How to Earn by Reselling on Amazon | Step-by-Step Guide

How to Earn by Reselling on Amazon | Step-by-Step Guide

insights |  | 9 min read

Reselling on Amazon has become a promising business opportunity for many entrepreneurs today. The concept is straightforward: buy products from different retailers and sell them at higher prices on Amazon to make a profit. However, the presence of established resellers like Pattern, Zapos, and Gorilla Commerce on the platform creates a competitive environment that can discourage new sellers.

But don't worry! This guide is here to help you navigate the world of Amazon reselling successfully. We'll share an effective strategy to empower you to stand out from the competition and achieve reselling success on Amazon. With our guidance, you'll gain the confidence to overcome challenges and establish yourself as a top reseller in the Amazon marketplace.

Are you ready to embark on this thrilling adventure? Join us as we explore the intricate details and unleash your reselling potential on Amazon like never before!

How Does Amazon Reselling Work?

Amazon reselling works by purchasing products from various sources at a lower price and then selling them on the Amazon platform for a profit. Here's how it typically operates:

Product Sourcing: Resellers acquire products from wholesalers, manufacturers, retail stores, or online marketplaces at a competitive price compared to the market rate.

Amazon Listing Creation: Resellers create listings for the products they want to sell on Amazon. This involves providing detailed product information, setting prices, specifying shipping options, and optimizing the listings to attract potential buyers.

Order Fulfillment: When a customer purchases a product from a reseller's listing, the reseller is responsible for order fulfillment. This can be done in a few ways:

  1. Self-Fulfillment: The reseller handles packaging, shipping, and delivering the product to the customer directly.
  2. Amazon FBA (Fulfillment by Amazon): Resellers can opt to send their inventory to Amazon's fulfillment centers. Amazon then takes care of storage, packaging, shipping, and customer service on behalf of the reseller.
  3. Seller Fulfilled Prime: Qualified sellers meeting Amazon's stringent criteria can fulfill orders themselves while offering Prime benefits to customers.

Revenue Generation: Resellers earn revenue by selling the products at a higher price than the cost at which they sourced them. They need to account for various expenses, including the cost of goods, Amazon referral fees, shipping fees, and any other applicable charges.

If you're unaware of Amazon listing tactics, read our Amazon listing tips and tricks guide that will help your product to stand out in the Amazon marketplace.

How to Start Amazon Reselling As a Beginner?

Now that you have an understanding of Amazon reselling, let's explore a step-by-step approach to help you get started as a beginner:

step by step guide to reselling on Amazon

1. Select the Product You Want to Sell

You must do deep research before selecting the product. Because the Amazon market is highly competitive, making random products are quite difficult to sell. If your product isn't competitive in the marketplace, you'll lose money and won't be able to sell it.

To select your product, consider these two approaches:

  1. Offer products having excellent reviews and tough competition.
  2. Offer products with no reviews and little competition.

If you are a beginner, the second one is the best choice. Choose option A, if you've some resale expertise and a solid seller status, but you'll risk considerably less revenue.

Moreover, to determine the best items to resell on Amazon, use the ASIN to search product competition and the number of retailers.

2. Make your Amazon Seller Account

For reselling products on Amazon, you must first register for a seller account with the firm. A full-fledged professional seller profile needs $40 per month and offers all features and tools for the sellers. However, an individual seller profile doesn't allow you to use all services and costs a $0.99 fee for each item sold on the website. Read our guide on How to become an Amazon seller in 2023.

3. Select the Best Suppliers For Your Product

Once you've decided on the product you want to sell and established your account, you'll need to start looking for suppliers. Dealing with a reputable supplier is a good option because they'll be in charge of your product. To select a reputable supplier or store, you need to examine customer evaluations to make sure you purchase high-quality products. You can select

  • Target
  • Walmart
  • Lowe's
  • Ali-express
  • Alibaba

4. List Your Products on Amazon

If you've selected a collection of products, the next step is to list them on Amazon for selling it. Open your seller account, and add the new product by following the on-screen instructions. If you're selling an existing product, search for the product by its name or its ASIN number. After adding your products, you can sell them to the customers.

how to list products on amazon

5. Take Advantage of FBA

To build a major brand that sells a range of products every month, you have to use a strategy that emphasizes excellence. As you know, order wrapping and delivering is a laborious process that usually consumes your precious time and keeps you from concentrating on other elements of your resale business.

Therefore, by utilizing the Amazon FBA program, you can deliver and store all your goods at Amazon. Following that, they distribute your stored goods to your customers once they make a purchase on your online store or via email. If you're still confused between dropshipping and FBA, read our guide.

6. Win a Buy Box

If you want to become a successful Amazon reseller, you need to win the Buy Box on your item's page, as it accounts for 82% of the total sales on Amazon.

Because numerous sellers might sell the same goods, you must compete with other merchants for the Buy Box. To increase your chances of receiving the Buy Box, you must meet the following requirements:

  • A Professional Amazon selling membership is required
  • Your things must be brand new and unopened
  • You have an excellent record of on-time delivery
  • You must have an excellent seller rating
  • The prices of your products should be competitive
  • You must stock up the inventory
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Tips for Making Profits by Reselling Items on Amazon

You might be thinking of expanding your Amazon reselling business to earn significant profits. Let's have a look at these tips that will help you make money on Amazon as a competitive reseller:

  1. If you’re new to reselling on Amazon, start with low-competition products and build your reputation as a top-notch reseller by earning seller ranks and excellent ratings.
  2. Whether you’re selling a low or high-competition product, you always have to maintain your quality to earn good customer reviews.
  3. You must hunt for products with big profit margins. You can't build your business with a poor profit product, regardless of its quality. Suppose you find a good-quality blender for $20 item at eBay. You can sell it on Amazon for $50 with free delivery. Hence, by selling this product, you'll get a profit of $30.
Tips for Making Profits by Reselling Items on Amazon
  1. The most common mistake most resellers make is attempting to resell any item they see. Although it may seem beneficial for some time, it isn't ideal for building your business. So, you have to select 2 or 3 niches or sub-niches which can target more customers. This way, you can sell a variety of products via your business and earn a great reputation.

