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How to Resell Items on Amazon in 2024
Reselling products is a great way to start a business and earn some extra money. You can start small by investing in inventory and continue to scale your business as the profits come in. Amazon is one of the best places to sell online because of its huge customer base and easy setup.
In this article, we’ll outline a step-by-step guide on how to resell on Amazon.
In this article, we’ll outline a step-by-step guide on how to resell on Amazon.
What is Reselling on Amazon
Reselling is the process of purchasing something for one price and selling it for a different price. Many resellers purchase items wholesale from places like Costco, Alibaba, and others, and then resell their products on Amazon for a markup. The difference between the amount you pay a supplier for a product and how much you sell it for on Amazon is your profit. Buying and reselling can really help you make good money as long as you select a product with high demand at the right time.
In the following section, we'll explore the various types of items suitable for resale on Amazon.
In the following section, we'll explore the various types of items suitable for resale on Amazon.
What Products Can Be Resold on Amazon
You can sell nearly anything on Amazon, as long as it's not counterfeit. Some products are more straightforward to list than others. Let's review the four main types of products you can resell on Amazon, and we'll go into a bit more detail about each one.
- Your own used products: This is a smart way to make money because you already have the stock. And since your items are readily available, inventory management is simpler, enabling you to earn money as soon as someone places an order . Popular items to resell include books and clothes since they tend to have high demand. If you plan to sell used products, just make sure they meet Amazon’s condition guidelines before listing them.
- Products purchased from online marketplaces: You can also buy products from online marketplaces (like Temu, or AliExpress) and then resell the merchandise on Amazon. You may be able to access diverse products online and find suppliers with better terms. This, however, requires thorough product research to identify profitable opportunities and remain competitive.
- Products purchased from offline stores: This method involves buying commonly purchased items from physical stores and selling them online for a profit. You can often find discounts at boutiques or outlets that allow you to sell on Amazon for more money. However, these items aren't easy to find, and require time and effort.
- Branded products: This involves purchasing goods from a brand or its official distributor, usually as wholesale. It's vital to obtain reseller permission to avoid account suspension due to illegal sales. Although branded things offer better margins, they often require more substantial stock investments than other business models.
Each of the above product categories has its own pros and cons. No matter which option you choose, a successful Amazon business requires strategic planning. Here's a guide for beginners to help you start a successful reselling venture of your own.
How to Start Reselling on Amazon
Amazon is known for its competitive nature, so you need a solid strategy for success when it comes to reselling products. Each seller has their own way of operating, but if you want to generate profits as soon as possible, you need to avoid common mistakes made by sellers. To navigate this landscape effectively, consider the steps outlined below.
Step 1: Find Profitable Products to Resell
Choosing a profitable product for your business is essential—this decision is the cornerstone of your revenue and growth. Opting for items with high demand and healthy profit margins not only boosts revenue potential but also frees up resources for strategic marketing and product diversification.
Here are some tips to keep in mind as you search for a product to sell:
Here are some tips to keep in mind as you search for a product to sell:
- Demand: Ensure that the product has consistent demand, ideally with at least 200 sales/month, to guarantee market stability. Also, assess whether it's a seasonal item so you can manage your inventory effectively.
- Competition: Check that the market isn't overcrowded with similar offerings, making it difficult to differentiate. To remain competitive, avoid strong brands that sell identical products.
- Profitability: Verify that your profit margin is at least 15% after deducting all costs. This ensures sufficient funds for expansion and any other unforeseen expenses.
- Product characteristics: Choose lightweight products weighing under 3 lbs to minimize shipping costs.
To find a product that meets all of these criteria, it’s essential to conduct a comprehensive product analysis. This entails gathering and scrutinizing data on Amazon products, as well as performing necessary calculations. This process can be daunting, particularly for beginners. However, for U.S. Amazon resellers, there's a solution: delegate this task to Sellerhook.
Get Booming Product Ideas
Sellerhook offers personalized product research services. A team of experts conducts a thorough market analysis to pinpoint products that fit your unique needs and goals. They rely on the most precise data to ensure the best options for your business.
Here's how to order a research report:
Here's how to order a research report:
1. Place an order on the Sellerhook website.
2. Select the number of products you wish to find (such as one or five) and submit your payment.
3. Specify your business model, whether it's Online Arbitrage or Wholesale.
2. Select the number of products you wish to find (such as one or five) and submit your payment.
3. Specify your business model, whether it's Online Arbitrage or Wholesale.
4. Fill out the survey. Answer a few questions to provide Sellerhook’s specialists with insights tailored to your needs, such as categories you're interested in reselling from, your preferred price range, and more.
