What is Amazon Reselling and which products will sell best on Amazon in 2025?

Amazon Resale-Geschäftsmodelle sind legal.

Amazon Reselling is not a fixed term like Amazon FBA or Private Label. Some encompass almost all forms of selling on Amazon under it. However, “Reselling” usually refers to buying products at a low price for the purpose of reselling them on another platform, such as Amazon.

This business model is also known as Amazon Arbitrage or, when referring to retail, as Retail Arbitrage. We have already dealt extensively with the different approaches, advantages and disadvantages, as well as possible alternatives in this blog article: This is how Amazon Arbitrage works. Therefore, we would like to focus here on the selection of products that are particularly suitable for reselling on Amazon.

What is Amazon Reselling?

In reselling, products are sourced from many different sources and then resold on another platform. Retailers who follow this concept buy a batch of hiking pants at a low price (for example, because they are clearance items) to then resell them on Amazon. Reselling is particularly worthwhile when the difference between the purchase and selling price is large enough to achieve a significant margin.

In addition, other strategies can also be applied, for example …

  • buying defective products, repairing them, and then reselling them,
  • buying rarities, collectibles, or antiques at a low price and reselling them at a higher price,
  • buying limited goods as soon as possible after the release and reselling them at a higher price.

There are basically no limits to creativity, as long as the difference between the purchase and selling price is large enough to make a profitable business.

Is reselling legal?

Yes, reselling on Amazon or other trading platforms is completely legal. Most third-party sellers on Amazon are resellers, as they do not produce their own products but sell branded products, for example. Typically, large order quantities are placed so that the individual item is correspondingly inexpensive and can be resold with a markup.

But there are other models like dropshipping and arbitrage, where large quantities do not need to be purchased. These methods are also legal on Amazon, eBay, and similar platforms.

Only some sources for products can lead to problems with Amazon. This is because goods at particularly low prices are often found with so-called gray market suppliers. These are companies that sell products outside of authorized or official distribution channels. These products often come from manufacturers but are sourced and distributed through unofficial channels. Gray market products are legal and often discounted, but they may also have lower quality and no entitlement to manufacturer warranty services or customer support.

Procedure for Amazon Reselling

Like any business, reselling is not a money tree and requires a certain amount of know-how, time, and resources to be economically viable. These six steps should be part of the standard procedure:

  • Product Demand: Before you buy a product, possibly even in large quantities, you should thoroughly research the demand in the market. Nothing is more frustrating than burning money because purchased items cannot be resold.
  • Product Purchase: Buy the demanded goods in quantities that match your business goals and that do not jeopardize your economic existence should the product not sell as well as expected. Pay attention to reputable sources and be aware of the risks – but also the opportunities – of gray market suppliers.
  • Product Listing: Create the products in Amazon Seller Central at competitive prices. Keep in mind to find a balance between margin and sales opportunity. Ideally, use a professional repricing tool for Amazon.
  • Fulfillment: Once the first order comes in, the products need to be packaged and shipped. Keep in mind that Amazon has high standards and you must not exceed the delivery date under any circumstances. If you cannot meet this quality requirement, any seller is free to book the “Fulfillment by Amazon” (FBA) service.
  • Customer Support: If you do not use FBA, you will need to take care of customer service and any returns afterwards. Customer inquiries must be processed within 24 hours, for example.
  • Inventory: Also remember to monitor your stock to avoid shortages or “Out of Stock” situations.
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Reselling Methods: Arbitrage vs. Wholesale vs. Dropshipping

To participate in the reselling game on Amazon, there are various business models. All have their advantages and disadvantages, which we would like to briefly present here.

Retail/Online Arbitrage

  • What is it? “Arbitrage” refers to the sale of products that can be purchased at a low price. Arbitrageurs make profits through the price difference between the purchase price and the selling price.
  • Advantages: Low initial investments, manageable risk, flexibility, suitable for beginners.
  • Disadvantages: Time-consuming, comparatively low margins.

Wholesale

  • What is it? Wholesale or trade goods refer to the classic business model on Amazon. Here, the seller acts as an intermediary for branded products, connecting the producer or wholesaler with the end consumer.
  • Advantages: Good profit margins, brand quality.
  • Disadvantages: High investments, large purchase quantities, certain risk.

Dropshipping

  • What is it? Dropshippers do not have their own warehouse or inventory. Instead, orders are forwarded directly to the wholesaler or manufacturer, who then ships the items to the customer on behalf of the seller.
  • Advantages: Low initial investments, flexibility, large selection, suitable for beginners.
  • Disadvantages: Comparatively low margins, difficult quality control, many dependencies.

