There is one main reason why sellers should consider doing their business on Amazon. You can reach a more extensive customer base than any other e-commerce platform by selling on Amazon. Two hundred million unique monthly customers prefer using Amazon over any different store. For example, in 2019, Amazon reported that small and medium-sized businesses (i.e. small and medium-sized Amazon sellers) sold about 4000 items per minute! You can be one of the sellers too. First, let us help you understand reselling on Amazon.

To be able to resell on Amazon, you need to know:

  1. How to create an Amazon Seller Account
  2. Where to source products for reselling on Amazon
  3. How you can buy and resell on Amazon  
  4. the four main benefits of reselling on Amazon, 
  5. The four main risks of reselling on Amazon. 

1.How to create an Amazon seller account to sell and resell products.

There are three main steps involved in creating an Amazon Seller account. These are:

  1. Choose the account type.

Before you start to create an Amazon seller account, you need to keep in mind that there are two different types of seller accounts; individual and professional accounts. When selling less than 40 items a month, an individual account is ideal. For more than 40 items, the Professional account is perfect. Bear in mind, too, that each account comes with other fees and charges and you can choose which market you want to sell in as well. 

  1. Provide your business name, contact, and financial information

After choosing the seller\’s account type, you will need to provide a name for the business, mobile phone, method you will use for billing, tax information, and credit card information in case of a professional account. 

  1. Verify Your Contact information

The final stage of creating an Amazon seller account is verifying your mobile number and preferred means that you choose to be contacted.

2. Where to Source Products for selling on Amazon

Now that you have your Amazon Seller account, you need to find a source for your product. There are two primary sources you can choose from: 

  1. You can import from an international source like Alibaba
  2. You can use a sourcing agent.

You can find so many promising suppliers for your Amazon business when you search on google, but this will take much of your time to do on your own, and sometimes you can even get counterfeit goods. 

Eflex Sourcing has experience with Amazon Sellers in helping them source genuine suppliers for over five years. This means you are guaranteed to find genuine suppliers with the best prices. You can find a local supplier, depending on where you live. For those in the US, you can use Thomasnet.

3. How You Can Buy and Resell on Amazon

To buy and resell on Amazon, you need to understand what is known as Amazon arbitrage or retail arbitrage. This is a product sourcing method where you purchase an item from a retailer to sell at a higher price on Amazon.

For example, you buy products from Amazon or any retailer at a price discount of 70% to 90% and then stock the items later to sell them at the original price once it gets off the sale.

Another example is looking for bundles of 10 packs or more.

Those packs can be sold at a reasonable price in either packs of 3 or individually after buying them. While doing Amazon retail arbitrage, you can make quick money by doing these tricks. 

To resell on Amazon, you need to either have

● Items with a proven success rate but high competition can be sold.

●Sell items with no proven success and low competition

4. Four Main Benefits of Reselling on Amazon 

Amazon is by far the biggest online marketplace to sell. Let us look at what you gain from selling on Amazon. 

  1. More sales: each month, millions of active customers visit Amazon looking to shop for a wide range of products. By listing your products on Amazon, you get the credibility and a share of these customers’ purchases. The more customers, the more the likelihood of your products being bought.
  1.  International Expansion: Since Amazon is a global platform for buying and selling, it is effortless to start selling your product in different markets across the globe. 
  1. Low Marketing Costs: Amazon attracts millions of customers to their website daily, meaning you already have customers; all you need to do is find your niche. Secondly, Amazon acts as its search engine. So if a customer searches for your product and it is listed on the Amazon market, the customer will find you instead of going through strenuous marketing campaigns to find customers.
  1. No need to stock your product at home: Amazon has more than 175 fulfillment centres around the globe, you can ship all your products in bulk to Amazon, and they will store, package and ship your product to your customers for you.

5. Four Main Risks of Reselling On Amazon

As with everything, there are a few downsides to selling on Amazon. Here are a few things you need to consider before you start your business of reselling on Amazon.

  1. High Competition: Anyone can list items and sign up for an Amazon seller account. You might see the same product is listed by multiple sellers. When multiple sellers have the same product on sale, Amazon will decide which seller is the best fit. 
  1. Amazon Selling Fees: Amazon charges retailers commission for every product sold through them. Make sure you know what their monthly charges look like before beginning to sell on Amazon.
  1.  Amazon Marketplace Rules: Amazon has a complex pricing structure and also rules on patents and the minimum returns a seller can have, poor performance or poor quality products can lead to account suspension.
  1. The barrier between Buyer and Seller: Amazon is considered an incredible market platform for buyers and sellers, but it can also create a wall. A seller on Amazon cannot build any long-term relationships with the customer; when they place an order, you can not remarket to those customers. Consider every sale to be a one-time transaction. 

When any customer buys from your Amazon store, they will not remember whether they purchased it from a 3rd party seller; they will only remember that they bought from Amazon. 


Reselling on Amazon is not complicated and is surprisingly easy to start up, but it will always have that competitive edge as it’s harder to scale. 

Established brands don’t necessarily want hundreds of resellers all listing their products, especially since many resellers will simply list those same products themselves. Hence, the private label route is a sensible option.

Consider bringing new products to Amazon as this can be the game-changer and one of the most crucial elements to your success when reselling on Amazon.

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