Selling on Amazon is a way to make a significant income with a relatively low financial and effort investment. This doesn’t make profitability a guarantee, however, and countless people have created Amazon stores only for them to stagnate and become unproductive money holes.
However, buying the right products at the right price and flipping them on Amazon can be an incredibly lucrative business. Amazon is the largest online selling platform on the planet, and that means it’s actually highly likely that you’ve already bought something from a third-party seller who was in your exact position a few months or even a year ago. With the right products, you can make an entire business out of reselling things on Amazon that you get elsewhere for cheaper.
How To Make Money Reselling On Amazon
If you really want to make money reselling on Amazon, the biggest hurdle that you’re going to need to clear is getting items for a significantly lower price than you can find on Amazon. Also, you need to remember that Amazon is going to take a healthy slice of any sales you make on its platform. This means you’ll have to price your item appropriately to make a profit.
The basic process looks like this:
- You find a trendy kitchen gadget at a pallet sale, and you can get a pallet of 100 gadgets for $500.
- You use the Amazon seller app to scan the gadget, and you see that they are currently selling for $20 each.
- After buying the pallet, you then ship them to Amazon for $2 each.
- For each sale, Amazon takes a $5 FBA fee and a $3 referral fee.
With Amazon selling it for $20, then taking out the $2 shipping, $3 referral, and $5 FBA fees, you are left with $10 each, of which $5 was your cost. This leaves $5 profit on each, which may not sound like much, but you bought a pallet of 100 so that flip left you a final profit of $500.
Is Making Money Reselling On Amazon Easy?
There is a lot of money to be made by reselling products on Amazon, however, there is no guaranteed profit, and without the proper product research you could end up buying things that while potentially profitable, are in low demand. This could theoretically leave you stranded with a bunch of products that nobody is buying, and no matter how good of a deal you got on them, that will never make a profit. One of the best ways to make sure you have a solid, profitable, and well-researched product is to use an automated Amazon shop that you can have created for yourself by experts.
Tips For Better Chances Of Success
- Make a list of several, if not several dozen, different product ideas, and don’t marry yourself to any of them.
- Now prioritize them, again, don’t play favorites, this business relies on cold, hard, math, not product enthusiasm.
- Make your top criteria for comparison things like projected profit margin, Amazon fees, seller types, etc.
- Be sure you are looking at a lot of the historical data for the products, price history and buy box history are two of the most important historical points.
Want Even Better Chances? Leave It To The Amazon Junkies
There is a lot that goes into building an Amazon store and being able to consistently make money on reselling items. To have the best chances at success, you can always opt to have your store pre-built and automated by The Amazon Junkies, so that you can simply take over a turn-key Amazon FBA business. You can even choose to continue to have them continue to run and manage your stores, while you collect profit shares and focus on growth.