For people who want to sell on Amazon, deciding what to sell and how to source products to sell on Amazon comes first. With careful research and sourcing, you will find qualified and profitable products to boost your business and gain customer satisfaction.
Suppose you are wondering how to research products to start your business. In that case, we recommend seven ways and seven tools to research Amazon FBA products.
The struggle starts when you discover no supplier to provide products. If you are on the same board, you must be trying to get an answer from this post about how and where to source products.
Let’s get into this!
What is Product Sourcing on Amazon?
Amazon product sourcing is the step to selecting a supplier who can manufacture your product steadily. The supplier might be manufacturers, retailers, distributors, or even sellers on other platforms.
Product sourcing plays a vital role in the consistency of your whole supply chain. You need to arrange your cost and find a stable and reputable supplier to minimize the risk to your business.
The following are the major steps of the Amazon product sourcing:
- Identifying reliable suppliers for products
- Negotiations in contracts
- Establishing the conditions of payment
- Further research on the market
- Assessing the level of excellence
- Considering Product Outsourcing
- Setting benchmarks
How to Source Products to Sell on Amazon
While some Amazon vendors have found success with a single sourcing strategy, many others have expanded their business by combining multiple strategies.
Four business models work as the most common type on Amazon. Each may have unique requirements when it comes to Amazon product sourcing. You can choose the one that works best for you!
Have a look below to learn about how to source products to sell on Amazon for 4 major business models:
Source Products for Wholesale on Amazon
Amazon Wholesale refers to buying products in bulk from manufacturers at low prices and reselling them to earn profits. Alibaba is one of the leading suppliers that makes it easy for wholesalers to choose from a wide variety of products.
Online wholesale marketplaces such as Alibaba make it simple to obtain products from wholesale suppliers. Wholesale suppliers can also be found at industry-specific buyer’s markets and even trade events.
In reality, a quick Google search is all you need to do to get your wholesale sourcing off the ground and smoothly grow your e-commerce. Simply type the name of the product you wish to sell and press “Enter”; here you go!
When you work with wholesale suppliers, the process is simple. You get the product, store and maintain your inventory, make bulk purchases, and finally fulfill the orders by your customers.
You can simply carry out all the above steps by yourself or use FBA to manage these aspects of order fulfillment.
Low minimum order quantities let you experiment with different goods to see what sells well and make money on Amazon before. As a result, you can easily commit to bulk orders.
Advantage
- High margins
- Better scalability
- More product demand
Disadvantage
- Competitive
- Time-consuming
Source Products for Retail Arbitrage on Amazon
Retail arbitrage is another major model on Amazon. It refers to purchasing goods from traditional brick-and-mortar stores at lower prices, and then reselling those online on marketplaces like Amazon at higher prices. Arbitrageurs generally do not make large purchases directly from the manufacturer or distributor of the product.
The practice of “buying low and selling high” applies equally to online arbitrage. It is a common practice for some sellers who buy products they discover on the internet, such as on Amazon.
Arbitrage is a fantastic and low-risk method of selling on Amazon, especially, if you don’t have a stock of products to sell or the funds to purchase products in bulk.
The first steps in selling retail arbitrage on Amazon are establishing a seller account and then Amazon product sourcing. In the end, you’ll need to choose between having Amazon manage packing, shipping, and customer service for your products (Fulfillment by Amazon or FBA) or fulfilling them yourself (Fulfillment by Merchant FBM)
A hint: both are possible!
Some of the top stores for Amazon product sourcing are:
- Walmart
- Target
- Kohl’s
Advantage
- Low-risk method
Disadvantage
- Unstable supply
- Time-consuming
Source Products for Private Label on Amazon
Private labeling is an offshoot of direct sourcing that can help you find goods to sell on Amazon under your own brand. Manufacturers will make products for your order and have your company’s name on the sticker, tag, or packaging.
Almost any type of consumer good is available under a private name, from toiletries and cosmetics to cookware, animal supplies, and high-end foods.
Many platforms exist for buyers and sellers to collaborate on product customization. Distributors sell goods in their final condition, and retailers can contact them to have their items branded.
You can easily browse Alibaba or Made in China for potential vendors to save money on merchandise costs and increase your profits.
The best tip to run a private label is that choose the products that can stand out from the competition. But make sure not to choose complicated items like beard oil, supplements, etc., because such products are considered a bit risky.
The negative side is that if you don’t make a bulk purchase, your suppliers may refuse to work with you. But at the same time, there is a significant risk of loss when you stock products.
Advantage
- You own the brand
- Higher profit margins
- Creative control
Disadvantage
- Require bulk purchases from suppliers
Source Products for Dropshipping on Amazon
With dropshipping, an online retailer can have a third-party (who is typically a supplier) handle product procurement, inventory management, and distribution.
