Reselling on Amazon in 2021 - Definitive Guide for Sellers

Posted by Mathew Johnson on April 28th, 2021

What is an Amazon Reseller?

Amazon's dominance is unbelievable in the realm of online marketplaces, yet as the platform has evolved, so too has the manner by which products are sold on the website. 

This, definitely, has in certain circumstances, prompted confusion. With references made to Amazon 'sellers', Amazon 'resellers', FBA sellers and FBM sellers, it's straightforward why you may get befuddled about the entire set-up and how you ought to begin with your ecommerce business. In particular, what kind of vendor you ought to be!

Reseller or Seller: Which is it?

All things considered, set forth plainly, an Amazon Reseller is an individual or a company that sources products at wholesale – or if nothing else in mass structure – and afterward sells (resells) them on Amazon. 

Back in 2010, the Amazon marketplace consists completely of resellers. These retailers regularly as of now had a brick-and-mortar store or an independent website, with some essentially utilizing the Amazon dropshipping model.

As the Amazon business model developed more famous and the quantity of resellers increased, so unavoidably did the competition. Until in the long run, these resellers ended up in a circumstance where competition increased to the degree that prices must be dropped, their margins became lower, their charges increased, and they were left with nothing to separate themselves from the wide range of various resellers! 

This was and keeps on being a major issue for resellers as they face really intense challenges on Amazon, essentially on the grounds that there is no restriction to the number of resellers can list a product. 

By its actual nature, the Amazon marketplace is intended to make it very simple for anybody to shake up and list products – especially with Amazon's fulfillment system, FBA. Furthermore, obviously, those resellers incorporate the brand owners themselves who can offer low prices which are hard to compete with.

Is it Worth Reselling on Amazon?

It's a challenging excursion, with time and patience required, especially as you could end up competing with resellers who are grounded and who have refined their selling strategies over numerous years. 

There is cash to be made. However, how much will depend on your strategy, your products and the exertion you put in. 

With increasingly more private label brands coming to advertise, 'reselling' has transformed into something significantly more than essentially selling previously settled brands. Truth be told, resellers are finding that by creating brands of their own, they can turn into the 'exclusive reseller' of that brand. 

Nonetheless, this likewise implies that opposition is not, at this point seen distinctly between public brands, yet between public brands and private label brands and between contrasting private label brands as well! 

Along these lines, you can perceive any reason why some eventual Amazon Resellers may address whether it is the stage for them. 

Regardless of this opposition however, there are as yet countless Amazon resellers making fair benefits.

Ways to Succeed When Reselling on Amazon

1. Choose Your Product Carefully

There are two approaches to consider here: 

• Sell products with demonstrated success and high competition. 

• Sell products with no demonstrated success and low competition. 

In the event that you are an amateur, B is your go-to option despite the fact that success is dubious. A degree of amazon product research is, obviously, needed as there is a risk. There might be a motivation behind why no resellers are listing the product yet, for instance, it may not be sought after, or profit margins might be small. 

In any case, it is likewise an opportunity to promptly win the Buy Box and improve your visibility. The Buy Box is the box on the correct side of the Amazon product detail page, where customers add items to their basket. It can assist you with establishing yourself as a top seller in your picked category without the concern of competition – more on this later. 

Option An ought to be thought of on the off chance that you have some experience with reselling and as of now have a solid seller rank, despite the fact that you will risk a lot of lower profit margins.

2. Source Quality Products

Crucially, it doesn't matter whether you choose to go with option A, low competition products, or option B, high competition products with regards to quality. 

Your brand will ultimately be characterized by the products you sell. Along these lines, high-quality products can easily position you as a high-end reseller which thus allows you to increase your prices with a positive thump on impact to your margins. And obviously, reputation means a great deal as well. Sub-par quality merchandise may mean you save cash during the sourcing process yet will bring about high levels of profits and bad reviews. It's simply not awesome.

3. Source High Margin Products

Eventually you could wind up being tempted to source a fantastic quality product however discover it has a low-profit margin. This is correctly what you ought to keep away from if conceivable. 

Having a wonderful quality product is incredible, however on the off chance that you are just making a couple of pennies profit, it's not advantageous, so a fair compromise should be found. 

While sourcing products and haggling with suppliers, ensure you are consistently in possession of the multitude of statistical data points, including costs and fees.