Win The Amazon Buy Box
Your seller ranking can also be improved by simply winning the Amazon Buy Box. By being in possession of the Buy Box, you will always be considered the best seller to purchase from by any buyer visiting the listing.
Winning the Buy Box requires all of those critical factors discussed previously:
- Competitive pricing
- Keyword optimisation within your listing
Why A Reseller Fails
The main reason a reseller fails on Amazon is the overestimation of costs and poor pricing decisions. Let me explain.
Practically, anyone can start selling on Amazon with some initial preparation, including brands. It means, brands who sell directly to customers can cut their prices and remain profitable. This gives them an advantage over the resellers. So it becomes a challenge for a reseller to offer value to his customers.
Here are a few things to keep in mind before you become an Amazon reseller:
- When it comes to reselling, one product can be sold by many sellers. There is no limit here.
- Most of the time, resellers undercut their prices to win the Buy Box.
- You also compete for the Buy Box with the same brand whose products you are selling.
- You also need to understand the cost structure of the product along with the expected profit margins.
- Competing with isnt an ideal situation for third-party sellers. So be careful while choosing products in such categories or when trying to over-cut prices in these categories.
Find Low Competition Keywords Triggering Product Ads On Google
In order to drive traffic to your product you sell on Amazon, you want to choose low competition keywords that trigger product ads on Google.
Before you put these low competition keywords to use when selling on Amazon, you have to figure out what they are. You can find low competition keywords that trigger product ads on Google by following the steps below:
If you see several low DR sites on page one of Google thats a signal that the niche is less competitive. Take a look at the two screenshots above. All I did was enter in super broad amazon product categories into Ahrefs keyword explorer and I got back tons of keywords. Rainshower headseems interesting.
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How Do Resellers Make Money
Focusing with reselling products online, there are 3 ways to make money.
Another part of reselling worth mentioning is that garage sales and selling things you never use is also known as reselling. Its not considered a business model but reselling things you dont use for quick cash falls under retail arbitrage.
Risks Of Reselling On Amazon
The biggest risk in a reselling business is your upfront capital investment. Amazon loves this business because they can be the everything store without having to purchase all this stuff themselves.
The good news is most of the time you can at least break even on your inventory. Jessica told the story of a recent purchasing mis-step though. Shed found some seasoning packets for $1 that were selling for $12 on Amazon, with a sales rank of 1000 in grocery.
When she got them home, it turned out that sales rank was in some obscure subcategory and that no one was actually buying them. Luckily it was only $100 bet!
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How To Succeed As An Amazon Reseller
Being a successful reseller on Amazon as one of the leading online retail platforms worldwide with 2.7 billion visitors per month is demanding. Therefore, you need to be up-to-date with Amazons ever- evolving requirements and trends.
Here, we share the most important secrets that you should employ to become successful as an Amazon FBA reseller:
Tips To Resell Items On Amazon How To Resell Your Products On Amazon
Wondering how to resell item on Amazon?
It is very profitable selling on Amazon. The primary objective of listing your product or service on platforms like Amazon and eBay is to get eyeballs. The more eyeballs you get, the chances of your making a sale improve. This is true for both eBay and Amazon.
You will be surprised to know that people make decent money selling on both these sites. Selling on these sites is a privilege and if a merchant is offered the same, he should count himself lucky. This article will give you tips on how to resell products on Amazon. These tips will not make you rich overnight, however, if they are followed diligently, you are sure to create your own brand name on the site.
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Why Does An Amazon Reseller Fail
Usually, not many people like to focus on the negative point. However, the reality is that not everyone who starts a business on Amazon succeeds. In general, there are many reasons for their failure, but here we want to mention some of the crucial points.
- High Risk of account suspension
It happened because of violating Amazon policies. One of the most common reasons of account suspending is that Amazon may assume you are selling fake or counterfeit products. Another reason could be reselling a product that you described as NEW, but in fact it is USED or OLD.
- Picking the wrong product
Dont rush and pick the first product that looks good. You need to consider many factors to choose a product for reselling, such as high demands, low competition, and seasonal items. So put in enough time for researching.
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- Lack of learning
It would be best if you never stop learning. If you want to keep growing and have a successful business, take in hand-on trusted information.
- False expectation
There is an assumption that success comes quickly and rapidly as an Amazon FBA reseller. Unfortunately, this is a false message. It needs much effort.
