If you’re an entrepreneur or business owner looking to sell products on Amazon, you might be wondering how to increase your profits and streamline your operations. Amazon FBA Wholesale might be just the solution you need.
Wondering what exactly is Amazon FBA wholesale?
Let us explain it in the simplest way. With over 150 million Prime members worldwide, Amazon is a massive marketplace that offers a vast customer base and unparalleled exposure for your products. According to Marketplace Pulse, there are over 2.5 million active Amazon sellers, with over 25,000 more sellers joining the platform every month.
But how exactly does Amazon FBA Wholesale work? And what do you need to know to get started?
In this ultimate guide, we’ll walk you through everything you need to know about Amazon FBA Wholesale, from how to find wholesalers to tips for scaling your business. Whether you’re a seasoned Amazon seller or just starting out, this guide will give you the tools and knowledge you need to succeed.
Table of Contents
Chapter 1: What is Amazon FBA Wholesale?
Amazon’s FBA program stands for Fulfillment by Amazon. It is a program that offers a lot of benefits, including fast and reliable shipping, access to Amazon’s customer service, and the ability to reach Prime customers. In fact, sellers who use FBA tend to have higher sales and better customer ratings than those who don’t.
Not only this, Amazon FBA Wholesale takes this one step further by allowing sellers to purchase products from wholesalers at a discounted price and then sell them on Amazon’s platform. According to Jungle Scout, 59% of Amazon sellers use wholesale as a sourcing method, with 27% of those sellers sourcing exclusively from wholesalers.
Here is a detailed bread down of how the model works.
1) How does Amazon FBA Work?
Amazon FBA (Fulfillment by Amazon) Wholesale is a program that allows third-party sellers to purchase products in bulk from manufacturers or distributors and sell them on Amazon as a reseller. This program is designed to help sellers expand their product offerings without having to handle inventory, packing, or shipping. Amazon FBA takes care of all these aspects, and the seller only has to focus on finding profitable products and creating a listing on Amazon.
2) What are the Main Procedures for Operating through Amazon FBA Wholesale?
The process of using Amazon FBA Wholesale is fairly simple. First, the seller finds a supplier who sells products at wholesale prices. They then purchase these products in bulk and have them shipped directly to an Amazon fulfillment center. Amazon then stores the inventory and handles the packing and shipping of the products to the customer when an order is placed.
3) Primary Advantages of Using Amazon FBA Wholesale
One of the main advantages of using Amazon FBA Wholesale is that it removes the need for the seller to handle inventory, packing, or shipping. This frees up time and resources, allowing the seller to focus on other aspects of their business, such as marketing and customer service. Additionally, using Amazon FBA can increase the seller’s visibility on Amazon and improve their chances of winning the Buy Box, which is the box on a product detail page where customers can begin the purchasing process.
4) Interesting Stats and Figures about FBA Wholesale Business
According to Marketplace Pulse, there are over 2.5 million active sellers on Amazon, and over 50% of Amazon’s total sales come from third-party sellers. In 2020, Amazon’s net sales reached $386 billion, and third-party seller services revenue increased by 52% to $80 billion. These numbers demonstrate the massive opportunity available to sellers who use Amazon FBA Wholesale.
Talk to our representative for more information and guidance about your business. Book your free consultation session right away.
Chapter 2: Step-by-Step Guide for working with Amazon FBA Wholesale
FBA Amazon Wholesale offers a streamlined process for selling products on Amazon. By purchasing products at a discounted price from a wholesale supplier, and letting Amazon handle storage, shipping, and customer service, sellers can focus on scaling their business and increasing their profits.
With over 2.5 million active Amazon sellers, FBA Amazon Wholesale provides a competitive advantage to businesses looking to sell on the platform.
Here is a step-by-step guide to help you operate your own business through this platform.
1) Find a Wholesale Supplier
To get started with FBA Amazon Wholesale, you need to find a wholesale supplier. This can be done through online marketplaces, industry trade shows, or by contacting manufacturers directly. According to a survey conducted by Jungle Scout, 59% of Amazon sellers use wholesale as a sourcing method, with 27% of those sellers sourcing exclusively from wholesalers.
Here is a guide to help you find information about wholesale markets in China which can really help you grow your business. .
2) Purchasing Products from the Wholesale Supplier
Once you’ve found a supplier, you need to purchase products from them at a discounted price. This requires negotiating with the supplier and placing an order. It’s important to consider factors such as minimum order quantities, lead times, and shipping costs when purchasing products.
