Time Invested In Product Research Always Pays Dividends
Choosing the right wholesale products comes down to understanding the market and understanding your capabilities, needs, and limitations as a seller. Product and supplier research can become time-consuming, but its worth the effort it takes to find a great product backed by a great wholesaler.With a plan in place and a strategic approach, it doesnt matter if youre selling from your garage or from your own warehouseyou can build a successful business selling wholesale products on Amazon.
How To Keep Your Profitable Wholesale Inventory In Stock
Once you have product shipped to Amazon warehouses, you will hopefully see some sales roll in quickly. At this point, your job becomes keeping the profitable products in stock so you can sell them over and over again.
Your goal should be to keep all of your profitable products in stock at all times. This will be challenging right away, but over time you will be able to get very close on most of your accounts.
The flip side of this is that you dont want to have too much in stock, as that ties up capital and incurs storage fees. So its a balancing act.
For most companies we work with, our goal is to place orders for 45 days worth of inventory at a time. This gives us time for the supplier to get the order ready, the product to be shipped to our location, our team to process it to ship to FBA warehouses, and to arrive at FBA warehouses without running out of stock. Youll want to evaluate what order quantities make sense in your business, but the goal should be to have just enough to stay in stock without having too much excess.
For any product that you are going to order again, you should make sure that you made your desired profit on the initial sales and that the pricing at the time you are ordering it again will allow you to make your desired profit.
Prices change over time, so its important to make sure that you evaluate your profitability at current pricing before reordering.
Three Things To Know Before You Start Your Search For A Wholesaler
The first step to finding a supplier is knowing how to recognize the best supplier for your business goals.
- If youre a reseller, youll want to look for a brand manufacturer if youre a private label seller, you should look for a supplier of generic wholesale products you can use to build your own brand. Its easier to find what you need if you know what you want.
- Learn to identify scams. Always start by checking the Better Business Bureau for information on wholesalers. Contacting suppliers in certified networks is also a smart move, especially for new wholesale product sellers.
- Engage with the industry. Dont focus on a couple of wholesale products take the time to understand your niche. Who are the major manufacturers and brands? What are the distribution channels? Who should you expect to work with? Answering these questions will help you narrow your focus and find the right wholesaler for your Amazon business.
Once you have this context, its time to prepare for success by learning how to approach suppliers once you find them.
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What Can I Sell To Make Money
What can I sell to make money from home easily? 30 great ideas Sell old clothes. If you have some clothing thats in decent condition, but you no longer wear it, try selling it. Make jewelry. Repurpose old phones. Make decorative coffee mugs. Make t-shirts. Sell furniture. Create planners or PDFs. Get paid to write.
A Purely Amazon Based Business Is Not A Long Term Play
You need to keep in mind that selling on Amazon as a do-it-all vendor or using Amazon FBA exclusively is not a long-term move to make.
As the competition grows, selling on Amazon is only going to get tougher. The more competitors your Amazon business has, the less likely you are to make huge profits. Andrew Youderian from put together this seller research study on Ecommerce Fuel.
With that said, youll want to spread your wings and get off of Amazon. Selling on Amazon is a good sales method to start with but shouldnt be a permanent thing. And, its important to know that brands that invest off of Amazon have a higher rate of profitability.
Ive worked with successful brands on Amazon that have hired me to help them get off of Amazon and launch a lucrative sales career through other avenues. Its never been the other way around. Nobody has asked me to help them launch a professional business on Amazon.
Maybe because launching an existing brand on Amazon is quite easy. It just takes an Amazon pricing strategy, sending the product to FBA, and just an app or plugin to integrate with Amazon. For example, Shopify and BigCommerce both have this capability. You can just turn it on as soon as you have your APIs and prepare to sell on Amazon.
Plus, youll find that other options provide a less risky and more lucrative option to consider. One example of this is an Amazon affiliate marketing option which allows you to tap into the Amazon ecommerce money-making ecosystem.
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The Exact Steps To Finding Overseas Private Label Suppliers
Follow these steps to open an Alibaba account and buy from Alibaba:
First: Go to Alibaba and click on Join Free
Second: Enter your Email address and verify that you own it. Try to not use your main/personal email if you dont want your inbox clogged up with supplier emails.
Third: Fill out your basic information. Password, location, first name, last name, and telephone number. Alibaba asks you for Company name..Do not panic. The name can be whatever you want.
