How to Resell Items on Amazon

Reselling on Amazon is a great way to make money online, since you don’t need to create your own products and you can start selling to Amazon’s massive customer base immediately. There are various ways to resell items on Amazon, but implementing the right strategy and utilizing tools is key to building a successful business.

In this guide, we’ll explain how to start reselling on Amazon and share essential tips to help you succeed.

Is it Legal to Resell on Amazon?

Yes, reselling products on Amazon is legal as long as you follow the platform’s policies. For example, some categories, like electronics, may require additional approval due to safety regulations. Additionally, you must specify whether you're selling new or used products. If you're reselling branded items, you might also need an authorization letter from the brand or a valid purchase invoice.

Amazon's policies are updated regularly, so it’s important to stay informed to avoid violations that could result in listing suspensions or account removal. Now, let's dive into how to become a reseller on Amazon.

How to Start Reselling on Amazon

Reselling products online is a great way to start your own business, but to make the most of your time and investment and achieve success, you need to plan each aspect of your business carefully. This detailed guide for beginners will show you how to resell items on Amazon efficiently and maximize your revenue.

Step 1: Choose the Right Product to Resell

Reselling works by purchasing items at a lower cost and selling them for a profit. However, not every product is a good fit—some may offer slim profit margins or have high competition. To maximize your chances of success, it’s important to evaluate key factors such as:
  • Competition: If a listing has more than 15 sellers, it may be oversaturated, leading to price wars and reduced profitability.
  • Demand: Understanding demand helps you manage your inventory efficiently and allocate your ad budget wisely.
  • Shipping costs: Opt for lightweight products to minimize expenses, as you'll need to cover both sourcing and delivery costs.
  • Product reviews: Analyze customer feedback to ensure quality. Poor reviews may lead to high return rates and negative seller ratings.
  • Reselling restrictions: Selling products from some brands requires authorization letters, and certain categories on Amazon are “gated”, which means you need to obtain approval before reselling those items.
To streamline your research, consider using analytical tools, which can save you time, provide accurate data, and help you identify profitable products with less guesswork. Below, we’ll explore the top four options to assist you along your reselling journey.

Analytical Tools for Product Research

A common question on Reddit among sellers is, "How can you guess which products will be profitable?" The answer is always the same—you need to conduct thorough research and use analytical tools to gain deeper insights. Each tool comes with its own strengths and weaknesses. Here’s an overview of the four top options:
Jungle Scout
Jungle Scout is a well-known set of software among Amazon sellers that allows you to analyze demand by providing key data directly on product pages. You can customize your view to focus on essential metrics such as brand, price, monthly sales, ratings, and Listing Quality Score. However, the main drawback of this tool is that it’s primarily designed for private label sellers, making it less ideal for resellers.
AMZScout
AMZScout is a versatile tool that helps sellers identify profitable products by providing insights into demand, competition, and sales trends, while boasting a database of over 600 million products. A key advantage of AMZScout is that it offers a bundle that includes other essential tools, such as listing creation. However, one limitation is that while AMZScout supports 12 Amazon marketplaces, its features work best for the U.S., Canada, and the U.K.
SellerApp
This tool offers essential product research functions, including niche discovery, profitability calculation, and more. A standout feature of SellerApp is their personalized onboarding experience, where Customer Success executives guide you through each of the tool’s features. However, some users find the pricing plans complex, and this option may be better suited for those who are more heavily involved in keyword research and advertising.
Helium 10
Known for its extensive features, Helium 10 provides data on over 450 million products across Amazon and Walmart. It offers sales estimates, revenue insights, and graphical data representation, making it a convenient option to help guide sellers’ decisions. The downside is their pricing. Plans start at $99/month for up to 2,000 searches, which may be costly for beginners.

There are many additional analytical tools available, and the best choice will depend on your specific needs and preferences. Fortunately, most platforms offer free trials so you can explore various options before committing. By leveraging these tools, you’ll be able to increase your chances of selecting profitable products and growing your business successfully.

