Steps for Selecting an Amazon Wholesale Product Using Seller Assistant App
1. Launch Seller Assistant App extension while viewing a product on Amazon.
Simply install the extension on your browser and open Amazon’s website to the product you wish to research. The extension will provide you with tons of data, including Buy Box insights, competition analysis, sales estimation, restrictions, and profitability metrics.
2. Distinguish private label and Amazon-sold products.
Take into account the number of sellers already offering the product. If only one Amazon seller is marketing the product, it’s likely a private label item. However, if the product is being offered by multiple sellers, it’s likely a wholesale item– and therefore eligible for you to consider. Even if an item is eligible for wholesale though, be mindful of how saturated the market is– you don’t want to purchase a product that already has heavy competition.
3. Evaluate the product’s sales performance.
By using the BSR metric you can determine the wholesale product’s demand and if it’s already being met. This will help you make an informed and strategic decision about whether or not this product is viable for your Amazon wholesale business.
4. Conduct a comprehensive analysis of market competition and potential sales.
Consider the level of competition and estimate the number of units you may be able to sell. Remember that just because you can sell an item doesn’t mean that you should. You should choose to sell wholesale products that have a high potential sales volume as well as reasonably high margins so that you can make a solid profit quickly.
5. Verify sales restrictions and alerts.
The usage of Seller Assistant’s IP Alert and Restriction Checker functionalities ensure that the product you intend to sell doesn’t fall within a restricted category or brand which could potentially lead to complications. A green lock icon signifies that you can list the product on your account, while a red one indicates restrictions. The presence of a red triangle indicates IP complaints and exhibits that the product is unsuitable for sale.
6. Assess the product’s profitability.
Before committing to a product you should calculate profitability metrics, including profit margins, return on investment (ROI), and overall profit for both FBA and FBM fulfillment methods. This ensures that you won’t have unexpected expenses that cut into profit margins and potentially hurt your cash flow when it comes time to sell your product. Make sure to include Amazon fees, including referral and storage, any third-party logistic costs, and shipping expenditures.
Steps for finding suppliers for Amazon wholesale products
Although identifying a product you wish to sell via wholesale might feel like the final step, it’s just the beginning. Next you need to locate a wholesale supplier who is willing to work with you. Ideally, the supplier should either be the brand owner or the product manufacturer, as this facilitates access to favorable wholesale prices and maximizes profitability.
1. Reach out directly to brands or manufacturers to initiate discussions regarding bulk orders.
Typically the more direct the relationship between you and the brand or manufacturer is, the better terms you’re going to be able to get in terms of pricing, payment, and more. This also will be a benefit if you ever choose to pursue exclusivity with a brand because you’ll already be in contact with the right people.
Alternatively, you can explore wholesale directories or platforms to discover reputable suppliers specializing in your chosen product category. Attending trade shows and industry events can also give opportunities to connect with potential suppliers. Depending on how large your Amazon wholesale business is, it may be smart to consider brands offering smaller MOQs so that you’re not overcommitting to a product you can’t fully afford yet.
2. Evaluate suppliers by considering the Cost of Goods (COGs) and the financial terms they offer.
Verify the reputation and references of the supplier, assessing their capability to meet your requirements. Carefully examine their logistics capabilities, shipping lead times, and insurance policies, in conjunction with the product’s predicted profitability.
3. Initiate negotiations with potential suppliers, bearing in mind that prominent brands often maintain established reseller networks.
Put your best foot forward when negotiating with potential suppliers by clearly demonstrating how your collaboration will help to benefit their business. Just as you hope to make a profit off of their brand or products, they need to see what they can gain by working with you.
Demonstrate your experience and success in Amazon wholesale, or pitch why you’re transitioning away from other selling models and consider offering additional marketing or promotional support. Concentrate on negotiating favorable terms, such as discounts for bulk orders, extended payment conditions, or expedited shipping time.
4. Gain all necessary licenses and permits.
Depending on your location, you may need to obtain a business license and a sales tax permit for wholesale operations on Amazon. Additionally, suppliers may request that you provide these permits before you can make an inventory purchase from them. These permits can also be advantageous to your business, for example, in some states they exempt you from paying taxes on wholesale purchases.
5. Proceed with order placement, shipping coordination, and inventory receipt.
Once you have reached the agreement, you can finally place an order with the supplier. Afterward, the supplier will arrange the shipment of the goods to your location. Upon their arrival, it is crucial to inspect the merchandise for quality control and confirm their addition to your inventory.
Remember the importance of careful research, thorough supplier evaluation, and wise negotiation tactics when seeking to establish and expand your wholesale venture. By investing time and effort in these areas, you can position yourself for success in the realm of Amazon wholesale.
The Seller Assistant App stands as your invaluable ally on this journey. This comprehensive product research tool empowers you to swiftly identify high-margin products, confirm their suitability for listing on your account, and preventively address potential issues, including intellectual property complaints. It consolidates various features, such as FBA & FBM Calculator, Quick View, Stock Checker, and Restrictions Checker, all within a single software suite.
This blog was contributed by our partners at Seller Assistant App.