7 Key Ways to Succeed as a Reseller on Amazon

succeed reseller on amazon ecommerce fba fulfillment by amazon

Want to become a reseller on Amazon?

You won’t be the first. You won’t even be the millionth. Amazon reselling is a cutthroat field, full of resellers who’ve invested years and sometimes decades into building their brands.

They know the systems. They know the marketplace. They already have a high customer satisfaction rating.

So, does that mean it’s impossible for you to break into the field? Hardly.

There’s plenty of room at the top. Resellers close up shop frequently to make room for hungry new entrepreneurs. New niches open up daily as trends and technology evolve.

The trick is to play the game strategically. You’ve got to know the ins and outs before you throw your money down on a risky investment, and we’re here to help you with that today. When you’re ready to learn how master resellers approach the game, read on.


1. Create a Brand

The most profitable way to become a reseller on Amazon is to build a brand. So, let’s begin there. What is a brand?

Your brand is more than a trademark. It’s what your customers think of when they hear your brand name. It’s the impression the public has about your company, your products, and your services.

Brands change constantly. You can think of your brand as the ever-evolving face of your business.

When you change your logo or offer a new product, it affects how customers see your brand. When the local news channel does a spot about your company, it changes how customers view your brand. When your employees make it a habit of coming to work hungover, it alters how customers interpret your brand.

That’s advantageous because it gives you the opportunity to modify your brand anytime you want. If you haven’t put any time into consciously building a brand, it’s not a problem. You can start building one today.

There are two main reasons branding is so important.

The first is trust. If customers trust your brand, they’re more likely to pick your products over other products of equal value.

The second is loyalty. When you build brand loyalty, customers will continue buying new and different products from you. That’s true even if the products are completely unlike the other products that they bought from you.

Take Apple for example. 78% of Apple customers couldn’t imagine buying anything but an iPhone. That means Apple customers stick with iPhones simply because Apple makes them.

A revolutionary new Samsung Galaxy might come out, and those customers wouldn’t think about buying it simply because it wasn’t made by Apple. Don’t you want to build that kind of brand loyalty?


2. Choose Fulfillment by Amazon

If you haven’t heard of fulfillment by Amazon (FBA), it’s a brilliant way of cutting down your workload. FBA will streamline your operations and improve your Amazon ranking. When you sign up for FBA, Amazon will stock, store, pick, and send your goods to your customers for a moderate cost.

Amateur online resellers scoff at the idea of paying someone else for work they can do themselves. They don’t realize the scalability this offers. They don’t realize how it frees up time and resources they can use elsewhere to build up their brand, sales, and marketing strategy.

Not to mention FBA products are Prime membership eligible. When you choose FBA, you’re tapping into the Prime features that Amazon spent hundreds of millions of dollars developing. FBA gives Prime customers free one- and two-day shipping.

Prime members are also loyal to the Prime brand. That’s another way of winning over your prospects.


3. Build an Inventory Strategy

If you’re reselling on Amazon, your inventory levels should be at the forefront of your mind. Your inventory is the foundation of your reselling business.

If you stock a surplus of slow-selling or unsold goods, it’s not cost effective. If, on the other hand, you stock too few goods, you can’t keep up with demand. Either can be a death sentence when your business operates under small margins.

Before you invest in reseller products, forecast your sales and your inventory. Base your evaluation on your products’ competition, quality, pricing, and market need.


4. Focus on High-Margin Merchandise

What is a high-margin item? You can think about it this way: whenever you resell a product, you make money. The amount you make is equal to [the amount you sold] – [the amount it cost you].

If you make a large dollar amount from the sale, it’s a high-margin product. If you only make a little, it’s a low-margin product.

Let’s assume you resell HD televisions.

You purchase the TVs in question for $1,000. That amount includes the cost you must pay for shipping, packaging, and insurance. It covers all your costs for buying and delivering that TV to your customer.

Now, you resell your TVs on Amazon for $1,249. Let’s plug those numbers back into the equation. [$1,249] – [$1,000] = $249. Your margin is $249 which is reasonably high for Amazon resellers.

Before you buy your products, perform a quick cost analysis. Figure out how much each item will cost you. Don’t forget costs such as labeling, packaging, warehousing, and shipping.


5. Choose Products You Stand By

Remember, you’re not just selling a few items on Amazon. You’re creating a brand. It’s one your customers will trust and remain loyal to.

That means you need to pick high-quality products that you stand by. They’ll improve your overall rating on Amazon because your customers will approve.

Also, you can charge higher dollar amounts for high-quality merchandise. That’ll improve your margins.


6. Beat Your Competitors’ Prices

If you’re reselling a product in a highly competitive niche, your brand will get you only so far. That’s especially true if your competition also has great branding. So, what do you do?

Offer the same product at a lower price. Assuming all other elements are the same, prospects will pick you over your competition because you’re a better bargain.

High competition products can be a challenge to break into, but they have proven track records. If you sell a popular product, it can boost your sales and your seller ranking on Amazon.

The one thing to be cautious about is being labeled as a “discount” brand. If all your products fall into this lowball pricing category, your customers may come to think of your company as the discount company. That makes it hard to raise your prices in the future.


7. Go with Low-Competition Merchandise

You don’t have to be worried about high-competition merchandise and check the details on your click-through rates all day. You can just as easily resell specialty products in a low-competition niche.

When you sell low-competition products, you’re usually selling items without a proven track record. If the products sell, it means an easy way to establish a name for yourself in the Amazon marketplace. It’s also a simple way to define your brand.

The risk is your product won’t sell. Maybe there’s no need for it or maybe it’s too unusual for your target market. Either way, make sure you do your research first.

Research is the difference between an expert Amazon reseller and a novice reseller.


Becoming a Reseller on Amazon

Now that you know some expert tips, you’ll be a more successful reseller on Amazon. Start by implementing one of the tips given in this article. After you master it, move on to another.

When you jump in headfirst, implementing all of them, you run the risk of failing on multiple fronts. That’s the nail in the coffin for most small businesses. Instead, move slowly and be patient with yourself.

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