Step 2: Source Products

After deciding what to sell, the next step is sourcing. Deciding where to buy your products depends on several factors, including the items’ condition, your budget, and your business model. Here are the key sourcing options for selling products on Amazon:
  • Online marketplaces: Many sellers source their inventory from Alibaba as it offers a wide range of products and suppliers at competitive prices. Aliexpress and Temu are also popular choices since they allow for affordable single-item purchases.
  • Online and offline outlets: Stores like Giglio and Fashionesta provide clearance items at deep discounts. However, finding good deals requires constant monitoring, and scaling your income can be challenging.
  • Auctions and return pallets: You can find great deals on both new and used stuff through auctions or by purchasing Amazon return pallets. While these prices are attractive, product conditions can vary, so you need to inspect the items carefully.
  • Brand owners and distributors: Buying directly from brands or authorized distributors lets you sell branded products and may even secure exclusive rights. However, this often requires large upfront investments.
  • Joint purchasing: Wholesale platforms like BigBuy, Tundra, and Facebook Groups allow you to buy books, clothes, and other products in bulk with others. While this can reduce your costs and help you meet order minimums, it also means relying on group orders, which can lead to coordination issues.
To minimize risks, always research supplier reviews and ratings before purchasing anything. Additionally, diversifying your sourcing strategy can help reduce reliance on a single supplier, ensuring better flexibility and long-term stability.

Step 3: List Your Products

Once you know what you are going to sell, it’s time to list your product on Amazon. Before you can list your product, you’re required to create a seller account. The process is simple and involves three steps:
1. Choose a selling plan. Amazon offers two options:
  • Individual Plan ($0.99/sale): Best for fewer than 40 sales/month
  • Professional Plan ($39.99/month): Includes advanced features and no per-sale fee. You can start with the Individual plan and upgrade anytime.
2. Enter your information: Provide your business and personal details.
3. Verify your identity: Complete a video call to confirm your ID and credit card.
Once your account is approved, you can begin adding products. As a reseller, you’ll typically link to an existing product listing in Seller Central. When listing an item, be sure to provide key details such as your seller SKU, product price, and available quantity.

You also need to select a fulfillment method when listing a product. We’ll cover this in the next section, as the fulfillment method you choose plays a key role in your overall business performance.

Step 4: Choose a Fulfillment Method

When listing a product, you need to decide on a fulfillment method—either Fulfillment by Amazon (FBA) or Fulfillment by Merchant (FBM). Each has its own advantages and drawbacks:
  • Amazon FBA: Amazon handles all of your storage, shipping, returns, and customer service, making it a hassle-free option. It also boosts your product visibility and gives you access to Prime customers. However, the FBA program also comes with fees, so it’s generally only worth it for high-volume sellers where your generated profits justify the costs.
  • Amazon FBM: You manage your own inventory, shipping, and customer service. This option is ideal if you sell fragile, niche, or seasonal products that might sit in storage, so you can avoid FBA fees. However, during peak sales periods, handling fulfillment on your own can also be challenging.
Note: If you choose FBM, it’s important to work with a reliable courier for fast, cost-effective delivery while meeting Amazon’s packaging standards.
Selecting the right fulfillment method is a key decision that impacts your costs, customer experience, and overall business growth. Evaluate your options carefully to ensure the best fit for your goals and long-term success on Amazon.

Step 5: Win the Buy Box (Featured Offer)

The Buy Box is the featured section of a product page on Amazon where customers can quickly add the item to their cart, and the seller whose offer is displayed there typically gets the sale. Here are some tips to help you win the Buy Box:
  • Use FBA: Products fulfilled by Amazon have a better chance of winning the Buy Box due to fast delivery and reliable customer support.
  • Keep healthy metrics: Maintain a low order defect rate, minimal order cancellations, and positive customer reviews to improve your performance metrics.
  • Stock availability: Ensure that your products are consistently in stock, as low stock levels can prevent you from winning the Buy Box.
  • Competitive pricing: Offer a competitive price, or even the lowest (without hurting your profitability), as this is a key factor to winning the Buy Box.
Consider combining these strategies to boost your sales and your store's overall performance. Success won’t happen overnight, but staying consistent will help you achieve long-term growth.

Whether reselling is your side hustle or full-time business, it’s vital to continuously analyze your results and refine your approach. By identifying what works and what doesn’t, you can optimize your strategy for greater success.

Conclusion

Resale can be a highly profitable business if it’s set up correctly, with product selection being a key factor. Using analytical tools saves time on research and improves your chances of choosing lucrative things to sell. This approach increases your potential for profit and long-term success.
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