Is it Legal to Resell Products on Amazon?
The Amazon website is an online retail giant that doesn’t only provide buyers with all they need but also provides creative retailers with various sales models to sell their quality goods and earn profit.
One of these sales models is Amazon’s Reselling business. It is buying products from a retailer or directly from a manufacturer and then reselling them on Amazon.
This comes with a high-profit margin and millions of audiences to sell your products to.
Many people used to get started on the Amazon marketplace; if you’re one of those, this guide is for you.
This article will discuss all you need to know about how to become an authorized reseller on Amazon.
Who is an Amazon Reseller?
An Amazon Reseller is an individual or company that buys products at a lower price from suppliers and manufacturers and then resells them at a higher price to consumers.
In most cases, this happens when the products are only sold in high quantities from the supplier and thus have a lower initial price.
These resellers, also referred to as third party sellers, don’t have to worry about the private label; they only focus on ready-made items.
With the required strategies, you’ll be able to build an entire business reselling products and making a profit on Amazon.
What are the Amazon FBA Reselling Models?
There are four main Amazon reselling models you can choose from:
1. Retail Arbitrage:
This reselling model involves buying products at a discounted price from a retailer and then selling them at a higher price on Amazon.
2. Wholesale:
Here, Amazon FBA Sellers buy products directly from the manufacturer or supplier at a wholesale price and then sell them to end customers at a retail price.
3. Amazon Drop Shipping:
This sales model involves a reseller posting items, and when they get potential buyers, they’ll ask the manufacturer or supplier to send it directly to the shopper.
4. Private Label:
An Amazon reseller researches a high-demand product and creates a brand. Resellers in this category usually enroll in Amazon Brand Registry to boost sales.
Step by Step How to Become an Authorized Amazon Reseller
To start selling products on Amazon as a reseller, here’s what is required:
Register as an Amazon Seller
The first thing that’s required of you to start selling on Amazon is to register an Amazon account. You’ll need an ID, tax information, and an active credit card to create an account. Amazon sellers have options when creating an account – either an individual Amazon seller account that charges $0.99 pre-sale or a professional Amazon seller account that charges $39.99 per month. If you’re likely to make more than 40 sales monthly, consider signing up for a professional account. Not only that it saves you money, but it also comes with advanced features like buy box eligibility, order reports, e.t.c.
Choose the Products You Want to Resell
Once your Amazon seller account is set, the next thing is to research your preferred products category and find the perfect items that you can make a profit reselling. Go for a popular and high-ranked item, as the product demand will determine how fast you’ll make sales. Make sure the you choose profitable products, else you’ll lose money. However, it would help if you also were wary of competition. Products with low competition allow you to beat the market and stand out. Here are some tips:
- Do keyword research for popular items on Amazon and their cost
- Check how much other resellers are charging per unit
- Find out the wholesale prices of the products on catalogs and suppliers to know how much you’re investing in purchasing the items from wholesalers
- Avoid fragile, too heavy items and seasonal items
- Avoid products that are complex to manufacture and assemble. Also, don’t go getting products that are in restricted categories.
- Check the customer reviews on the product on other popular e-commerce websites and review sites to see what people think of the items
Source Products Directly from the Supplier
If you’re going for retail arbitrage, consider sourcing your goods directly from the supplier. Choose a supplier that can provide high-quality products, has a low shipping costs and doesn’t joke with deadlines. If your startup capital is low, talk to your supplier to see if they can provide products in small amounts. There are a lot of places to find suppliers; you can check Alibaba as it’s one of the best places to find suppliers with high-profit margins. Other sites to find good suppliers include Gabes, SaleHoo, Tuesday Morning, Dollar days, Price Master, e.t.c.
Create an Optimized and Reliable Listing
Consider creating an optimized listing if you’re reselling a new product to the Amazon website. Shoppers are more interested in buying products with clear pictures and optimized listings.
Here are some things to include in your product listings:
- High-ranked keywords related to your product
- Well-explained product descriptions
- High-quality images and videos
- At least 20 reviews with a 4-star rating
However, if you’re reselling a product on Amazon, consider creating an optimized listing that matches other existing lists.
Ensure You’re in Compliance with Rules and Regulations
Make sure all the products you’re reselling have met Amazon standards and are in compliance with the rules and regulations set by suppliers. This ensures you don’t break any rules down the line. There is a lot of MAP monitoring software that can help you resell products using the required rules and guidelines.
Launch and Market your Product
There’s dense competition on Amazon. Therefore, you need an effective marketing strategy to promote your product and make sales.
Here are some tips to help market your products effectively :
- Target increasing visibility
- Setting up and reviewing ad campaigns and also checking the metrics of ad frequency, clicks, impressions, and engagements.
- Target attaining the Win buy box
- Promote your products on social media
- Monitor your ACOS (Advertising Cost of Sales)
- Request reviews from customers
Rely on Your Amazon Seller App
A secret to increasing your profit while reselling on Amazon is relying on the Amazon seller app.
This app allows you to set up inventory levels for your products which will be synced with all your devices so that it will update everywhere.
Frequently Asked Questions
Is it Legal to Resell on Amazon?
Yes, it is legal to resell products on Amazon. You buy from manufacturers or suppliers and sell at a lower price to end customers.
Ensure you’re reselling quality products that aren’t copyrighted or subjected to counterfeit.
Is Reselling on Amazon Worth It?
If you’re looking for a way to make extra money on the side, then this Amazon business is a good option. It involves little risk, and you have a lot of audiences to market your products to. The program is worth trying since it provides you with an easy way to make money reselling products.
Must I Have a Professional Seller Account to Resell on Amazon?
No. You can use any type of account where professional or individual account to sell products on Amazon. However, a professional account saves you from paying high Amazon fees if you make many sales and offer advanced selling features.
Final Note on How To Become an Authorized Reseller on Amazon
In wrapping up, becoming an authorized reseller on Amazon is a process that demands detailed planning, comprehension of Amazon’s stringent policies, and a consistent drive to deliver top-notch customer service.
One must also strive to meet Amazon’s performance expectations, in addition to maintaining product legitimacy. With these requirements met, you are well on your way to harness the immense potential of Amazon’s expansive marketplace, opening the doors to a worldwide customer base, and thus, catalyzing your online retail venture’s success.
