Reselling LEGO® sets and other toys on Amazon has become a profitable deal in the past years.
During every festive season and special occasion, parents flock to online marketplaces such as Facebook and eBay looking for the best toys for their kids. Though, none of these markets can beat the power of Amazon, considering its huge consumer base and millions of suppliers.
Amazon, for instance, has about 200 million Prime subscribers in the United States alone, meaning reselling kids’ products is a lucrative activity.
However, the only challenge is that reselling LEGO sets on Amazon is not as easy as on other platforms.
Resellers need to go through various authorization steps to get approved and sell toys. For example, when selling sets from other big companies, you will need to provide certifications that permit you to resell their products.
Hence, here is a complete guide on how to ungate and resell LEGO® sets on Amazon.
Why Does Amazon Gate LEGO Category?
Besides housing millions of LEGO suppliers, Amazon also sets strict rules to regulate the number of resellers and LEGO products in its market space.
First, Amazon values customer satisfaction and does not allow resellers who want to exploit unsuspecting buyers.
Of course, millions of counterfeit LEGO sets circulate the market during every holiday season.
Thus, parents are likely to fall victim to low-quality or dangerous products.
Secondly, toy brands are also extremely cautious about their reputations; hence, allow only authorized resellers to sell their products.
Since Amazon allows only resellers with letters of authorization from certain brands to transact on its platform, it imposes strict rules on unauthorized resellers, which minimizes fraud and dangerous selling activities.
Generally, Amazon restricts LEGO and other categories for these primary reasons:
- To protect the potent reputation it has built for many years. To safeguard consumers’ safety by allowing only high-quality and safe products.
- To protect LEGO distributors’ Intellectual Property Rights.
How To Ungate LEGO on Amazon
Ungating the LEGO category on Amazon requires you to submit an approval request. This process is not quite complicated as most new resellers think, though it might take a while based on the account’s health.
Since every category has its defined approval criteria, here are a few things to consider before sending an approval request to resell LEGO sets:
1. Get A Seller Central Account
A Seller Central account forms the backbone of any Amazon seller. It is categorized into Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM). When opening the account, it is crucial to ensure the registration details are correct and are linked to your bank and other financial addresses.
Amazon also requires new account holders to submit more documents and hold a video conference to verify their identity.
2. Become A Reseller
The first step to becoming an Amazon reseller is to get a reputable wholesaler whose LEGO sets are not gated on Amazon.
Getting LEGO wholesalers USA is not an easy step since you will need to vet every supplier that comes your way.
Luckily, you can utilize the services of Amazon experts who understand the ins and outs of various suppliers.
Once you get the right wholesaler, you can proceed to buy at least 10 LEGO items from them and ensure you get legit invoices.
Also, remember to buy the items under the Fulfillment by Merchant (FBM) category, especially as a new reseller.
Don’t rush to make profits at this early stage. The goal is to get approved and harness the vast market that comes with hundreds of selling opportunities.
That means you can buy from the same LEGO wholesalers USA for about two months to build your Seller Central account.
Strive to win customers’ satisfaction through high-quality products, good customer service, and timely deliveries.
3. Request For Approval
After building your Seller Central account, creating your customer base, and having a trusted LEGO distributor or brand at hand, you can now proceed to send your ungating request to Amazon. Here, you need to focus on only three vital steps as discussed below:
Step 1: Check Your Account Restrictions
Checking your Seller Central account restrictions allows you to know which LEGO products you can sell on Amazon. To do this, follow these steps:
- Go to your Seller Central account and click on Inventory.
- Click the Add a Product button.
- Search for the LEGO item you want to sell from the LEGO and Toys category.
- If it states you are restricted, click the Listing Limitations Apply button. Finally, select the Request Approval option.
Step 2: Submit Purchase Invoices
Amazon will prompt you to submit a recent purchase invoice(s) from an authorized LEGO distributor to verify your application.
Reselling some LEGO sets will also demand you to take high-quality photos of products and send them along with the invoices.
After sending the invoice and other documents, enter the Amazon Standard Identification Number (ASIN) of the product, select the Apply to Sell option, and finish by clicking the Request the Approval button.
Step 3: Wait for Approval Feedback
With all your documents submitted and everything ready, you now sit back, relax, and wait for the approval team to finish the process. The approval process may take hours, days, weeks, or even months based on the number of documents you submit.
How To Sell LEGO On Amazon
When reselling LEGO sets on Amazon, you need to choose between two fulfillment options, including:
- Fulfillment by Amazon (FBA)
Sellers using the FBA option can leave all the order shipments, packaging, and customer services to Amazon. The program is available to almost 112 Prime subscribers in the USA and offers a large market space to both sellers and buyers. It also relieves resellers of all the storage and logistic costs.
- Fulfillment by Merchant (FBM)
The FBM program also allows sellers to list their LEGO sets as FBA, though they are responsible for all the storage, shipping, and customer service costs.