- Money Management
One of the most fundamental principles in your business is money management, which is the key to long-term success. For avoiding fall short of your cash, start writing down all your expenses.
- Lack of investment
You should invest in your business via your team, your resources, and different services
How Much Can You Make
According to JungleScout, new Amazon sellers are earning an average of $42,000 in annual profits. Nice, right?
Obviously, that may not be the case for everyone, because you get out what you put in. Some people will make much more, and some much less.
If you put in the effort and use the right tools to help you along the way, selling on Amazon can change your life.
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Use Retail Arbitrage To Source Amazon Products
In retail arbitrage, you purchase deeply discounted retail products and resell them on Amazon. It sounds simple, but doing it rightmeaning profitablytakes some work. Retail arbitrage sellers are absolute pros when it comes to hunting up discounted and clearance deals in local stores and matching them with hot sellers on Amazon.
The secret is knowing whats selling well on Amazon on any given day, and for how much. You also need to clearly understand your cost of selling that item on Amazon. Amazon seller fees run about 15% of your selling price, and shipping orders can take a big bite out of your profits if youre not careful.
Luckily, there are tools to help you spot profitable bargains. Amazon pricing apps are the retail arbitrage sellers secret weapon. These are smartphone apps that let you scan item UPC codes and match them to current listings for that product on Amazon.
These apps deliver a wealth of information to help you price your products including the average selling price and buyer demand, your shipping or Fulfillment by Amazon costs, and your potential profit.
Using this information, you can decide if you should buy a product and how much inventory to stock based on the current demand and your profit potential.
You can also see detailed storage and shipping costs if using FBA for fulfillment. The FBA fulfillment option has its own costsbut managed right, it can be far cheaper and less time-consuming than handling fulfillment yourself.
Find A Gap In The Market
You might come across a gap on Amazon through simple organic search — for instance, when I search “women leggings” there are over 100,000 results, but when I search “cycling leggings women pink” there are only 1,000.
This is a simplified example, but sometimes you need to narrow down your product search to find a place to make an impact on Amazon. Plenty of people are already selling leggings, but there might be a certain style, color, or type of legging that is missing on the site.
Alternatively, you can find a gap in the market by reading customer reviews in your product market niche. Even if there are plenty of products similar to yours already, you might find that customers are unsatisfied by the current brands and want something you can provide.
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Is Reselling Allowed On Amazon
Yes, it is entirely legal to buy a product from a store, wholesaler, or manufacturer, mark up the price and resell it for a profit. For being an authorized reseller, you dont need any permission.
Once you buy a product, you consider it its owner, and if you wish to resell it, you are free to do so. Just keep in mind that if you buy a product from a store, you need to make sure about its authenticity. Sometimes Amazon will ask you to provide the invoice to check if the product is authentic. Besides, you should consider a restriction that exists on reselling specific brands and categories on Amazon.
Research Trending Topics On Google Trends
Researching the trending topics on Google can help you narrow down the options to the products that will fly out the door when selling on Amazon.
Google Trends highlight the popular products and taking note of these will help you choose a product that sells.
It doesnt matter what niche youre looking to target for your product to sell on Amazon. Looking at the latest Google Trends will give you an idea as to the top sellers in a wide array of categories.
Google Trends is a popular research tool that you should be using to zone in on the ideal items to sell through Amazon.
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What Does It Cost To Sell On Amazon
Amazon offers two selling plans — Professional and Individual. The Professional selling plan costs $39.99 per month, plus per-item selling fees, which vary by category. Alternatively, the Individual selling plan allows you to pay $0.99 per item sold plus other selling fees, which vary by category. The Individual selling plan doesn’t have a monthly subscription fee, so if you plan to sell less than 40 items, this is likely the smarter choice.
Originally published Mar 11, 2019 7:00:00 AM, updated August 09 2019
Online Arbitrage: Buy Products Online And Resell Them Online
Want to make money shopping online?
Online arbitrage is similar to retail arbitrage. The main difference is that you bargain hunt and purchase your inventory online instead of in-store.
Arguably the descendent of retail arbitrage, online arbitrage has the appeal of being able to do everything retail arbitrage does but from the comfort of your home.
Fellow Helium 10 content writer Chuck wrote on several tools that online arbitrage sellers will find useful, from product sourcing to discount-finders, and perhaps most important for arbitrage sellers: price-comparison tools.
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Reselling For Profit: Buying Criteria
There are a few criteria Jessica and Cliff use when purchasing items to resell on Amazon.
