1. Product Sourcing
Are you searching for a reputable organization for Amazon FBA product sourcing? We are glad to inform you that your search ends here! Importing commodities is a wonderful option for online and brick-and-mortar retailers to source appealing products for their customers. With years of expertise, we are here to assist you in locating the best supplier with the necessary quality and pricing to achieve your goal margin.
The procurement team of FABONGO is composed of individuals with years of experience in sourcing. They are completely aware of the most up-to-date purchasing tactics utilized in China. They have developed relationships and a track record of working with a variety of manufacturers.
2. Supplier Contact
When you select a product for wholesale selling on Amazon, the first thing that you must look into is that the product should not be sold by a private label seller or Amazon. Generally, the products under Amazon’s brand are already at a competitive price and as a wholesaler, you cannot compete with the same. Also, many of the private label sellers will not allow the wholesalers to place offers on the product listings that are similar to theirs.
While picking a suitable product, try looking for well-established brands. Such successful brands would speed up the success of your business as a wholesaler on Amazon. You also need to check the demand for the product prior to making the selection.
3. ROI Analysis
If you are looking to sell your products on Amazon, you would definitely want to earn some profit. Here is how you can calculate how much profit the chosen product will give you.
- You might have noticed the “Buy Box” which has “Add to Cart” on Amazon. You need to make sure that you have priced the product within 2% of the price given in the “Buy Box”. If the price of your chosen product is higher than this, there is a possibility that it may never appear in the “Buy Box”.
- From the final sales price, reduce the actual price of the product and the fee charged by Amazon. If the resultant number is a positive number, you can assume that you would profit from it.
- Using the sales estimator by Jungle Scout (mentioned earlier), check the monthly sales of the chosen product. Divide this by the total number of sellers including you to get the average sales shared by the wholesalers.
4. Purchase Orders
Once you have followed all the above steps and picked a product that gives you substantial profits, you can go ahead and order the selected product.
You start the ordering process by contacting the suppliers. When you do so, ensure that you thoroughly demonstrate how you can contribute to and enhance their existing brand identity. While doing so, keep in mind that these companies are majorly concerned with the patent, development, and marketing initiatives for the new product.
You need to pitch in your offer in such a way that they feel that you would valuably improve their brand and increase their product sales. Generally, such big companies do not have sufficient time to explore selling opportunities on Amazon and they also do not know how to do this. This will give you an upper hand when you propose to sell their product for them on Amazon.
5. Category Approvals and Listing
here are several steps involved in wholesale selling on Amazon. There are certain business setup practices entailed by Amazon which one has to follow if they wish to sell wholesale on Amazon.
If you wish to adopt wholesale selling on Amazon, you will need an LLC and sales certificate. This is required when you are purchasing products from distributors for wholesale on Amazon. This can be in the form of a tax-exempt form or a business form as well and this depends entirely on the existing rules and requirements for reselling on Amazon in your country. Before commencing your journey as a wholesale seller on Amazon, you need to check the license requirements for wholesale selling on Amazon in your country.
6. Prepcenter Contact and Liaison
There are several steps involved in wholesale selling on Amazon. There are certain business setup practices entailed by Amazon which one has to follow if they wish to sell wholesale on Amazon.
If you wish to adopt wholesale selling on Amazon, you will need an LLC and sales certificate. This is required when you are purchasing products from distributors for wholesale on Amazon. This can be in the form of a tax-exempt form or a business form as well and this depends entirely on the existing rules and requirements for reselling on Amazon in your country. Before commencing your journey as a wholesale seller on Amazon, you need to check the license requirements for wholesale selling on Amazon in your country.
7. Inventory Management and RePricing and Replenishment
If you have followed all the above steps accurately, you will have a profitable wholesale business on Amazon. While pricing your product on Amazon, make sure that you price it somewhere close to the lowest price or the selected product. After this, you should take this price as a base for the profitability and sales estimations.
The prices of every product will tend to fluctuate in the long run. You need to monitor the product price regularly to ensure that its price is competitive enough in the current market.
8. Customer Support
To thrive in today’s industrial climate, an online firm must be able to differentiate itself from competitors in a way that generates a lasting competitive advantage. Great customer service is a critical success element in establishing a loyal client base.
When you manage a firm that operates 24 hours a day, 7 days a week, you require 24-hour assistance. Keeping your assistance in-house is a bad idea. For many company owners, it’s pricey, time-consuming, and tiresome. Allow specialists to perform the real work for your business, and to your surprise, It may end up being even less expensive.