amazon fba wholesale

Amazon FBA wholesale is a very profitable business model. The trick for successful wholesale business is to find the right wholesalers for Amazon FBA.

Getting your hands on the right wholesaler supplier for FBA is what can make or break you.

There are a few tips and tricks that can ensure that you get the best suppliers.

 Follow this guide to make the best out of your business. We will cover Amazon’s wholesale business in detail.

Table of Content

Chapter 1: What is Amazon FBA Wholesale?

Chapter 2: Methods of finding the best FBA Wholesale Suppliers

Chapter 3: Best Wholesale Suppliers Available Online

Chapter 4: How to Shortlist Good Suppliers

Chapter 5: FAQs About Amazon FBA Wholesale Suppliers

Chapter 1: What is Amazon FBA Wholesale?

Amazon offers a lot to both customers and suppliers. When you are wholesaling on Amazon, there are two fulfillment options available, Amazon FBA and FBM.

FBA stands for fulfillment by Amazon while FBM means fulfillment by a merchant. This shows who is going to fulfill the order once a purchase is made.

Amazon has fulfillment centers all around the world. If you do it right, Amazon FBA Wholesale is a very profitable venture.

1. How does Amazon FBA Work?

What is Amazon FBA Wholesale

The process is very simple. There are a few simple steps and you can save so much by choosing Amazon fulfilment as an option.

You don’t even need to have a physical warehouse for your products. Ship them directly to Amazon.

  • A seller keeps her/his inventory with Amazon.
  • Amazon stores these products in its warehouse
  • When a purchase is made, Amazon handles it
  • Amazon packs and sends the order
  • Customer service is also provided by Amazon
  • Complaints, queries and returns are handled by Amazon

Enrolling into the Amazon FBA Wholesale program requires just a few steps and verification.

According to Amazon, you need to follow the basic steps shown in the graph to start Amazon FBA wholesale.

2. What are the Advantages of Doing Amazon FBA Wholesale?

Many sellers prefer Amazon FBA wholesale to FBM (Fulfillment by Merchant).

The reason is that fulfillment by Amazon has many advantages. Some of these are discussed below.

  • Established Brands

When you are wholesaling through Amazon, you don’t need to worry too much about the product and establishing a market for it.

Wholesalers buy existing products in bulk and sell them at a higher price to the customers. The whole product branding, marketing and placement process is eliminated.

  • Scalable

A huge advantage of FBA is scaling. If you are doing FBM, it becomes difficult to cater to increased demand if you don’t have a big warehouse. Amazon has some of the biggest warehouses all over the world.

They have an inventory of thousands of products. If the demand for your product increases, you can easily scale up your business.

All you need to do is order in bulk from the manufacturer. Then, you need to increase your inventory level on Amazon and you are good to go.

  • Lower Risk

Amazon is a trusted platform. Wholesale is a very safe model of business in itself.

As you are working with an already-established and well-known brand in the market, you don’t have to worry much.

There is no tension in the manufacturing and production costs.

Chapter 2: Methods of finding the best FBA Wholesale Suppliers

Methods research of amazon wholesale suppliers

We know that in Amazon FBA wholesale, we don’t need to worry about the manufacturing process of the products.

This is true. But a very important and difficult task that a wholesaler is faced with is to find a reliable and good supplier for wholesaling products. There are a few steps to follow.

1. FBA Wholesale Suppliers Online Research

A very easy way to find reliable suppliers is to go online and search for them. GOOGLE is the biggest search engine to go to.

 Just a simple GOOGLE search will yield hundreds and thousands of results. If you just type “Best Wholesale Suppliers” you will get answers which might not be very specific.

To get more specific results, you can put in specific keywords. Go for long-tail and short-tail searches. Be as specific as you can.

2. Visiting Trade Fairs

If you are in China, do visit some of the popular trading fairs. People from all over the world gather to be a part of trade fairs.

Hundreds of buyers and sellers are present and it is an excellent opportunity for growing your network.

There is a strong possibility that you can connect with suppliers and big brands.

These shows have wholesalers presenting their products on stalls. You can easily do a quality check, shortlist a supplier and so much more in a single go.

 There is no worry about setting appointments and meeting people. You can easily meet face-to-face and strike a deal.

This is the most reliable way to find a supplier as the fairs have to do background checks too.

3. Industry Publications

Go online and subscribe to industry publications of products you are interested in.

These publications have a lot of reliable and valuable information about the suppliers.

 Not only this, you can learn so much about what is trending and all from these publications.

4. Online Directories

To make things easier for the wholesale business, online directories have been established.

These have information about the manufacturers, suppliers, and providers of many products. Subscribe to as many directories as you can to get more options.

5. LinkedIn

LinkedIn allows you to see which supplier/manufacturer is reliable. You can see the current and old clients also and can track them and talk to them. See what people have to say about them. Before you “Follow” someone, be sure that it is a genuine profile.

Chapter 3: Best Wholesale Suppliers Available Online

Wholesale Suppliers

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.

2. Aliexpress

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

3. DHGate.com

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

4. Banggood

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 4: How to Shortlist Good Suppliers

Shortlist

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?

There are some things you can do to be sure that the supplier you have chosen is the best for you.

There are so many things that need to be on spot; the pricing, the packaging and the logistics.

1. Shortlist multiple suppliers

The best thing to do is shorten the pool of candidates. You should select at least 5 suppliers that you want to contact.

It can be more than that, it is up to you. Once you have shortlisted multiple suppliers, you can contact them.

Talk to them and see what they have to offer to you. You can also ask for samples from all the suppliers.

This allows you to physically examine the product and see which one suits your needs.

2. Double-check all information provided by the supplier

Never blindly trust the supplier you select for your Amazon FBA wholesale business. Always check and double-check the information provided by the supplier.

Ask for credentials and cross-check them. See if the product complies with the ISO certifications mentioned (if any)

You should also go ahead and talk to previous and current customers of the shortlisted suppliers. See what the market has to say about them and only then reach a decision.

3. Ask for samples

It is crucial to ask for samples. Most reliable and legit suppliers/manufacturers are more than happy to share their product samples with you. The best also offer these for free.

If a supplier is not offering the samples for free, pay for it. It is just a one-time payment that can save you from a bad deal. If the product is not up to your standard, don’t make the deal.

If a supplier does not agree to share a product sample with you, there is a big red flag. It can be that the product is not made of good materials or is nothing as they say it is.

 don’t go for suppliers/manufacturers who are not willing to share their product samples.

4. See what logistics they use

It is very seldom that you find a supplier near your location for Amazon FBA wholesale. When you are ordering from another country it takes time for the delivery to reach you. There are different methods that manufacturers use to send their products, these are:

  • Air
  • Sea
  • Land
  • Railway
  • Mix of all  

Most people don’t count these added costs. Sometimes the manufacturers include these costs in the total cost of the product and sometimes they charge it as an additional fee.

 The buyer must check how profitable the product is after all the costs are added. This is done through the FBA calculator on the official website of Amazon.

5. Visit the supplier in person if possible or ask a sourcing agent to do so

The best way to be sure of the reliability of a manufacturer/producer is to visit them in person. If it is not possible for you to go, contact a good sourcing agent. They will do the work on your behalf.

Chapter 5: FAQs About Amazon FBA Wholesale Suppliers

faqs

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.

Conclusion

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.