Amazon reselling is a rewarding journey that seamlessly blends convenience and profit. In 2022, small and medium-sized businesses excelled on Amazon, selling over 4.1 billion products and averaging $230,000 in sales. Now, the pivotal questions emerge: How to resell on Amazon? Let’s delve into this article as we guide you through the steps of reselling on Amazon:
- Step 1. Measure product demand
- Step 2. Join as an Amazon Seller
- Step 3. Discover suppliers
- Step 4. List products online
- Step 5. Fulfill orders
- Step 6. Boost sales
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Is it Legal to Resell on Amazon?
Before we learn how to resell on Amazon, let’s talk about something many new sellers wonder: Can you legally resell products on Amazon? The answer is yes. Whether you’re reselling on Amazon, eBay, or other marketplaces, it’s allowed by the law, thanks to something called the first-sale doctrine. This rule says that if you buy something legally, you can sell it again as long as you don’t change it.
But there’s a catch on Amazon, especially with big brands like Nike, Disney, Hashbro, Samsung, LEGO, etc. You usually need permission before you can sell their stuff. Imagine trying to sell a Lego set on Amazon without getting the green light from them – not going to happen!
So, before you start buying and reselling on Amazon, it’s a good idea to do some homework. Check if there are any rules or restrictions so you don’t run into problems later.
Are you looking for how to resell on Amazon to make money? Check out our guide how to make money on Amazon!
How to Resell on Amazon in 6 Simple Steps
The Amazon resell process sounds quite simple. You buy a product at a low price, list it on Amazon, resell it at a higher price, and pocket the difference. Here’s the detailed steps on how to resell on Amazon for profit:
Step 1. Measure product demand
Let’s learn how to resell on Amazon with the first step: gauging product demand. Keep an eye on trends because what’s hot this month could cool down next quarter. Stay in the know, and adjust your offerings to match what customers want. If not, you could have stuff just sitting there, and your sales might go down.
Amazon boasts popular categories like jewelry, clothing, and furniture, but be wary of products that are a no-go. Get acquainted with Amazon’s list of prohibited items and understand the safety requirements.
To maximize your chances of success, keep these tips in mind:
- Check the viability of potential products through research.
- Explore best-seller rankings (BSR) to uncover top performers.
- Utilize eCommerce tools to find products with low competition but high potential.
Step 2. Join as an Amazon Seller
After completing your research, it’s time to create an account for Amazon reselling. To sign up, ensure you have a government ID, a credit card, and your tax details on hand.
To become an Amazon reseller, you have 2 options as below:
- Opt for a Professional seller account at $39.99/month, unlocking all the tools Amazon offers.
- Choose the individual seller account for free with basic features, but keep in mind a $0.99 fee per sale.
If you’re just starting out, an Individual account is a good start. However, serious entrepreneurs eyeing a thriving business should lean towards the Professional account. Once you cross the 40-item-per-month threshold, switching becomes a cost-effective move.
Step 3. Discover suppliers
Choosing good suppliers is a big part of success when it comes to learning how to resell on Amazon. Consider these steps to find reliable suppliers:
- Look into manufacturers and suppliers before buying to avoid problems.
- Check that the products are real and good quality before you sell them.
- Make sure everything works well and is not damaged.
- Know the safety rules for the products.
- Keep records of your transactions, like orders and bills.
If you get products from different places, it can cause problems with quality and returns. This affects how much money you make and what customers think. So, be careful with your suppliers. Ask for samples before you buy a lot. Also, understand Amazon’s rules about brands and copying so you don’t get in trouble.
You can also explore Amazon’s intellectual property policy for sellers to protect your Amazon resale business brands and prevent trademark issues. For a smoother selling experience, get acquainted with Amazon’s anti-counterfeiting policy.
Step 4. List products online
Now that you’ve got your products and selected your suppliers, it’s time to delve into how to resell on Amazon by listing them on the platform. Here’s your step-by-step guide:
- Step 1: Head to your Seller Central account
- Step 2: Add a new product by searching its name or using the ASIN number
- Step 3: Provide your item’s details
Once listed, every purchase of that item on Amazon could be yours.
After listing your products on Amazon and optimizing them, customers are more likely to see your items and buy them. Now you know how to resell items on Amazon, it’s time to fulfill your orders.
Step 5. Fulfill orders
Knowing how to resell on Amazon successfully means choosing the right fulfillment method. Are you planning to manage your inventory and ship orders independently? With merchant fulfillment, the responsibility is yours. You’ll handle timely shipping, manage inventory levels, and deal with returns and customer service. This can be tough if you’re a new seller.
Alternatively, there’s FBA (Fulfillment by Amazon). Opt for this program, and Amazon takes care of storage, packing, shipping, returns, and customer service for some or all of your inventory. It’s a game-changer in simplifying the fulfillment process.