You’ll be marketing and hosting an online storefront as part of a dropshipping business strategy. When a customer makes an order, you pass that information along to the drop shipper and let the buyer know their goods are on the way.
The remaining steps of the physical fulfillment procedure are beyond your control. While the dropshipping service handles inventory and delivery, you may also be responsible for customer support.
While Alibaba is one of the best options for dropshipping, it is an even better option when it comes to reaching Chinese consumers directly. If you’re shipping internationally and want to save money, finding a freight forwarder like FBABEE to ship your products straight to customers is a great option.
When shipping to clients in the United States, we suggest Sunrise Wholesale or Shopify for dropshipping.
Advantage
- You can save money by not overordering goods.
- Limited maintenance needed
- Lower quality assurance standards
- Lesser competition on similar products
Disadvantages
- Low prices will result in lower profit margins
Where to Source Products To Sell On Amazon
Amazon Products Sourcing on Online e-Commerce Marketplaces
If you don’t have the opportunity to go and meet suppliers personally, online e-commerce marketplaces are the best option for Amazon product sourcing.
You’ll find a wide variety of reliable and well-known websites working in the United Kingdom, the United States, and China. We have discussed all of them briefly below!
You have a lot of choices when it comes to deciding where to source products to sell on Amazon online, in terms of cost, product quality, convenience, and more.
On a side note, products made in China are usually cheap and attractive. But if you plan to export them, it is important to learn better about the shipping cost.
Here are some of the popular Amazon product-sourcing platforms in the UK, the US, and China:
Online eCommerce platforms in the UK
- Trayde – Trayde is a wholesale web marketplace that brings together small businesses and artisan product lines. The platform provides a centralized hub from which small businesses in the UK can source one-of-a-kind goods.
- Wholesale clearance – Wholesale Clearance UK offers overstocks and closeouts that are bankrupt to consumers and businesses alike. Products such as furniture, appliances, footwear, apparel, jewelry, and wholesale pallets are all considered wholesale stock in the United Kingdom. EBay sellers, online merchants, flea market vendors, store owners, and event organizers are the typical clients.
Online eCommerce platforms in the US
- Tundra – Tundra, an online marketplace, facilitates the diversification of distribution for small businesses. It makes it possible to purchase and sell wholesale goods online without paying any additional expenses. Their goal is to remove the hassle and time waste that comes with sourcing goods by providing millions of them in one place, without markups or commissions.
- Sunrise Wholesale – Founded in 1999, Sunrise Wholesale Merchandise, LLC is an expert in dropshipping bulk goods. There are over 20,000 wholesale dropship goods available through their alliance with the best dropship suppliers in the business. The platform has been assisting individuals in making money through dropshipping for nearly two decades now.
Online eCommerce platforms in China
- DHgate – DHGATE Group, founded in 2004, is a Chinese online platform for B2B cross-border e-commerce services. It is the biggest platform in the US market and a global one-stop shop for trade and services for small and medium-sized retailers.
- Alibaba – Founded in 1999, Alibaba.com quickly established itself as the premier online marketplace for international B2B transactions. There are millions of customers and sellers that Alibaba assists every day. Including consumer goods, machinery, and clothing, Alibaba.com provides access to hundreds of millions of products across more than 40 categories.
- Made in China – Made-in-China.com’s mission is to connect Chinese manufacturers and wholesalers with global consumers. The platform does this by creating a convenient online marketplace. More than 40 million products covering 27 different categories can be sourced from Made-in-China.com. In addition, the Chinese platform offers several options for international buyers when it comes to sourcing goods based on their unique procurement needs.
Global Online eCommerce platforms
- SaleHoo – SaleHoo was created to provide online sellers with a convenient and inexpensive one-stop shop for all their wholesale business needs. There are over 8,000 reliable bulk and dropship vendors listed on SaleHoo. Over 1.6 million well-known brands are available at reliable rates with plenty of margin for profit.
Find Offline Manufacturers for Your Amazon Products Sourcing
One of the convenient places to source products to sell on Amazon offline is to search for local manufacturers on Google, if you don’t know where are local manufacturers
For example, if you are looking for a local company that makes pet clothes in the United States, simply type “pet clothing US manufacturers” and a long list of local companies operating physically will appear on your screen.
You can choose the right one, look for the physical address and simply pay a visit for further discussions. Meeting the manufacturer personally will allow you to check the product quality and work on better terms.
Conclusion
The success of your business mostly depends on the quality of your products and the amount of money you can make from selling them. When you carry our Amazon product sourcing carefully, you can discover ones that are both high-quality and offer a sizable profit margin.
Besides, a stable and reputable supplier is also a key factor in your business.
We hope you find this post helpful in learning how and where to source products to sell on Amazon.
Feel free to contact us with any inquiries about shipping your goods. We, at FBABEE, are expert Amazon freight forwarders. Our goal is to become your trusted partner in worldwide supply chain management.