5. Receive your report. Within 10 business days, you'll receive a comprehensive list of top products via email.
So, rather than wrestling with intricate data that's tough to access, you'll save valuable time and effort by relying on Sellerhook's expertise. This product research ensures concrete outcomes, and will ultimately drive more traffic and sales to your store.
Step 2: Register for an Amazon Seller Account
Once you have determined what it is that you plan to sell, you’ll need to create your Amazon seller account. You can do this by going to the Amazon website, selecting your seller plan, and providing your personal, business, and billing information. In just a few minutes, Amazon will arrange a verification video call. During the call, you'll need to have your ID and a valid credit card ready for verification.
Once your account is approved, you can start listing and selling your products on Amazon. But first, you have to source them. Now we'll explore how to find a reliable supplier.
Once your account is approved, you can start listing and selling your products on Amazon. But first, you have to source them. Now we'll explore how to find a reliable supplier.
Step 3: Find a Reliable Supplier (Brand Owners, Online & Offline Distributors)
To source products, finding the right supplier is a must, and your approach will depend on your business model. You can get in touch with brands directly through their websites, explore online marketplaces, or connect with B2B sales reps from local distributors.
When choosing a supplier, it's crucial to ask the right questions, including:
When choosing a supplier, it's crucial to ask the right questions, including:
- What's the minimum order quantity (MOQ)?
- Are there discounts for large orders?
- Can products be customized?
- How long does production take?
- How fast can reorders be fulfilled?
These days, many businesses are turning to B2B online marketplaces like Alibaba because of their competitive pricing and extensive selection of suppliers. When dealing with international suppliers, it's vital to review the delivery terms carefully, including duration and total cost. It’s also essential to ensure that your customs documents are filled out correctly to avoid any clearance issues.
Verifying each supplier's business licenses or certificates is also important. Checking reviews and doing thorough research online helps ensure authenticity and avoid potential scams.
Once your purchase terms are negotiated and delivery arrangements are made, your next step is to list your products on Amazon.
Verifying each supplier's business licenses or certificates is also important. Checking reviews and doing thorough research online helps ensure authenticity and avoid potential scams.
Once your purchase terms are negotiated and delivery arrangements are made, your next step is to list your products on Amazon.
Step 4: Create a Product Listing
Listing products on Amazon involves various steps, and those steps will vary depending on whether or not your product is already available on the platform.
Join an Existing Listing
If the product is already sold on Amazon:
1. Sign in to your Amazon Seller Central account.
2. Select 'Catalog' from the main menu.
3. Then click ‘Add product’.
4. Enter the ASIN of the product you want to sell.
5. Indicate whether it is new or used.
6. Click ‘Sell this product’.
7. Establish your desired pricing, fulfillment method, and other details.
8. Save all of your changes.
2. Select 'Catalog' from the main menu.
3. Then click ‘Add product’.
4. Enter the ASIN of the product you want to sell.
5. Indicate whether it is new or used.
6. Click ‘Sell this product’.
7. Establish your desired pricing, fulfillment method, and other details.
8. Save all of your changes.
Create a New Listing
For products that are not yet on Amazon, like items you exclusively distribute, you'll need to create a new listing:
1. Sign in to your Amazon Seller Central account.
2. Select 'Catalog' from the main menu.
3. Then click ‘Add product’.
4. Enter all of your product details.
5. Provide a detailed product description.
6. Enter your desired price, product quantity, and any other necessary information.
7. Add variations like color, size, and more.
8. Upload images of your product.
9. Select your preferred fulfillment method.
10. Save all of your changes.
2. Select 'Catalog' from the main menu.
3. Then click ‘Add product’.
4. Enter all of your product details.
5. Provide a detailed product description.
6. Enter your desired price, product quantity, and any other necessary information.
7. Add variations like color, size, and more.
8. Upload images of your product.
9. Select your preferred fulfillment method.
10. Save all of your changes.
When crafting a new listing, it's essential to integrate relevant keywords seamlessly into your title, description, and bullet points. It’s important to avoid keyword stuffing and adhere to Amazon's guidelines.
By delegating this task to Sellerhook, you can ensure a compelling, SEO-optimized listing without any hassle. By using the most frequently searched keywords, your listing will climb higher in search results, ultimately driving more sales to your store.
