How to become an Amazon Reseller - 6 Tips to Start Making Money from Amazon 2020

Last updated 7 Jan 2020 . 1 min read

There are thousands of resellers on Amazon, there’s too high competition leaving many resellers unsure of whether or not they will be able to compete on Amazon. 

One of the biggest advantages you have as an entrepreneur as of today is that you don't need to figure out everything before starting your business. For reselling - there are already a lot of profitable platforms that you can leverage and make your startup quick and easy - there is no need to create your own e-commerce website, online app store and the third party vendors/manufacturers could help you form a long term business.

One of the most powerful such platforms is Amazon, over the years, Amazon has become a giant in the e-commerce industry and is dominating mainly in retailing, selling almost everything from toilet paper to books to sandals to high-end electronics.

Amazon is also an active player in streaming online movies, TV shows, selling hardware like Kindle, Fire tablet. And it has also spread its wings to grocery store chain whole foods.

All of the above shows that Amazon is a powerful, diverse and innovation company and hence would be a great option for reselling business.

One of the little known facts of Amazon is that it allows people to sell on its website, which means you can take advantage of brand name, its reach and influence. They have been offering this opportunity in third party services since 2000.

The reselling business through Amazon is really a profitable online business as 50 per cent of sales on Amazon are made through third-party sellers. Adding to this, Amazon has plans of expanding its third party business and it has already shipped two billion third party items in 2016. So it's quite obvious that customers do trust and buy from these third-party resellers.

If you already have your own e-commerce website or an online store, you may want to expand your distribution into Amazon. This will help you to reach out to more potential customers and increase sales from first-time users on your online platform.

So you’ve decided to sell your products through Amazon. You start by signing up on Amazon as a seller.

The criteria for becoming a reseller on Amazon is that you have to fit into one of 20 categories example - clothing, healthcare, beauty products, baby products, jewellery, home decor, handbags,  gardening, mobile phones and electronics. You have to pay a fee for using this privilege of becoming a third-party reseller on Amazon.

The best way to sell on this website is to become an Amazon reseller.

How to become an Amazon Reseller?

Here are a few ways how you can resell on amazon:

  1. Firstly to start with choosing a low competition product as a reseller is a good idea- Selling units that have proven success but have good competition in the market or selling products that have low success but high competition.

  2. Offer a low price on a high competition product - High competition products are difficult to break but they have a proven history of good sales. Selling a product which has a proven track record of sales can lead you to get a high number of sales to your seller account, which quickly boosts your seller ranking on Amazon.

  3. Sell quality products - The kind of products you sell define your brand. A good quality product can help you rank better along with good reviews and ratings from the customers. Selling bad quality products can hurt your account and in turn lead to losses and hamper your growth.

  4. Sell products with high margin -  If you sell good quality products and have less low margins, this can impact your business and will hold you back in terms of growth. It’s good to do some cost analysis beforehand and see how much margin you will be getting per unit. Include all the costs of labelling, packaging, shipping, marketing, warehousing, and other factors before calculating the per-unit profits.

  5. Using FBA to streamline your operations and grow your business - FBA will help you run your business smoothly and in turn improve your ranking on Amazon. One of the greatest competitive edges you can get is free one/two-day shipping that amazon offers to prime customers, these prime customers are loyal amazon users which means they can be your loyal customers too if the quality of the product is good.

  6. Brand building - One thing that you need to keep in mind while expanding your reselling business is building a brand is crucial to long term success. You can sell a variety of products but creating a brand will help you resell products and grow your business.

Now that you have an idea of how to become an online reseller on Amazon in India, start your e-commerce venture and watch your business grow.

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Pooja Singh
A serial foodie. Restless traveller and a spunky techie with an adventurous soul. Writing is my tool for venting.

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