Have you ever wondered how to become an authorized reseller on Amazon? Can you buy products from another merchant, marketplace, manufacturer, or supplier and resell them on Amazon?
Like you, several sellers have also asked this question at one point or another.
Well, if that’s you, you’ve come to the right place.
In this post, I discuss how you can become an Amazon-authorized reseller.
I also discuss crucial information such as what reselling on Amazon means, what you need to become an Amazon reseller and much more.
Let’s get started.
An Amazon reseller finds low-priced products from other sources such as a retail store, a manufacturer, a merchant, a supplier, or an online marketplace. The person then resells them on Amazon at higher prices.
Here’s a simple example:
- You find a deal for packs of gel pens on eBay for $2 per pack.
- You see the same pack of gel pens on Amazon for $5.
- You can resell the packs of gel pens on Amazon for $5.
Your profit will be whatever you get after paying Amazon fees, such as Amazon FBA fulfillment fees. I will discuss FBA further in this article.
Here’s a step-by-step process for how to start reselling on Amazon
There’s an Amazon account for customers, and there’s an Amazon account for sellers.
Before reselling on the Amazon platform, you must sign up for an Amazon seller account first.
Creating an Amazon seller account is easy. Just log on to Amazon Seller Central page and follow the instructions.
You also need to choose between Amazon’s two seller plans.
- Individual – The individual account is the ideal Amazon account for most beginner resellers. You don’t pay a monthly fee. You only pay .99 cents for every item you sell plus any selling fees you incur.
- Professional – This plan is for sellers who already move more than 40 units monthly. It may seem pricey at $39.99 monthly, but you gain access to tools like advertising, APIs, and reports.
Have you chosen a plan and filled out the necessary information required by Amazon? Congratulations. You now have your Amazon seller account.
Deciding what products you want to sell isn’t as simple as it seems. To have a profitable business, you need to do proper research.
Here are some factors to consider when researching what products to sell.
Your ideal scenario would be to offer a product with high demand and low competition. Unfortunately, it is extremely difficult to find such a product. In fact, your chances of finding such a product would be slim to none.
Why? Because demand and competition always go hand in hand. If there is high demand for a particular product, many sellers would take advantage of that demand and offer that product.
Many sellers for a high-demand product equals high competition.
As a seller, you need to know what high demand and low competition look like when looking at an Amazon listing. A high-demand product will often have a high search volume and many customer reviews. On the other hand, a low-competition product will usually have a bad Amazon star rating and many negative reviews.
You can also determine whether products are in high demand or have low competition by searching for them on Amazon using their Amazon Standard Identification Numbers (ASINs).
Amazon Standard Identification Numbers (ASINs) are a series of 10 letters and numbers that Amazon assigns to each product. Amazon listings consist of millions upon millions of different products, so they use ASINs as unique identifiers for every product.
Remember that ASINs are unique within one marketplace only. Amazon US and Amazon UK may have different ASINs for the same product.
Now that you’re familiar with the concepts of demand and competition on Amazon, you need to consider your sales strategy.
Regarding demand and competition on Amazon, you have two strategies available.
- Offer high-demand, high-competition products that have a proven success rate.
- Offer low-demand, low-competition products that have no track record of success.
One way to succeed with strategy #1 is to resell high-demand products at a lower price. You’ll have a lot of competition with high-demand products, and selling at a low price is one of the most effective ways to stay ahead of the competition.
Offering a low price also means a higher chance of winning the Buy Box. Just be aware of the costs involved and ensure that your prices aren’t too low that they’re eating into your profit margins.
Strategy #2 is ideal if you’re new to reselling.
You can establish yourself as a leader in specific categories by offering low-competition products. You can make a name for yourself, improve your seller performance, and increase your seller rank on Amazon, which increases your chances of winning the Buy Box.
Both strategies have their pros and cons. You just have to determine which approach will work best for you and the goals you want to achieve.
As an Amazon seller, you know that products with high margins are better than those with low margins.
Selling low-margin products won’t allow you to scale your business effectively, so it’s best to stick to high-margin products. To maximize your sales and profit margins, it’s also crucial to analyze the costs involved, including Amazon FBA fees.
Here are the best sources for products ideal for Amazon reselling.
Search for discounts and deals on online marketplaces and sell them at higher prices on Amazon. In the earlier example in this article, you find packs of gel pens for $2 and resell them on Amazon for $5.
This method is also known as dropshipping or online arbitrage.
Search for discounts and clearance sales in physical stores and sell those products on Amazon for a higher price. The goal is to find products selling for less than their listed price on Amazon.
You purchase products in bulk from suppliers and then resell them on Amazon.
The advantage of buying from wholesalers is that you get the lowest possible price for your products. The downside is that you’ll need significant capital to make bulk purchases. This strategy may not be suitable if it’s your first time in sales.
This strategy involves buying products from private third-party manufacturers and then reselling the products under your brand name. Since most major brands are restricted, sellers usually buy generic, lower-priced versions of popular products.
When you have your seller account and decide what you want to resell, it’s time to start reselling. Go to your Amazon seller account to add new products and create listings. You can search for the products by name or enter their ASIN.
Authorized Seller Versus Unauthorized Seller
An authorized seller is a seller who is allowed to sell a specific brand’s products. For instance, you can list Nike products on your page if you’re an authorized Nike seller.
Meanwhile, an unauthorized seller is a seller who doesn’t have permission from Amazon to sell products of a specific brand. Being an unauthorized seller is a quick way to get suspended or banned from selling on Amazon.
The short answer is: yes, it’s legal to resell products on Amazon.
The product becomes your property when you legally buy any product from another store, manufacturer, wholesaler, or marketplace. Once the product is yours, you have the legal right to resell it if that’s your desire. However, there are a few things you have to remember.
