Complete Guide to Start Reselling On Amazon

Hi! Great to see you exploring our guide to start reselling on Amazon! 

Amazon? I have known this GIANT for the past Five YEARS. MAYBE you are new to this FIELD. But Amazon has achieved FEATS in eCommerce. I generated 1 million USD in sales in the FIRST year. 

Surprised, right? You can do the SAME! How? Start Amazon reselling, my friends. Hundreds are DOING so. 

Our Leeline Sourcing Team has helped HUNDREDS of resellers start their business journey. Grab PROFITABLE products. And optimize SALES! You earn more REVENUE quite easily! 

Amazon SHIPS products to 100+ countries. No RESTRICTIONS on shipping locations. Plus, millions of BUYERS! What else is even STOPPING you from doing that? 

Promise? 

Letā€™s start how to start RESELLING on Amazon and GROW business to seven FIGURE! No lies. Straightforward! 

Start Reselling On Amazon

Is it Legal to resell on Amazon? 

Is it Legal to resell on Amazon

Yes. It is 100% LEGAL to resell on Amazon. Even Amazon itself has Urged Amazon sellers to resell inventory. 

But keep one thing in mind. Always FOLLOW the Amazon rules. If you are reselling a BRANDED product, know whether Amazon allows it. Sometimes, you need a PERMIT for that branded item. 

Involve the BRAND. Get the permit. And resell inventory! 

Many sellers are SELLING the same product on Amazon. Check their prices and sell at a BETTER profit margin. 

Suggested reading: How To Find Products To Sell on Amazon?
Suggested reading: Do I need an LLC or Business License to Sell on Amazon?

What are the different ways to resell on Amazon? 

different ways to resell on Amazon

There are FOUR main business models to resell on Amazon. Curious, right? I felt so when it was FIRST. 

No problem. I have listed the four main methods. 

Retail Arbitrage

It is a very EASY business model. You can find the BRICK and mortar stores. Buy inventory at LOWER prices. And resell it on Amazon. You can try other Platforms, too, for the RETAIL arbitrage. 

If you buy a product at $10 from other sellers, resell it UP TO $15. $5 will be your PROFIT! 

Online Arbitrage

Itā€™s not different from the retail ARBITRAGE, but one thing. In online arbitrage, you BUY low-competition products from online Retailers.

For instance, buy products from Alibaba or Aliexpress at LOWER prices. Ensure the PROFIT margins. And sell as an ONLINE retailer on Amazon! 

Amazon Dropshipping

It is pretty different from ONLINE arbitrage. You list the products of the SUPPLIERS. Receive orders. And your suppliers will DIRECTLY ship products to the consumers. 

No warehousing cost. No more HEADACHE for storage. Even no overhead costs! Easy business model! 

Amazon Wholesale

Do you have a HIGH BUDGET? Amazonā€™s wholesale business model can print money for you. Buy products in bulk from SUPPLIERS FROM online marketplaces like ALIBABA. 

Youā€™ll have handsome profits and a QUICK money-making policy! Try out this method to enhance your profits. 

Looking for the Best China Sourcing Agent?

Leeline Sourcing helps you find factories, get competitive prices, follow up production, ensure quality and deliver products to the door.

Advantages of Reselling

Advantages of Reselling

The eCommerce business model of reselling has ATTRACTED tons of third-party sellers. 

It is possible due to many advantages. Check them out! 

You do not need a huge fortune to invest in reselling products. I STARTED from 100 Bucks in the electronics niches. Over time, when I made money, I just increased the INVESTMENT plus tried many niches. All to get a better experience and know the industry effectively! You can do the same. 

A low budget can work out for you! However, not all the niches need a significant investment. 

Oh, the wholesale! In that case, you need to SPEAK up for a higher budget! Otherwise, the budget works. 

Most often, low overhead costs! I am not PAYING for warehouse fees because I am reselling Through dropshipping business MODEL. 

Moreover, Amazon handles your fulfillment. So, it doesnā€™t charge you a lot of money either! 

Low overhead costs mean HIGHER profits! Go and get them! 

When I started, I was a blank cheque. Didnā€™t know where to start and how to start. But exploring the Amazon was super easy. Fast navigation. Easy to understand methods. And excellent UI! 

Amazon is VERY ACTIVE regarding the management of its inventory. Join the Amazon FBA. Let Amazon handle all your operations. 

You need to have SOME EXPERIENCE operating your store. Everything else counts on Amazon. Isnā€™t it easy? 

Beginner? No problem. The exact scenario was with me. But Thanks to Amazon, which handles your warehouse storage and shipping. 

You donā€™t need to design the store. Amazon already has the STORE template. No complex coding. No prior experience. There is no need to hassle with shipping. 

Even if you are new, Amazon will tackle the issues. Rest easy. Enjoy the FEAST of your higher revenues! 

Suggested reading: How to Get Ungated on Amazon?

Disadvantages of Reselling

Disadvantages of Reselling

Reselling has some cons, too. Here is the list of cons. 

