I still remember the adrenaline rush of my first "big scan" in the back of a dusty thrift store in Ohio. It was 2017, and I was holding a specialized calculus textbook that looked like it had been used as a doorstop. It was priced at $2.99. My hands shook as I typed the ISBN into the seller app. The screen flashed: Lowest FBA Offer: $145.00. I bought it, shipped it to an Amazon warehouse, and it sold three days later. That single transaction netted me more profit than I made in an entire shift at my coffee shop job.
Since that day, I’ve chased that high through clearance aisles, wholesale catalogs, and online liquidation auctions. I’ve turned "trash" into tuition payments and clearance toys into mortgage payments. But the game has changed. The days of simply scanning everything in sight are gone, replaced by sophisticated software and fierce competition. If you want to learn how to resell on amazon, you have to treat it like a data science project, not a treasure hunt.
How to Resell on Amazon: The Three Main Paths
When you ask how to resell on amazon, you are really asking about three distinct business models. I have tried all three, and each has a different flavor of stress and reward.
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Retail Arbitrage (RA): This is the "boots on the ground" method. You walk into Walmart, Target, or Big Lots, scan the clearance aisle, and buy items selling for less than Amazon’s price.
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Pros: Low barrier to entry. You can start with $50.
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Cons: It is physically exhausting. You are trading time for money.
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My experience: I spent two years driving to every Walmart in a 50-mile radius. It works, but burnout is real.
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Online Arbitrage (OA): This is sourcing from your couch. You use software to scan websites (like Nike.com, Kohls.com, etc.) to find price discrepancies.
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Pros: Scalable. You can wear pajamas.
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Cons: Lower margins because everyone else with the same software finds the same deals.
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Wholesale: You open accounts with distributors and buy in bulk.
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Pros: consistent inventory. No more hunting.
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Cons: High capital requirement (MOQs of $500+).
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Opinion Statement: I honestly believe that everyone should start with Retail Arbitrage to learn the ropes, but if you are still scanning barcodes in Walmarts after two years, you have built a job, not a business. You must transition to wholesale to survive long-term.
How to Resell Books on Amazon (The Gateway Drug)
For 90% of sellers, the answer to how to resell books on amazon is the starting line. Used books are unique because there is no "Manufacturer's Suggested Retail Price" (MSRP) on a used item. Value is purely demand-driven.
The Tools You Need:
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Amazon Seller App: Free. Good for basic scanning.
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ScoutIQ: Paid. Essential if you are serious. It downloads the database to your phone so you can scan instantly without cell service (crucial in concrete basements of estate sales).
What to Look For:
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Textbooks: The gold standard. Current editions sell for huge money.
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Niche Non-Fiction: Think "Knitting for Left-Handed People" or "1980s tractor repair manuals." Mass market fiction (Stephen King, Twilight) is usually worthless due to oversupply.
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Art & Architecture: Heavy, expensive books often have great margins.
Here’s where it gets interesting... Amazon has "gated" (restricted) many popular textbook publishers like Pearson to prevent counterfeits. If you scan a book and the app says "Restricted," put it back. However, buying used on amazon via third-party sellers to flip back on Amazon (book flipping) is a strategy some use, though it is risky if the condition isn't described accurately.
Sourcing Smarter with Closo Demand Signals
The biggest fear in reselling is "tanking." You buy a toy for $10 that is selling for $30. By the time your shipment arrives at the Amazon warehouse, 50 other sellers found the same deal, and the price has crashed to $12. You lose money. I use Closo Demand Signals to predict where the price is going, not just where it is today.
How Closo helps me to predict demand across categories 6 weeks ahead is by analyzing search velocity and social sentiment.
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The Scenario: In October 2025, I found a specific brand of "Bluey" plush toys on clearance.
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The Signal: Closo showed a massive spike in search intent for that specific character variant, predicting a shortage by mid-November.
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The Action: Even though the current Amazon price was only break-even, I bought all 40 units.
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The Result: By Black Friday, the price had tripled because supply dried up, exactly as Closo predicted. I made $800 profit on one shopping trip.
I use Closo sourcing data to automate my buying decisions – saves me about 3 hours weekly of staring at graphs trying to guess the future.
