How to Succeed as a Reseller on Amazon
If you take a look at Amazon, you will realize that there are thousands of resellers and this much competition can often leave people overwhelmed. They start doubting whether they can successfully compete on Amazon and earn money. Yes, there is no doubt that it is challenging to go up against resellers who have been in this business for more than a few years and have high rankings, but this doesn’t mean that you cannot compete with them. There are some things that you need to optimize and as long as you do that, you can easily succeed as a reseller on Amazon. What should you do? Read on to find out:
Select a low competition product
When you decide to become an Amazon reseller, you could either sell products that are successful and have high competition or those with low competition and no proven sales. For a new reseller, it is best to start with the latter because they are an excellent way of establishing yourself as a leader in a product category. It gives you the opportunity to make your name in the Amazon marketplace. It also makes it easier to win the Buy Box. Winning it is crucial to gaining sales and boosting visibility and this can improve your seller rank, reviews, and branding.
Choose quality products
Regardless of whether you choose to sell low or high competition products, you should ensure they are of good quality. This is because these products will define your brand. If you have a high-quality product, it will position you as a high-end brand and reseller, particularly as you continue to grow. Moreover, high-quality products also means that you can charge a premium price once you have established yourself as a strong brand. It will allow you to improve your margins. Low-quality products only lead to poor reviews and high return rates that can hurt your seller account.
Fulfillment by Amazon (FBA) is a solution provided by Amazon for streamlining your operations and boosting your Amazon rankings. FBA handles storing, stocking, picking, and sending goods and they also take on the responsibility of returns and customer service. Most resellers avoid FBA because it cuts into their margins and they also have to coordinate, which can seem like a hassle. In that case, you can use services like https://executivedeliveryusa.com/, which will manage your shipping and returns, both locally and internationally, and deal with FBA on their own thereby eliminating all the hassle.
Come up with an inventory strategy
Not analyzing the inventory levels can be a big mistake on the part of Amazon resellers. They often assume that they are not as important for reselling, but inventory serves as a foundation of this business. If you have too many unsold goods, it can be extremely expensive, especially if you have to sell at a lower cost than the buying price. In contrast, having too few goods means you will not be able to sell to your customers. Therefore, inventory management is of the utmost importance for Amazon resellers.