Guard yourself against the economic challenges and uncertainties posed by the previous years by adding new income streams. One effective way is to find products on Amazon and resell them to make a great profit.
We’re sure you’ve heard of success stories on the platform. We’re also confident you can weave your own story of success with the right approach. However, reselling can be tricky—even on a platform with a vast market base like Amazon. If you don’t crunch your numbers right, you can still lose money.
Reselling isn’t just about offering products at the lowest prices. It requires understanding how the platform works and employing the right selling tactics. This guide was written to help you get a good grasp of Amazon itself and explore different strategies to make it big as an Amazon reseller.
Before we go into more comprehensive details, let’s start with the basics. Follow these essential steps to jumpstart your reselling journey.
To resell on Amazon, you must first register as a seller. Although you can use the same email address as your customer account, it is advisable to create an email address solely for your Amazon reselling business.
During registration, you will be asked to choose between Individual and Professional selling plans. Choose Individual if you intend to sell only 40 items or less per month, so you’d only have to pay $0.99 per item sold. If you expect to sell more or are scaling up, consider signing up for the Professional plan. You’d have to pay a monthly fee of $39.99 per month, but it is more cost-effective than having to pay a per-item fee when your sales grow.
Take note, though, that there are other fees applicable depending on the specific products you sell.
As an Amazon seller, you can resell items you no longer use at home, rare finds from thrift shops, quirky garage sale scores, and other previously owned items you can source more affordably. You can also sell brand-new products bought wholesale from manufacturers or at discounted prices during clearance sales.
If you want to maximize your earnings, though, you’ll need to choose items to resell carefully. In particular, you’d want to sell items that give you the best profit margins, such as those that are in high demand but are in low supply.
Conduct product research and analyze trends to find categories where you can potentially get higher sales. In 2022, for instance, the most popular categories among small sellers were Home and Kitchen and Beauty and Personal Care.
Amazon has very strict policies on product authenticity. As a reseller, you must make sure that the branded products you resell are authentic. This requires careful scrutiny of potential products.
To ensure that your products are of high quality, look for a reliable seller. Check their business registration and read client reviews. If you’re ordering wholesale, confirm if the seller will be able to meet your demands in the right quantities at the right time.
Once you’ve decided on what products to sell and have your initial stocks ready, it’s time to list your items. Go to your Seller Central dashboard and follow the instructions for listing items. Make sure you adhere to Amazon's listing policies—especially regarding product IDs and categories. This helps you avoid getting flagged or having your seller account suspended.
To increase the chances of appearing in search results, include detailed descriptions and use appropriate tags. Use clear images and catchy headings to attract buyers. Set competitive prices to boost conversions.
Order fulfillment and inventory management are part of your responsibilities as a seller. When orders come in, prepare the items promptly and ship them to the buyers. Regularly track orders and monitor inventory levels to make sure you always have enough stocks available. However, if this is too much work for you, you can let Amazon handle this part of the process by choosing Fulfillment by Amazon.
There are several ways to resell on Amazon, and it’s best to choose the one that matches your personal interests and goals as a seller. You may also choose to combine different selling methods to maximize your growth.
Reselling previously owned items is one of the easiest ways to earn money without as much business capital. You can resell household items or furniture you no longer need by listing them on Amazon. You’d be surprised how much you can earn from things lying around your home or stowed away in the attic.
However, one downside to this is that you’d eventually run out of things to sell. When this happens, check out thrift shops or neighborhood garage sales for collectibles, vintage pieces, and other items that have great reselling potential.
Another way to establish a business on Amazon is through a private label. This means partnering with a reliable manufacturer that allows you to sell their products under your own brand. This will let you sell pre-manufactured products while having full control over sales and marketing. This also makes you eligible for the Amazon Brand Registry. Aside from the free registration as a private label, you also get free access to more seller tools like Brand Analytics, Stores, and A+ Content.
One downside to this reselling method is that it requires a significant amount of capital. You’d need to meet the minimum purchase requirements of the manufacturer for products to be packaged under your own label.
Another challenge you’d meet as a private label is competition with better-known brands. As you start your business, you’d have to put in more effort to raise brand awareness, earn the trust of buyers, and build your brand’s reputation.
Similar to reselling as a private label, wholesale reselling also requires a huge capital outlay. You’ll need to meet the minimum purchase requirement to get items at wholesale prices. Often, the price per unit would be inversely proportional to the purchase quantity. The more you buy, the lower the wholesale price. This means you may be able to enjoy a wider profit margin.
Moreover, wholesale reselling lets you ride on the popularity of established brands. Since consumers are likely to be more familiar with the brand, your products are just as likely to be chosen over unknown private labels. However, you’re also bound to have more competitors for the same product, and you won’t have complete control over marketing as you’d have to follow brand policies.
If you don’t have that much capital but are a great bargain hunter, capitalize on your great finds through retail arbitrage. This means buying products from a retailer at discounted prices and selling them at market price to earn a profit.
Watch out for clearance sales and seasonal sales, both online and in-store, at big consumer goods stores like Target, Walmart, Home Depot, Staples, and Walgreens. Stock up on heavily discounted items that sell well on Amazon, then list them at a price that gives you a good margin.