How to Become a Reseller on Amazon: The Admin Work
Before you buy your first item, you need to set up the legal structure. Searching how to become a reseller on amazonbrings up a lot of "get rich quick" videos, but the boring stuff is what keeps you out of jail.
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Seller Account:
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Individual Plan: $0.99 per sale. Good if you sell <40 items a month.
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Professional Plan: $39.99/month. Essential for getting the "Buy Box" (the 'Add to Cart' button) and lower fees on volume.
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Reseller Certificate: This is vital. It allows you to buy items tax-free. If you buy $10,000 of inventory at Walmart and pay 7% sales tax, you just threw away $700 of profit. Apply for this through your state's Department of Revenue.
Parenthetical Aside: (I waited too long to get my LLC set up. I was selling under my personal name for the first year, and when tax season hit, untangling my personal grocery expenses from my business inventory purchases was a nightmare I never want to repeat.)
How to Resell Items on Amazon: The "Ungating" Hurdle
You walk into Target. You see a LEGO set on clearance for 50% off. You scan it. "You are not authorized to list this product." Welcome to "Gating." Amazon restricts new sellers from selling big brands (LEGO, Nike, Sony, Hasbro) to protect consumers from fakes.
How to get "Ungated":
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The Distributor Method: You need an invoice (not a receipt) from a legitimate distributor or manufacturer purchasing at least 10 units.
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The "Soft" Ungate: Sometimes, just clicking "Request Approval" works if your account health is good.
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The Strategy: Buy 10 units of a cheap LEGO item from a verified wholesaler (like Christianbook or similar reputable sites that provide invoices). Submit that invoice to Amazon. Once approved for the brand "LEGO," you can sell any LEGO set you find at Target.
Honest Failure: In 2019, I tried to ungate the "Grocery" category by submitting a receipt from a local grocery store. Amazon rejected it instantly. They want invoices with your business name and address, not thermal paper receipts. I learned that day that Amazon is a bureaucracy, not a person. You have to follow their paperwork rules exactly.
Good Things to Resell (And What to Avoid)
If you are looking for good things to resell, you need to look where others aren't. Everyone scans the toy aisle. Fewer people scan the shampoo aisle.
Top Categories for Beginners:
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Health & Personal Care: Discontinued shampoos, lotions, or specific toothpaste flavors. People are loyal to their brands and will pay double when they vanish from shelves.
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Groceries: Regional snacks (e.g., specific BBQ sauces or hot sauces) sold to a national audience.
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Replacements: Vacuum filters, water pitcher filters, specialized lightbulbs. These are boring, but they sell constantly.
What to Avoid (The "IP" Trap): Do not try to resell items from aggressive brands like Otterbox, Velvet Caviar, or certain beauty brands. They file "IP Complaints" (Intellectual Property) against resellers. One complaint can get your account suspended. Always use a tool like IP Alert (Chrome extension) to check if a brand is litigious before buying.
How to Buy and Resell on Amazon: Online Arbitrage Tools
For reselling products via Online Arbitrage, you cannot do it manually. You need software to scan the internet for you.Tactical Arbitrage is the heavyweight champion here. It scans thousands of sites (Target, Kohl's, Home Depot) and compares them to Amazon's catalog.
The Workflow:
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Set Tactical Arbitrage to scan the "Clearance" section of Walgreens.com.
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Filter for ROI > 30% and Sales Rank < 100,000.
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Wake up to a list of potential buys.
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Manually verify the matches (software often confuses "Pack of 1" with "Pack of 3").
Now the tricky part... By the time you buy it and ship it, the price might tank. This is why I cross-reference everything with Keepa. Keepa shows the price history. If a price spiked to $40 yesterday but was $15 for the last three years, do not buy it. The spike is a fluke. The price will return to $15.
Reselling on Amazon vs. Sale My Stuff on eBay
Is Amazon always the answer? No. If you want to sale my stuff (sell personal used items like old clothes or a used iPhone), Amazon is terrible. Amazon is for "New" condition goods (mostly). Listing used items on Amazon is risky because buyers expect perfection.
