How to Succeed as an Amazon Reseller

How to Succeed as an Amazon Reseller

Success using any e-commerce platform has its learning curves. It’s smart to study the market, organize your resources, and formulate a strategy before diving into any money-making venture. Our comprehensive guide will help you fully grasp the concepts outlined.

What Is an Amazon Reseller?

While Amazon has long been the undisputed leader among online retailers, the company’s approach to selling goods has changed throughout the years.

Naturally, this has contributed to misunderstandings in some cases. It’s understandable to feel bewildered about where to begin and what steps to take with your e-commerce venture while reading about Amazon “sellers,” “resellers,” FBA sellers, and FBM sellers. Specifically, you may be wondering what kind of salesperson you should be.

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Who Is a Seller?

In a nutshell, an Amazon Reseller is an individual or business that purchases goods in bulk from manufacturers or distributors and then resells them on the Amazon marketplace.

When Amazon’s marketplace first launched in 2010, it was populated solely by resellers. Some of these shops were already established online or offline, while others used Amazon’s dropshipping strategy exclusively.

Many companies have begun utilizing Amazon as a means of reaching a larger audience. The name “reseller” comes from their practice of reselling on amazon. Most importantly, these companies had established long-term partnerships with their suppliers, giving them access to popular brands.

Competition intensified as the number of businesses adopting the Amazon business model climbed. The resellers finally found themselves in a market where price cuts were necessary to be competitive. As a result, their profit margins shrank, their fees skyrocketed, and they had nothing unique to offer.

Since there is no limit to the number of resellers who can list a product, this was and is a major problem for those selling the same item on Amazon.

The Amazon marketplace, and especially the FBA fulfillment system, are built to make it ridiculously simple for anyone to walk in and start selling. In addition to other retailers, the brand owners themselves are formidable competitors due to the cheap prices they are able to provide.

Eventually, this will lead to slimmer profit margins and a downward price spiral.

How to Buy and Resell on Amazon

Buying and reselling on amazon requires a few steps after you settle on what to sell. The next step is to create a seller account on Amazon. Therefore, it is recommended that you:

Sign Up to Be an Amazon Seller Today!

Becoming an Amazon seller is a necessary step toward maximizing your profits from resale. You’ll have the option between a business seller account and an individual seller account. Selling more than 50 products each month requires a business seller account. In order to create an Amazon account, you’ll need a valid form of identification, your tax information, and a credit card.

The Key to Sales Success Is Finding the Right Products

Finding profitable things to sell on Amazon is the next step after opening a seller account. Picking an unpopular or low-ranked product on Amazon can make it difficult to achieve your desired sales volume or rate. Instead, you should zero in on hot sellers that aren’t so saturated with competitors that you can’t make a name for yourself. This is accomplished by:

  • Find the unit price of products you’re interested in on Amazon by searching for them.
  • Examine what other businesses are charging for equivalent products.
  • Check supplier catalogs and websites for wholesale pricing on products before making any purchases from manufacturers or wholesalers.
  • You will find services that will allow you to see if the price of an item has decreased over time. If it has, you should stock up before the price rises again by purchasing as many units as you can afford to resale.

Use The Amazon Seller App Confidently

Rely primarily on the Amazon seller app if you want to turn a profit from reselling. It’s the most convenient approach to setting up your shop and running it remotely.

When you initially login as a registered Amazon seller, you’ll be able to adjust the quantity of each item in stock. Any changes you make to this data will be reflected across all of your devices.

Buy only what you can reasonably expect to sell, as overstocking increases the risk of squandered funds or unsold goods. Instead, think carefully about demand and historical data to determine how much of a certain item to order in advance, taking into account factors like seasonality and price changes.

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Racking up Profits

Finding products with large profit margins for Amazon reselling is essential if you want to make money from reselling products. The most effective method for accomplishing this is to buy in bulk from manufacturers or wholesalers and then sell the products on Amazon for a profit.

Here’s a hypothetical: suppose you locate something at a wholesaler for about $10. Then, advertise it on Amazon for $30 plus delivery, and it should sell within a day or two. The resulting profit margin per unit is $20.

It’s possible to earn a profit from online resale provided you take the time to properly categorize your listings, capture high-quality images, provide thorough product descriptions, and strategically place keywords.

