Amazon Reseller

What is an Amazon Reseller?

An Amazon Reseller is a company or individual that buys products from other manufacturers, wholesalers, or suppliers and then offers them for sale on Amazon. Essentially, a reseller acts as an intermediary in the supply chain.

Types of Amazon Resellers

There are primarily two types of Amazon Resellers:

1. FBA Resellers (Fulfillment by Amazon): These resellers store their products in Amazon’s warehouses, and Amazon takes care of storage, shipping, customer service, and returns. FBA resellers benefit from the reliability and speed of Amazon Prime shipping.
2. FBM Resellers (Fulfillment by Merchant): These resellers are responsible for the storage, shipping, and customer service of their products. They primarily use Amazon as a platform to list and sell their products.

Regardless of the program chosen, Amazon Resellers are a crucial component of the Amazon marketplace. They enhance product diversity and availability by offering products that Amazon may not sell directly.

Thus, Amazon resellers are significant service providers in online commerce. By listing their products on one of the world’s largest e-commerce platforms, they also help manufacturers make their products accessible to a larger customer base.

Resellers’ Purchasing and Selling Processes

1. Purchasing: Resellers typically buy products in large quantities directly from manufacturers or wholesalers to take advantage of volume discounts.
2. Selling: They then list these products on Amazon and set prices, often based on competition, demand, and costs.

There are various models of reselling on Amazon. Some resellers purchase products in bulk directly from the manufacturer, while others use dropshipping, where the products are shipped directly from the supplier to the customer once an order is placed on Amazon.

For the reseller, pricing and inventory management are crucial to making a profit and being successful. The price of a product must be fair: high enough to cover costs and make a profit, yet not so high that customers prefer to buy the product from another seller.

The reputation of an Amazon Reseller is equally important. Adhering to Amazon’s policies and receiving positive customer reviews play a significant role in positioning products in Amazon’s search result pages. Fast delivery, good customer service, and high-quality products appreciated by customers are therefore extremely important for the success of a reseller.

Challenges and Benefits of Being a Reseller

Resellers face challenges such as price competition, changes in Amazon policies, and potential difficulties in managing inventory and the supply chain. But there are also benefits:

• Opportunity to start an online business without your own product
• Opportunity to sell a wide range of products on a global platform like Amazon
• Practical opportunity to leverage Amazon’s logistical resources, large customer base, and reach

Furthermore, Amazon offers numerous marketing and sales tools that help maximize sales success. The Amazon Reseller model offers significant potential for revenue growth and business expansion, even for small and medium-sized enterprises.

Further Resources : As mentioned, Amazon provides various resources for resellers, including Amazon Seller Central, Amazon Seller University, and numerous forums and blogs. There are also third-party tools for product research, pricing, inventory management, and more.

Tips for Getting Started as a Reseller

• Product Research: Find products with good demand and low competition. Learn more in this blog post.
• Supplier Research: Build relationships with reliable manufacturers and wholesalers.
• Pricing Strategy: Pricing is a key element for success. Consider all costs, including Amazon fees, when setting your selling price.
• Customer Service: Excellent customer service can lead to good ratings and repeat customers.

Conclusion

In summary, Amazon Resellers are important players in the Amazon marketplace who can generate profits by selling products from other manufacturers and wholesalers. Like any business, this endeavor requires commitment, patience, and strategic thinking.

Not sure where to start? Our beginner’s guide covers everything you need to know to get started on Amazon.