Why Do Amazon Resellers Fail?

amazon fba go to strategy to follow

One of the key reasons for the challenges faced by Amazon resellers is the growing presence of third-party sellers who directly sell to customers, accounting for 58% of Amazon sales in 2022. These sellers often have the advantage of selling at lower prices while maintaining their success. This competitive advantage poses difficulties for resellers in delivering unique value to their customers. To mitigate these challenges and increase your chances of success as an Amazon reseller, here are a few crucial considerations to keep in mind:

  1. In Amazon reselling, a single product is sold by many different sellers. There are no restrictions here. Therefore, you have to optimize your product listing over time to engage more customers.
  2. To win the Buy Box, never reduce your products’ pricing. Be consistent in your performance and earn 5-star reviews.
  3. You may have to compete with a similar brand whose things you're selling to win Buy Box.
  4. Address your customers’ questions and other issues on time to engage them.
  5. Third-party vendors do not get benefits from dealing with Amazon Retail. So be cautious when selecting items in these categories or attempting to undercut costs.

If you're a newbie, you must join our Amazon community where suppliers and industry experts exchange their experiences and other fascinating updates. Also, you can follow our Amazon growth library to gain deep knowledge about Amazon's latest trends.

Upgrade your Amazon Reselling Business with Swiftstart’s Amazon Services

If you're encountering challenges in reselling on Amazon and struggling to attract customers to your products, fear not! In a fiercely competitive marketplace dominated by skilled resellers and top-notch products, achieving success may seem daunting. However, with Swiftstart+ comprehensive Amazon SEO services, you can elevate your reselling business to new heights. Our SEO solutions are designed to optimize your product listings, enhance your brand visibility, and ultimately drive more sales. Discover how our expertise can transform your Amazon reselling venture with the following examples of our SEO services:

Amazon PPC and SEO Services

Our ad management service will increase traffic to your product listings by targeting products and rival techniques. Using Amazon DSP, we optimize advertisements and SEO, leading to more effective ad management.

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Listing Optimization Services

Our copywriters and SEO professionals will optimize your reselling product listings to bring greater conversion rates and customers to your products.

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Services for Photos and Videos

High-quality product photos are critical for increasing sales and creating your brand image. We'll work with you to develop outstanding product pictures that seem compelling to your customers.

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Design Services

We'll design an enduring brand identity throughout your product listings, assisting in the development of loyal customers and increasing conversions.

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Trademark Services

Our Trademark Services offer comprehensive registration for your Amazon Brand, ensuring the utmost protection for your product content and brand property against unauthorized duplication. By availing of this service, you can safeguard your brand's identity and establish a strong presence in the marketplace.

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Final Verdict

Reselling on Amazon business is emerging day by day, and the competition is getting stronger. So, if you’re a newbie and want to earn a good amount without any hassle, then you need to start this journey today.

For most people reselling on Amazon's concept may seem tough, but it’s quite simple to get started. However, it always holds an edge over rivals because it's more difficult to grow when you're reselling known brands.

By implementing our Amazon reselling strategies, you can swiftly establish a highly profitable business. Our Pro tips are game-changers that will give you a competitive edge. Additionally, consider utilizing our Swiftstart+ Amazon solutions to enhance the attractiveness and competitiveness of your reselling products. Still, if you want more information or need additional support for your Amazon reselling portfolio, please contact our team and we'll be happy to assist you in reaching your goals on the world's greatest E-commerce marketplace.

JOIN OUR COMMUNITY

If you find this article helpful then join our social footprint for more Amazon insights and growth hacks. Become a part of our Amazon Facebook community group to stay updated with the latest Amazon news, tips, and tricks. Follow us on LinkedIn for expert guides and Amazon growth strategies. Our Amazon account management experts are always available to answer any questions and provide personalized support. Check out our SwiftStartUP Amazon podcast for exclusive insights from experts and success stories from top Amazon sellers. Don't forget to claim your free Amazon account audit right now!

Frequently Asked Questions About Reselling on Amazon

What’s the difference between a seller and a reseller?

An Amazon reseller buys products in large numbers and resells them on this platform to earn a profit margin. While a seller continues to work in the field of selling a specific product in the Amazon market.

Is reselling on Amazon legal?

Yes, reselling things on Amazon is legal. It makes no difference whether you purchase them from a manufacturer, online store, or a wholesaler. If the products are brand new and aren't counterfeit, you can easily resell them on Amazon.

What are the best things that can be resold on Amazon?

Products that are highly valuable to resell on Amazon are Jewelry items, Books, Electronics items, Beauty products, Clothing, Sports items, Home Decor, and Kitchen Appliances

How to resell things on Amazon?

You’ve to follow this strategy to resell products on Amazon:

  • Select highly profitable and low-competitive product
  • Focus on customer reviews
  • Use social media to promote your product
  • Bid for keywords that customers type to find your product
  • Never resell counterfeit products

Does it cost a lot to become a reseller?

No, the individual plan will cost you $0.99 to sell each item. While if you create a professional account, it will cost you $40 per month, and you can sell as many items as you want.

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