Tips For Reselling LEGO Sets on Amazon
1. Stick to Authentic and Invoice-Ready LEGO Sets
You probably know that Amazon puts customers’ safety and satisfaction first; hence, it does not allow low-quality or dangerous items on its platform.
That means it will quickly ban sellers who try to sell unauthentic LEGO sets to unsuspecting buyers.
Whether they are selling new or used toys, sellers should ensure all the items are from an authorized manufacturer and have a recent purchase invoice.
As a reseller, ensure you stick to certified LEGO wholesalers USA to minimize the risks of listing counterfeit LEGO sets.
You should also check the seal on the LEGO box or package to ensure it is still intact. This applies also when getting the products from authorized retailers, even if they have reputable brand marks.
Further, check other items’ conditions such as color, weight, and accessories to ensure they match what is written on the box.
2. Go for Fulfillment by Merchant Option for Higher Profits
Although Fulfillment by Amazon may be a great deal for new resellers, it also has its limitations.
For instance, since Amazon handles all the logistics, it gets resellers out of the selling equations. That means sellers have cannot decide the shipping conditions, gauge the customers’ satisfaction levels, or bargain the price.
Things become even more extreme when dealing with delicate and expensive LEGO sets. Most sensitive Amazon buyers also want to receive their orders in good condition without damage.
However, since Amazon deals with hundreds of orders at once, it may not care for delicate items like you would. Therefore, you can reduce the risks of damage by packaging the items using special materials and shipping them yourself.
3. Don’t Rely on Automated Price Adjustors
When dealing with fast-selling categories such as books, DVDs, groceries, and clothes, you can easily adjust the price to fit in a competitive market.
That is because these categories have a higher turnover degree and their prices fluctuate frequently.
However, the case may be different for LEGO and Toys category.
In the case of retired LEGO sets, the number of new resellers begins to decline as the price of a retired LEGO set begins to appreciate.
That is because only a few resellers can source the item once the manufacturing stops, leading to reduced competition.
Resellers who understand this secret will start increasing the price on Amazon as they anticipate the market price to also rise.
Therefore, using an automated repricer is not a good idea since you will still need to change the price once the market price rises or falls again.
It is also vital to note that LEGO set resellers to adjust their prices based on their business models and not market prices.
4. Utilize the Best Listing Software
If you intend to make profits reselling LEGO sets on Amazon, think about utilizing the best listing tools. That is because relying on the Seller Central account alone can be challenging and slow.
Listing software such as AcelerList and ScanLister can make everything faster as they allow you to scan LEGO sets into batches and automate data entry.
They also simplify inventory management since you can see all your inventory, extract reports, and calculate all costs.
LEGO Sets Frequently Asked Questions
Can I make money reselling LEGO sets on Amazon?
Selling LEGO sets is a profitable venture, especially if you learn all the basics involved. For example, as a new reseller, you can start by picking LEGO items that are about to retire or end in production. These items have less competition on the market with higher price ranges. After sourcing, you can keep the items for their price to appreciate before reselling.
What is the best way to sell LEGO?
You can sell your LEGO sets on various physical or online platforms such as Amazon, Facebook, eBay Brinklink, StockX, and Plastic Brick. All these platforms provide you with a wide market of buyers looking for authentic LEGO items.
However, they have different restrictions that you should know before listing your items. Moreover, you can sell your LEGO sets under the following conditions:
- New LEGO sets in a sealed box. Also called mint condition LEGO, these sets are sold in unopened boxes and have everything from the manufacturer still intact.
- New LEGO sets in an open box. These sets have all the stickers and instructions from the brand intact, although the box is not sealed.
- Sealed damaged box. The LEGO sets are still safe or untouched, although the box is slightly damaged.
- New unsealed and not assembled LEGO sets. The LEGO items are not sealed or sold in open boxes, but they are not used or assembled. Most Brinklink sellers sell their LEGO parts or Minifigures in this condition.
- Lightly used LEGO sets. These sets have been used but they don’t show signs of damage such as a change in color, cracks, or cosmetics.
- Heavily used LEGO sets. These LEGO items are used and have broken or missing parts.
Is it still profitable to sell on Amazon?
Amazon offers a wide customer base with millions of buyers looking for retired LEGO items. It is also a secured platform with strict rules to protect both the seller and buyer. Therefore, selling LEGO on Amazon is a profitable and safe business.
It might seem challenging reselling LEGO sets on Amazon due to the strict requirements involved, but it is worth trying.
Besides offering more selling opportunities, Amazon has made it easy for new and FBA resellers to manage and protect selling accounts through its continued policy updates.
It also safeguards the manufacturers’ Intellectual Property Rights by ensuring only authorized resellers can resell LEGO items on its platform.
Therefore, when thinking about reselling LEGO sets on Amazon, it is crucial to have all the documents ready and read all the requirements before sending your approval request.