Tips To Succeed As An Amazon Reseller
There are certain aspects that you should consider if you want to be a successful reseller on Amazon. Lets see how to optimize these aspects to stay profitable.
1. Low competition products
You can resell on Amazon in two common ways.
- Sell successful items with high competition.
- Sell items with low competition and no proven success record.
If youre a new reseller, the second option works for you. Low-competition products have the potential to establish you as a leader in that category. This way, you can make a name for yourself on the Amazon marketplace. Besides, it is easier for you to win the Buy Box.
. This, in turn, positively impacts the brand, seller ranks, and ratings. All these metrics aid in growing your business on Amazon.
On the flip side, selling low-competition products means that there is no proven sales record. There could be a reason why resellers did not penetrate the market. There may not be sufficient target customers, or lower margins, etc. Make sure you basics first.
Secondly, you need to have a good seller rank to gain visibility and boost your sales on Amazon. So choosing the second option is better to improve your seller rank on Amazon.
2. Offer a low price on a high-competition product
The other way to succeed as a reseller is by selling high-competition products that have a proven record of sales. With a popular product, you can be sure to get a sales influx, which in turn boosts your rankings and visibility on Amazon.
3. Select quality products
How Do You Sign Up As A Vendor On Amazon
It is very easy to be a vendor on Amazon. You just need to sign up with Amazon FBA. Then you can make a full-time business selling products to Amazons customer. The sales growth on Amazon compared to other e-commerce channels is astounding. And this is probably because Amazon is a full-service channel, meaning that Amazon takes care of everything for you, from shipping your products to managing customer relations. Amazons FBA program gives you one simple payment solution make money on Amazon! We use Amazon for FBA and other selling activities. You can read a bit more about how we used Amazon to sell products, then start selling on Amazon and read reviews of Amazon products. Want to learn about the best items to resell on Amazon? Log into Amazon.
Create An Inventory Strategy
One of the biggest mistakes resellers make is that they dont properly analyze their inventory levels. They assume that inventory levels dont matter as much for reselling as they do for private labeling.
But inventory is a foundation of the reselling business. A surplus of unsold goods can be intensely expensiveespecially if you are forced to liquidate for a lower cost than purchasing price. On the other hand, too few goods in inventory can leave you without products to sell to your customers. This can cause you to constantly spend time looking for new products and orders, which takes up time and resources.
Before you invest in reselling a specific product, youll want to forecast your sales and inventory based on competition, pricing, quality, and market need.
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Create Your Product Listings On Amazon
As an Amazon seller, you can create product listings in two wayseither add your items to existing product listings or create a new product listing for an item. Either way, youll want your product to show up in the top results when customers search for it. With keyword research, youll know the exact words potential customers type in when looking for a product like yours.
Sellics is an all-in-one Amazon software that offers a free keyword research tool. You can either add the keywords Sellics finds to your product listings yourself or use the software to help you optimize and scale your Amazon store. .
Adding items to existing listings is by far the easiest of the two, and this is how most new sellers get started on Amazon. So well begin here.
You Dont Consider How Long It Takes To Ship Items
For many consumers, time is of the essence. If someone purchases a buy box from you for a low price that unfortunately takes a long time to arrive, the price factor goes out of the window.
As an Amazon reseller, you need to keep time in mind because your goal should be to offer the best value items that you possibly can and have them delivered as quickly as possible.
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What Is Amazon Arbitrage
The principle behind Amazon arbitrage is simple.
Now there are a lot of other factors at play that make arbitrage possible, but thats the general idea behind the practice.
What Is Reselling On Amazon
Before you decide to go out and turn your old items into cash or even buy someone elses products to resell, its important to understand what exactly youll be doing.
Reselling on Amazon is when individuals have or find products and purchase them, intending to sell them for a profit.
Typically, individuals who are just starting will purchase these items in bulk quantities at low prices to sell them later for more than they initially paid.
What makes this strategy so successful is that it takes advantage of two things: firstly, many people dont want the hassle of having to sell/resell products themselves , and secondly, there is always a high demand for certain products, so its unlikely that all of your inventory will end up being worthless.
