices On Products Falling Under The High-Competition Category
Another way to mark your ground in the Amazon marketplace is to sell products that fall under the high competition category. You can create a solid influx of sales through these products, which can give you better rankings and improve your visibility in the Amazon Marketplace.
However, you have to remember that you have to compete with several established sellers while selling these products. You can offer lower prices than your competitors to attract more traffic and try to grab the Buy box. The tricky part is that you are attracting customers who like discounted prices. So, it will be pretty challenging to retain them when you hike the prices of your inventory.
Besides this, you have to keep the profit margins and costs involved in the whole process.
- Pick The Products With High-Margin
Another tip to succeed as an Amazon reseller is to pick products with a higher profit margin. You will be spending on marketing, and if you have opted for FBA, then there is no point in selling products with low margins in the long run.
For example, you are reselling a high-quality product but making a profit of 1 to 2 dollars per sale. Your customers may love the product, but you will not be able to make good revenue by selling this product in the long run as you have to spend on marketing and other aspects to make the sale of the product.
You can use the FBA revenue calculator to analyze the complete cost and profit margin before reselling any product on Amazon.
Can You Buy Products On Amazon And Resell Them?
It is completely legal to resell the items on Amazon after buying them from any marketplace or store. You become the owner of the product, and you can do anything with it. However, you have to remember that once you buy the product, then it loses its “New” status. So, when you resell them on Amazon, you have to sell them under the Used category.
If you wish to sell products under the New category, then you have to purchase products directly from the manufacturer or wholesaler. Also, Amazon puts some restrictions while reselling the products of some brands. Here are a few names.
- LEGO
- Samsung
- Hasbro
- Adidas
Top Product Categories to target while reselling on Amazon
- Sports
Sports is another lucrative category where you get a variety of products that you can resell. Moreover, there is a myriad of variety in the products, so you pick the products carefully. You will get all-season options in this category. Most of the items are durable, which means they have a longer life. These products stay in demand for the whole year. You can start small with one or two products like yoga mat, skipping rope, etc., and then expand your inventory.
With Amazon’s vast customer base and fulfillment services, reselling sports products can be a profitable venture, provided you stay informed about market shifts and maintain product quality and authenticity.
- Clothing Items and Shoes
Clothing and Shoes is a low-risk reselling category as you can start with non-branded products while maintaining a high quality. You can add several accessories and target a specific demographic. You can set the strategy according to your plan and product assortment.
As you grow your business, you can move to branded products. However, make sure that you get prior permission from the brands to resell their products. You cannot sell the branded products if you are unable to obtain approval from the respective brands.
- Beauty, Health And Personal Care Items
Health and beauty products consistently rank among the best items for reselling on Amazon. This category encompasses cosmetics, skincare, hair care, supplements, and more. The appeal lies in the evergreen demand for self-care and appearance-enhancing products. Resellers can tap into a broad and diverse market, catering to a wide range of preferences and needs.
Quality brands, innovative formulations, and well-reviewed items tend to perform exceptionally well. Moreover, with the rise of e-commerce and the convenience of shopping online, health and beauty products have become top choices for Amazon customers. For resellers, staying updated on beauty trends, sourcing reputable suppliers, and providing excellent customer service can lead to a successful venture in this lucrative market.
- Electronics
Electronics rank among the top items to resell on Amazon. They include a wide range of products such as smartphones, laptops, headphones, and gadgets. Their consistent popularity is driven by consumer demand for the latest technology.
Resellers can capitalize on deals, clearance sales, and emerging trends to source profitable items. Success in this competitive niche requires staying informed about tech advancements, offering competitive prices, and ensuring products are in good condition. Amazon’s extensive customer base makes it an ideal platform for electronics reselling, offering the potential for significant profits.
- Books
Books are a prime category for reselling on Amazon due to their enduring demand. Avid readers, students, and collectors frequent the platform. Valuable niches include textbooks, rare editions, bestsellers, and collectibles. Success in book reselling hinges on savvy sourcing, competitive pricing, and accurate descriptions. Amazon’s FBA service streamlines fulfillment, making it accessible for resellers. The universal appeal of books, combined with Amazon’s vast customer base, offers an opportunity to build a profitable business in this enduring category.
The Bottom Line
Reselling on Amazon can become a lucrative side hustle and a full-grown business, depending on your strategies and time investment. You have to conduct proper research in product selection and depoy proper marking and logistics strategies to grow your business and reap better profit. In the above guide, you will get answers to several queries related to reselling on Amazon. So, go through every section carefully to understand everything, especially if you are a beginner.