By delegating this task to Sellerhook, you can ensure a compelling, SEO-optimized listing without any hassle. By using the most frequently searched keywords, your listing will climb higher in search results, ultimately driving more sales to your store.
Sellers are often confused about choosing a fulfillment method. Let’s address this decision in the next section by understanding these methods in detail.
Step 5: Order Fulfillment
The fulfillment method you choose can greatly affect your business. Amazon provides two main options: FBA and FBM, each with its own pros and cons.
‘FBM’ stands for Fulfilled by Merchant. This means that the seller is responsible for packing and shipping orders to the customer. While there may be more control over your inventory with FBM and the possibility of saving on third-party logistics, having to manage warehouses and high order volumes at peak times is quite stressful. Plus, FBM sellers don’t have access to Prime customers, which can impact sales potential.
With ‘FBA’ (Fulfilled by Amazon), sellers take their products to an Amazon FBA center and Amazon employees handle the rest by fulfilling the orders. Amazon, of course, charges fees for this service, but they also throw in a few other extras. FBA products are much more visible in search engines and have a greater chance of winning the Buy Box (Featured Offer) due to quick Prime shipping, so this option results in much more business overall.
Selecting the right solution of fulfillment is one of the recipes for success in business. With FBA's logistical support and broad customer reach, it's often the go-to choice for Amazon resellers.
‘FBM’ stands for Fulfilled by Merchant. This means that the seller is responsible for packing and shipping orders to the customer. While there may be more control over your inventory with FBM and the possibility of saving on third-party logistics, having to manage warehouses and high order volumes at peak times is quite stressful. Plus, FBM sellers don’t have access to Prime customers, which can impact sales potential.
With ‘FBA’ (Fulfilled by Amazon), sellers take their products to an Amazon FBA center and Amazon employees handle the rest by fulfilling the orders. Amazon, of course, charges fees for this service, but they also throw in a few other extras. FBA products are much more visible in search engines and have a greater chance of winning the Buy Box (Featured Offer) due to quick Prime shipping, so this option results in much more business overall.
Selecting the right solution of fulfillment is one of the recipes for success in business. With FBA's logistical support and broad customer reach, it's often the go-to choice for Amazon resellers.
FAQ
Is reselling on Amazon legal?
Yes, reselling on Amazon is perfectly legal. The main key is making sure you stay within the boundaries of Amazon policies on authenticity, condition, and brand rights. This way, you can establish a successful business for flipping products without encountering any legal issues.
Is reselling on Amazon profitable?
Amazon reselling is very rewarding, with most people earning more than $1,000/month. Some even rake in over $10,000 in passive income. Remarkably, over 30% of sellers start to see a profit within just a few months of their initial business inception.
How much does it cost to resell on Amazon?
The cost of reselling on Amazon varies, based on factors like your business model, item quantity, and logistics expenses. You can start with as little as $500 and reinvest profits for expansion. There are also obligatory fees, such as referral fees (around 15% of the item's price) and account fees ($0.99/sale for individual plans, or $39.99/month for professional plans).
Is reselling on Amazon worth it?
Reselling on Amazon can really be worth it because it offers a straightforward path to starting your own business. It's a fantastic way to make money on your own terms, giving you the freedom and flexibility that many full-time jobs do not.
Yes, reselling on Amazon is perfectly legal. The main key is making sure you stay within the boundaries of Amazon policies on authenticity, condition, and brand rights. This way, you can establish a successful business for flipping products without encountering any legal issues.
Is reselling on Amazon profitable?
Amazon reselling is very rewarding, with most people earning more than $1,000/month. Some even rake in over $10,000 in passive income. Remarkably, over 30% of sellers start to see a profit within just a few months of their initial business inception.
How much does it cost to resell on Amazon?
The cost of reselling on Amazon varies, based on factors like your business model, item quantity, and logistics expenses. You can start with as little as $500 and reinvest profits for expansion. There are also obligatory fees, such as referral fees (around 15% of the item's price) and account fees ($0.99/sale for individual plans, or $39.99/month for professional plans).
Is reselling on Amazon worth it?
Reselling on Amazon can really be worth it because it offers a straightforward path to starting your own business. It's a fantastic way to make money on your own terms, giving you the freedom and flexibility that many full-time jobs do not.
Conclusion
With the right platform and product, reselling can be the easiest route to generating a profit. Amazon offers great prospects for newbies to start a profitable business venture very quickly. Utilize Sellerhook to help you find profitable items and resell them legally and generate revenue on the Amazon platform. This will help you thrive in this highly competitive marketplace.
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