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Top Selling Products Based On Amazon Best Sellers Page
A good starting point for identifying top selling items on Amazon is a list of current best-sellers that the platform itself curates. You can find best seller lists for international marketplaces, including the USA, the UK, Canada, Spain or Germany.
These lists show items that are selling the most across the entire site. They show the most popular products per category, ranging from toys to books to video games.
Amazons Best Seller list is updated hourly. Check out the screenshot below to see what was popular at the time when we started working on this article in March.
However, when using Amazons best seller lists, be aware that:
- Products found on the best sellers page can be very competitive: after all, every seller has access to this information.
- Sales of particular products might be trending down, which means you could jump in just as the product stops being in high demand.
- Some top selling products might not have great sales margins and be profitable.
All the same, we encourage you to pay attention to what sells best and is trending. You might want to get ideas for similar products and also look at the Customers also bought section. This can give you ideas to adjust your product portfolio in a way that will grow your ecommerce business on unprecedented levels.
When youve identified products with potential, you can track down suppliers that will provide you with those same products or come up with new variations to gain competitive advantage.
Promote And Market Your Books
Take advantage of Amazon tools
Promote your online book business on social media
Pay attention to reviews
- Be honest about item condition
- Ship orders on time
- Respond to customer inquiries quickly
- If issues arise, solve them as soon as possible
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Create A Personal Account
The first process to selling on Amazon is to create a seller account. In particular, there are two kinds of seller accounts available to Amazon users individual account or pro seller.
The individual account cost $0 monthly but sellers will be charged $1 for every product they sell on Amazon.
Also, the pro seller account charges $39.99 monthly. Interestingly, this account entails more features that makes sales on Amazon more profitable.
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 Google Or A Similar Keyword Research Tool
One of the easiest ways you can sort through products to decide what might be good to sell on Amazon is by using keyword research. You can simply perform a Google search, or use a keyword tool like SEMRush to see what the search volume is for different terms, products, and categories.
As an example, say you think you want to sell customized winter hats. You can perform a search for “customized winter hats,” as well as other variations of the term, to see how many people are looking for this item, as well as what the competition looks like.
Through this process, you might also gain some insight on how to find the product you’re looking to sell on Amazon as wellas wholesale or direct suppliers may appear in your search.
Sell The Right Products
Once you improve your seller ranking, youll want to reevaluate your product portfolio. The products you offer will define your brand moving forward. The best types of products to resell as a new Amazon seller are:
- Unique products
- Refurbished or used products
- Private label products
If you are selling private label products, you want to partner with a tight-knit community of sellers. This ensures that the private label you sell always has a strong brand image and loyal following. For example, HomeRev sellers adhere to specific branding and growth plans to ensure that the HomeRev name always has positive associations and reviews.
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Before You Source Any Inventory Test Your Products
Its important to note that most inventory sourcing options require an upfront investment in product.
But, before you hand over a large sum of money, its important to test the products and make sure they meet expectations.
You can ask suppliers and manufacturers to ship sample items to you. This gives you first-hand experience of the product quality
If you skip this step, you might learn the hard way when youre dealing with customer complaints and $10K worth of inventory in a warehouse that you cant sell.
Create Your Own Products
Fully control the manufacturing of a particular item
If you want to have total control over your products and brand, you can make your own.
For example, you could develop your own cosmetics line. Youd come up with your own formula for foundations, mascaras, lipsticks, etc., find a manufacturer that will make and package the products for you, and then sell them on Amazon. Learn more about finding your own eCommerce niche.
Of course, this is more expensive and time-consuming than wholesale or private label, but youd be in total control.
Pro Tip: Look into trademarking your brand and/or products to protect yourself from counterfeiters and scammers.
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Great Reselling Is All About Developing An Amazing Brand
and that takes work! Just like Red Bull outsources the entirety of its production to third parties so they can focus on branding and marketing, so can resellers on Amazon. Creating a solid brand experience will keep customers coming back and attract new customers to your brand over your competition.
If youre wondering , youll need to start by picking your products. Think about the problems you face and products that can help to solve them. When choosing your products, you either want to sell products with low competition and no proven success or high competition products with high proven success.
If this is your first-time reselling on Amazon, consider conducting product research to find low competition products that dont have success yet. Your product research will ensure its a profitable idea and that the merchandise is actually in demand.