The competition is very high. 1.1 million sellers and still counting. Every day, many sellers sign up on Amazon and SELL their inventory.

Moreover, in one category, you can find many consumers. So, it creates very high competition, leading to sales suppression! 

Amazon has stringent policies. Even if you comply, maybe you are STILL deficient! 

If your ODR is greater than 1%, you are out. Amazon blocks you. Moreover, Amazon changes policies most often. It causes frustration for sellers. 

Less control over inventory is GOOD FOR BEGINNERS. But for pros, it is a BIG con. They canā€™t optimize their sales! 

Therefore, I have included it in the cons list. 

Step-by-step guide to reselling on Amazon

Step-by-step guide to reselling on Amazon

When I was RESELLING inventory, it was just the BEGINNING. Amazon opened doors to reselling. Less COMPETITION. And higher sales. 

But the scenario is now different! Millions of AMAZON sellers are competing to sell quality products. 

Here is the step-by-step guide on how to start selling on Amazon. 

Step 1: Focus on your Item

I made a mistake and FACED the music. My first product, LANDING, was a beauty item. And it is BADLY failed. 

Why? Because of the LACK of research. I didnā€™t even know the tools available. But now product research is QUITE easy. 

Head to the Jungle Scout or Helium 10 and find your desired PRODUCTS. Best-selling inventory. Competitor research. You get All. 

Step 2: Calculate Margins

Is your product profitable? Yes? That is great. Not? Go and find a PROFITABLE product. 

Online business works ONLY if you keep the margins. Calculate your profit margins.

I always keep a check on all the profits. How much is the cost? At what cost can I sell? Tracking makes it easier to start a profitable business.  

Step 3: Find the suppliers

One thing I lack in my RESEARCH is to find the supplier. It is a HECTIC task. You have to be very careful. Find suitable suppliersā€”no compromise on the quality. 

All these things are adamant, to be honest. But do it. Here are some tips to evaluate the suppliers. 

  • Negotiate the low price. 
  • Ask for samples. 
  • Know the retail value of the products you are purchasing. 

Step 4: Create an Amazon Seller Central Account

Step-by-step guide to reselling on Amazon

Letā€™s create an Amazon account. I have tried the AMAZON FBA. But you should know both selling methods on the Amazon Seller app. 

  • AMAZON FBA. It costs $39.99 monthly, no matter how many sales you generate. 
  • AMAZON FBM. It costs $0.99 fee per item sale. Shipping counts on you! 

Here is my recommendation

Choose whatever method fits you the BEST. New sellers should join the FBM to get the idea! Experienced sellers should go to FBA. 

Step 5: List products

Have you hunted down the products you want to sell? I have done it already. Go on and complete your research. But before that! 

Move one step ahead. Start SELLING. Amazon has various methods. For example: 

  • Manual listing. You need to upload a single item manually. Add the high-quality images. HECTIC work! 
  • Bulk import. Make a CSV file and upload all the products. NO HASSLE-HASSLE at all! 

Step 6: Win the Buy Box

A successful Amazon reseller must win the BUY BOX.

You need to check the buy box eligibility. It includes: 

  • A professional account. 
  • A high rating of more than 90% on your products. 
  • Product pricing must be competitive. 

It doesnā€™t look effortless, but I got it in the first six months. How? I just went on to provide the best services. You should Do the same! 

Buy Box gives you a better ranking and EASY discoverability with confidence. So, go for it! 

Got questions about FBA prep and fulfillment ?

We make it easy for any Amazon seller. You focus on growth, weā€™ll handle the rest.

Key points to ensure success in reselling

Key points to ensure success in reselling

Reselling is not a PIECE of cake for everyone. Donā€™t think you can BUILD an empire in a day or two. It took me FIVE years to become SEVEN figure money generation stores! 

Have patience! And follow the tips. 

Follow Trends

What trend is currently GOING on? Hove over to the GOOGLE TRENDS! Check the latest trends! 

Here is my strategy. 

  • I open Google Trends. 
  • Take a look at the daily trending searches. 
  • Check the searches of my products. 

If there is SUMMER, why do you even sell the winter inventory? Failure is for sure if you want to do so. 

Turn heads with the water direction and RESELL inventory on your Amazon seller account. 

Choose Low-Competition Inventory

Want to rank higher? Want to rise high? 

The Leeline Sourcing team recommended that I find the LOW-COMPETITION products. Their experts provided me with COMPLETE market intelligence. Use multiple tools like Helium 10 to explore the low-competition yet highly profitable products. 

And Guess what? They even helped me find the best suppliers. Sourced the QUALITY products with excellent quality control. Oh, the GAME-CHANGER. Affordable products that helped me GENERATE high profits. 

The result? 

Seven Figure store in the FIRST years! So, sell products where you get the HIGH margins. 

Sell Profitable Inventory

Not only sales are significant but also the profits. That IDEA caused my mind to revolt. I started hunting for PROFITABLE products. 

