Choosing Products for Amazon FBA Wholesale
When it comes to selling on AMZ, you need to be careful about many aspects. First, select the right product and FBA wholesale sourcing to get some extra income. Whatever business goals you have in mind, you probably already know about the Amazon FBA wholesale business model.
It is not a get-rich-quick scheme, and this is a business that needs deliberate and strategic effort. For example, to start Amazon FBA wholesale, you can still make reasonable profits by buying and selling products on Amazon. However, you can also lose money if you don’t know how to do it.
The product that you choose for doing Amazon FBA wholesale can make a big difference. But, first, you need to select a high-quality product that you can find from Amazon wholesale suppliers at a reasonable price. Only then can you make good profits while keeping in check the competitors competing for the same space.
You can either do it yourself or hire a wholesale Amazon seller agency to assist you. Whatever way you choose, you will have to be market savvy, research-oriented, and need a good business plan. Let us go through each aspect in detail.
The Business Models for Selling on Amazon
There are two main ways that you can use to make money on AMZ. First, you can launch your brand, also known as Private Label. Second, you can also go for Amazon FBA wholesale business model. There are some similarities and differences between the two models.
You can also hire Amazon virtual assistant services provider to launch your Private or Micro Private Label business.
Amazon Reseller Model
As a seller in Amazon FBA wholesale, you can ask your FBA wholesale distributors to give you a discount on bulk buying. The FBA wholesale suppliers do understand that big customers with large orders are essential. Therefore, you always have the room to get more money off purchases to increase your profit margins. In addition, you do not need to build your brand equity from scratch. Instead, you are relying on a brand’s goodwill that has already established a name for itself.
Let us be clear that there is a difference between the reseller and dropshipping model. In dropshipping, the sellers do not have an inventory and rely on suppliers to get the products shipped. Resellers have to manage the list on their end. Still, you get to enjoy a lot more flexibility as a seller. The resellers do not need to worry about the brand equity or any overheads for capitalizing more quickly on the prevailing product selling trends.
Amazon reseller is a great model for individual entrepreneurs and small business owners who want to earn short-term profits instead of sustainable long-term business growth. Keep in mind that offering products at competitive prices is key to success. It would help if you also focused on the Buy Box competition, which can be an essential factor. Resellers must concentrate on the suppliers and their product categories for remaining profitable.
Amazon Private Label
In a private label, you are the brand owner responsible for all the effort required to keep your business’s and its product line’s reputation afloat. In Amazon, private label brands buy generic wholesale products and sell them after adding their label to them. Therefore, keep in mind that you have to be very clear about your Amazon private label strategy to improve your chances of success.
Would you please keep in mind that FBA private label does not mean counterfeit items? When selling private labels on Amazon, the businesses behind them do not claim their products to be original. They are just sourcing the products directly after taking care of the Amazon private label requirements. They do not attempt to create a unique product. You must find a profitable product niche and make sure to manage your brand’s consistency online proactively.
Unlike Amazon FBA wholesale, you do not enjoy the same level of flexibility. It is easy to start selling as a private brand owner and create a business with it its unique identity. You need to identify the right product niches so that you do not end up competing against dominant brands in the same niche or, worse, pitted against Amazon.
The wholesale suppliers for Amazon FBA can assist you in selecting the right products by sharing their catalog or other trendy products’ details. The main ideas behind both the Amazon FBA business models tend to be similar. Still, each business model for selling on Amazon (wholesale or private label) comes with its unique challenges and perks. Therefore, you need to understand it when doing product research and during an analysis of your competitors.
What’s the right way to choose the best wholesale products for selling on Amazon?
There is no simple answer as to what products you need to sell when finding the best wholesale products. Many factors go behind it, and you also need to be aware of the fulfillment methods that play a critical role in answering this question.
Let us try to share the main steps to potentially help you reach your conclusion by understanding and getting the basics right.
Select a Product with High Demand
When it comes to Amazon FBA wholesale, you always need to find a product that you can quickly sell. If you do not see a product with enough market demand, you will lose money. You can also contact the FBA wholesale sourcing suppliers to ask for catalogs to find new product ideas. Ensure that you always keep this first critical step in mind when finding success with the Amazon FBA wholesale business model.
Many categories have hot-selling products, including Books, Toys & Games, Jewelry, Shoes, Clothing, and Electronics. You can also have a lot of variation to choose from to only focus on the ones currently getting big sales.
Keep an eye on the current selling Amazon bestselling products maintained by a list and updated regularly for each category. Gain more insights into what customers want.
