How to Earn by Reselling on Amazon | Step-by-Step Guide
It's hard to deny the appeal of being your own boss and making a business work. There is a great chance to do that by reselling on Amazon. This vast online market has millions of customers, which makes it a great place to start making money by reselling things.
This blog will teach you everything you need to know to start your Amazon trading business. We'll discuss everything, from picking the correct goods to getting around Amazon seller accounts.
Should You Sell Things on Amazon?
It's important to consider whether reselling on Amazon fits your goals and skills before you start. Some important things to think about are:
1. Commitment of Time: Running a successful reselling business takes hard work and dedication. Researching products, finding inventory, listing things, and handling customer service takes time and work.
2. Financial Investment: You can start small, but buying goods, paying Amazon fees, and maybe even shipping and storing things will cost money upfront.
3. Business sense: You need to know about basic business concepts like profit margins, pricing tactics, and ensuring customers are happy to succeed.
4. Organisational skills are essential for running a business because they help you keep track of your inventory, handle sales, and stay organised.
You might enjoy Amazon reselling if you love finding good deals, are good at finding items that people want, and are willing to put in the work to build a business.
How to Start Your Own Amazon Reselling Business: Step-by-Step
Let's get to work! Here is a step-by-step list to help you get through it:
1. Choose Your Reselling Model
On Amazon, there are two main ways to resell:
Retail arbitrage is when you buy things at a price from stores, online marketplaces, or clearance sales and then sell them on Amazon for a profit.
Wholesale Arbitrage: In this strategy, you buy goods in bulk from wholesalers or sellers and then sell them on Amazon.
You can start with smaller amounts in retail arbitrage because it has a lower barrier to entry. However, profit margins are usually small because store prices are so competitive. When you do wholesale arbitrage, you typically make more money but must buy more goods upfront.
2. Identify Profitable Products
To be successful, you need to find the correct products to sell. Here are some essential things to think about:
Demand: Pick items that have a history of steady sales on Amazon. Look at history sales data with tools like Jungle Scout or Helium 10 to find popular goods.
Competition: Look for goods that don't have too much competition. Niche markets with a lot of competition could be challenging for new sellers.
Profit Margin: Make sure you have a good profit margin after selling the item by adding up all the costs, like the purchase price, Amazon fees, and shipping costs.
Seller Restrictions: Before listing goods on Amazon, some brands or categories need permission from the manufacturer.
3. Source Your Inventory
Once you know which goods will make you money, it's time to get your stock. Here are some popular ways to source:
Retail Stores: Look for holiday markdowns, clearance sales, and discount bins.
Online Markets: You can find deals on sites like Clearance King, eBay, and online liquidation bids.
Wholesalers and Distributors: Buying in bulk can save you a lot of money, but you must pay more upfront.
4. Register as an Amazon Seller
You can opt for one of two Amazon selling accounts:
Plan for Individual Selling: This plan is excellent for people who are just starting and don't make many sales. It charges a fee for each thing sold.
Professional Selling Plan: This plan is better for businesses with higher sales volumes, as it has a monthly subscription fee rather than individual item charges.
5. Create Compelling Product Listings
You need good product descriptions to get people to buy your products. Here are some essential parts of a good listing:
Title of the Product: Use precise, concise wording that includes relevant keywords to improve your search ranking.
High-Quality Images: Showcase your product from multiple angles with professional-looking photos.
Detailed Description: Give correct and useful details about the goods, like their features, benefits, and measurements.
Competitive Pricing: Look into what other people in the market are charging and set a price that lets you make a profit while still being competitive.
6. Optimise Your Listings for Search
Amazon's search system is very complicated. To get more people to see your listing's visibility, try these tips:
Keyword Research: Find keywords that people buying your goods might use to find them. Use these terms to improve your title, description, and bullet points.
Search Terms: Go to Amazon's "Search Terms" field and add any other relevant keywords that might not fit easily in your product description.
Backend Keywords: Add even more relevant keywords to the part that customers can't see, which helps Amazon's search engine put your product in the right category.
7. Fulfill Orders and Manage Customer Service
On Amazon, there are two main ways to get items to customers:
Fulfilment by Merchant (FBM) means you store, package, and ship the goods to customers. You will need to spend more time and money on this.
Fulfilment by Amazon (FBA): Amazon stores, picks, packs, ships, and helps customers with their items through FBA. You'll have more time, but it will cost you extra.
8. Provide Excellent Customer Service
Getting good customer reviews is essential for building trust and getting them to return. Answer questions quickly, deal with problems professionally, and try to exceed the customer's expectations.
9. Analyse Your Performance and Adapt
Keep an eye on your competitors' actions, keep track of your sales data, and find ways to improve. Review your product choices, pricing strategies, and listing optimisation methods regularly to stay ahead of the curve.
Read also: How much can you make by reselling on Amazon?
The Bottom Line
It is possible to make good money by reselling on Amazon. You can build a successful trading business on this vast online platform by following this step-by-step guide, learning what you need to know, and continually improving your plans. Remember, success doesn't happen overnight. In the e-commerce world, things change constantly, so you need to be patient, committed, and always trying to learn and adapt.