The sales rank is crucial because you want to be able to turn your money over quickly. Even if a product is a screaming deal, its usually not worth buying if the rank is really high because itll just sit in the warehouse collecting dust.
Reselling On Amazon With Online Arbitrage
Jessica and Cliff do online arbitrage too, but not as much as physically finding products in stores.
She said online arbitrage is great for people who dont enjoy shopping or are short on time. While profit margins can be thinner , you can often find more units of a product online than in your local store.
Jessica recommended as her go-to tool for online arbitrage, citing its clean and easy-to-use interface.
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How Reselling On Amazon Works
Jessica takes advantage of Amazons FBA program, or Fulfillment by Amazon. This is Amazons way of crowdsourcing its inventory, and letting regular people like us tap into its world-class logistics network.
That means this Selling Family doesnt have to ship anything to the end customer, handle returns, or write up product descriptions.
How the business works is like any other retail business: you profit on the spread between the cost of your product and what it sells for. Now you have to account for Amazons fees and shipping costs, but its basically buy low, sell high.
And the best part of this side hustle is that you can get started today with whatever initial inventory investment youre comfortable with.
Is An Amazon Business Right For You
So, now that you have the basic knowledge on how to choose profitable products and even how to get started on Amazon, is an Amazon business right for you?
When deciding if pursuing an Amazon business is the right route to take, you should know that selling on Amazon provides a great way to get started selling online. This is especially true if you dont want to deal with technology.
Selling on Amazon, whether handling the duties yourself or using Amazon FBA, will be the most beneficial if you can introduce a product that has a differentiated feature.
That is, until Jeff Bezos finds your product.
Remember How Jeff Bezos Admitted Amazon Sellers Were Kicking His Butt in 2018?
Remember the letter from Jeff Bezos to shareowners shown earlier in this article where he said Amazon third party sellers were kicking the first party sellers butt? If not, heres a reminder:
Well, heres how he responded to the competition that prompted him to say this.
Shortly after that admission, Amazon added 157 private label brands. This addition brought the total number to 450.
When it comes to his bank account, that man doesnt mess around!
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Review Best Sellers Pages Within Your Potential Categories
Next, if you want to explore your opportunities and competition within a certain category, you can simply head to Amazon itself, search for that category and add best sellers to your search term. Heres what we found searching for best sellers novelty scarves:
The Best Sellers page lists the top 100 sellers in that category. From there, you can click into different items and scroll down to gauge their sales popularity.
The product description detail that Amazon provides on each item tells the story of its overall popularity. For example, this item is pretty popular according to:
Its Amazon Best Seller Rank of 5,836 in the huge Clothing, Shoes, and Jewelry category. As a rule, anything with a BSR under 10,000 in a major category has respectable sales velocity.
Its 145 reviews from customers show that this item has a track record of sales.
Reviews add up over time, but each review shows the date, so you can use reviews to gauge how many of a given item sold in a set period of time. According to Amazon Seller Central, only about 10% to 20% of customers actually leave feedback. So 145 reviews can equal anywhere from 700 to 1,500 actual sales.
Its not a perfect market analysis, but it helps you determine if an item has enough demand to make it worthwhile. It also helps you see what your competition is doing and uncover ways to improve upon their products.
Where To Sell Your Items
Now that youve collected items, its time to sell them. There are lots of options, but here are a few well-known online marketplaces.
eBay This long-running marketplace has over 160 million users. That gives you good visibility on items, but requires selling fees and sometimes listing fees.
Great for selling items locally, with no fees and no integrated payment processing. I sold my old car on Marketplace the buyer paid cash.
OfferUp Free online selling app for local transactions. There are various service fees, but none for in-person exchanges. The app uses Stripe for payment processing of shipped goods.
Craigslist A holdover from the early days of the Internet, this online classified advertising platform still fuels a lot of local sales transactions. No integrated payment processing, but most postings are free.
Mercari A free app that lets you sell new or used items from your phone. No in-person transactions, all items are shipped. Sellers are protected with a payment guarantee and shipping insurance. Listings are free but theres a flat 10% selling fee.
Poshmark A free app for selling fashion and home-related items from well-known, upscale brands like Coach, Michael Kors, and Louis Vuitton. Think of it as an online consignment shop. Selling fees are $2.95 for sales under $15 and 20% commission for sales of $15 or over.
VarageSale This virtual garage sale is made up of communities where members can buy and sell items locally with no fees.
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