Reselling on Amazon is a good way to make a profit, or even start your own business. With millions of users worldwide, Amazon provides resellers with a platform that has enhanced reach and potential. This article will take you through the process of reselling on Amazon in 2024.
- Is it Legal to Reselling on Amazon?
- Different Amazon Resale Business Models
- How to Resell On Amazon
- Step 1: Setting Up Your Seller Account
- Step 2: Finding Profitable Products
- Step 3: Sourcing Products
- Step 4: Listing Your Products
- Step 5: Fulfillment by Amazon (FBA)
- Step 6: Customer Service
- Step 7: Scaling Your Business
- 5 Best Items for Reselling on Amazon
- Some Questions
- What is Sell on Amazon or SOA?
- How does selling on Amazon.in work?
- What products can I sell on Amazon.in?
- Who takes care of shipping and packaging?
- What are the charges for selling on Amazon?
Is it Legal to Reselling on Amazon?
Yes, reselling on Amazon is legal. This is allowed by the law, thanks to something called the first-sale doctrine. According to this rule, once you purchase a product legally, you have the right to resell it as long as it is sold in an unchanged condition.
However, there are some important considerations to keep in mind:
- Ensure that the items you sell are genuine and not counterfeit. Selling fake goods can lead to legal issues and account suspension.
- While it is legal to resell other brands’ products on Amazon, Amazon does limit the brands sellers can sell. You may need to get approval before selling a particular brand. Big brands, like Nike, Disney, LEGO, etc., usually require prior approval.
Different Amazon Resale Business Models
There are different business models that sellers use to resell products on Amazon. Here is a brief overview of each:
- Private Label: This is the most popular Amazon business model, with 54% of sellers using this method. In this model, sellers rebrand a product that is already being manufactured under their own brand or label.
- Wholesale: This model involves purchasing large quantities of products directly from manufacturers or distributors at a discounted price and then reselling them on Amazon. About 26% of Amazon sellers use this model.
- Retail Arbitrage: This involves buying products from retail stores during sales or clearance events, and then selling them on Amazon at a higher price. Approximately 25% of Amazon sellers use this model.
- Online Arbitrage: Similar to retail arbitrage, but in this case, sellers buy products online at a lower price and then resell them on Amazon for a profit. Around 24% of Amazon sellers use this model.
- Dropshipping: In this model, sellers list products on Amazon, but the supplier ships the products directly to the customer. The seller can handle the product without physically. About 17% of Amazon sellers use this model.
- Handmade: Sellers create their own products and sell them on Amazon. This model is used by about 8% of Amazon sellers.
How to Resell On Amazon
Below are the steps for reselling on Amazon. Follow every step, and you will get to know everything related to it. Let’s start:
Step 1: Setting Up Your Seller Account
Before you can start reselling, you will need to set up an Amazon Seller account. You can choose between two types of accounts: Individual and Professional. Individual accounts are free but come with a $0.99 fee per item sold, while Professional accounts cost $39.99 per month but have no per-item fees. Choose the one that best fits your selling plan
Step 2: Finding Profitable Products
The key to successful reselling on Amazon is finding products that are in demand and can be sold at a profit. This requires research and a good understanding of the market. Use tools like Amazon’s Best Sellers list, Google Trends, and social media to identify trending products and niches.
Step 3: Sourcing Products
Once you have identified profitable products, you need to source them. This could be through wholesale suppliers, clearance sales, thrift stores, or even items you already own. Ensure the products are in good condition and can be sold as new or used based on Amazon’s guidelines.
Step 4: Listing Your Products
When listing your products, make sure to use high-quality photos and write detailed product descriptions. Use keywords that potential buyers might use when searching for your product. Set competitive prices by researching what similar products are selling for.
Step 5: Fulfillment by Amazon (FBA)
Consider using Fulfillment by Amazon (FBA), where Amazon handles storage, packaging, and shipping on your behalf. While FBA comes with fees, it can save you time and effort, especially if you plan to sell on a large scale.
Step 6: Customer Service
Providing excellent customer service is crucial when reselling on Amazon. Respond to customer inquiries promptly and professionally. Handle returns and refunds graciously. Positive customer reviews can boost your seller’s reputation and increase your sales.
Step 7: Scaling Your Business
Once you have made some sales and are comfortable with the process, consider scaling your business. This could involve sourcing and selling more products, expanding to international markets, or even creating your own products to sell.
5 Best Items for Reselling on Amazon
Here are five items that are often considered good for reselling on Amazon:
- Sheet & Pillowcase Sets: These are popular items in the home and kitchen category.
- Probiotics: Health supplements like probiotics are in demand and can be profitable.
- Dog Toys: Pet supplies, including dog toys, are evergreen products with a consistent demand.
- Resistance Bands and Small Weights: Fitness items have always been hot sellers on Amazon, mainly with the increased interest in home workouts.
- Yoga Pants: Apparel, particularly activewear like yoga pants, is a top-selling category on Amazon.
Reselling on Amazon can be a profitable venture if done right. By following these steps, staying informed about Amazon’s policies, and continuously learning and adapting, you can build a successful reselling business in 2024.
What is Sell on Amazon or SOA?
Sell on Amazon or SOA is a program that allows sellers to list their products on Amazon’s marketplace.
How does selling on Amazon.in work?
Sellers list their products on Amazon’s marketplace. When a product is sold, Amazon handles the shipping and customer service.
What products can I sell on Amazon.in?
You can sell a wide range of products on Amazon, from books to electronics to handmade crafts.
Who takes care of shipping and packaging?
Amazon takes care of shipping and packaging for sellers.
What are the charges for selling on Amazon?
Amazon charges various fees, including a referral fee and a closing fee.