Fourth: Confirm your personal information and complete the opening of your new Alibaba account. Now you can start buying products on Alibaba.
How to open an Alibaba account
Minimum Requirements to Select the Perfect Supplier
- Accepts Trade Assurance, Paypal, or AliPay
- Theyre a Gold Supplier
- Has been assessed and certified checked onsite by Alibaba
You want to keep your money as secure as possible. So checking all these boxes is a way to make sure you protect yourself when looking for a good supplier.
Startupbros must have requirements in a supplier:
Now, lets dive deeper into Alibaba payment methods and which ones would be better over others.
Overview of Alibaba Payment Methods
Suppliers like to compete on price but some might be willing to offer you a better one.
Finding a supplier making the exact product you found on Amazon is crucial. Youll see that sometimes the pictures are even the same ones that are selling on Amazon.
Side Note: Were not doing that when we list our product!
Copy and Personalize This:
What Products Sell Well Without Being Branded
Youll have to determine for which types of product people dont readily recognize or care about a brand name. Both remote control helicopters and original equipment manufacturer replacement parts for home appliances are good examples of products where customers dont recognize the brand and instead RELY on the customer reviews, price, and product features to determine if they will purchase it.
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Take Advantage Of Promotions
Promotions including Lightning Deals are a great way to sell units at an increased velocity, ultimately leading to more reviews. Lightning Deals are flash sales that are featured on the , one of the most frequently visited pages on Amazon.
Not only do they help increase discoverability of your product, they also help you increase sales during the limited-time sale and even after the deal is completed. This is because you often increase your rank and search relevancy due to the increased units sold during that flash sale, and this carries over for a period of time once the deal completes, sometimes for several weeks.
Lightning Deals for most sellers are invite-only in a sense since you can only run them when they show up on your See All Recommendations section of the screen on Seller Central, and there is often a nominal cost associated with running this deal.
For big events such as Prime Day and during the holidays, Lightning Deals can be very successful in selling hundreds to sometimes thousands of units in the period of a few hours and also in helping new customers discover your brand, even if they dont buy immediately.
The goal is not to always be on promotion or providing deep discounts, but if you can sprinkle these in occasionally, including toward the beginning of your product lifecycle on Amazon, it is a great way to gain additional reviews and build relevancy so other customers can find you.
Risks Associated With Sourcing From Alibaba And How To Avoid Them
Even though Alibaba is a reputable sourcing option there are some risks involved mainly involving fraudsters, scammers, and payments frauds. You need to look out for products that have below-par quality.
- Choose Gold suppliers because they are reliable, reputed, and have successfully been in the Alibaba business for a long period. If you go for other suppliers youll have to gauge them by asking multiple questions about products and the legitimacy of their business.
- The quality standards that products need to adhere to vary from country to country. If you skip out on requesting samples and product testing, you might end up with something that looks and feels very different from what you expected.
- Online transactions are faced with increased risks of hacking, so you might wind up paying a hacker if you dont cross-verify your manufacturers bank details along with what is provided on Alibaba.
- There is always the risk of miscommunication while contacting manufacturers from around the world due to the language barrier, so care has to be taken to ensure that you convey your messages properly.
- Look out for how the quotations are given. You can tell a real professional manufacturer apart from fake ones by looking at how detailed their quotations are and by analyzing how they answer specific questions. If they can give you customer testimonials or references, thats a plus point. But if you notice anything odd about any of these factors, then back off as it might be a scammer.
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How To Find These Products
Alright, so now that youve read about 10 places you can buy products to sell on Amazon, now, how do you go about finding these products? Are there certain products available at cheaper prices during specific times of year? Does it really make a difference if you buy from one store over another? Lets talk about that!
Research Whats Popular On Amazon
If youre wanting to easily sell a product on Amazon, check out Amazons best sellers list. There are a variety of categories that youll be able to look through. When looking at each category, youll see the top 100 products at the time of your search. This list often changes, so its important to keep up with it.
Doing this is an easy and quick way to make some extra cash on Amazon. You can start by privately labeling a product thats found on the top 100 list. This means that you choose your product and then youll need to find a supplier that makes said product. Create your own label and packaging and youve got yourself a sale.
This is great if youre not the creative type and dont have resources to create an entirely new product. Selling a brand new product has a higher chance of failing and, thus, youll lose money. Finding a product that people already love is more of a guarantee that youll be successful in your efforts.
