A reseller is a company or individual seller who buys in bulk from wholesalers, distributors, and manufacturers and sells them individually to customers at a higher price in order to generate a profit. Amazon resellers and eBay resellers have found great success in their eCommerce businesses through reselling, but a few key points should be kept in mind:
1. Choose a low-competition product
There are two ways to approach reselling on Amazon: selling units that have proven success but high competition, or selling units with low competition but no proven success yet. If you’re a new reseller, it may be best to begin with the latter. Low-competition products are a great way to establish yourself as a leader in that product category. This can help you establish a brand and make a name for yourself in the competitive Amazon marketplace.
2. Offer a low price on a high-competition product
High-competition products are hard to break into, but they have a proven track record of sales. Selling a popular product can help you get an influx of sales to your seller account, which quickly boosts your seller ranking and stats on Amazon. But you won’t get sales if you’re up against a lot of competition, especially competitors that already have strong seller rankings and stats. So choose your products carefully.
3. Select quality products
Whether you’re selling a low-competition or high-competition product, you want to ensure that you’re offering a good quality product, as the products you sell define your brand. A high-quality product can position you like a high-end reseller and brand, especially as you continue to grow in the future.
4. Sell high margin products
You could have a product that has great quality but offers a low margin. You want to avoid low margin products as much as possible, as this can hold you back from growing your business. For example, you’re reselling a high-quality pencil case. Even though your customers may love it, you’re only making $1 for every sale. This likely isn’t worth it, especially if you need to pay for marketing and operation services like FBA.