Good to know

Although Fulfillment by Amazon (FBA) is often referred to as a business model, this is not correct. It is merely a shipping method. Most business concepts can be operated with or without Amazon FBA. It is simply a service that sellers can book with Amazon. This includes the entire logistics process – starting from the storage of products, picking and packing after the order is received, as well as the subsequent shipping process. Amazon even takes care of customer service and returns management if sellers want to use the program for a product. Almost every seller uses Amazon FBA at least for part of their assortment.

Identifying Profitable Products

Becoming an Amazon reseller is a dream for many.

Now it gets down to business. The product and market analysis are perhaps the most important tasks that an Amazon reseller has to tackle. Because if there is a lack of demand, the competition is too great, or the product is unsuitable, this can lead to sellers being stuck with the goods.

Is it worth it? Criteria for Reselling Products

The truth is: Not every product will become a bestseller. No amount of thorough research and preparation can predict the future. However, thorough research and a systematic approach greatly increase the likelihood of finding a profitable product. The following criteria should be met for this.

  1. Demand: Make sure to acquire goods that are also in demand. Your personal enthusiasm for a product is not always the best indicator. Consider trends and seasonal effects, but the best scenario is stable demand over a longer period of time.
  2. Competitive Pressure: Competition on Amazon is high, and sometimes you have to take the risk and jump into the shark tank. In general, however, you want to purchase products that have little competition. These can be niches that are not yet overcrowded, for example.
  3. Product Quality: Especially if you plan to regularly have a product in your assortment and build a long-term relationship with your suppliers, you should pay attention to the quality of the products. Poor workmanship, inferior materials, etc. will only lead to returns and bad reviews, which can harm your business.
  4. Consumables: Prefer goods that are used in everyday life, that wear out or need to be repurchased regularly, as these often have stable demand. Keep in mind that food items are subject to special regulations.
  5. Margin: The higher the price difference, the better. However, when calculating prices, also consider that you have additional costs: office, energy, shipping costs, Amazon fees, etc. – all of this must be included in the final price to operate profitably.
  6. Format: Small, lightweight items are easier and cheaper to handle than bulky items. This applies to both your internal logistics and the FBA fees or shipping with other service providers.
  7. Legal Aspects: Ensure that you do not violate any trademark or copyright rights or disregard legal requirements. This can include safety regulations for perishable food items or hazardous materials, for example.

Suitable product categories for Amazon reselling

To recommend specific products, the market situation is too dynamic. Any suggestion would be unprofessional, as reliable statements cannot be made without a deep analysis. However, based on experience, some categories on Amazon usually have a sufficient profit margin and a stable demand in general, making products from these sectors suitable for reselling models in general. This, however, does not replace a market analysis.

Electronics and accessories

Electronic goods are not subject to seasonal effects, are in high demand, and experience many price changes that resellers can take advantage of.

Examples: Headphones, phone cases, chargers, smartwatches, speakers

Toys and board games

Toys are particularly popular with customers before Christmas and Easter. At the same time, parents, grandparents, and others are often willing to spend a little more. Limited editions or hard-to-find items can also see significant price increases. In addition, these products are small and often already well-packaged, allowing sellers to save costs.

Examples: LEGO sets, board games (e.g. Monopoly), action figures, dolls

Fashion

Especially sought-after brands, limited editions, and other hard-to-find products can have significant profit margins and are easy to resell.

Examples: Sportswear from well-known brands, sneakers, handbags, sunglasses

Books and learning materials

Some books have a constant market value and can therefore be sold well, even in used condition. However, this is by no means true for all books, which is why sellers must proceed carefully when selecting.

Examples: Specialized literature, bestselling novels, textbooks, antiques

Sports and outdoor equipment

Brand products are also key here. Products in the areas of sports, fitness, and outdoor are in demand and have been trending since the Corona pandemic. Outdoor equipment is also very expensive, making used goods sought after as well.

Examples: Yoga accessories, fitness equipment, hiking and trekking gear, bicycle equipment

Baby equipment

Products in this category are often not only consumables that are frequently repurchased but also higher-priced. At the same time, parents are willing to pay accordingly for high-quality and safe goods.

Examples: Strollers, baby food, toys, baby monitors

Seasonal products

Seasonal products have a peak at a certain time of the year, but are then in extremely high demand.

Examples: Christmas decorations, Halloween costumes, Easter items

Collectibles and limited editions

To sell these products, a certain amount of know-how in the respective field is required to identify products that sell out quickly but are consistently in demand. However, if one has this knowledge, sales opportunities with high profit margins arise.

Examples: Limited sneakers, rare LEGO sets, Pop figures, vinyl records

Amazon reselling software: Helpful tools

An alternative to reselling on Amazon is private labels.

Nothing works without software, tools, and AI. This also applies to resellers. Finding products, calculating prices, monitoring performance – the examples of application areas where digital support is quite useful are numerous. Below, we provide not only an overview of the application areas but also examples of (partly free) reselling tools for Amazon sellers.

