Amazon as a marketplace has gained immense popularity in the previous decade. However, Amazon’s dominance is typical in today’s world of online marketplaces. Yet Amazon, as the platform, has evolved and has a system to market its products on the website.
A study showed that the monthly number of third-party sellers on Amazon in the United Kingdom has progressed from 2017 to 2020, notwithstanding some variations. Even though wholesale on Amazon has become more difficult in the last few years, it’s still a great way to earn money. Because reselling these days isn’t as simple as it was a few years ago. But considering it dead and unprofitable is not something which will help you.
Nevertheless, Amazon reselling can be challenging to compete against retailers who have been in the business for years and have earned a high Amazon sales rank.
Let’s learn more about reselling on Amazon and how it can be beneficial for you?
What is Amazon Reseller?
An Amazon reseller is a seller or company that purchases products and markets them on Amazon as they have purchased products at wholesale or in bulk from a distributor. Businesses that sell on Amazon are aware of who the resellers of their products are. These troublesome resellers will resell their products for less than MAP policy to sell products quickly, win the Buy Box, and offer high discount deals.
Retail stores are similar to resellers: they purchase products from many different manufacturers and distributors. They then decide the prices and sell them to customers.
Is reselling on Amazon legal?
Yes, reselling on Amazon is absolutely legal. But, the First Sale policy limits Manufacturers from “Interfering” on delivering consumers resell items as Used. However, in 2010, the Amazon marketplace consisted entirely of resellers. These businesses started to rely more on Amazon to ensure they could comfortably get more customers.
Is it Worth Reselling on Amazon?
Amazon reseller’s journey is quite overwhelming and challenging. It demands time and patience, mainly as a seller may find himself competing with resellers who are already established and honing their selling strategies and overcome the blockage on the road.
Nowadays, competition is not the talk of the town as it’s seen between domestic brands and between international brands and private label brands. Even with the fierce competition, though, there are still a significant number of Amazon resellers making decent profits.
In online retail, it makes sense to sell your products to distributors because it means that the manufacturer does not need to build and staff a retail store for their products.
Reselling on Amazon is complicated but surprisingly profitable. Besides, it will always be better to gain a competitive edge. To sell products in any new space, a brand requires expertise and business skills to increase the odds of success. We suggest an exclusive approach where you talk to the distributor to determine if they know the reseller while you message it through Amazon.
Having an intelligent software tool—Asinwiser—for online sellers will assist you to run your business in the right direction. Asinwiser.com is an excellent solution that will help you to target your potential audience with its all-in-one features such as brand story, product research, competitor research, profitability calculator, fba calculator and so on.