What are the different types of sellers on amazon?

August 26, 2022
Amazon Seller Beginner

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Did you know that 90% of shoppers check the price of a product on Amazon even if they find a product on some other retailers’ page or an offline store, to compare its price and quality with Amazon’s product listings. This is the reason why amazon is the go-to place for anyone who wants to start selling a product.

These are the different types of sellers which sell on amazon:

1: Manufacturers:

Manufacture their own products and sell them under their own brand name. These brand owners sell their products on their own websites as well but with 300 million+ active users it’s logical to sell on Amazon as well.

2: Private label brands:

These sellers buy unbranded products, put their own labels on it and sell them on amazon. A lot of these sellers source products from alibaba.com.

3: Bulk buyers:

These sellers buy products in bulk from factories directly or from outlets that are selling their inventory at a huge discount. These sellers then sell these products through FBA most of the time. In case you are wondering if FBA would be a good fit for your business, do check out https://extreme.app/advantages-and-disadvantages-of-amazon-fba/.

4: Dropshippers:

These sellers tie-up with different types of vendors and sell their products from their own seller accounts. These dropshippers keep a commission above the price at which they have agreed to pay the vendor for their product. Once an order for a product is placed, these dropshippers inform the relevant vendor about this order, the vendor ships the order and the dropshipper then makes the payment to the vendor after deducting their commission. Did you know that in 2017, 23% of all online sales were done through dropshippers amounting to $85 billion. With millions of potential customers using Amazon to make purchases, it provides a huge room for sellers to start listing products and selling. Optimizing the listing of products is the most important thing that a lot of sellers focus on regularly to ensure their sales exceed previous highs. Do go through https://extreme.app/how-to-optimize-your-amazon-product-listings/ in case you are looking to optimize your listings. It has some really good insights. P.S. Happy selling!