Always study the products to the one that you are trying to sell. When you have an idea of a product, go through similar Amazon products and note the indicators for its demand. Look at the BSR (Best Sellers Rank) and the customers rating to be good, as they both reflect high demand.
You do not need to manually do this research since there are many tools available for it. You can search from the different paid tools to help you find a product in demand while researching it to sell on AMZ. Besides BSR, make use of these tools to estimate sales and revenue accurately.
Once you can narrow down your search for selling products via Amazon FBA wholesales high in demand, the next step is to evaluate the competition.
-
Finding Products with Low Competition
You can ask Amazon wholesale suppliers for high in-demand products. Try finding a product that customers want, and sellers do not already saturate its market. You can also ask for help from a wholesale Amazon seller agency for assistance. Spend more time judging the competition because that is the tricky part. Let us have a look at some steps to get yourself started.
Find out the number of sellers advertising and if the organic results show that number. You can set yourself apart from the competitors by creating an advertising strategy to maximize the Sponsored Products option. Search for different keywords for your product ideas to see how other competitors are advertising. You can use a Reverse ASIN tool for viewing your competitors’ keywords and the cost they are paying per click.
Resellers can help you identify crowded product listings. It would help if you kept in mind the competition you will face for Buy Box from competitors vying for the same product sales. The tools for Amazon FBA wholesale can help you know the total number of sellers selling a particular product.
In wholesale, you focus on finding the right FBA wholesale distributors. But, besides finding suitable FBA wholesale suppliers, you need to be aware of the competition faced.
In Private label selling, you need to do a qualitative analysis of the competitors. For example, the product listings they have written. The way they have SEO optimized their Amazon product listings. You also need to evaluate their images, videos, and the reviews received by them besides looking at their seller rank. These are some of the factors that help you determine the level of difficulty you will face when trying to make your brand stand out.
There are many paid tools that you can consider showing to know details of the product and category competition. You may find them worth the investment, but still, we would recommend that you use Amazon ASIN to check. Analyze in-depth the listing quality, several sellers for the ASIN, and FBA (Fulfillment by Amazon fees), the product’s profit potential, and keywords.
This analysis will provide you with a competitive landscape and make you ready to move towards choosing the right product for Amazon FBA wholesale and sell it on profit.
-
Selecting the Right Product
When you aim to buy products from wholesale suppliers for Amazon FBA, you must look for low competition and high-in-demand products, even if you can turn them into profit or not. Therefore, make a profitability analysis by factoring all cost estimates critical to deciding the wholesale products you need to sell on AMZ.
Do not try to get into unnecessary price competitions with big brands or, worse, Amazon. Don’t sell a product that makes it difficult for you to generate sales even at a reasonable price. Instead, select a pricing strategy that works for your selected product category and delivers good profit margins.
Make sure you know the costs involved. The cost of Amazon FBA wholesale selling is more than just the price tag of the product. There are many other costs to consider when you buy from wholesale suppliers for Amazon FBA. A profit analysis can also let you consider other expenses for inventory management, taxes, shipping costs, fulfillment, and Amazon fees.
When doing Amazon FBA wholesale, always try to find a lightweight and small product. When you purchase products from wholesale suppliers for Amazon FBA, cheap and lightweight products require less space for storage. This approach saves you a lot of money and adds to your profit margin. You can evaluate these costs to know the various ways in which the FBA fee schedule can impact your profitability.
Besides considering these factors, you still need to calculate the exact costs. You can use an Amazon FBA revenue calculator for viewing net profits during the research phase. You can also use product or ASIN to estimate net profits and margins using the FBA fulfillment option.
After shortlisting a product for Amazon FBA wholesale, ensure that you estimate the costs involved before you finalize your decision.
Once we have gone through the criteria, it is time to find an excellent wholesale product to sell on Amazon and source it.
How to Find FBA wholesale sourcing suppliers?
Proper sourcing plays a crucial role in Amazon’s FBA wholesale business model. You will have to make an effort to find suitable suppliers. Identify the suppliers that can help you learn and grow as a wholesaler on AMZ. You need to have developed the required knowledge and skillset to maximize profit potential.
There are three things that you need to know before you search for Amazon wholesale suppliers.
Step 1 – Finding the Right Wholesale Supplier for Amazon
You will start the first step that is to find a supplier for Amazon FBA wholesale. You can also ask for help from a wholesale Amazon seller agency.
You need to determine the type of supplier you need. If you are a reseller, try to find a brand manufacturer. If you are starting a private label, consider a supplier of generic products so that you can use it to build your brand from the ground up.
