Becoming an Amazon reseller can be an excellent opportunity for businesses to expand their reach and tap into the e-commerce giant’s vast customer base. However, there are several steps you must follow to set up a shop on Amazon successfully. Before diving in, it’s worth noting that your mention of Apple’s Authorized Resellers program criteria appears to be in error, as we’re focusing on Amazon in this guide.
How To Become an Amazon Reseller?
To become an Amazon reseller or seller, you need a business email and phone number, tax information, bank account, and international credit card. However, resellers need Authorization from Brand Owners so they can sell products from different brands.
The terms “reseller” and “seller” are often used interchangeably, but depending on the context, there can be a slight distinction. Here are the general differences:
Seller refers to any individual or business entity that sells products or services. It is a broad term encompassing various sellers, including manufacturers, wholesalers, retailers, and entrepreneurs. Sellers can operate through different channels, such as physical stores, online marketplaces, or a combination. In e-commerce platforms like Amazon, a seller lists and sells products to customers.
Reseller: On the other hand, a reseller refers explicitly to an individual or business that purchases products from a manufacturer or distributor and then sells them to end consumers. Resellers typically do not produce the products but act as intermediaries between the manufacturer and the customer. They acquire products in bulk or wholesale prices and then sell them at a higher price to make a profit. Resellers can operate in various ways, including through physical stores, online marketplaces, or a dropshipping model where they don’t hold inventory.
All resellers are sellers, but not all sellers are necessarily resellers. Resellers focus on the distribution aspect, acquiring products from the source and selling them to end consumers, while sellers can encompass a broader range of roles within the sales process, including manufacturing, wholesaling, and retailing.
Amazon seller eligibility refers to the requirements individuals or businesses must meet to sell products on Amazon’s marketplace. The following are the key elements of Amazon seller eligibility:
- Business Email Address or Amazon Customer Account: To start selling on Amazon, you must have a business email address or an Amazon customer account. This email address or customer account will be associated with your seller account and used for communication and account management.
- Internationally Chargeable Credit Card: Amazon requires sellers to provide a valid internationally chargeable credit card for verification purposes. This helps confirm the seller’s identity and location and ensures that a valid payment method is available for Amazon’s selling fees.
- Government ID: Sellers must provide a valid government-issued identification document for identity verification. This could be a driver’s license, passport, or government-issued identification card. The purpose is to protect sellers and customers by ensuring that only legitimate individuals or businesses sell on the platform.
- Tax Information: Amazon requires sellers to provide tax information, such as a tax identification number or Social Security number, depending on the country and tax regulations. This is necessary for reporting and compliance purposes, as Amazon may be required to provide tax-related information to tax authorities.
- Phone Number: A valid phone number is required during the registration process. Amazon may use this number to contact sellers for verification, account-related notifications, or other essential communications.
- Bank Account: Sellers need a bank account where Amazon can deposit the proceeds from their sales. This is the account where Amazon will send the funds generated from selling products on the platform. Therefore, accurate and up-to-date banking information ensures smooth payment processing.
By fulfilling these eligibility requirements, sellers can create an Amazon seller account and start listing and selling their products on the platform. However, it’s important to note that these requirements may vary slightly depending on the country or region where you plan to sell.
Let us analyze some essential steps:
1. Understand What an Amazon Reseller Is
An Amazon reseller is a business that purchases products and resells them on Amazon. Resellers can choose from a vast range of products to sell, from electronics to books and clothing. As a reseller, you don’t have to manufacture or create the products you sell. Instead, you purchase these items from a wholesaler or manufacturer and then list them on Amazon.
2. Set up Your Business
Before becoming an Amazon reseller, you should have an established business entity. This could be a sole proprietorship, partnership, or corporation. You’ll also need an Employer Identification Number (EIN) from the IRS, which you can apply for online. Furthermore, having a business bank account and credit card will simplify tracking business expenses.
3. Create an Amazon Seller Account
Once your business is set up, go to Amazon’s website and create a seller account. You must provide your business name, address, contact information, and credit card details. You can choose from two types of seller accounts: Individual and Professional. Individual sellers do not pay a monthly fee, but they pay a $0.99 fee per item sold. Professional sellers pay a $39.99 monthly fee but do not pay per-item fees.
4. Choose Your Niche
Selecting a niche is a critical part of becoming a successful Amazon reseller. Ideally, choose a product category you’re knowledgeable and passionate about. Additionally, consider factors like competition, profitability, and market demand.
5. Source Your Products
Finding reliable suppliers is crucial in this business. Attend trade shows, use online directories, or contact manufacturers to find products for your niche. Ensure to negotiate the terms and conditions, such as price, minimum order quantities, and delivery schedules.
6. List Your Products
After sourcing your products, list them on Amazon. Provide clear and detailed descriptions, high-quality pictures, and competitive pricing. Amazon’s algorithm favors listings that provide excellent customer experiences, so ensure your listings are thorough and accurate.
7. Manage Your Inventory
Effective inventory management is critical to avoiding stockouts or overstocking. Amazon provides inventory management tools within Seller Central, but you can also use third-party tools for more advanced features.
8. Provide Excellent Customer Service
Responding to customer inquiries promptly and resolving any issues efficiently can enhance your reputation and lead to positive reviews, boosting your rankings on Amazon.
9. Optimize Your Listings
Search Engine Optimization (SEO) practices can help your products appear in relevant search results. Use relevant keywords in your product titles and descriptions, and aim for compelling and informative content.
10. Understand and Comply with Amazon’s Rules and Regulations
Amazon has strict policies for selling on its platform. Ensure you understand and comply with all these regulations to avoid penalties, such as suspending your seller account.
Amazon Resellers and Sellers have the same rules. However, resellers need Authorization from Brand Owners to sell their products.
Please see our related reseller articles:
How to Become a Sony Reseller?
How to Become a Cisco Reseller?
How To Become an Apple Reseller?
How To Become an Amazon Reseller?
How to Become a Dell Reseller?
How to Become a Software Reseller?
How to Become an Authorized Swarovski Reseller?
After leaving Wells Fargo Bank in 2014, Daniel began a career as a finance consultant, advising companies and individuals on economic policy, labor relations, and financial management.
At Promtfinance.com, Daniel writes about personal finance topics, value estimation, budgeting strategies, retirement planning, and portfolio diversification.
Read more on Daniel Smith's biography page.
Contact Daniel: daniel@promtfinance.com