Do you know the best way of making your price negotiations successful? Deal through import agents. Here is a guide about hiring import agents for this purpose.
3) Shipping Products to Amazon’s Fulfillment Centers
After purchasing products from the wholesale supplier, you need to ship them to Amazon’s fulfillment centers. This involves creating a shipment plan in Amazon Seller Central, preparing the products for shipment, and sending them to Amazon’s designated warehouses.
4) Amazon Storing and Shipping Products
Once your products arrive at Amazon’s fulfillment centers, they are stored in Amazon’s warehouses until a customer places an order. When an order is received, Amazon handles the packaging, shipping, and customer service for that order. This includes packing the product, printing shipping labels, and delivering the product to the customer.
5) Receiving Payment from Amazon
Amazon pays sellers every two weeks for orders fulfilled through FBA. Payment includes the sale price of the product, minus Amazon’s fees and any other applicable charges. According to Amazon, FBA sellers earned more than $4.8 billion in profit worldwide in 2020 – the year before the Pandemic.
Chapter 3: Methods of finding the best FBA Wholesale Suppliers
As an Amazon FBA seller, finding the best wholesale suppliers is very important for your success. Here are some methods to help you find the right suppliers.
1) Research and Compare
Start by researching and comparing various suppliers on Amazon. Check their ratings, reviews, and product descriptions. You can also visit their websites and social media pages to learn more about their company and products. Look for suppliers who offer quality products at competitive prices.
2) Attend Trade Shows
Trade shows are a great way to meet new suppliers and learn about their products. Look for trade shows in your industry and attend them to network with suppliers. Be sure to bring your business card and be prepared to introduce yourself and your business.
if you are looking to buy from China, here is a guide to help you find information about trade shows.
3) Use Online Directories
Online directories such as Alibaba, ThomasNet, and Worldwide Brands can help you find wholesale suppliers. These directories have thousands of suppliers listed, making it easy to find the right supplier for your needs. Be sure to verify the supplier’s credentials before doing business with them.
4) Ask for Referrals
Don’t underestimate the importance of networking with other Amazon FBA sellers. Connect with them and ask them for referrals to their suppliers. They may be able to recommend a supplier that they have had a positive experience with. This can save you time and effort in finding a new supplier.
Chapter 4: Best Wholesale Suppliers Available Online
Many Amazon FBA Wholesalers go online to search for suppliers. This is one of the most cost-effective and convenient way of doing so.
With so many verified online marketplaces, the issue of reliability has also been solved.
1) Alibaba For Wholesale Suppliers
Alibaba is an e-commerce company that was founded in 1999 by Jack Ma. It is a business to the business marketplace in which millions of products are being traded.
Most of the best traders are present on the platform. This makes it one of the most legit and trustworthy ones.
AliExpress is a product of the Alibaba group. It is specially designed for small businesses. This is good for new or small-scale wholesalers. You can easily find manufacturers that work with smaller orders.
On Alibaba, the minimum order limit is bigger. The platform is to accommodate buyers/sellers out of China.
This is an excellent platform for people who are just starting with Amazon FBA wholesale. For wholesalers on a budget, you can find multiple manufacturers that provide products at very reasonable prices.
Moreover, there is no minimum quantity restriction when it comes to ordering from DHgate.com
If you are thinking of scaling up your business and plan to order in bulk for your Amazon FBA wholesale business, do check out Banggood. The website offers discounts on bulk orders. Depending on which product you choose, you get a solid discount of 20% and even more.
5) Global Sources
A comparatively smaller marketplace, Global Sources specializes in electronics, fashion, home décor etc.
Even though it has only 15,000 suppliers, if you want to wholesale a product that the marketplace specialized in, you are good to go! The suppliers offer different minimum order quantities.
You can check with different suppliers and find the one that suits your needs.
Chapter 5: Checklist for Finalizing your Wholesale Supplier for Business on Amazon FBA Prime
Once you know the different ways in which you can search for reliable, legit and good suppliers, your work does not end.
In fact, the task might become difficult from here. Choosing one supplier for your Amazon FBA wholesale business is not an easy task. So, how can you be sure you have selected the best?
The following points should be on your checklist.