Also, avoid scams. Make sure that you check the information of your wholesaler you have selected from the Better Business Bureau. Contact suppliers within the certified networks, particularly the new wholesale product sellers.
Try to engage with the industry and do not just focus on a few wholesale products. Take time to gain more knowledge about your niche. Find the top manufacturers and brands in your place and the distribution channels available. The suitable suppliers to work with and remember that it is well worth the time and effort you spend finding the right wholesaler for your Amazon business.
After knowing what you are after, the next step is finding the right way to approach suppliers.
Step 2 – Find the Best Way to Communicate with FBA Wholesale Suppliers
In Amazon FBA wholesale, always concentrate on getting a good deal from the supplier. You have to negotiate with the FBA wholesale distributors you have selected to get to a win-win situation, and newbie FBA wholesale sellers tend to miss.
Brush up your negotiation skills and always go prepared. That applies even when you are an individual supplier just starting a part-time venture.
The suppliers want. Wholesalers want a continuous, uninterrupted supply of sales & income. If you can provide them with a promise of stability, they would be interested in forming long contracts. When possible, offer them sizeable deposits and commitments for more business in the future. Put yourself in a position that drives a better deal.
Always select more than one FBA wholesale supplier to get the upper hand in negotiations. Get the lowest possible offers and negotiate on them.
Convince them that you will be an excellent business partner. Be more prompt in your responses with a more professional approach. Consider building a partnership as suppliers like long-term business relationships and benefits that they can reap from them.
Step 3 – Always Strive to find Trusted Wholesale Network or Directory
In Amazon FBA wholesale, always consider finding networks. Top directories of wholesale suppliers for Amazon FBA have a subscription for their service and are worth the money, saving you time and money.
Alibaba
Alibaba is a globally recognized brand, a big marketplace for suppliers and buyers. There is a varied experience with some buyers getting quality service while others face issues like counterfeit products. Still, if you focus a bit more on your effort, you can hunt for better-quality suppliers on Alibaba before making a purchase.
Worldwide Brands
It is considered one of the leading wholesale networks and provides resources and member benefits like research support. In addition, you can get access to high-quality certified suppliers. You can also get a free preview of their directory, and it is an excellent place for getting started.
SaleHoo
It is a platform that offers outstanding support to entrepreneurs looking to sell wholesale products. You get to access a well-maintained suppliers’ directory and valuable tools to research products. You can also organize supplier searches and better manage your communications with the suppliers.
Wholesale Central
It provides you with thousands of verified wholesalers, and you do not need to pay any membership fee or subscription cost. It is also a good place online for starters. It provides you the direct contact information of the wholesalers without requiring registration or paying to get through a paywall.
Professional Supplier Directory
Not everyone is willing or able to invest money in a supplier directory for doing Amazon FBA wholesale. Remember that you do not need to renew your subscription to find top-quality wholesale suppliers for Amazon FBA. If you follow this approach and make the most use of a subscription for a month or two, you will maximize the value for money.
What’s the process of selling wholesale on Amazon?
You first need to make a robust plan on how you will sell products on Amazon as a wholesale reseller to make better purchasing decisions accordingly.
Let us share with you a few tips that you can use to get started.
We suggest that you take benefit of the FBA or Fulfillment by Amazon. It is an excellent program for businesses and resellers that are small in size. You can also ask your wholesalers to ship the products to Amazon, which may involve paying extra fees.
Make a plan for inventory management in advance. Then, when you decide to use an alternative to FBA, you will require a plan for managing your inventory in a way that is the most cost-effective and proficiently manage inventory.
Make sure to create a plan for promoting your products. Use advertisement as it becomes a critical method for attaining success on AMZ. You can also consider other options and consider getting an expert at Amazon PPC management. Create a plan so that your products start getting noticed.
Always Consider Time Spent on Product Research as a Future Investment
In Amazon FBA wholesale, you have to select the right products, which depends on the level of understanding you have of the market, including its needs, limitations, and capabilities. You will also have to spend time on FBA wholesale sourcing. The effort also needs to be made to find suitable suppliers for the Amazon FBA wholesale business model.
A well-thought-out plan with a strategic methodological way of doing Amazon FBA wholesale will significantly increase your chances of making your venture a big success.
Author Bio
AmazinEcommerce.com is a leading Amazon FBA consultant offering its services to clients across the globe.AmazinEcommerce.com is a premium Amazon FBA Private Label & Wholesale Consultancy assisting in managing your AMZ store including private label, micro-private label, listing optimization (SEO), product photography, 3D rendering, videography, EBC / A+ Content, PPC, Packaging, Design (including Store Branding), and reinstatement of suspended AMZ accounts.
