Reselling can feel overwhelming at first. This guide breaks the process into clear steps you can actually follow.

Selling on Amazon can be a game-changer for resellers. In 2026, Amazon remains the largest ecommerce

marketplace in the U.S., with projections showing Amazon surpassing Walmart in retail revenue .

Amazingly, about 60% of all units sold on Amazon are by third-party sellers (like resellers), many of whom

operate on a “buy low, sell high” model . This means there’s a huge opportunity for new resellers today.

If you want to start earning on Amazon this year, follow these step-by-step guidelines to build and grow

your Amazon reselling business.

1. Choose Your Amazon Seller Account and Business Model

Decide on a selling plan. Amazon offers two main seller plans: Individual (per-item fee) and Professional

(monthly subscription). For serious resellers, the Professional plan (about $40/month) is usually better

because it removes per-item fees and unlocks advanced tools . It’s a key first step to sign up through

Amazon Seller Central and select your business name and region.

Set up your seller account. Prepare by having basic information ready: your legal name, address, contact

info, and tax details . You’ll also need a valid credit card and bank account. Amazon will walk you through

verifying your identity (e.g. through a photo ID and tax documents) during registration .

Pick your reselling model. There are several ways to resell on Amazon:

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Retail Arbitrage (RA): Buy clearance or discounted products at retail stores (e.g. Walmart, Target)

and resell them on Amazon at a higher price.

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Online Arbitrage (OA): Similar to RA but sourcing products from online retailers or marketplaces.

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Wholesale/Pallets: Purchase bulk lots or palletloads of clearance/liquidation inventory and split

them into individual products for Amazon.

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Private Label: Find generic products (often overseas suppliers) and sell them under your own brand

name on Amazon.

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Dropshipping: You list products without holding inventory; when someone buys, you purchase the

item from another supplier who ships directly to the customer (allowed on Amazon if done properly ).

Dropshipping has low upfront costs, but margins can be thinner and you have less control . Buying

inventory (arbitrage or wholesale) requires more capital, but you keep more profit per sale. In 2026, most

successful sellers on Amazon lean toward having some inventory (even if low-volume) because it helps win

the Buy Box and offers higher margins . Decide which model suits your budget and risk tolerance

before you start sourcing products. 2. Research Products and Markets

Before you buy any inventory, research product demand and competition. Use tools like Jungle Scout,

Helium 10, Viral Launch, or even Amazon’s own Best Sellers pages to spot trending products. Key factors to evaluate:

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Demand: Check sales rank and number of reviews. A lower Best Seller Rank (BSR) typically means

higher sales. For example, products with BSR < 10,000 in a category usually sell regularly.

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Competition: See how many sellers are offering the product. If you find a niche with only 2-3 sellers

and stable sales, that’s a good opportunity.

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Profit Margins: Always calculate your costs (product cost, Amazon fees, shipping to Amazon, etc.)

against the expected selling price. Aim for at least a 30% profit margin after all costs.

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Category Restrictions: Some Amazon categories (e.g., health, automotive, kids) may be gated;

check if you need approval or brand authorization to sell there.

Amazon’s platform is highly competitive, so niche research is crucial. For example, if you are interested in

electronics, search Amazon and scroll to “sold items” on eBay or use Google Trends to see if demand is

rising or falling. Gary Vaynerchuk emphasizes checking eBay completed listings to gauge true value .

Leverage AI and product research tools in 2026. Modern AI-powered software can scan thousands of

listings and supplier catalogs. These tools can instantly flag profitable opportunities by matching Amazon

ASINs or UPCs to supplier data . For example, AI sourcing tools are designed to “connect Amazon

product data to real, in-stock suppliers” without hours of manual work . Similarly, AI repricing tools track

your competitors in real time to adjust your prices and help you win the Buy Box . By using these AI

tools, you’ll save time and make smarter sourcing decisions.

3. Source Your Inventory

Once you identify promising products, source them at the best prices:

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Retail stores: Visit clearance sections at retailers or thrift stores. With barcode scanning apps, you

can quickly check Amazon prices on the spot.

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Online retailers: Watch for sales or use browser extensions that alert you to discounts on online

shops that you can arbitrage.

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Wholesale lots and liquidation pallets: If you have capital, buy pallets of returned or overstock

merchandise from liquidation websites or local warehouses. Avoid pallets full of very high-ticket or

niche items (e.g., appliances or specialized tools) until you gain experience .

