What does resale mean?
Reselling – a model that has existed in online and offline trading for many years. The so-called resellers buy merchandise and offer it for sale in their own shops or on marketplaces in the B2B or B2C sector. There are essentially three scenarios:
- Reseller buys from manufacturer and sells as a wholesaler to retail (B2B)
- Reseller buys from manufacturer and sells in retail (B2C)
- Reseller buys at wholesale and sells to retail (B2C)
The reseller adds a trade margin to his purchase price and thus reaches his sales price. In addition to transport and logistical costs, the gross margin generally also includes taxes, packaging and other fixed and variable charges that are incurred for resale. Anything above this contribution margin then results in the (gross) profit which remains for the seller through the reselling of merchandise.
Resale on Amazon
There are a lot of resale products on the Amazon marketplace: many thousands of online merchants purchase their goods either directly from the manufacturer or wholesale and offer these products at a surcharge on Amazon. The basis for listing and selling merchandise on Amazon is the EAN or GTIN. If this is already available in the Amazon product catalogue, all the data stored there such as titles, bullet points, images and descriptions are automatically loaded when the offer is created. If the EAN has not yet been created in the Amazon catalogue, the seller himself has the option of entering this data.
Problems with resale articles usually arise with the completeness and correctness of the product data, because not every reseller of the offers has the writing rights for the listing. If, for example, three resellers sell the same product, it can happen that the image of trader 1, the title of trader 2 and the description of trader 3 is displayed before the customer on the product detail page.
Reselling on Amazon is controversial in different categories, because especially on this market place a strong price war prevails and the margins often became too small for some retailers. In general, we recommend the use of a repricer who automatically adjusts the price upwards and downwards at fixed conditions. Especially in order to win the BuyBox on Amazon, but also to be able to increase sales, an automatic price adjustment in reselling is particularly important.
Another aspect regarding the resale of products on Amazon are PPC campaigns, because especially in the case of sponsored products, the campaigns are only played out if the seller is also listed in the BuyBox, which in turn has a great influence on the sales potential of the respective item.