How to make money Reselling on Amazon-(aditya bhattarai)
There are many third party brands that started selling on Amazon some time ago. Here's the idea: sellers buy items in bulk at a discount and then sell them on Amazon for a profit.
Such merchants are now masters at reselling things on Amazon. The trend is actually an entire business model in itself.
It is also a very profitable strategy whether you are starting out or looking for additional income. And there's no reason why you can't increase your profits in the same way.
The trick is to know the best tactics 3P sellers need to set up a successful reselling business. This is exactly what we will discuss below.
So without further ado, let's learn how to start selling on Amazon.
How does reselling on Amazon work?
So what is reselling on Amazon? Well… resale. It's about bulk sourcing clearance products like books or clothing at a high margin.
You can then list these items on Amazon and sell them to new customers for a profit. Here's how the process works in a nutshell:
Find products below retail value and in high consumer demand.
Buy in bulk from stores, suppliers or manufacturers to increase your return on investment.
Check average prices on Amazon and set profitable resale prices.
Manage product storage to smooth the supply process.
Upload your product listings and start selling.
Pack and ship your orders. Then pay the shipping and Amazon fees.
Enjoy your profit.
There are 3 key models for selling on Amazon. Let's take a look at how each works for Amazon sellers.
Retail Arbitrage. This one is all about product flipping. Retailers find clearance items and brick-and-mortar stores. They then sell those items on Amazon for a profit.
Online Arbitration. Here is the other side of arbitrage selling. Merchants still focus on buying and reselling excess inventory on Amazon. But they do it by looking for bargain goods in online stores.
Wholesale. Merchants buy products from suppliers at a low price and sell each item at higher markups. It takes a bit of sales know-how and also more storage space.
If there are "selling on Amazon for beginners" models, these are the ones. Each of the previous models is great for getting new brands started on their Amazon journey.
Salespeople can focus on one of these sales models or a combination of all three. The second approach will help you find more products and also increase your income.
Is selling on Amazon legal?
In a word, yes. There is no legal problem with reselling things on Amazon. The main condition is honesty: you must list the products for resale as used.
Also, be very careful about selling counterfeit goods or violating intellectual property rights.
You can also leverage your sale by listing the condition of the item. Buyers should be aware of the quality of the product before purchasing. This practice will only add to your standing as an Amazon seller.
And if you want to sell specific brands, make sure you're authorized to do so.
Is selling on Amazon worth it?
Here's the big question: can you make money selling on Amazon? Yes, of course, but it all depends on what you are willing to invest.
You will need to buy the products and keep them until you can sell and ship them. Then there's marketing work and a bit of customer service.
But the key is to set a large difference between the original sale prices and the sale prices. Always consider storage, shipping and Amazon fees when doing so.
Always keep this in mind when reselling clearance items on Amazon.
You can also sign up for Amazon FBA to make it easier. With this program, you hand over all the logistical hassles to Amazon for a monthly fee.
Buy and sell on Amazon
Now let's see how to make money selling items on Amazon.
What do you want to sell next?
Product research is key when reselling on Amazon. Your choice may depend on what you can actually find and buy. But there are two rules to follow:
Go for products with high competition but proven success.
Sell items with low competition but no proven success.The goal is to find the right balance between profitability and competition. You want to earn as much as possible, but at the same time you need to provide a unique offer to customers.
Here are some of the best products for sale on Amazon:
Books. You can focus on reselling unique books such as first printings or signed copies. This can help you find niche customers who can turn into loyal followers.
Jewelry. It is easy to ship and offers high profit margins. Plus, you'll always find buyers looking for the perfect gift for a loved one. This means you may have to deal with a lot of competition.
Toys and games. This is a great option for seasonal sellers. You can stock up on your favorite toys and sell them for a profit during special holidays.
Of course, this is only the tip of the iceberg. Only you can decide which product is best to sell.
We recommend being selective. This approach will help you narrow down your options so you sell faster, attract more conversions and even get a chance to win an Amazon shopping box.
Find your suppliers
Where can you find the products you want to sell? Supplier selection is essential for long-term sales operations.
You want to shop at a place that provides quality products in bulk. So make sure the supplier can provide what you need on a regular basis.
And don't go with your first choices. If possible, talk to your suppliers to find out more about the products they sell and their own practices. Make sure you check the following:
Supplier performance
Wholesalers can search for reliable suppliers on Alibaba. This site is home to many Chinese suppliers who offer excellent profit margins. When it comes to arbitrage models, you can start looking for products on places like Walmart or eBay.
We recommend using the Amazon FBA Calculator to find the best products to resell. This tool can help you find sales gaps on Amazon that you can exploit.
Register, meet and sell
So now that you've set up your selling operation, it's time to dive into Amazon and start earning!
First, you need to create an Amazon account. It's not a difficult process, but there are a few annoyances that we address in this guide.
Finally, you need to upload your products and share them with the marketplace. This is another whole process in itself that you won't regret learning about right here.
In our experience, Amazon's best sellers are the more thorough ones. Knowing the pros and cons of Amazon pays off with smooth sales and steady income.
Final thoughts;
So is reselling on Amazon profitable? Yes! But can you really make money selling on Amazon? Well, that depends on you.
Retail and online arbitrage can turn into profitable side businesses. But if you're looking for a full-time gig, you should also go with wholesale.
In fact, the most successful sellers mix and match these models to get the most out of selling products on Amazon.
Once you've mastered the resale approach, you can switch to a private label or dropshipping business.
It takes time, yes. But it's also a simple business model to start. And with the right marketing strategy, there's no reason why you shouldn't succeed.(aditya bhattarai)