Step 6. Boost sales
As fellow sellers explore how to resell products on Amazon, sales competition can intensify. How do you stand out and drive more sales reselling on Amazon? Here are some proven strategies to consider:
- Focus on your strengths and understand your audience preferences.
- Secure a Professional Seller account, a key for buy box eligibility.
- Maintain a stellar account with top-notch customer service and feedback.
- Offer competitive prices, ensuring you’re at least in the ballpark.
- Keep ample inventory to meet demand consistently.
Besides, you can leverage these tools:
- Spot trends with Product Opportunity Explorer: Keep an eye on what others are doing to avoid surprises in sales. This tool helps you find trends in what people want.
- Boost visibility with Sponsored Products: Use ads to ensure customers see what you’re selling when they search.
- Connect with customers on Amazon Live: Show off your products and talk with customers in live video events.
If you do these things regularly, you’ll often have the buy box, which means more profit for you.
Reselling on Amazon can be risky. Learn about common scams and how to avoid them in our detailed guide.
Different Amazon Resale Business Models
Now you know detailed steps on how to resell on Amazon. But are there any other ways to resell your items on Amazon? Check out these effective models:
- Resell your own used items: Turn unused items at home into cash by listing them on Amazon. Here is What is Amazon renew and how to sell refurbished products.
- Retail arbitrage: Hunt for sale or clearance items in retail stores, then sell them on Amazon for a profit.
- Online arbitrage: Amazon retail arbitrage is legal. You can source items from online marketplaces like eBay at lower prices.
- Wholesaler buys: If your budget allows, purchase items in bulk from wholesalers who supply products for resale. While this offers the lowest per-item cost, it requires significant upfront capital.
- Dropshipping: If you have a tiny budget, you can start with Amazon dropshipping. This business model allows you to list products without stocking them. When a customer orders, you buy from a third-party supplier who directly ships to the customer.
- Manufacturer purchases (advanced): A strategy for experienced sellers involves creating your own private label product and buying directly from manufacturers in bulk.
All these approaches can be profitable when it comes to learning how to become a reseller on Amazon. However, buying from wholesalers and manufacturers is the most scalable. Beginners might find it wise to start with other strategies that don’t demand substantial initial investments. Once comfortable with reselling and able to save up, consider advancing to purchasing from suppliers.
5 Best Items to Resell on Amazon
Now you know how to become an Amazon reseller, but what to resell on Amazon for maximum profit? Check out these lucrative categories:
- Beauty and personal care: Enhance your Amazon sales by offering sought-after beauty products like skincare, lipsticks, and foundations from top brands. Despite fierce competition, these items play a vital role in helping people look and feel amazing.
- Fashion accessories: Selling fashion accessories, like jewelry, offers a shipping advantage of lower costs for small, light items. Besides popular jewelry, you can opt for handmade jewelry for added personality and uniqueness.
- Sports: This versatile category usually comes with items of varying quality and practicality. From yoga blocks to water bottles, this non-seasonal and durable niche offers continual demand.
- Books: Books can be a steady income source if you choose wisely. Old books appeal to completists and collectors, while school books are consistently in demand. Non-fiction stories, especially, bring high profits due to their resale value.
- Electronics: Electronics items are among the highest-selling categories on Amazon as they are always in demand. For beginners, you can choose to resell products like device chargers, computer accessories, smartphone accessories, etc., as these are often less competitive.
While electronics are competitive, the demand is substantial. These choices offer a promising start for Amazon reselling success.
Amazon Reselling – FAQs
Absolutely! Amazon reselling is a lucrative venture, allowing you to turn a profit by selling various products on the platform. With strategic planning, product selection, and customer engagement, you can create a successful and sustainable income stream. Yes, you can resell on Amazon by registering an Amazon seller account and logging in to your Amazon Seller Central. Whether you’re an individual or a business, you can list, sell, and manage your products on the platform. It provides a user-friendly interface, comprehensive tools, and a vast marketplace to reach potential customers and boost sales. Yes, you can resell branded products on Amazon, but there’s a catch. To ensure a fair marketplace, Amazon often requires sellers to seek approval from brand owners before listing certain brands. It’s a protective measure to maintain brand integrity and prevent unauthorized sellers.
Start Reselling on Amazon Now
Now you know how to resell on Amazon and that it can be a highly rewarding business endeavor when approached thoughtfully.
By mastering strategies like retail and online arbitrage, choosing the right products, and staying abreast of marketplace trends, you can turn a profit. Whether you’re a beginner or a seasoned seller, the key lies in continuous learning and adapting to the ever-evolving e-commerce landscape.
If you have any more questions relating to reselling on Amazon, feel free to contact us.
