Sourcing Products To Sell On Amazon: A Beginner’s Handbook

Selling products on Amazon is not an easy task. You will have to source the right products and create a listing of products that suit your target audience. In this article, we will discuss how to source products to sell on Amazon. With this information, you can find the right product sourcing for Amazon FBA to sell on and earn a decent income.

How To Get Started: Things To Consider Before FBA Product Sourcing

When you sell products through Amazon, you don’t have to worry about anything because of their FBA (Fulfilling by Amazon) policy. However, you have to consider some things that are listed below:

1. Decide on Business Model:- Firstly, you will have to decide which type of business model suits you best. Would you like to be a reseller or selling private label products seems more lucrative. Dropshipping, selling wholesale products, and sourcing products from retail shops are some other ways of handling the business.

2. Retail & Online Arbitrage:- This option gives you the liberty of sourcing Amazon FBA products from retail stores or online platforms. You can earn higher profits by obtaining the products at lower prices from local stores or online marketplaces. You can also take advantage of discounts, offers, and clearance sales running on these platforms.

3. Private Label:- Private labelling is a good way to source products for Amazon, allowing you to source items directly from private label manufacturers. You just have to take care of the branding aspect using Amazon’s creative and listing freedom.

4. Wholesale:- This method of selling products gives you the liberty of sourcing Amazon FBA products directly from the brand owners or distributors of the products. Due to direct purchases, you get hefty discounts on products, and you can earn higher profits by selling the products at higher rates.

5. Dropshipping:- In this model, the customers place an order based on your Amazon listings. However, you will have to place the order with the direct seller who dispatches it to your customer. This process is convenient and lessens the worry of maintaining a warehouse or managing the inventory.

These are a few ways through which you can use to source products for Amazon FBA. Some other ways of FBA product sourcing are mentioned in the below sections.

Where Can I Source Products To Sell On Amazon?

The aforementioned paragraphs contain some details about sourcing products to sell on Amazon. Some other ways to source products to sell on Amazon are given below:

1. Manufacturers & Suppliers

Wholesale manufacturers and suppliers of products should be your first choice while sourcing products for Amazon FBA. It is because you can get products at wholesale rates from them. This increases your chances of earning a higher profit margin, and you can focus only on building your brand.

2. Trade Shows

Trade fairs or trade shows are means of finding a wide range of products at discounted rates. If you like a particular product, you may also contact the trader directly and place bulk orders to get greater discounts. This increases your chances of making greater profits by selling products on Amazon.

3. Private Label Manufacturers

Private label manufacturers give you products at discounted rates because they manufacture them in bulk. They also package and deliver the products to your doorstep. So, it reduces your burden, and you can focus solely on marketing and promoting your products on Amazon.

4. White Labelling

White labelling is another way of sourcing products to sell on Amazon. You only have to rebrand the products you obtain from white label manufacturers. However, you may not have unique products to sell as white label manufacturers can sell a similar product to another Amazon seller. This is where private label manufacturers stand out.

5. OEM (Original Equipment Manufacturer) Partnerships

This partnership allows you to sell a branded item from another brand on Amazon. You become a value-added seller in this case. This mostly applies to electronic products and accessories. As the products from brands are in great demand, it is a good way to ensure consistent sales and revenue.

6. Wholesale Companies

Wholesale companies can also be a good source of finding useful products to sell on Amazon. The lower rates offered on products enable you to earn higher profits. There are many wholesale companies that procure bulk items from brands and sell them to distributors and suppliers. You should choose such a company to increase your profit margin.

7. Local Artisans or Craftsmen

There is a great demand for handicrafts and decor items on Amazon. You can find local artisans and craftsmen who make these products and sell them at higher prices on Amazon. By doing such, you can grow your business quickly in a short period.

8. Product Development Companies

Personalised technologies and related products are also in great demand on Amazon. If you are looking for such products, you can source them from product development companies. Do your research first and order samples to test the usability and quality of these products.

9. Local Production

If you find local producers of the products, you can source products to sell on Amazon at lesser costs. This is because there are no transportation costs or excess charges involved in sourcing such products. It also increases your chances of earning a higher profit margin.

These were some tips for sourcing products to sell on Amazon. For more tips and insights, you can scroll through the below sections.

Amazon FBA Product Sourcing Tips

Amazon FBA product sourcing can be a tedious task. However, if you follow these tips, finding products and selling them on Amazon can be much more convenient:

1. Get Samples:- Before procuring products from any manufacturer or supplier, you must get samples first. It will help you judge the quality, specifications, and usefulness of the products. If you find the samples satisfactory, you can place a higher order without any reservations.

2. Negotiate A Good Price:- To be a good businessman, you should negotiate a good price from the seller. It will reduce your purchase cost, and the money saved can be used to promote the products on Amazon. If the negotiation does not go as per your calculations, you can also find another manufacturer or supplier.

3. Calculate All Your Fees:- Apart from the product price, you must also take other fees and charges like transportation costs, delivery fees, GST, etc. Once all these costs are considered, you can decide your product price per the profit margins you would prefer.

These were some tips and insights about sourcing products to sell on Amazon. For more such tips and insights, stay glued to our website.

Conclusion

Sourcing products to sell on Amazon can be easy if you find a trustworthy manufacturer or supplier. Private labelling is one of the best ways to source products for Amazon because it gives you the freedom to customise the products. Bo International is a leading private label manufacturer in the country. You can contact us and get high-quality private label products at discounted rates.