Selling your products through Amazon FBA is one of the most lucrative business models. All you need to do is purchase top-quality items and then let Amazon complete your orders and manage returns.
The most difficult thing to overcome when selling their goods on Amazon is finding items that they can sell.
Veteran sellers have discovered various ways to source inventory and have shared their experiences so that beginners can begin trading with Amazon FBA. Let’s look at some of the most popular suppliers of Amazon inventory.
Where To Source Products for Amazon FBA
If you’re looking to acquire the right products for your dropshipping business, try either of the following strategies to acquire products that are eligible for Amazon FBA.
Amazon FBA is a very lucrative business, with nearly 50% of all orders made on the site coming from third-party sellers. 34% of the orders were fulfilled via dropshipping, accounting for $95.37 billion in 2021.
This method is extremely popular and has a low risk for FBA sellers. It helps in buying inventory in advance, thereby reducing the need for storage and shipping.
Dropshipping providers purchase or produce items and keep the products within their storage facilities. When an order is made on Amazon the dropshipper packs the order and then ships them to an Amazon FBA storage facility.
When the transaction is complete, you are able to pocket the difference between the cost of the item from your dropshipper, and also the price you sell on Amazon.
Be aware that dropshipping implies that you do not have full control over your supply and could face problems including customers receiving substandard items or the vendor running out of stocks.
Certain dropshippers provide tools such as automated stock management, which helps you monitor the inventory as well as an experienced customer service and quality control staff to help your company.
Wholesalers can with a wide range of items at a cheaper cost that could be easily used to make an income. Because wholesalers cover a wide geographical area, they offer an extensive selection of products that can be purchased to sell on the Amazon store.
After you’ve established a strong business relationship, it’s possible to negotiate discount rates and better conditions of payment with wholesalers.
However, you must make sure you have enough storage room for your product and make sure that you have the authorization to sell a product that is branded.
Amazon might shut off your store due to copyright infringements if you sell an item you don’t possess the license to market.
Market research must be done with care before deciding to use this approach as it could be costly if you own an item that is not moving quickly and needs storage. You can try the market with smaller amounts before you purchase huge quantities.
Online wholesale directories and B2B MarketPlaces
Millions of new products are introduced each year by the manufacturers and their suppliers through wholesale directories and B2B marketplaces.
Because you’ll deal with the manufacturer or representatives of them, costs could be quite affordable and will guarantee large sales margins. These channels are extremely convenient because they let you search through hundreds of brands and suppliers across a variety of niches, and select top-quality products and quickly-selling ones.
Minimum order quantities (MOQ) in certain B2B marketplaces mean that you will require a lot of cash in order to purchase your inventory, however, the potential profits make it worthwhile. The most well-known B2Bmarketplace along with wholesale listings is Alibaba.
Check out this guide to learn how to source products from Alibaba to Amazon FBA.
It is important to be vigilant when conducting business on these platforms since they’re full of scammers in the event that the platform isn’t trustworthy or does not conduct an audit of its suppliers. Reviews can provide you with an advantage and also the platform’s certification of the company.
Manufacturers want to quickly sell their inventory and are also the most cost-effective alternative when searching for top-quality products.
Contacting manufacturers directly could provide distinct products, and also allow for branding and product customization. Due to the low price of units, producers are more likely to have huge MOQs which can be a good fit for firms with more financial power as well as storage capacity.
Retail and Online Arbitrage
Arbitrage refers to the simultaneous selling and buying of the same product across different markets in order to profit from the price difference.
You can go to local stores to purchase goods at a bargain price and sell these on Amazon. How can one find affordable products?
You can go to any of the local stores such as Walmart and search for clearance aisles for marked-down prices on a variety of products. Be alert for sales that are hot or discounts that are awe-inspiring.
You can also find big discounts at your local malls and then purchase your Amazon FBA inventory at a price that is a fraction of what it costs. Purchase the discounted items to resell and earn huge profits.
This strategy works well for limited edition items as well as collectibles. It’s more secure than having huge quantities of inventory that may be deemed deadstock. It is possible to shop online stores for the same experience.
Certain local stores might mark products as being discounted to ensure purchase at a regular price, therefore a keen eye is crucial. This method can be very competitive and it can be difficult to replenish because some discounts are only available during the season.
Sell your products
Do you have a knack for weaving, furniture making, a specific design or even owning your own manufacturing facility? You can showcase your products on Amazon and gain a market for your items.
This method allows you to have complete control over the product’s quality and inventory. It can help you with packaging your products. The use of a trademark on your product can protect you from counterfeits while working with Amazon FBA.
It is possible to purchase expensive products at throw-away prices at auctions and garage sales or thrift stores. These are typically overstocked items or donated goods, stock from businesses closing down as well as clearance goods.
Do your calculations ahead of time to make sure it’s possible to make an income margin after paying the fulfillment cost.
It is important to keep an eye on the auction to ensure that you receive items that are worth the money and in good enough condition to sell.