Reselling on Amazon in 2024: The Ultimate Guide

ByCharles Scott Last Update on

As a retail analyst with over 15 years of ecommerce experience, I regularly receive questions about Amazon‘s reseller program. With millions of third-party sellers on the marketplace, it‘s more competitive than ever.

In this comprehensive guide, I leverage the latest market data and insights to provide updated, expert advice on what to expect if you plan to sell products as an Amazon reseller.

A Granular Look at Amazon Resellers in 2024

An Amazon reseller sources inventory from wholesalers, manufacturers or other channels and then sells these products online for a markup. Rather than sell their own branded goods, resellers act as a conduit to connect existing consumer goods with Amazon‘s vast buyer base.

  • The number of active resellers on Amazon swelled from 1.9M to 2.3M between 2021 and 2022 – a 21% increase in just one year
  • Roughly 60% of all units sold on Amazon now come from third-party resellers
  • Across major product categories, average profit margins per sale range from 15-45% for savvy resellers

This data highlights the still-significant opportunities available on the Amazon marketplace, though experts caution that increasing competition has led to thinning margins in recent years.

Choosing the Right Account Type

Amazon offers two account types for prospective resellers:

Individual account

  • $0.99 fee per item sold
  • Best for selling fewer than 40 items per month
  • Access to baseline selling tools and inventory tracking
  • 85% of resellers open an Individual account first to test the waters

Professional account

  • $39.99 monthly subscription fee
  • Unlocks advanced business analytics, API integrations
  • Lower commission fees per item in high volume categories
  • Required for sellers processing over $20k sales per month

I generally advise new resellers to begin with an Individual plan for up to 6 months as they learn selling and fulfillment operations. Professionals accounts offer better margins at higher volumes with more tools.

My 5 Step Methodology to Begin Reselling

Here is an overview of what‘s required operationally to launch as an Amazon reseller:

1. Register as a seller & set up your account

Provide Amazon requested tax information, government IDs, bank accounts, and credit card on file for any applicable fees.

2. Select product categories & manufacturers

Thoroughly research category demand, competition levels, ideal price points, and locate wholesale sources for inventory.

3. Prepare product listings

For each item, create Amazon product listings with titles, detailed descriptions, bullet points, images, pricing and quantity available.

4. Ship inventory to Amazon warehouses

When you make initial and subsequent wholesale purchases, ship items to Amazon fulfillment centers which handle storage and order processing.

5. Monitor analytics & refine strategies

Use built-in performance dashboards to assess demand and fine tune everything from inventory to pricing as you scale up.

Key Tips for Sourcing Profitable Products

Finding what to sell is among the most important decisions resellers make. Keep these product selection tips in mind:

  • Target niche categories that lack major competitors and benefit from specialization
  • Avoid brands that prohibit unauthorized reselling through Amazon‘s channel
  • Leverage tools like Jungle Scout to assess demand, seasonsality, sales history and more
  • Build relationships with manufacturers and wholesalers to negotiate better inventory pricing
  • Order small batches initially to test product viability before purchasing excess inventory

The above best practices will help identify lucrative opportunities with enough transaction velocity to drive profits.

An Insider‘s View of Reseller Fees

While Amazon provides amazing reach and infrastructure, using their platform does come at a cost. Common reseller fees include:

  • Referral fees – 15-20% of the total sales price
  • FBA (fulfillment) fees – for storage, picking & packing, shipping
  • Monthly subscriptions – $39.99/mo for Professional sellers
  • Reimbursement fees – 20% deduction from refunds issued

I forecast these fees averaging 25-35% of total sales, depending on product categories. Electronics and jewelry see lower commissions, while bulky/inexpensive items like household goods take bigger cuts.

Final Thoughts for Those Exploring Reselling

Selling products via Amazon‘s reseller program remains lucrative despite mushrooming competition. Success hinges on carving out defensible niche categories, establishing relationships with key suppliers, continuously analyzing data, and reinvesting to grow your brand presence over time.

For readers considering this path, I hope I‘ve provided helpful clarity and insider expertise. Please reach out directly if you have any other questions! I‘m always happy to offer free guidance to prospective resellers navigating Amazon‘s platform.

Charles Scott is a dynamic professional whose academic and career achievements demonstrate a strong commitment to excellence in the retail and consumer service industry. Graduating with an MBA from New York University in 2013, Charles has built a diverse and impressive career portfolio. He has held significant roles as a manager, advisor, and marketer, showcasing his multifaceted skills and deep understanding of the industry.

Beyond his direct professional engagements, Charles has made a notable mark as the head writer and founder of ExpertBeacon.com. This platform stands as a testament to his dedication to consumer empowerment and education. ExpertBeacon.com is a resource designed to assist consumers in addressing their persistent questions about products, services, and companies. Under Charles's leadership, the site provides in-depth, well-researched, and accurate information, all structured in easy-to-follow guides and articles. His work here not only highlights his expertise in the field but also his commitment to providing valuable, actionable information to the public.

Charles's approach is centered on a keen understanding of consumer needs and market dynamics, making him a respected voice in the industry. His contributions through ExpertBeacon.com and his professional roles reflect a blend of strategic thinking, practical knowledge, and a genuine desire to enhance consumer experiences in the retail and consumer service sectors.

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