While this is a good way to resell products, it does have its cons as well. Your product offerings would depend on what goes on sale—something you can’t always predict. Arbitrage also involves going to different stores to take advantage of their discounts. You don’t own the brands you sell and, therefore, have less control over product listings and marketing.
These four basic ways of reselling on Amazon all have their advantages and disadvantages. Assess your business goals, your financial capacity, and your own preferences when choosing which reselling methods would work best for you.
As long as you don’t infringe on the rights of other brand owners, you can resell practically anything on Amazon. With diverse buyers across the world, you’re bound to find a buyer for any product you sell. However, there is also a large number of sellers that make competition on the platform quite fierce. This makes it important to still put careful thought into what products to sell to gain sizable profits and make the most of your efforts.
Conduct regular product research to know what will likely be high in demand based on seasons or trends. In 2023, for instance, cosmetics, skincare, and beauty products had the highest sales on Cyber Monday and Black Friday. Demand can change fast, so take note of shifts in consumer preferences and buying trends to adapt quickly.
The demand for seasonal items such as camping equipment, Halloween costumes, and Christmas ornaments may be easier to predict, but there’s also greater competition for these items. You can address this by looking for unique items that stand out. Limited editions, collectibles, vintage pieces, and other exclusive items may give you an edge.
Here are other tips for choosing products to resell:
If multiple sellers are offering the same product, all offers are shown on the same product detail page. While this makes it easier for buyers to compare items, it makes it harder for resellers to stand out. Remember that more than 60% of sales on Amazon are from independent sellers like you.
To appear on top of search results and attract more buyers, make sure to optimize your listings. Start with these suggestions:
As a reseller, you have the same shipping and fulfillment options as all other sellers on Amazon. You can choose Merchant Fulfilled or Fulfillment by Amazon.
With Fulfilled by Merchant, you handle all fulfillment and shipping processes yourself. When you get an order, you pack the items and schedule their shipment. You also update inventory yourself and track orders until they reach the buyers. If there are returns, you’d have to process them yourself, too.
Under FBA, Amazon handles the entire fulfillment process. You send your inventory to the nearest fulfillment center, and Amazon prepares them when orders arrive. They also handle shipping, returns, and customer service related to purchases for a fee.
Different states have different laws when it comes to reselling businesses. Before registering as a seller, check the laws that apply to you as a reseller. Make sure you also go thoroughly over Amazon seller policies. For resellers, take time to understand these two policies to avoid potential legal repercussions.
Listing products from other brands can be tricky for resellers. You’d need to be careful about how you list and market branded items. Avoid patent, copyright, or trademark infringement by adhering to this policy. Violating intellectual property rights will not only result in the loss of selling privileges but may also lead to legal actions against you.
Amazon has very strict standards for product authenticity. Violating them may result in you losing your selling privileges, among other repercussions. If found to be counterfeit, your inventory will be disposed of, and worse, you may face civil penalties, criminal fines, and even imprisonment. Exercise due diligence when sourcing your products, and avoid selling any bootlegs, pirated copies, or anything illegally replicated, reproduced, or manufactured.
As an Amazon reseller, it is your responsibility to comply with all policies on the platform and business regulations in your region
Seller Central has free tools you can use to sell on the platform. Amazon’s Best Seller rankings (BSR) give you an idea of trending products so you know what buyers are currently looking for. On the other hand, The Amazon Automate pricing tool automatically adjusts prices based on competitor pricing so you can get your products on the Buy Box.
Beyond the platform, there are third-party tools that can help you accelerate growth. Some of the most advanced seller tools today can be found at Threecolts. Check these ones out for starters:
Resell through arbitrage without spending hours going from store to store or browsing through multiple websites. Tactical Arbitrage automatically searches thousands of stores online to find the most profitable deals for you. Use this tool to compare prices, analyze competitor sales, and source best-selling products.
If you’re doing cross-border arbitrage, Seller Running should be in your tech stack. This tool lets you compare prices and source top-selling products in 16 global Amazon marketplaces. You can also automate listings, calculate customs duty, include taxes in your profit margin, and reprice automatically.
Customer reviews impact your seller reputation and ranking on search results. To resolve issues immediately and prevent negative reviews, have your own customer support solution in place. While Amazon offers customer support, too, having one that’s dedicated to your business can enhance customer satisfaction. With Onsite Support, you can address customer-related problems before they escalate.
Multiple income streams can pave the way for increased financial stability, and Amazon makes it possible for anyone to start a profitable venture, even with limited resources. You can start by reselling on Amazon and leveraging digital tools to accelerate growth. With the right strategies in place and consistent efforts on your part, you can increase your income flow while keeping your day job or managing multiple side hustles. Streamline and automate your selling processes with seller tools on Threecolts to maximize your profits. From automated pricing adjustments to cross-border arbitrage support, these tools enhance efficiency, contributing to the overall success of your reselling venture.
With the right strategies, a commitment to ongoing learning, and the use of available tools, you can confidently navigate the challenges of the platform and thrive as an Amazon reseller.