And according to my research, Aliexpress and Alibaba have a LOT of such profitable products. You need to have picky eyes. And explore the profitable item. 

Consider creating a brand

Create a separate recognition. I commenced my brand in the last two years. In the first three years, I sold products as an INDEPENDENT seller. 

So, my reviews? 

The brand is a LOT better. How? 

  • Better profits. 
  • Bette recognition 
  • Amazon prefers brands. 
  • More opportunities. 

Overall, a brand is the best choice! So, consider it! 

Sell quality only

No quality, NO selling. I repeat! You canā€™t resell ITEMS without quality! Youā€™ll fail! 

I failed for the first time in 2018 when I accidentally shipped a LOW-QUALITY. Prompt response? The buyer returned the items! 

So, get high-quality products from your SUPPLIERS. Sell items under your label that have the QUALITY. Apply product quality criteria in production. 

Doing so will bring you a trusted environment and better sales!

5 Best items to resell on Amazon

Best items to resell on Amazon

In reselling BUSINESS, one thing is Important. Guess what? It is the RESELLING products. 

I have listed the top 5 categories to become profitable. Take a look! 

It is the FIRST product that I started reselling. Product COMPETITION is big, but one thing is for SURE ā€” high profits. 

How? 

  • High resale Value.
  • Low referral fees of up to 8%

Demand is QUITE high. Try your luck while reselling ELECTRONICS and accessories. 

One of the BEST niches (I love it) is the toys and games. Easy MONEY, I would say. This is because of the low competition and competitive prices in online marketplaces. 

Demands for toys and games have increased recently, especially during the pandemic duration. So, it can be the right time to resell products. 

Letā€™s be honest about one of the MOST astonishing products for me. Why I said so is the MONEY GENERATION!

Home and kitchen are always the HOTTEST products. No matter what season. I have sold them in all the FOUR seasons, no exception. 

Their demands remain high. And youā€™ll make HIGH profits due to low-priced products. 

Who does not read it? Surprisingly, data is there to PROVE it. Amazon generates 28 Billion USD by just selling the books! Isnā€™t Amazing? 

Target this point. One more thing. The Profits are HIGH with a high probability of sales. If you think about RESELLING the products, keep the Amazon BOOKS in mind! 

Doesnā€™t it seem ODD if the record players even generate the sales? 

Yes, 100% they are very VALUABLE inventory. You can generate hundreds of bucks. Buy some old RECORDS from the artists at a small PRICE. And resell them on your AMAZON resale business. 

Isnā€™t it the EASIEST money youā€™ve ever made? 

Looking to find a reliable Chinese supplier?

As the best China sourcing agent, we help you find factories, get competitive prices, follow up production, ensure quality and deliver products to the door.

People Also Ask about Start Reselling On Amazon

1. Does Amazon resell products from Alibaba?

Not all the sellers source Alibaba for reselling products on AMAZON. From a BUSINESS point of view, it is a PROFITABLE deal. All thanks to the profitable products from Alibaba suppliers.

2. Should I incorporate my Amazon Reseller business?

There are many scenarios in which you should INCORPORATE reseller business. First, you are MAKING millions of dollars in sales. Second, you have PRIVATE-LABEL PRODUCTS to start a private-label brand!Ā 

3. How much capital is required to become an Amazon reseller?

No definite ANSWERS are there. You can START from 100 USD and go on raising your sales through your RETAIL stores on Amazon. Ensure you are MAKING bucks from your investment through your retail store.Ā 

4. What are the common mistakes made by Amazon Resellers?

Amazon resellers encounter VARIOUS mistakes. The result is the total DISASTER. The mistakes are:Ā 
Ā· Choosing a high-competition product.Ā 
Ā· Not doing a product research process.Ā 
Ā· Donā€™t Focus on the TARGET audience.Ā 
Ā· No marketing STRATEGY.Ā 
All these are FATAL points for your business.Ā 

5. Which is the best method for Amazon reselling, FBA or FBM?

FBA is always the best process whether you have a RETAIL store or plans to resell. But if you are a BEGINNER, go for FBM. FBA costs $39 per month, but it can be a LOSS if you donā€™t have the budget or canā€™t generate enough sales.Ā 

Whatā€™s Next

Reading till the end? Great. I have a quick TIP for you. Always use a PROFESSIONAL account. Be TRUSTED. And enjoy a POWERFUL marketing strategy! 

What next? ONLY SUCCESSā€” guaranteed! 

Oh, the most essential thing! Sorry, I forgot. Get the right products. 

Our Leeline Sourcing team has 10+ years of experience. And helps You find the best suppliers. No PESKY deal! 100% transparent trades. Just wait! The total profit is yours! 

Call us to let us know your project! 

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Sharline

Article by:

Sharline Shaw

Hey I'm Sharline, the founder of Leeline Sourcing. With 10 years of experience in the field of sourcing in China, we help 2000+ clients import from China,Alibaba,1688 to Amazon FBA or shopify. If you have any questions about sourcing , pls feel free to contact us.