A product is new if it is still sealed and unused. You can sell new products by buying them first from wholesalers or manufacturers.
You can offer used products on Amazon. However, you have to list these products as used or certified refurbished. Furthermore, you can’t just offer any used item.
Amazon has specific limitations on which used products you can offer to buyers. Here’s a list of some of those products.
- Major appliances
- Musical instruments
- Video games
- Movies (DVDs and Blu-Ray discs)
- Personal computers
For a complete list of products and the conditions in which you can sell them, I suggest you contact Seller Support. You can also visit this Amazon Seller Central page which discusses categories and products that require approval.
And you can check this guide to understand how to get approval for restricted products on Amazon.
You can’t resell any counterfeit product on Amazon. The company’s Anti-Counterfeiting Policy states:
“Amazon strives to ensure a trustworthy shopping experience for our customers. By selling on Amazon, you agree that:
- The sale of counterfeit products is strictly prohibited.
- You may not sell any products that are not legal, such as those that have been illegally replicated, reproduced, or manufactured.
- You must provide records about the authenticity of your products if Amazon requests that documentation.
Failure to abide by this policy may result in loss of selling privileges, funds being withheld, destruction of inventory in our fulfillment centers, and other legal consequences.”
Offering counterfeit products is a suspicious activity that can lead to several consequences. There are various reasons why Amazon would suspend your seller account, and selling counterfeit products is one of them.
If you don’t want Amazon to suspend your seller account or, worse, to take legal action against you, follow the company’s policy and don’t post and sell counterfeit products.
There are many brands that you can’t offer on Amazon. You need Amazon’s approval before you can move products from these brands.
Amazon doesn’t have an official list of these brands, but here’s a short list of well-known brands unauthorized resellers can’t legally sell.
- Black & Decker
- Disney (including all its affiliates)
Generally speaking, most major brands will have restrictions. If you want to resell on Amazon, it’s best to stick to generic brands.
If you’re an unauthorized reseller and want to sell products from a restricted brand, you’ll have to go through Amazon’s approval process, which can be time-consuming.
You can contact Amazon Seller Support for more information regarding brand restrictions.
The information in this section is not an exhaustive list of what you can and cannot sell on Amazon. I only provide general information about what you can legally offer on the Amazon marketplace. It’s best to verify things with Amazon seller support to avoid significant hassles when reselling.
Several factors go into being a successful reseller on Amazon, and it’s different for everyone. However, here are some valuable tips to get you started on your path to success.
Once you have your seller account, you should also sign up for Fulfillment by Amazon (FBA).
Amazon FBA is a service that allows you to outsource the order fulfillment process to Amazon by sending your products to Amazon’s fulfillment centers. Any time a customer makes a purchase, the company takes take of packing and shipping your product.
Taking advantage of FBA is crucial because it can help you maximize your profits. With FBA, you have more time to focus on your business because the company manages your order fulfillment.
FBA provides quick and hassle-free shipping, so customers don’t have to wait too long to receive their orders.
FBA also allows you to save on costs and earn more significant profits. Amazon is a big company with partnerships with many shipping carriers that offer discounts. Amazon passes those discounts on to you so that you get higher profit margins.
While your success as a seller depends on many variables, your seller rating is one crucial metric that Amazon uses to gauge your success.
Your seller rating is between 0 and 100, with 0 being the worst and 100 being the best.
A low seller rating means your customers aren’t satisfied. Amazon doesn’t like having low-rated sellers because it reflects poorly on the company. Amazon either suspends or bans sellers with low ratings.
Here are some ways to maintain a high seller rating.
- Provide accurate product descriptions and give as many details as possible.
- Ship your products on time (FBA would be helpful in this regard).
- Encourage customers to provide positive feedback if they’re satisfied with you and your product.
- Register your brand on Amazon’s brand registry.
A high seller rating makes it easier for you to build a reputable brand. Amazon prefers trusted sellers, so they’ll give you more visibility in search if you have a high rating. A high rating also increases your chances of winning the Buy Box.
A high seller rating also means that people trust you, increasing conversions. When a prospective customer sees you have a high seller rating, the customer is much more likely to buy from you.
You must also maintain a good feedback rating to be a successful seller. One way to do that is to respond quickly to any concerns or questions a buyer might have. A quick response lets your customers know you care about their experience and satisfaction.
It only takes a few minutes of your time, but providing a quick response has so many benefits. Responding promptly to your customers allows you to build trust and foster good relationships with customers, both of which result in more sales.
Look at the image below if you don’t know where the Buy Box is. It’s the section with the red highlight.
The Buy Box is a special section on a product page that Amazon gives to certain products. What’s it for, you ask?
There’s a lot of competition on Amazon. The ecommerce giant knows that seeing so many options isn’t good for customer experience. The Buy Box makes it easier for customers to choose the best option.
The Buy Box is Amazon’s way of telling customers that they’ve found the best deal for the particular product they want to buy. Although, in many cases, the listing with the Buy Box isn’t the cheapest option.
Here are some tips to win the Buy Box.
- Use FBA – Order fulfillment is a significant factor in the algorithm that decides which listing gets the Buy Box. If you use FBA, you likely always ship on time and have good inventory levels, which makes Amazon see you in a good light.
- Customer Service Is Key – Respond to all customer messages and inquiries. Amazon likes sellers with a high customer feedback rating.
- Optimize Your Price – Offering lower prices than your competition can increase your chances of winning the Buy Box even if you may not have the best seller rating.
Don’t hesitate to take the next step now that you know what it takes to become an Amazon reseller. Start your Amazon reselling journey today.
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