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SmartScout Glossary
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K-O
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OEM (Original Equipment Manufacturer)

OEM (Original Equipment Manufacturer)

What is an OEM?

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OEM stands for "original equipment manufacturer." An OEM is a company that manufactures products for other companies and authorizes resellers to sell online or in brick-and-mortar retail environments.

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What Is an OEM Used for on Amazon?

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We usually find aftermarket OEM products in the electronics and automotive industries. Original equipment manufactured products also sell products in other sectors.

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Amazon sellers and consumers can use an OEM product on Amazon to purchase products that are not available in stores.

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For example, sellers who want to sell a new Dell laptop (or replacement parts) from the original design manufacturer — but the original manufacturer does not have a model or brand in stock can often use an OEM product in its place.

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How to Sell OEM Products on Amazon

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Amazon sellers who want to become a value-added reseller for a specific aftermarket part and other products of their choice can contact the aftermarket product manufacturer directly to order the original product for reselling on Amazon.

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Sellers should note important information about the product and add the details to their product listings created in Seller Central.

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For example, suppose the original part being sold is a Dell or HP PC.

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In this case, sellers need to include details like the original pricing, the operating system's name, whether it has unique features like built-in Intel technology, etc.

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The same is true for computer manufacturers, software products, and OEM manufacturers in the computer software industry, like Dell Computer and Lenovo.

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First, you will need to create a product listing for your product.

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Provide detailed information about your brand and product, including specifications, pictures of the product, and pricing information.

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Are Any Risks Associated With Purchasing an OEM Product for Resale on Amazon?

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Because of their popularity, OEMs typically charge more than traditional suppliers, but the increased margin allows them to provide better service and produce better products overall. So, if you're looking for a company that can provide you with high-quality products at a fair price, an OEM might be a good option.

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Benefits of Using OEMs for Amazon Sellers

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OEMs are special types of companies that offer several advantages over their competitors. They offer savings on production costs, faster delivery times, and better customer service. OEMs also have more knowledge about the product, which allows them to provide superior products.

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Why Choose an OEM Over a Supplier?

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If you're in the market for new products and need help deciding which route is best, consider choosing an OEM. OEMs are better because they have the expertise and resources to provide high-quality products.

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They also typically offer higher quality products and more comprehensive service than suppliers. For example, OEMs can often design products to your exact specifications.

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If you're looking for superior quality, reliability, and support in your product purchases, then an OEM is the right choice!

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Why Would I Want to Work With an OEM?

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OEMs provide Amazon seller with a credible and reliable product that meets or exceeds customer expectations. They have experience in manufacturing products for various industries, so products are often top quality.

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How Do I Find a Reputable OEM Partner for Selling on Amazon?

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Ensure that the company has a good track record and is known for meeting customer satisfaction. Lastly, be clear about what you want (and don't want) when it comes to an OEM deal - ensure that both parties are on the same page from start to finish.

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What Are the Steps Involved in Working With an OEM?

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First, identify the company that offers the best product quality and design for your business needs.

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Then, build a good relationship with the OEM. Working with an OEM allows you to access exclusive products that are not usually available to the general public.

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Because the company already has a close relationship with its customers, they often have deeper insights into trends and customer preferences that others may not know about.

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Working with an OEM can provide immense value for your Amazon business in terms of product design and quality control!

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Benefits of Using OEM Parts for Amazon Sellers

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  • Superior quality products
  • Reduced costs
  • Increased efficiency
  • Increased product differentiation
  • Reduced risk of product defects
  • Increased brand awareness
  • Increased customer loyalty
  • Increased market share
  • Increased customer value
  • Reduced impact on the environment
  • Reduced risk of product theft
  • Reduced risk of product counterfeiting

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