1) Consider the Supplier’s Reputation
The first step to shortlist good suppliers is to evaluate their reputation. Look for suppliers with a good track record and positive reviews from other Amazon FBA sellers. Check for their certifications, licensing, and any legal or regulatory issues. You can also look for their social media pages and website to get a better idea of their company culture.
2) Check Product Quality
The quality of products is essential when selecting a supplier. Look for suppliers that offer high-quality products that meet your standards. Check for their product specifications, materials used, and the manufacturing process. You can also order a sample product to test its quality before placing a larger order.
3) Check Pricing and Payment Terms
Pricing is a crucial factor when selecting a supplier. Look for suppliers that offer competitive pricing and flexible payment terms. Compare the pricing of different suppliers and negotiate for better deals. Check for any hidden costs such as shipping, taxes, or import duties that may affect your profit margin.
4) Verify Production Capacity and Lead Time
Production capacity and lead time are essential when selecting a supplier. Look for suppliers that can meet your production demands and deliver products on time. Check for their production facilities, equipment, and staff capacity. You can also ask for their production schedules and lead times to ensure that they can meet your deadlines.
5) Communication and Customer Service
Effective communication and customer service are crucial when working with suppliers. Look for suppliers that have good communication skills and provide timely updates. Check for their responsiveness to your queries and complaints. Also, ensure that they have a reliable customer service system in place to address any issues that may arise.
Connect with our sourcing representative who would be pleased to provide you further guidance. Your consultation session will be free of cost.
Chapter 6: Advantages of Operating your Business through Amazon FBA Prime
Operating your business through Amazon FBA Prime has several advantages that can help you grow your business. Here are the most profitable advantages you can avail.
1) Enhance your Business Visibility as a Trustworthy Seller
One of the main advantages of using Amazon FBA Prime is increased visibility and trust. Amazon Prime customers tend to prefer products that are eligible for Prime shipping, as they can enjoy free and fast delivery. By enrolling in Amazon FBA Prime, your products become eligible for Prime shipping, which can increase your sales and customer trust.
2) It is a Time-Saving and Convenient Process
Amazon FBA Prime provides sellers with a convenient and time-saving way to manage their inventory and orders. Amazon takes care of storage, packing, shipping, and customer service, allowing you to focus on other aspects of your business. You can also use Amazon’s tools and resources to monitor your sales and inventory levels.
3) Enjoy the Access to Amazon’s Resources for Growing your Business
Amazon FBA Prime sellers have access to Amazon’s resources, such as their customer base, advertising tools, and fulfillment centers. This can help you reach more customers and increase your sales. You can also take advantage of Amazon’s advertising tools, such as Sponsored Products and Sponsored Brands, to promote your products to a larger audience.
4) It is an Affordable and Cost-Effective Business Solution
Amazon FBA Prime offers competitive pricing and fees that can help you save money on storage and fulfillment costs. You can also take advantage of their multi-channel fulfillment service to fulfill orders from other sales channels at a discounted rate.
5) Enjoy Hassle-free Returns
Amazon FBA Prime offers hassle-free returns for your customers, which can help you build trust and loyalty. Amazon takes care of the return process, including shipping and customer service, and handles refunds and exchanges.
Chapter 7: FAQs About Amazon FBA Wholesale Suppliers
1) Is Amazon FBA profitable?
Yes. Amazon FBA is still a profitable business to start. Even though there are some disadvantages, the advantages weigh them out.
2) Should you go for local or overseas Amazon suppliers?
There is no hard and fast rule for this. Of course, buying from local suppliers is more cost-effective and quick than buying from overseas Amazon suppliers.
The transit time is reduced which makes deliveries quicker. But, that does not mean you should compromise on the quality.
With overseas suppliers, you have a better pool of candidates to choose from.
3) How important are trade shows in helping you find a reliable supplier?
They are one of the best ways to get reliable suppliers.
All the suppliers/manufacturers that are participating are verified and cross-checked by the authorities. This ensures reliability and authenticity.
4) How can I avail quality discounts while doing FBA wholesale?
This depends on the supplier/manufacturer. Most of them offer great discounts when you order in bulk.
The foundation of building a successful and lucrative Amazon FBA wholesale business depends largely on a good, sound supplier. If the quality of your products is good, you will be able to satisfy your customers.
To learn in detail about how to go about Amazon FBA wholesale, contact us today. We at Ejet Sourcing will connect you with the right people to guide you.