Every day, thousands of merchants engage in selling products on Amazon. The level of competition can be quite daunting, which often leaves new sellers uncertain about how to begin. For new resellers, it can pose a significant challenge to achieve success amidst the presence of numerous established sellers. Nevertheless, by understanding and implementing the fundamental principles of being a successful reseller, you can quickly excel in this field. aIn this article, we will explore the essential steps you can take to establish a solid foundation for becoming a prosperous reseller on Amazon.
Who is a reseller?
An online reseller is a person or business that operates primarily through online platforms, such as e-commerce websites or online marketplaces (amazon, ebay), to buy and sell products. They leverage the internet as their primary sales channel and often have virtual storefronts where customers can browse and purchase goods.
Online resellers source products from manufacturers, wholesalers, or distributors and list them for sale on their chosen online platforms. They handle tasks such as product listings, inventory management, order fulfillment, and customer service in the virtual environment.
By utilizing online platforms, online resellers have the potential to reach a broader customer base and operate on a global scale. They benefit from the convenience, accessibility, and efficiency that online channels offer and can capitalize on the growing trend of e-commerce and online shopping.
Resellers typically lack a strong direct relationship with manufacturers, meaning they do not provide after-sales service or assistance to customers on behalf of the brand owners.
Another notable characteristic of resellers is that they do not maintain inventory. Instead, they primarily rely on demand-driven product sourcing. Acting as intermediaries between manufacturers and end customers, resellers facilitate the transaction process.
Compared to other business models, online reselling is relatively easy to get started with. It allows for flexible, small-scale beginnings, as large upfront investments are not required. This is one reason why reselling has gained popularity among many retailers. Platforms such as Amazon, eBay, sales channels, and popular social media platforms serve as ideal starting points for reselling ventures. As you gain a comprehensive understanding of the online retail industry, you can gradually expand into new opportunities.
Amazon seller vs Amazon reseller
An Amazon seller refers to any individual or business that sells products directly on the Amazon platform. These sellers may include private label brands, manufacturers, distributors, or retail businesses. Amazon sellers typically have control over their product listings, pricing, branding, and customer service.
On the other hand, an Amazon reseller is specifically focused on the practice of purchasing products from various sources, such as wholesalers or liquidators, and reselling them on the Amazon marketplace. Resellers do not necessarily own the products they sell and often act as intermediaries between manufacturers or distributors and the end customers. They leverage the existing supply chain to source products and then list them for sale on Amazon, usually at a higher price to generate profit.
How to become an Amazon seller
Determine the products you plan to sell
Start by identifying the specific products you want to offer on Amazon. Consider factors such as market demand, competition, and your own interests or expertise. Here are some steps to help you make an informed decision:
- Research market demand: Start by exploring different product categories and niches to identify potential areas of high demand. Look for products that have consistent and growing demand, preferably with less competition.
- Consider your interests and expertise: Think about your own interests, knowledge, and expertise. Selling products that align with your passion or expertise can give you an advantage, as it will be easier for you to understand the market and connect with customers.
- Analyze competition: Evaluate the level of competition for the products you are considering. Conduct competitor research to understand their pricing, customer reviews, product features, and overall market share. Look for opportunities where you can differentiate yourself from competitors.
- Assess profitability: Calculate the potential profitability of the products you are considering. Consider factors such as product costs, shipping fees, Amazon’s selling fees, and potential profit margins. Ensure that the selling price allows for a reasonable profit after deducting all expenses.
- Evaluate sourcing options: Research and identify reliable sources for your chosen products. Determine if you will manufacture the products yourself, work with wholesalers, or use dropshipping methods. Consider factors such as product quality, reliability, and cost-effectiveness of the sourcing options.
- Take note of Amazon’s guidelines: Familiarize yourself with Amazon’s seller guidelines and policies. Make sure that the products you plan to sell comply with these guidelines, including any category restrictions or requirements.
- Test the market: Consider starting with a small inventory or conducting a pilot test before scaling up. This allows you to gauge customer response and validate the market demand for your chosen products.
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Assess profitability
Do thorough research to evaluate the potential profitability of selling your chosen products on Amazon. Consider factors like pricing, profit margins, and any additional costs associated with sourcing or shipping. Many Amazon cost and profit calculation tools are currently available. It’s worth noting that the calculations are not 100% accurate and we have to take into account marketing costs.
Find reliable product sources
Identify trustworthy suppliers or sources for your products. This can include manufacturers, wholesalers, distributors, or even local suppliers. Ensure they can consistently provide quality products at competitive prices.
You can follow these steps:
- Supplier directories: Utilize online supplier directories like Alibaba, Thomasnet, or Global Sources. These directories provide listings of manufacturers, wholesalers, and distributors from around the world. You can search for suppliers based on your product category and location.
- Trade shows and exhibitions: Attend trade shows and exhibitions related to the industry or products you are interested in selling. These events bring together suppliers, manufacturers, and industry professionals, providing an opportunity to establish direct connections and find reliable product sources.