Comparison Table: Amazon vs. eBay
My Rule: If it has a barcode and is new, Amazon. If it is vintage, used, or lacks a barcode, eBay.
Managing Inventory with Closo 100% Free Crosslister
Sometimes, you buy inventory for Amazon, and then disaster strikes. The brand restricts you. The listing gets taken down. Or the price tanks below profitability. You are stuck with the stock. This is where I pivot using the Closo 100% Free Crosslister.
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The Scenario: I bought 50 units of a specific coffee maker. Amazon "gated" the brand overnight. I couldn't send them in.
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The Pivot: Instead of returning them, I used Closo to cross-list them to Ebay and Mercari.
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The Result: I sold them for a slightly lower profit, but I got my capital back fast.
I use Closo to automate this safety net – saves me hours of manually creating new listings when Plan A fails.
How to Resell Items on Amazon: The FBA Process
Fulfillment by Amazon (FBA) is the secret sauce. You ship your items to Amazon's warehouse. When they sell, Amazon packs and ships them. This makes your items "Prime" eligible. Prime members (like me) will pay $25 for a Prime item rather than $20 for a non-Prime item because we want it in two days. That $5 difference is your margin.
The Steps:
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Prep: Remove all price stickers (Goo Gone is your best friend).
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Label: Apply the FNSKU (Amazon barcode) over the original UPC.
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Pack: Put everything in one big box.
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Ship: Buy a discounted UPS label through Amazon Seller Central (usually extremely cheap).
Parenthetical Aside: (I once sent a shipment of chocolate bars to Amazon in July without realizing they don't accept "meltables" in the summer. They destroyed the entire shipment at my expense. Read the seasonal guidelines carefully!)
Is Reselling on Amazon Legal?
A common question I see is: "Is it actually legal to resell on amazon?" Yes. It is protected by the First Sale Doctrine. Once you buy an item, you have the right to resell it. However, you cannot sell it as "New" if the warranty doesn't transfer. This is a gray area. Technically, if I buy a Sony TV at Best Buy and resell it, the warranty started when I bought it. The new buyer might not get the full warranty. To be safe, many resellers list electronic items as "Used - Like New" to avoid warranty complaints.
Common Questions I See
People always ask me... How much money do I need to start?
You can start with $0 if you sell books you already own. To start doing Retail Arbitrage seriously, I recommend at least $500. This covers your Professional Seller fee ($40), some shipping supplies (boxes, tape, labels), and about $300 in inventory. The beauty of reselling on amazon is that you can snowball your profits. Spend $100, make $150. Spend $150, make $225.
Common question I see... What if I get an IP Complaint?
Don't panic. If a brand files a complaint, Amazon will notify you. First, close the listing immediately. Do not try to sell the remaining stock. Second, contact the brand (the email is usually in the complaint notification) and politely apologize, explaining you are a small seller and have removed the inventory. Ask them to retract the complaint. Often, they will. If they don't, the mark stays on your account for 180 days. Just be careful not to get another one.
People always ask me... Can I do this part-time?
Absolutely. Reselling is the ultimate "side hustle." You can scan clearance aisles on Saturday mornings and pack shipments on Sunday nights. FBA handles the daily grind of shipping to customers. However, be warned: it is addictive. Once you start seeing sales notifications on your phone while you're at your day job, you might want to quit.
Conclusion
Learning how to resell on amazon is a journey from "hustler" to "business owner." It starts with scanning barcodes in a thrift store, finding that one diamond in the rough. It evolves into analyzing data, managing cash flow, and navigating the complex ecosystem of Amazon's rules. It isn't passive income—at least not at first. It is active, gritty work. But building a business that generates revenue while you sleep is worth the initial sweat.
My honest assessment is that the "easy money" days of 2015 are gone. You cannot just scan blindly. You need tools. You need Keepa for history, Closo Demand Signals for future trends, and a cross-listing strategy for safety.
If you are ready to stop guessing and start sourcing based on data, use the Closo Seller Hub to find your next winning product.
For more on expanding your sales channels beyond just Amazon, read our Pages Similar to eBay Guide
And if you want to know what categories will be hot before the other resellers catch on, check out Trending Products Forecast 2026
