Amazon Seller Strategies: Pros and Cons

Everyone who sells on Amazon is there because they want to make some money. But as RepricerExpress is about to show you, there are good ways and not-so-good ways of going about it. If you’re a decent seller, then you’ll have done plenty of research on how to sell most efficiently for maximum profit. But in that process, you’ll encounter a myriad of articles and tips that may not always work out.

This blog post looks at four of the most popular strategies adopted by sellers, weighing up the pros and cons of each.

Retail Arbitrage

Use retail arbitrage:

1. So you can test out products before buying and see first-hand if you’ll be able to turn a profit from them.
2. If you can get the products locally because they’re not available anywhere else and won’t/can’t be shipped.
3. If there’s a points or rewards system so you can leverage it against future purchases at less cost.
4. If you can score awesome deals on clearance and save yourself a bundle of money.

Avoid retail arbitrage:

1. If you don’t have a vehicle to drive around in
2. If you don’t want to battle crowds for Red Tag sales that may not be as good as they seem
3. If you can’t sell the items on Amazon anyway

Online Arbitrage

Use online arbitrage:

1. If you want to shop at home in your pyjamas.
2. If prices are close and you need to compare them against each other quickly and easily.
3. If you don’t want to carry home boxes and boxes of products and just want it to arrive on your doorstep.
4. If you need to find a lot of the same items in bulk.
5. If you’re super good at sourcing items on the internet.

Avoid online arbitrage:

1. If sellers continually list items that aren’t actually in stock.
2.If you need items quickly and can’t rely on shipping times.

Retail Distributor

Use a retail distributor:

1. If you can get that vaunted manufacturer’s discount.
2. If having paper receipts is important to you for security and peace of mind.
3. If you’re on the special list of getting liquidation deals before the general public gets access to them.
4. Use a retail distributor if you need the flexibility of refunds, credits or exchanges.

Avoid a retail distributor:

1. If Amazon also sells the product and you’ll be in direct competition with them.
2. If they say you need to have a brick-and-mortar store to sell the items.
3. If they contractually won’t let you sell on Amazon.

Private Labelling

Use private labelling:

1. If having control of everything is the most important factor for you.
2. If you need to focus on high profit margins and don’t want to pay money unnecessarily to other services.
3. If you want to build your own brand instead of promoting someone else’s.
4. If you want to leverage your brand on Amazon’s popularity.
5. If you’re able to produce a never-ending supply of products and don’t want the uncertainty of relying on someone else for products.

Avoid private labelling:

1. If you just don’t have the time, energy, skill or creativity to build your own brand.
2. If you’re unable to create an endless supply of products at the drop of a hat.

Not-So-Good Amazon Seller Strategies to Discard

At the other end of the spectrum are the strategies you probably want to avoid so you don’t have to waste needless time on things that don’t work. Focus on streamlining operations so you can get ahead as quickly and efficiently as possible.

Final Thoughts

Which Amazon seller strategies you pick depends on what you’re selling and what your personality is. But there’s one thing that ALL users should be doing: using RepricerExpress’s smart repricing software. But to stay as competitive as possible, you have to first sign up for your free 15-day trial first.