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5 Steps to Resell Branded Products on Amazon
Selling branded products on Amazon presents a lucrative business opportunity for both newcomers and experienced sellers. With millions of customers shopping daily, the platform offers unmatched potential to resell branded products legally and profitably.
This guide breaks down the process, helping you navigate the complexities of selling other companies' products while ensuring that you comply with Amazon’s policies.
Table of contents
Can I Resell Branded Products on Amazon?
Yes, reselling branded products on Amazon is possible. This business model typically follows either wholesale or dropshipping methods. Wholesale involves purchasing products in bulk directly from brands or authorized distributors, while dropshipping allows you to sell items without holding any inventory, as your supplier ships orders to your customers directly.
An established brand name comes with built-in trust, which reduces the need for extensive marketing efforts. Additionally, branded products often have consistent demand, allowing sellers to tap into an existing customer base.
However, not all branded products are allowed to be resold on Amazon. Some brands restrict unauthorized sellers in order to protect their reputation and quality control. That’s why it’s crucial to understand how to get approved so you can sell brands on Amazon legally .
How to Sell Branded Products on Amazon
Selling branded products on Amazon involves several important steps. Let’s review each step of the process to ensure that you’re equipped to succeed in this competitive marketplace.
1. Choose a product.
The first step to selling branded products is choosing the right product. This involves identifying items with high demand, low competition, and reliable profit margins. Selecting a product that aligns with your business goals and market research is crucial for long-term success.
To simplify your product selection, you can use the AMZScout PRO AI Extension, a powerful tool that helps sellers analyze potential opportunities:
Install the AMZScout PRO AI Extension. Begin by installing the AMZScout PRO AI Extension. You can sign up for a free trial, which doesn’t require a credit card. Once the extension is installed, you’ll see the icon appear next to your browser’s address bar.
Search for products. Type the name of any products you’re interested in into Amazon’s search bar.
Activate the extension. Click the extension icon to access the dashboard. This will display metrics such as sales volume, pricing trends, and competition levels.
Analyze products. Focus on specific brands of products instead of niches or competitors, like sneakers from a well-known brand. Look for products with 2 to 10 sellers on the listing and strong sales performance.
Check the reselling potential. Examine the product’s reviews to ensure that there are plenty of positive ones. Evaluate the Product Score for its suitability for reselling.
Calculate your potential profit. Use a profit calculator to determine if the product meets your profit margin goals. Aim for products that can be resold on the same listing with a calculated net profit margin of at least 20%.
Using data-driven tools like the AMZScout PRO AI Extension ensures that you choose the right products to resell, while minimizing risks and maximizing profitability.
2. Check if a product is allowed to be resold.
Before investing in a product, you need to confirm whether it’s allowed to be resold on Amazon. Some products are restricted, while others may require that you obtain special approval or permissions. To find out, you can review Amazon’s restricted product list to avoid potential compliance issues.
Additionally, you can utilize special tools like AMZScout's Dropshipping, Online Arbitrage and Wholesale Extension. Here’s how:
Launch the AMZScout Dropshipping, Arbitrage, and Wholesale extension. Make sure the add-on is activated as part of your AMZScout subscription.
Go on Amazon. Search for any product you wish to analyze.
Navigate to the product’s listing. Access the detailed information dashboard to gain valuable insights into the product's potential. Here, you can check for any restrictions, such as gated categories or the presence of an existing Private Label for the product. This tool also allows you to calculate potential profit if you’re an FBM seller.
Verifying resale eligibility protects your business from costly mistakes and ensures compliance with Amazon’s rules.
3. Contact the brand.
Establishing a connection with the brand owner or an authorized distributor is essential in order to resell branded products successfully. Once you select your product idea, you can start this process easily by searching for the brand owner or distributor through platforms like Google. This ensures that you can source inventory legally while maintaining quality. Follow these steps:
Identify the brand’s contact information through their official website or distributor networks.
Prepare a professional introduction, outlining your business model and intentions.
Highlight the benefits of partnering with you, such as expanding the brand’s reach on Amazon.
Building direct communication with multiple brands or distributors increases your chances of establishing successful partnerships. Reach out to several contacts, you may not get responses from all of them, and doing so will maximize your opportunities for collaboration.
4. Get permission.
To resell branded products legally, you must obtain permission from the brand. This step is crucial to avoid encountering any potential legal and account-related issues. To obtain permission, follow these steps:
Request an official reseller agreement or authorization letter.
Ensure that the agreement specifies the terms, such as pricing, minimum order quantities, and exclusivity rights.
Keep all documentation on file in case you need to present it to Amazon at any time.
Getting approved to sell branded products not only legitimizes your business but also helps protect your Amazon seller account.
5. Order and list the product.
Once you secure permission, it’s time to order inventory and join the Amazon listing for your product. This is where your research and preparation pay off. Here’s what you need to:
Place your order with the brand or distributor, ensuring accurate quantities and delivery timelines.
Join an existing Amazon listing.
Monitor your inventory and sales performance regularly to ensure steady growth.
You can also launch ads to attract more attention to your product.
Selling branded products on Amazon requires a structured and informed approach. By carefully selecting the right products, verifying their eligibility, establishing strong relationships with brands, securing permissions, and creating optimized listings, you set yourself up for success.
Conclusion
Reselling branded products on Amazon can be a profitable venture when done correctly. By following these steps—choosing the right product, verifying eligibility, establishing brand relationships, obtaining permission, and managing listings—you can build a successful business while maintaining compliance with Amazon’s rules.