In the fast-paced digital landscape of 2023, e-commerce has become an indispensable part of our lives. Among the multiple e-commerce platforms floating in the market today, Amazon stands highest as the leader and innovator, connecting millions of buyers and sellers worldwide.
Behind its success lies a thriving community of resellers who have harnessed the power of this digital marketplace to build profitable businesses. With the right strategies and adaptability, reselling on Amazon in 2023 offers unprecedented opportunities for entrepreneurial success.
A reseller is someone who has a vast amount of knowledge about the market and has enough experience to find inequalities within it in terms of selling points. A reseller goes through a process called sourcing wherein he/she finds leads that they can use to make purchases of items at a lower price, ultimately selling them for a profit in a different market.
Though this may sound daunting, this research model is more accessible to beginners as it doesn’t take a lot of capital to start the business and there are already multiple wonderful mentors and teachers on the internet to use as a resource of information such as our friends at the Fast Track FBA.
The Internet is an integral part of any household in this day and age, it is only imperative for the entrepreneur as you are. You have to take any and all advantage that the circumstances present to make a profit.
The e-commerce market is a steady and rapidly growing economy that shows no signs of slowing down. More and more consumers are starting to embrace online shopping, due to the convenience and ease it provides.
It also allows flexible business hours, locations, and scalability. Due to most of the sourcing, buying, and reselling that can be done on the internet, all you need to do a hard day’s work is a steady internet connection and a laptop which you can bring anywhere you want.
To start in the world of reselling, unlike most business models, you do not need to have a considerable amount of capital to start your own business. Rather than having to plan, manufacture, and produce your own products, your source products from other marketplaces that are already built, re-package them, and sell them as your own.
This low barrier to entry is why reselling is considered one of the best business models for any beginner to enter the market.
Unlike a business model where you have to produce products that you make yourselves to fit a specific category in the market, in reselling, you can cast out multiple nets, rather than casting out one net.
I can see this as an advantage for this business model because rather than having to put all your eggs into one basket, if you cast multiple smaller nets, if one falls through you have other products which can cover up for that minor mistake.
Due to the ease that the internet brings, the connectivity that it allows the sellers to reach the buyers could be global depending on the marketplace or e-commerce platform that you want to sell on, Amazon is one such platform that allows resellers to sell to a wide range of locations rather than local.
Reselling allows you to sell in multiple categories in one business, this will allow you to scale depending on the demand that comes with the products that you sell, you can source your products based on how well they sell, buying more and less stock, respectively.
Because of this, it allows business owners a greater deal of control over their business, allowing it to run on its own when the proper structure and personnel hierarchy are formed.
Resellers have the advantage of having lower overall risks because they don’t focus on just one product doing well and succeeding. As stated above, reselling is like casting multiple smaller nets so that in the unlikely event that one of the products falls through and fails to sell the amount forecasted, you have other multiple products which can grow and cover up for that.
As opposed to this, if you choose to focus and put all your time and resources into just one product or product line, if they fail to sell, as the market is a volatile environment, it can mean that you lose all your hard-earned money.
Reselling has multiple advantages as seen above, one I’d like to focus on is its ease of entry because it doesn’t take a lot of capital to start a reselling business, it means just like you, someone else has already gotten the idea of starting one and may have already been selling when you’ve just thought of starting a business.
Due to this, it is safe to say that the market is filled with a lot of hopeful people just like you wanting to make it big on the e-commerce market.
Unlike other business models where they fully create their own products and sell those into the market, resellers have to rely on their suppliers for their products. It introduces a high level of risk considering the fact that if one of your best-selling items suddenly loses its supplier, then your whole business could lose one of its best sellers.
Being dependent on tier supplier means that the quality of the product you’re selling also depends on the supplier, if the quality that the supplier provides is sub-par and you’ve already acquired and bought their product, then it’s a marginal loss of money when evidently the products get low reviews and lower sales.
Even though reselling is a profitable business model, it also means that you will use your capital to buy already-made products, which will evidently cost more than creating the products yourself in a factory environment.
Because the cost of buying the products is a considerable amount, it also means that in the process of selling them, the markup that you can put on said products also depletes.
At some point in the future of your reselling business, there will come a time when you will have to buy a larger space to house all of your products because, as stated earlier, reselling is casting numerous small nets into the market.
By doing so, and sticking to items that sell well for your business, evidently, you will have to not only scale your business but also your business operations. Having to invest in a warehouse is a real possibility for any reselling business.
As a reseller, or a seller in the market rather, all your sales obviously depend on the consumers. Because of this, and also due to the fact that you don’t control the quality as much of the products that you buy from your suppliers, there will always be aspects of the product that you can’t control, but will eventually affect your rating as a business.
Electronics are a staple found in every household and are still continuing to be one of the top-selling products on Amazon. With constant technological advancements and growing consumer demand for the latest tech in gadgets, this category offers you opportunities for great profits if you’re willing to spend a considerable amount of money on it.
Evidently, fashion is a popular category on Amazon, with clothing, shoes, and accessories being products that are sought after on a daily, and we can find here a wide range of products. This will offer resellers the opportunity to diversify their stocks while focusing on one specific category.
Beauty products, including cosmetics, skincare, and haircare, have always had a dedicated customer base and a strong market presence on Amazon. Because there is always a constant stream of consumers that want to take care of themselves with the help of self-care products, this is a safe category to resell.
Either physical or digital, books remain to be one of the best forms of entertainment enjoyed by a vast majority of people, be it in written or audiobooks, it is hard to find a person who doesn’t enjoy either.
Reselling in this category requires knowledge of current trends, popular authors, and genres, which to any who are already familiar with these fields, this category is a safe option for you. Due to the constant stream of books on different genres made by multiple brilliant authors, there it allows for a great deal of diversification.
Creating multiple social media accounts around your business allows you to present your business to a wider audience which can be found on social media on the world wide web, which means that not only do you find customers on the e-commerce platforms but also future customers that may discover your website, social media.
Reselling or arbitrage is something that is not allowed for some products but is allowed on the proper platform, such as Amazon. Due to this, you need to read up on the terms and conditions presented by the e-commerce platform that you wish to sell on, fortunately for you, there are already multiple guides and guidelines easily available for those who wish to start their reselling journey with Amazon.
There is multiple software made by the wonderful minds of Amazon, which you can download onto your desktop which will help you in your sourcing needs such as allowing you to view information on the history of a product and such, which will evidently help in your sourcing. Choosing and finding the right software to help you can be arduous, but has been made easier on the Amazon e-commerce platform.
Becoming a successful reseller on Amazon requires a combination of knowledge, strategy, and dedication. Remember to prioritize continuous learning and adapt. Success as an Amazon reseller is within your reach, so take action and stay motivated.
Additionally, it’s important to know that having a supportive team can greatly contribute to your success in online arbitrage. If you’re curious about how a team of virtual assistants (VAs) assisted me in growing my business, I invite you to read this informative article. Discover valuable insights and experiences that highlight the ways in which a skilled team can enhance your online arbitrage operations.