Avoid Rookie Mistakes

The most common causes of Amazon resell failure are inaccurate cost projections and inappropriate pricing strategies. OK, let me break it down for you.

With little preliminary planning, practically anyone, including established businesses, can begin selling on Amazon. Because of this, companies who bypass intermediaries and go straight to consumers can lower prices without hurting profits. As a result, they have an advantage over the distributors. Therefore, providing value to clients is difficult for a reseller.

Before you sign up to sell on Amazon, here are some things to think about:

  • Many different retailers can profit from reselling the same item. This is an infinite space.
  • To get the Buy Box, resellers typically offer lower prices.
  • In addition to competing with other sellers of that brand’s products, you also face competition from that brand for the coveted Buy Box.
  • The product’s cost structure and anticipated profit margins must be known.
  • Third-party vendors aren’t in the best position if they have to compete with Amazon Retail. For this reason, you should use caution while shopping for or attempting to undercut pricing in such categories.

Following Amazon social groups is highly advised if you’re a new seller. In these groups, seasoned businesspeople and other sellers discuss topics like Amazon FBA and other intriguing news.

Groups and forums like Reddit, Amazon’s FBA, and Facebook can be useful resources. If you want to learn more about how to be successful on the Amazon Marketplace, you may reach out to us at PirsCApital, where our experts and e-commerce industry veterans will guide you along each step.

Product reselling on Amazon is completely legitimate. After making a purchase, you own the item outright and can resell it wherever you like, online or off. When it comes to the resale of their products, creators of intellectual property have fewer protections under the “first-sale doctrine” than the creators of physical items, with the exception of record and software rentals.

Thus, anything is fair game for resale on Amazon. Multiple sellers may show up in an Amazon search for the same name-brand item. There are, however, limitations on the reselling of some Amazon goods. If you want to sell a given product on Amazon, you may have to submit it for approval first.

It is important to remember that if you buy something from a retail outlet rather than a wholesaler or manufacturer, it is no longer considered new and must be classified as “Very Good Condition” or “Used.” Only buy from the manufacturer or a wholesaler if you want to sell brand-new items.

Sellers on Amazon are required to get permission to sell Adidas, Lego, Disney, L’oreal, Marvel, Samsung, Ray-Ban, and Under Armour merchandise, while the company does not provide a definitive list of such brands.

Reselling products from generic names is one way to avoid having to go through the approval process.

Some Products Do Better Than Others!

Amazon, the largest online marketplace, sells 4,000 items every minute, and millions of individuals use it to purchase and resell goods. Many of these people actually make a decent living as a result of their efforts. In some situations, the reselling strategy was used as the basis for an entirely new company.

What’s more, how do you pick which things to resell? It appears that the following genres and products, among the many on the market, are particularly lucrative and would make effective starting points for a resale business:


Sell jewelry and get the benefits of decreased shipping costs because of the lightweight nature of many jewelry items. Selling through Amazon FBA is also a money saver because Amazon’s fees are proportional to the size of each order.

Electronic Components

One of the most widely shopped categories on Amazon is electronic components and devices. Thus, there is always a lot of demand and competition. Computer and smartphone add-ons, as well as chargers for other electrical devices, are among the most lucrative products to resell.

Home and Kitchen Appliances

The popularity of products in the Home & Kitchen section has skyrocketed during the past year. Some of the best things in this area are; scales for weighing food, bottles with a shaker top, and tumblers.


Many people now make a living off of buying books from Amazon to resell them. If you buy the right books, you can make a killing because many rare books are now considered collectibles. The highest resale value, and thus the greatest potential for profit, is found in non-fiction works, especially textbooks.

In Conclusion

Experts at PirsCapital can help you stand out in the world’s largest and most competitive retail industry, whether you’re a first-time Amazon seller just starting out or a seasoned pro trying to grow your business. As the name suggests, you can enjoy a wide range of capital assistance solutions along with expert help. Call today at (888) 494-4881.

Written by: Mitchell L.

I work with companies that sell products on platforms such as Amazon, Shopify, Walmart, Ebay, Etsy, etc. I understand that every business is unique and thats why I form genuine relationships with owners so I can help them reach their goals and find success through our working capital solutions.

Eligibility Requirements
  • Owner or majority owner must be a US citizen
  • Must have US bank accounts
  • Have to be selling for at least 1 year
  • Minimum sales per month has to be $15000 USD