How To Source Products To Sell On Amazon In 2021

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buy from alibaba and sell on amazon

Amazon made $232 billion in sales in 2021, compared to $10 billion for eBay. eBay only made $10 billion. It is so popular because of several reasons.

  • Amazon Prime members have a huge customer base, with over 100 million
  • Amazon handles all shipping and fulfillment through Fulfillment by Amazon (FBA).
  • Amazon makes it simple to list and sell products

Amazon’s huge customer base enabled over 200,000 sellers to make more than $100,000 a year in 2021. It is hard to believe that it has ever been easier to reach so many customers in history.

All third-party sellers ship their goods to Amazon warehouses. Amazon then ships the product to customers via their network of vans and drones. This is Fulfillment by Amazon (or FBA).

Sellers pay both for shipping to Amazon warehouses and shipping to customers from these warehouses. Because of Amazon’s deep discounts on shipping, costs are 50-80% lower than if you ship directly from your home/warehouse.

For beginners, selling on Amazon can be difficult. They offer many programs that will help sellers navigate the platform. FBA is one of their programs. FBA stands for “Fulfillment By Amazon“, which means Amazon will store and pack your products when customers order from them. Then, they’ll ship the products directly to the customer.

Best Ways To Sell On Amazon?

To sell on Amazon, the first thing you should do is open an Amazon Seller Central Account. The heart of any seller’s business is a Seller Central account.

The monthly cost of a Professional Selling Account, which you choose over the free option, is $39.99

Here are the steps to opening a Seller Central account.

  • Your business name, address, contact information (does not need to be U.S.-based)
  • A credit card (cannot be a pre-paid card)
  • Only U.S.-based businesses require your tax identification information (an SSN/EIN).

What Do You Need To Sell On Amazon?

The core item you need to sell on Amazon is an Amazon Seller Central account. It will cost approximately $39.99 per month, plus 15% for any products you sell. (I’ll go into detail later).

You will need a product to sell after you have created a Seller Central account. These goods can be purchased either in person from China, through retail arbitrage, or dropshipping.

Another advantage to selling on Amazon is the fact that you don’t have to physically ship your products directly to customers. You will still need to ship your product in bulk to Amazon warehouses. This usually means dropping off your product at a FedEx or UPC depot.

Many people sell on Amazon and build thriving businesses that change their lives. How do you start?

You’re likely asking yourself where you can get stock to sell on Amazon. This post will cover everything you need about Amazon sourcing to help you build your business.

What is Amazon Product Sourcing?

What is Amazon sourcing? Before you can sell products, you must first acquire them. Ideally, at a reasonable price so that you can make a profit on reselling them. Simply, inventory sourcing refers to the purchase of products for your company.

This is often the most intimidating step. Most people have taken photos of their products, created listings, dealt with customers, and managed a budget at one time or another.

Most sellers will need to learn how to negotiate and deal with suppliers and manufacturers. Although it sounds daunting, you will soon discover that it is actually quite simple. Depending on the strategy you choose, you might not need to work with any suppliers.

Deciding Which Product You Want To Sell

Before we discuss how to source your products, it is important to first talk about how you choose the product to source.

A great supplier could be someone who produces a high-quality product and offers a great deal. If it isn’t a product that people want, you won’t be able to sell enough of it.

How do you find profitable products for amazon? You have many options, but we recommend product research software if you want to maximize your chances of success.

Where Can You Source Products For Your Business?

There are so many ways to source products for Amazon FBA. Each has its pros and cons. Each strategy is different, so make sure to research them all and find the one that suits your needs and budget.

These are the top three ways Amazon sellers purchase their products:

1. Arbitrage online and in retail

This strategy is for you if you don’t wish to deal directly with manufacturers and suppliers. It works by going to your local brick-and-mortar stores or other online marketplaces, looking for products that sell for less than Amazon.

This may seem odd and you might be wondering why it is cheaper to buy something locally than online.

2. Wholesale Suppliers

Wholesalers are basically middlemen. Wholesalers buy products from manufacturers to sell to resellers and businesses.

Wholesalers purchase large quantities of products, which results in a very low price per item. These wholesalers can pass on their savings to businesses, which is why they offer better prices than retail stores.

However, most wholesalers require you to order a minimum quantity. Wholesalers don’t allow you to purchase just one or two pieces. You have to order in bulk. The per-item cost is usually quite high, so the overall order cost will be higher.

Also, wholesalers only sell to businesses. You will need to register your business before you can buy from them.

3. Private Label Products From Manufacturers

Ever thought of designing your own product. Although it may sound like a pipe dream, creating your own product is possible.

To do this, you will need to go directly to the manufacturer. Alibaba is a worldwide marketplace for suppliers and the best place to do so. To get a detailed understanding of Alibaba and how to buy from Alibaba and sell on amazon, read SellerApp’s Alibaba to amazon FBA guide. Many manufacturers in different industries would be willing to assist you with your product creation.

It is a good idea to look at an existing product to see if there are ways you can improve it. Is there a way to make the product better? Is there anything customers complain about that could be fixed

Once you have an idea, visit Alibaba to contact other manufacturers who make similar products. To find out if your idea is feasible, explain it to them.

Remember that manufacturers, just like wholesalers have minimum order quantities. This can lead to high costs.

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