If youd prefer to go with high competition, high success items, you need to provide branded experiences to help your products stand out from the rest. This could include stellar customer ratings, price, and specific product features.
Should I Focus On A Specific Low
Amazon product research comes down to sourcing new popular products to sell. If you decided to go down the route of being a high-end reseller, then you should go after the most popular items on Amazon.
Being a general reseller is also another option, as this will allow you to source different types of products and make sure that your inventory is always filled.
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Is It Profitable To Sell On Amazon
In a word, yes! Amazon is already extremely popular and its getting even more so each and every day, especially with third-party sellers.
Third-party Amazon sales are growing in number and experiencing continual increases as the years progress. Jeff Bezos sees this increase in third party sales as serious competition to the Amazon first-party products his company sells. The third-party sellers are making legit cash, so much so that Bezos makes a definitive response to the increase in third-party sales, which youll see later in the article.
To put the rate of increase in perspective, third-party sellers accounted for 3% of Amazon sales in 1999 whereas this percentage steadily increased and was all the way up to 58% in 2018!
Just by looking at these numbers, its easy to see that third-party sellers are doing pretty well with Amazon sales, to say the least. These figures are even more impressive because Amazon first-party sales had increased from $1.6 billion in 1999 to $117 billion in 2018! Thats some big competition to go up against.
Selling your own brand on Amazon is profitable, whether you are an ambitious self-starter who wants to do it on your own or you want to delegate and use the services of others. You can choose to handle the shipping, customer service duties, and other roles yourself or sign up for and let the Amazon team handle all of the finer details of the sale.
The Models For Reselling Are As Follows:
Retail Arbitrage
Retail arbitrage is a sales model when the seller buys discounted products through retailers to sell on Amazon.
Wholesale
Selling wholesale on Amazon refers to buying products in bulk directly from the manufacturer or supplier at a discounted price and afterward selling them on Amazon for a retail price.
Dropshipping
Dropshipping Amazon is a sales model when the seller lists an item on his website, gets an order from the seller, and asks the manufacturer to send it to the buyer directly. Amazon dropship profit margin comes from the difference between the wholesale price of the manufacturer and your retail e-commerce price.
Private Label
A Private label is a sales model when the seller finds a product potentially in demand and creates its own brand out of it. With this model, you can enroll in an Amazon reseller program called Amazon Brand Registry to increase your sales.
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A Purely Amazon Based Business Is Not A Long Term Play
You need to keep in mind that selling on Amazon as a do-it-all vendor or using Amazon FBA exclusively is not a long-term move to make.
As the competition grows, selling on Amazon is only going to get tougher. The more competitors your Amazon business has, the less likely you are to make huge profits. Andrew Youderian from put together this seller research study on Ecommerce Fuel.
With that said, youll want to spread your wings and get off of Amazon. Selling on Amazon is a good sales method to start with but shouldnt be a permanent thing. And, its important to know that brands that invest off of Amazon have a higher rate of profitability.
Ive worked with successful brands on Amazon that have hired me to help them get off of Amazon and launch a lucrative sales career through other avenues. Its never been the other way around. Nobody has asked me to help them launch a professional business on Amazon.
Maybe because launching an existing brand on Amazon is quite easy. It just takes an Amazon pricing strategy, sending the product to FBA, and just an app or plugin to integrate with Amazon. For example, Shopify and BigCommerce both have this capability. You can just turn it on as soon as you have your APIs and prepare to sell on Amazon.
Plus, youll find that other options provide a less risky and more lucrative option to consider. One example of this is an Amazon affiliate marketing option which allows you to tap into the Amazon ecommerce money-making ecosystem.
Decide What Type Of Books You Want To Sell
- Wholesale: Buy in bulk for lower prices online or at bookstore closings. You can also procure new books in larger quantities from distributors or publishers. You may not have total control over what you get, but you can get more books at wholesale costs.
- Online arbitrage: Browse from bookseller websites, ecommerce websites, and social media websites for low-priced or free books to purchase and resell for a profit.
- Local sources: Find used books by browsing local library book sales, used book stores, yard sales, and thrift shops. You may also discover collectible books at estate sales.
- Auctions: Seek out auctions, estate sales, or farm sales selling used or collectible books.
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