If you have been selling on Amazon for a while, or are studying whether to sell products on Amazon, I believe you have a certain understanding of Amazon FBA wholesale procurement. Some people think that wholesale procurement is a profitable way to build Amazon FBA inventory. However, the concept of “wholesale purchasing” is prohibitive. In fact, do you really understand this business?
This article summarizes five misunderstandings about Amazon FBA seller wholesale procurement, to help you correctly understand this channel and build your own business bravely:
“I need a warehouse before I can make wholesale purchases”
Many people think that in order to make wholesale purchases, they first need a warehouse with elevators and forklifts to store wholesale goods, but this is not the case. Some sellers did not rent a warehouse when they first started buying wholesale. Your home is a warehouse, and you can do the same. In this case, you need to make sure that the freight company knows that you are storing the goods at home, and they need to deliver the goods to a place without elevator doors and forklifts, so that the freight company can make advances for possible situations in advance. The corresponding arrangements.
What Companies Do
Most wholesale companies have their own minimum order quantity and minimum reorder quantity. Some sellers who do not understand the situation will take it for granted that the minimum order quantity of a wholesale company is several thousand dollars or tens of thousands of dollars, but this is not the case.
Some wholesale companies may indeed require you to invest a huge amount of money from the beginning, but there are many companies, you only need to buy a few hundred dollars to place an order, but you may need to do more research in the early stage and run more places. Find them. And in the early stage, it is also beneficial for you to wholesale products from companies with small MOQs. Once the products are inappropriate or other problems occur, your loss will not be too great.
“Because I am an Amazon seller, the wholesale company will not sell me things”
Although it is true that some wholesale companies are unwilling to sell products to Amazon sellers, this does not mean that no wholesale company is willing to buy products for you. There are many companies that are open to Amazon sellers. You can visit websites such as Worldwide Brands to get a list of wholesale companies and search for companies that cooperate with Amazon sellers.
Wholesalers always sell products at the lowest price
Traditionally, wholesale companies like the keystone pricing strategy, that is, the wholesale price is 50% of the retail price of the product on the market. If you can purchase products at the keystone price, you will have enough profit margins. Of course, there are some ways you can buy products at a lower price:
1. Bulk purchase discounts-if you need to purchase a lot of products, then don’t be afraid to negotiate with wholesalers to get cheaper wholesale prices.
2. Take advantage of the wholesale company’s holiday or event sales-make sure you are on the wholesale company’s customer email list so that you can get the coupon code during its event.
3. Clearance price-If the wholesaler is selling a certain product that you have tested on Amazon at the clearance price, then you can boldly purchase.
4. Participate in wholesalers’ free shipping promotions.
It is difficult to find profitable wholesale goods
When you open an account with a wholesale company, you will get a PDF file or an electronic form showing all the products and prices of the wholesaler. What you have to do is to sort out and analyze the products in the list to find profitable products.
Some people think that it is impossible to find products worth selling on Amazon. This misunderstanding needs to be analyzed from two perspectives:
First of all, many people have mistaken the order of solving this problem. They randomly obtained a wholesale account from a certain company, and then began to look for goods to sell in the catalog. In fact, you should first go to Amazon to find and learn about the top-selling products. And then go to the wholesale amazon account management company to apply for an account to find the right products. Because in this order, you already know the price and sales ranking history of related products on Amazon. When you browse the list of wholesalers’ products. You will better understand whether the product has the potential to bring you profit.
Product Listing
Secondly, if you already have a product price list for a wholesale company, do you know how to organize it? An effective operation is to look at Amazon fba product pages, and you will know whether they are profitable or not. You can use tools such as OAXray or Tactical Arbitrage to scan a spreadsheet. Containing prices and UPCs provided by wholesalers to quickly obtain product data. If you have a price list in PDF format, you can hire a virtual assistant from websites. Such as Upwork or FreeeUp, convert it into a spreadsheet, and scan it with OAXray or Tactical Arbitrage.
I believe that by now, you have a new understanding of wholesale procurement. What else is hindering your FBA wholesale procurement business