- Online sourcing platforms: Explore online platforms specifically designed for sourcing products, such as Oberlo, SaleHoo, or Sourcify. These platforms connect you with verified suppliers and provide tools for product selection, communication, and order management.
- Local sourcing: Research local manufacturers or wholesalers in your region. This can help reduce shipping costs, improve delivery times, and provide opportunities for building direct relationships with suppliers.
- Network with industry professionals: Engage with industry-specific forums, social media groups, or professional networks. Connect with other sellers or industry professionals who may have recommendations or insights on reliable product sources.
- Request samples and vet suppliers: Before committing to a supplier, request product samples to evaluate quality and assess if they meet your standards. Additionally, consider conducting background checks, reading customer reviews or testimonials, and confirming their licensing and certifications.
- Use product sourcing services: Consider utilizing product sourcing services that provide assistance in finding reliable suppliers. These services often have extensive networks and can help match your requirements with suitable suppliers.
- Contact manufacturers directly: Reach out to manufacturers of specific brands or products you are interested in selling. Many manufacturers have their own distribution channels or can provide information on authorized distributors.
Shulex also provide detailed case studies and methodologies that can be clicked on: How to Buy on Alibaba And Sell on Amazon 2023
Register as an Amazon seller & create product listings
Begin the process of registering as a seller on Amazon. This involves creating an Amazon seller account and providing the necessary information, such as contact details, bank account information, and tax details. Make sure to familiarize yourself with Amazon’s seller policies and guidelines.
Once you have set up your seller account, you can start creating detailed listings for your products on Amazon. Include compelling product descriptions, high-quality images, and accurate information about pricing, variations (if applicable), and shipping options.
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Precise analysis and selection of products
- Low-competition products: It is recommended for new resellers to offer low-demand goods without a record of success. Identify products that have few sellers so that you can set a competitive price and develop a marketing strategy where you can stand out. As you improve your seller performance over time, you can become a leader in your product category.
- High-competition product that you can offer at a low price: This strategy may make it challenging to earn a profit when you eventually decide to raise your prices. However, selling at lower prices compared to others in your category can improve your visibility and attract customers. Study how you can maintain a high-profit margin despite offering lower prices.
- High-quality products with good profit margins: Look for products with a proven success rate, which means they are likely to receive positive feedback and have fewer returns. Choosing such products will help expand your customer base. Additionally, aim for profit margins ranging from 30% to 50% of the product’s original price. Remember to consider other costs, such as shipping fees and Amazon seller fees, when calculating profitability.
Using tools to reduce costs and increase sale
- Voice of Customer tool: Understanding what consumers buy, why they buy, and what they still need
Voice of Customer (VOC) Analysis is a data collection and analysis method that focuses on comprehending customer needs, preferences, and feedback. Its purpose is to provide companies with insights into the customer experience, enabling them to enhance their products, services, and overall customer satisfaction.
VOC Analysis is employed throughout the customer journey to understand customer needs, preferences, and feedback. By utilizing this information, companies can improve their offerings and deliver superior customer experiences. Additionally, VOC Analysis helps identify areas that require improvement and highlights areas that warrant additional attention.
The ultimate objective of VOC Analysis is to grasp the customer’s journey, starting from their initial interaction with the company until the end of their experience. Companies can leverage this understanding to develop enhanced products, services, and customer experiences.
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- AI Wordcloud Generator: Quickly find keywords
If you are selling products on Amazon, you understand the importance of selecting the appropriate keywords for your Amazon listings and PPC ads. The right choice of keywords not only enhances the visibility of your product but also increases sales and conversion rates. Therefore, it is crucial to conduct thorough research to identify the keywords commonly used by your target audience when searching for products similar to yours.
One effective method is to analyze and create a word cloud specific to your product category. This allows you to quickly identify the most relevant and frequently used words. By doing so, you gain a better understanding of what potential customers are searching for, enabling you to incorporate those keywords into your Amazon listings and PPC ads more effectively.
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- Listing Optimzation: build strong listing
The AI algorithms used in these tools can provide suggestions and recommendations based on factors such as competitor analysis, keyword research, and search term popularity. By utilizing an AI Amazon listing generator tool, sellers can save time and effort in optimizing their product listings to improve visibility, increase conversions, and ultimately enhance their sales performance on the Amazon marketplace.
How to use Shulex Free AI Listing tool to get more revenue
- Social Hashtag Generator: get impress in social media
Hashtags play a crucial role in boosting the visibility and reach of your content on various social media platforms, particularly popular platforms like TikTok and YouTube. By strategically selecting hashtags that are relevant to your content, you can significantly increase the likelihood of your content going viral. Utilizing trending hashtags, such as #SidhuMoosewala, #SidhuMoosewalaFans, #MooseTape, and #MoosewalaArmy, can attract fans of the respective artist and generate widespread sharing of user-generated content.
Therefore, it is important to come up with impactful hashtags. A hashtag generator can be a helpful tool to alleviate the process of finding effective hashtags that will amplify the impact of your content.