"It’s all about having legitimate products, a prime listing, competitive pricing, and a top-notch seller performance score."

Date: May 15th, 2024

Author: Duffy Young

There’s two primary ways to sell on Amazon: Private Label and Reselling.

Private Label: Building Your Own Brand

Private labeling involves creating a unique product and branding it under your own business name. Here’s the basics:

1. Find a Product: You start by identifying a product from a manufacturer, manufacturing it yourself, or inventing something entirely new.

2. Branding: Once you have your product, you put your brand name on it. This requires registering the product under your business and securing a trademark.

3. Production: Often, this involves getting a bunch of injection molds and producing your item on a larger scale.

In essence, private labeling is about taking a generic product and making it your own. Honestly, it’s really difficult and time consuming to do. There’s a lot of moving parts involved.

Reselling: Partnering with Established Brands

The second way to sell on Amazon is by reselling products from established brands. This method is widely popular, with roughly 80% of all products sold on Amazon being handled by third-party resellers.

Here’s how reselling works:

1. Source Products: Major brands like Dyson may not have the time, resources, or inventory flow to consistently stock Amazon. Instead, they rely on third-party resellers to keep their products available on the platform.

2. Wholesale Purchasing: As a reseller, you purchase products at wholesale prices from the brand.

3. Legitimacy: You need to show Amazon that you have obtained the product legitimately, often by providing a receipt or proof of purchase from the brand.

Brands are happy to sell their products at wholesale prices because it ensures a consistent presence on Amazon without the logistical burden. This creates a win-win situation for our partners: the brand maintains its market presence, and you, the reseller, get to profit from selling popular products.

The Buy Box: The Key to Amazon Sales

On Amazon, the competition to make a sale often boils down to winning the Buy Box. When customers search for a product, compare models, view pictures, watch videos, and read reviews, their final step is usually clicking “Buy Now” or “Add to Cart.” The vendor who makes that sale is the one who occupies the Buy Box.

Amazon uses three key variables to determine who gets the Buy Box:

1. Prime Shipping: Is the product shipped from Amazon and available for Prime members?

2. Competitive Pricing: Is it the lowest price available for that product?

3. Seller Performance: Does the seller have a high performance score based on customer feedback and order fulfillment?

By excelling in these areas, you can increase your chances of winning the Buy Box and driving more sales.

At Profitable Automation, we’re here to help you navigate the complexities of Amazon selling and achieve your business goals.

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