Selling Under Specific Criteria
1. For starters, youll be more successful if your product is small and lightweight. This makes it easier to ship and store if youre buying in bulk.
Power Browse Amazon Listings With A Chrome Extension
Another way to choose a hot selling product is to power browse Amazon listings by using a Google Chrome extension.
There are quite a few Google Chrome extensions that Amazon sellers use to research products and determine how well these products will sell on Amazon. Some of the top Chrome extensions include the following:
- AMZ Base
When you use any of the Chrome extensions listed above, you can browse Amazon listings quickly and fully, determining what products should be on your sellers list. In addition to zoning in on the best sellers, you can compare product prices, mull over sales estimates, dive into revenue projections, and consider keyword insights.
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Choose A Product With Low Competition
Everybody else wants to sell a high-demand product. The trick is to find a product that people will want in a market thats not already saturated. Competition is more difficult to judge than demand, but here are a few steps that will get you started and some tools to help you along the way.
- How many sellers are advertising? Even if organic results show many sellers, a good will quickly set you apart from competitors who arent leveraging Sponsored Products. Run searches on a variety of keywords around your product ideas in order to see whos advertising. You can even use SellerApps Reverse ASIN tool to view your competitors keywords .
- Resellers, identify how crowded the product listing is. You will likely have to compete for the Buy Box with competitors selling the same product.Use Unicorn Smasher to quickly look at the number of existing sellers for a specific product.
- Private label sellers, do a qualitative analysis of your competitors. What do their product listings look like? Are their descriptions SEO optimized? Do they have good images, videos, or a lot of reviews? Whats their seller rank? These factors indicate how hard it will be to make your brand stand out.
Armed with data on the competitive landscape, youre now ready to move to the next part of choosing a wholesale product to sell on Amazon: making sure you can turn a profit.
Avoid Selling On Product Categories That Big Brands Already Dominate
At every phase of the product selection process, you should keep an eye on all the big fishes out there. Watch out for the main competitors in your niche. Yes, this list changes every week, as every week, a brand would have generated higher sales than the other.
- The most crucial thing is to check if any new major manufacturer has entered the space. Most sellers do this on a regular basis to stay updated.
- They create Google sheets and update them often with all their competitors be it existing or new. When you do this, you will have a deep idea as to how competitive the market is.
If a big brand is entering your niche market, it is a sign that there is going to be a huge demand for that particular service or product. So, it is better to cover such niche way ahead than big brands do and become a potential seller for that product.
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Is An Amazon Business Right For You
So, now that you have the basic knowledge on how to choose profitable products and even how to get started on Amazon, is an Amazon business right for you?
When deciding if pursuing an Amazon business is the right route to take, you should know that selling on Amazon provides a great way to get started selling online. This is especially true if you dont want to deal with technology.
Selling on Amazon, whether handling the duties yourself or using Amazon FBA, will be the most beneficial if you can introduce a product that has a differentiated feature.
That is, until Jeff Bezos finds your product.
Remember How Jeff Bezos Admitted Amazon Sellers Were Kicking His Butt in 2018?
Remember the letter from Jeff Bezos to shareowners shown earlier in this article where he said Amazon third party sellers were kicking the first party sellers butt? If not, heres a reminder:
Well, heres how he responded to the competition that prompted him to say this.
Shortly after that admission, Amazon added 157 private label brands. This addition brought the total number to 450.
When it comes to his bank account, that man doesnt mess around!
How To Find Products Fast
Using the Product Database in the , you have the power to scan through Amazon products by filtering key metrics such as price, demand, estimated sales, rating, seasonality, dimensions and more.
As you find potential products you can add them to the Product Tracker feature and begin following the sales activity, inventory, Best Seller Ranking, and pricing over a period of time which we advise you to do for a few weeks before deciding on a product! Keeping an eye on this data will give you invaluable insight to the products performance.
The Niche Hunter is another great feature built into the web app that takes a different approach and helps you discover niche products by looking at keywords. You can search keywords in a specific marketplace and category and receive a ton of product results.
Youre given an Opportunity Score for each product based off a unique in-house algorithm as well as a Listing Quality Score which grades a product listing based on a set of criteria. The LQS is another unique in-house algorithm that can help you identify products with high demand but a poor product listing