Repricing

  • SELLERLOGIC Repricer for Amazon: Automatically adjusts prices to remain competitive without jeopardizing profit margins. Automates price competition to ensure products are sold at the optimal price. Utilizes artificial intelligence and takes market changes and competitive data into account.
  • Amazon Repricer: Free tool provided by Amazon itself. Adjusts prices based on rules. However, it does not take the current market situation into account and can lead to negative margins.

Product research

  • Google Trends: Access the enormous data sets of the internet giant completely free? With Google Trends, online retailers analyze the general demand for a product and gain an overview of seasonal demand fluctuations.
  • Viral Launch: Helps with product search and validation and provides insights into niches and markets on Amazon. Also offers a wide range of additional services, such as a listing builder.

Keyword research

  • Keywordtool.io: Based on a keyword, this tool shows the suggestions that the autosuggest feature on Amazon displays. Additionally, it provides the estimated search volume and some other metrics such as the PPC costs per click.
  • MerchantWords: Displays the search volume for various keywords on Amazon and helps find relevant keywords for the respective product listing. Additionally, the top rankings for each keyword can be analyzed.

Inventory Management

  • Zoho Inventory: Software for inventory management, order fulfillment, and stock control. Checks current inventory, manages transfers between warehouses, and generates reports within seconds.
  • SELLERLOGIC Lost & Found Full-Service: Automatically analyzes all FBA transactions and promptly displays refund claims from FBA errors (such as damaged items). Requests corresponding funds back for FBA sellers and fully automates the enforcement of refund claims against Amazon.
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Competitive analysis

  • Keepa: Displays price trends and other competitive data for products on Amazon.
  • CamelCamelCamel: Also analyzes price trends on Amazon and helps understand price fluctuations.

Finances and profitability

  • LexOffice: Cloud-based accounting software that is particularly well-suited for freelancers, self-employed individuals, and small to medium-sized businesses. Offers features such as accounting, invoicing, VAT advance notification, and can be directly integrated with shop systems.
  • SELLERLOGIC Business Analytics: Enables precise analysis of sales data and tracks business performance at the account, marketplace, or product level in great detail. Provides a quick yet detailed profit overview and presents the development of top products almost in real-time.

Conclusion

What do resellers do? Buy products cheaply and sell them at a high price.

Amazon reselling is a flexible business model with various opportunities to acquire products cheaply and profitably resell them on Amazon. The key to success lies in thorough market analysis to identify profitable niches and products with high demand. While strategies such as retail arbitrage or wholesale come with different advantages and challenges, the most important task of a reseller remains the right product selection. However, long-term success requires know-how, time investment, and the use of tools that help keep track of competition, demand, and price development.

Although reselling on Amazon is legal, sellers should pay attention to reputable suppliers to avoid issues with Amazon or customers. Those who want to be successful in reselling must also be willing to respond to dynamic market developments and continuously work on optimizing their business model.

Frequently Asked Questions

How much does one earn as an Amazon Seller?

Earnings vary greatly, depending on product margins, sales volume, and fees. Many earn between a few hundred to several thousand euros monthly.

Is reselling legal?

Yes, reselling is legal as long as no rights are violated and the products were acquired legally.

How much does it cost to sell on Amazon?

Sellers pay €39 monthly for a professional account, plus sales fees of 8-15% depending on the category.

What is reselling? How does reselling work?

Reselling means buying products cheaply and selling them at a higher price. The difference between the purchase and selling price constitutes the profit.

Buying and selling: What is worthwhile?

Products with stable demand and high profit margins are worthwhile. Examples include electronics, collectibles, or limited editions. However, which specific products can be profitable varies greatly and depends, for example, on seasonal effects.

Which products sell best on Amazon?

Electronics, household items, toys, clothing, and books often sell well. However, there are also many competitors in those categories. Niches with less competitive pressure can be a rewarding alternative.

What can be bought cheaply and sold expensively?

Branded products on sale, limited editions, collectibles, or rarities can be bought cheaply and sold at a higher price. It is important that the price difference between purchase and sale is large enough, there is stable demand, and competition is manageable.

Is it allowed to buy things and sell them at a higher price?

Yes, it is legal as long as no legal regulations or rights, such as copyright, are violated.

What can be resold?

In general, electronics, fashion, toys, collectibles, and household goods are well-suited for reselling. However, this must be decided on an individual basis, as many factors influence the chances of sale.

What can be sold at a high price?

Limited editions, rare collectibles, high-priced electronics, and branded clothing often fetch high prices. Nevertheless, a detailed market analysis is important to avoid purchasing unsellable items.

Image credits in the order of the images: © AiiNa – stock.adobe.com / © snn_art – stock.adobe.com / © Summit Art Creations – stock.adobe.com / © AiiNa – stock.adobe.com

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