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Thrift and garage sales: Great deals can be found at yard sales or thrift stores. Gary Vee suggests

hitting up neighborhood sales in areas with higher median incomes . Look out for items like

branded collectibles, electronics, or toys that you can flip for profit.

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Online wholesale directories: If you plan on scaling into wholesale, consider using supplier

directories or AI sourcing tools to find legitimate brand distributors.

When sourcing: - Negotiate politely. At garage sales or thrift shops, asking for a slightly lower price can

work wonders – even a silence tactic where you pause after an initial offer may get sellers to drop their

price . - Always examine the condition. Check for damage or missing parts, and make sure you can

describe the item’s condition accurately on Amazon (used vs. new, etc.). - Include all costs. Don’t forget shipping to Amazon, prep costs (like polybags or labels), and Amazon’s fees. Overlooking these can turn a

seemingly profitable deal into a money-loser . - Start small: For new products or new sources, buy a

small quantity first. This “test” approach avoids dumping money into inventory that might not sell quickly.

4. List Your Products with Amazon SEO

Creating effective listings is critical to being found and selling well. Amazon is a search engine of its

own, so your titles and descriptions need good keywords. Steps to optimize:

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Title: Include the brand, product type, key features, and maybe a keyword (e.g., “XYZ Brand Mens

Running Shoes – Lightweight – Size 10”).

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Bullet Points: Highlight top benefits and features. Focus on what customers care about: material,

use cases, compatibility, etc. Use a friendly, helpful tone.

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Description: Write a detailed description (HTML formatting is allowed) that tells a story about the

product’s use. Incorporate relevant keywords naturally to improve search visibility.

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Images: Use high-resolution photos with a white background (Amazon requires the main image to

be white). Show multiple angles and usage images. Good images can double your sales compared to

poor photos .

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Keywords/Backend search terms: In Seller Central, fill in backend keywords that didn’t fit in your

visible text (like synonyms, alternate spellings, etc.).

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Brand: If you are private labeling or selling under a unique label, register your trademark with

Amazon’s Brand Registry to protect and promote your brand on Amazon .

Remember that accuracy is key. For example, if items are used or refurbished, clearly mark them. Amazon

will penalize you for misleading listings, and customers will leave negative feedback if expectations are

wrong.

Also use Amazon’s tools like Brand Registry and Enhanced Brand Content (if applicable) to stand out. If

you have a brand and trademark, enroll in Amazon Brand Registry – it provides more control over listings,

and access to A+ Content (rich descriptions with images). This can boost conversions by telling your brand

story.

5. Price Your Products Smartly

Finding the right price point is a balancing act. Too high and you lose sales; too low and you sabotage

profits. Key tactics:

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Competitive analysis: Check what other sellers (and Amazon itself) are charging. Aim to be within a

few dollars of competitors if possible. Tools can automatically compare prices for you.

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Repricing tools: Consider using an AI repricing tool. These automatically adjust your price based on

competition and your minimum profit settings . For example, if the Buy Box moves, the tool can

bump your price up or down to keep your listings competitive.

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Seasonal pricing: Adjust for seasonal demand. For instance, if an item spikes during the holidays or

back-to-school, your tool should raise prices. After demand drops, let it lower prices to clear old

stock.

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Bundle or multi-pack pricing: If you have multiple units, selling them as multi-packs can often

command a higher overall price and stand out. -

Promotions: Use Amazon’s promotional tools judiciously. Coupons or deals can drive volume

(helpful when launching a new listing), but they eat into your margins, so calculate ROI carefully.

Finally, always keep track of your net margins after Amazon fees. Fees include referral fees (typically 8-45%

depending on category) and FBA fees (if you use FBA). Many sellers use a profit calculator to ensure each

sale exceeds their minimum desired ROI.

6. Choose a Fulfillment Method

There are two main ways to fulfill Amazon orders:

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Fulfillment by Amazon (FBA): You ship your products in bulk to Amazon’s warehouses. Amazon

handles customer shipping (often with Prime), customer service, and returns. FBA can be more

expensive (storage and fulfillment fees), but it greatly increases your sales potential because Prime

customers prefer Prime-eligible items . FBA also means you don’t have to pack each order

yourself, saving time. However, watch for long-term storage fees if products sit unsold.

