How to Make Money Reselling/Flipping on Amazon?
When someone says about reselling or thinks of starting a reselling business, the next thing that pops up in our mind is eBay. Yes, it is the universal name, and we appreciate and adore it but let us tell you, it is not the only giant in the reselling business.
Recently, a number of platforms have come, some have succeeded, and some have not in the reselling business, letting people deal with new as well as used items for profit. Of course, every product sold on these portals is not sold, but it surely provides a solid avenue for the audience to check and see the product up close.
In the last few years, Amazon has come up and is shining all the way in the reselling business and has provided a strong base for resellers from all parts of the world. If you want to start a profitable and exciting business on Amazon by reselling or flipping, then this post is for you. We have tried to cover all maximum elements of reselling on Amazon, how you can thrive and succeed and nail your venture with the least capital and other resources.
Let us begin.
Why do you need to consider flipping products on Amazon?
Why flipping? Why not become a primary seller who manufactures products at his place and sells using Amazon as the valid platform? Again, we have solid reasons, and these can be listed as below:
- Amazon is ranked as the top reselling platform in the world and beats the two eminent business giants – Walmart and eBay. This huge change took place in September 2019 when more than 150.6 million users logged on to the Amazon app for a concrete purpose.
- Amazon’s program, Fulfilled by Amazon, is popular and is unique to other selling and reselling platforms. Several products are characterized by this feature. It builds feelings of trust and credibility in the customer’s minds. When they know Amazon itself takes concrete efforts to fulfill their orders; it becomes manageable to place more orders with the same.
- Fulfilled by Amazon, this feature also provides a ton of benefits to the sellers. Since Amazon takes responsibility for fulfilling the orders, the sellers simply need to send the inventory to the Amazon warehouses for storage. They do not have to worry about the storage part anymore. Moreover, all the expenses pertaining to inventory, shipping, packing are all borne by Amazon and not by the sellers. This relieves the sellers from headaches and other associated challenges. The selling or reselling process becomes much easier.
- When you hand over your products to Amazon, you need to pay for the storage, but the related costs are not enormous compared to other storage and inventory companies. You pay on a per square basis, and you can choose your products and the number wisely. As you are given sufficient liberty to make decisions, you can spend wisely on related aspects.
Having understood the benefits of starting a flipping business in Amazon, we will come to the tips and processes of starting the same. You will need a seller’s account on Amazon and a few registration and payment-related details. Be sure that you fill in all the important details on this portal.
Now, your next task is to find the product ideas to flip on Amazon. You will have to do this carefully because you are doing it for profits and not simply for leisure. The products you choose should help you seek sufficient returns and help you establish your brand name, even if it is reselling business.
Factors to determine whether a product is profitable for flipping
When you select products to resell on Amazon, you can consider the following essential factors:
- Reasonable investment – Remember, it is a reselling business, and hence, you should not be spending too much. If it is an original product, it is okay to spend on the research and development, creation, marketing, etc. But if it is a reselling item, it should not be too expensive to buy in the first place. You should research the product and other items, but you should not be spending money on that research part.
- Popularity – The products you prefer to resell should be popular and have a high demand among the buyers. Apparel, electronic items, accessories are some of the things that are always high in demand. But if you choose an item that does not have high demand, it will not fetch sufficient sales.
- Reasonable ability to earn a profit – As we already mentioned, you are not starting this venture to spend money but to earn money. Hence, whatever product you choose for resale purposes, you should be able to earn sufficient profit out of the resale.
- Less competition – Lastly, the products you choose for resale should face less competition from other resellers on the platform. Remember, Amazon is a vast market place, and you won’t be the only one reselling products. Hence, you should go for those products that do not face severe competition from others.
- Check what’s trending – Enjoy the perks of Amazon. They post the list of best-selling items on the home page. It becomes your responsibility to check it often and analyze customer behavioral patterns accordingly.
- Tap your potential – Instead of experimenting with new tips and suggestions; it is essential to stick to what you are aware of. If you source products from your friend or from your own house, you know very well what you are selling. But if you choose to experiment with different niches and sources, you will fumble up. It is important to stay away from new sources in the initial days of the business.
Always do research before you try the new ones or even continue with the existing range of products. Even simply checking once with eBay and other platforms will help you avoid commonly made mistakes.
Reselling/flipping on Amazon is the process of buying goods either to resell at a profit or to use for other purposes. It involves finding unwanted goods from other sources and then either reselling them on Amazon or elsewhere for a profit, or refurbishing and reselling them for a higher price.
A wide variety of goods can be resold/flipped on Amazon. This includes used books, electronics, video games, clothing, jewelry, furniture, appliances, toys, and much more.
You can find products to resell/flip on Amazon by searching for used or out-of-date items that are being sold at a discount. Alternatively, you can also find products from other sources such as yard sales, thrift stores, or online marketplaces.
To maximize your profits on Amazon, you need to research the products you are selling, set competitive prices, optimize your product listing, and take advantage of promotions that Amazon offers.
You will typically be charged a referral fee for each item you sell. Additionally, if you store and fulfillment your products with Amazon, you may also be charged for the storage and fulfillment services.
Amazon typically pays you within two business days after an item sells from your inventory.
Yes. You cannot resell counterfeit products, restricted products, restricted brands, or any other items that Amazon identifies as prohibited.
Amazon has several different options for shipping your products. You can either use Amazon’s own shipping services, or you can use a third-party shipping service such as UPS or FedEx.
You will need to pay taxes based on the taxes of the state where you are located, as well as any applicable local taxes. You should also keep in mind that you may need to file taxes on the profits you make from reselling/flipping on Amazon.
Whether or not reselling/flipping on Amazon is right for you ultimately depends on your own goals and resources. It can be a great way to make money, but it also requires hard work and dedication. Before you decide to get started, be sure to research the ins and outs of reselling/flipping on Amazon to make sure it is the right choice for you.