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Merchant Fulfilled Network (MFN) or Seller Fulfilled Prime (SFP): You store and ship items

yourself. You have full control and no FBA fees, but you must handle packing and shipping quickly on

your own. To get the Prime badge without FBA, you can qualify for SFP, but the requirements are

strict (very fast, on-time shipping).

For new resellers, FBA is often recommended despite its costs, because it lets you tap into Amazon’s

logistics and focus on sourcing and marketing . In 2026, Amazon’s fulfillment network is still a huge

advantage. But if you sell bulky items (furniture, large appliances), FBA costs can be prohibitive, so MFN

makes sense there.

7. Launch and Promote Your Listings

Once your listings are live, don’t just sit back. Promote your products to generate initial traction:

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Amazon PPC (Pay-Per-Click): Use Amazon Advertising (sponsored products, sponsored brands) to

get your listings seen. Start with automatic campaigns to find keywords, then use manual campaigns

for top keywords. Monitor ACoS (ad cost of sale) to keep ads profitable. Many successful sellers

credit Amazon PPC for their initial momentum.

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Coupons and Deals: Offering a small coupon (e.g. $3 off) can bump your sales rank and trigger

Amazon’s “Coupon” badge on your listing, making it stand out.

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External Traffic: Share your product on social media, blogs, or newsletters. You can also create a

simple landing page or use Amazon Live. Amazon even has partnerships (like integration with TikTok

Shop) to drive traffic.

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Review generation: Amazon’s algorithm favors listings with strong reviews and rating. After a

legitimate sale, send a friendly message (through the Buyer-Seller messaging) asking the customer

to leave feedback. Note that incentivized reviews are against Amazon policy, so be cautious.

Amazon’s Vine or Early Reviewer Program can help for new private label products. 8. Provide Excellent Customer Service

Outstanding service builds repeat business and 5-star ratings:

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Answer questions promptly: Use Amazon’s Q&A and your seller messaging to answer buyer

questions quickly.

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Handle returns gracefully: Offer hassle-free returns as needed. This builds trust and encourages

buying from you again.

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Monitor seller feedback: If you get a negative review or feedback, respond professionally. If it’s a

mistake, fix it. If it’s malicious, politely appeal to Amazon if the feedback breaks rules.

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Maintain inventory levels: Avoid “out of stock” by using inventory management. Running out not

only loses sales, it also hurts your ranking.

Happy customers mean better rankings. Amazon’s algorithm tracks your seller metrics: order defect rate,

late shipment rate, cancellation rate, and customer feedback. Keep all these within Amazon’s targets (e.g.,

defect rate < 1%) to stay in good standing.

9. Analyze and Scale Your Business

Track your results and double down on what works:

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Analyze sales data: Use Amazon’s Business Reports or a third-party analytics tool to see which

products are selling best and which aren’t. For example, if a product has a high ROI, consider buying

more of it or finding related items. If something flops, think about liquidating it and not restocking.

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Expand your catalog: Once you reach stable sales, add more products. This spreads risk and

increases overall revenue. You might launch variations (different colors/sizes) of successful products.

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Optimize costs: Keep an eye on fees. Use an FBA calculator to decide if products are still profitable.

Consider negotiation with suppliers for better prices as you grow.

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Reinvest profits: Most top resellers reinvest early earnings into more inventory or advertising. This

creates a compounding effect on growth.

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Automation and delegation: Invest in tools for automating repetitive tasks (inventory syncing,

repricing, follow-up messages). You may also hire part-time help for data entry or use virtual

assistants for research. This frees you to focus on strategy.

Scaling gradually is key. In e-commerce, time is your friend; it takes consistent effort, testing, and learning

to grow. But many sellers have seen their incomes multiply by following a step-by-step Amazon strategy .

Conclusion

Reselling on Amazon in 2026 can be both lucrative and challenging. The key is to follow a systematic

approach: set up your account correctly, choose the right products, optimize your listings, and use

Amazon’s tools (like FBA and PPC) to your advantage. Continue learning, adapt to market changes (such as

any new Amazon policies or trends), and never stop improving your process. With persistence and the right

strategy, you can build a thriving Amazon reselling business this year.

If you want to keep leveling up, browse more guides on ResellerStartKit and use the calculators in our Tools section to sanity-check every deal.