Unlock the Secrets of Wholesale Success With These Amazon FBA Tips

Last updated on May 30th, 2023

Written by Ken Zhou

The Amazon marketplace is a competitive and ever-changing landscape. Therefore, securing a solid foothold in this competitive market is essential for success. As an Amazon seller, it's important to always look for new opportunities, tips, and tricks to grow your business. Selling wholesale on Amazon is one option you can consider.

A well-run Amazon FBA wholesale business can be a fantastic way to make money. However, you must remember a few things if you want your business to succeed. Using the following tips, you can revolutionize your business, expand, and prosper.

What Is Amazon FBA Wholesale?

Wholesale is a business model whereby you buy products in bulk from a manufacturer or distributor at a discounted price and then sell those products on the Amazon marketplace with a higher markup. An Amazon business that uses this model is responsible for sourcing and listing the products they want to sell on Amazon.

This is where Amazon FBA, a fulfillment service that allows sellers to keep their products in Amazon warehouses, comes in handy. Aside from acting as the seller's warehouse, Amazon FBA also handles shipping and customer care on their behalf. Businesses often use this model to retain the advantage of Amazon's vast distribution network without increasing the additional overhead costs needed to manage fulfillment. 

Finally, whether or not this model suits a business is determined by its specific demands and goals. Combined, these two business models can be very profitable. When it comes to selling wholesale on Amazon FBA, there are a lot of advantages for Amazon sellers, including: 

• Lower wholesale prices than retail prices–making potential profit margins higher; 
• Increase sales channels by utilizing Amazon's advertising system;
• Additional negotiation power with manufacturers since sellers who buy bulk products get better terms, such as free shipping;
• The ability to sell your products on Amazon–giving you access to an enormous probable market;
• Establishing customer confidence in your products and enhancing sales, given that Amazon is the world’s largest and most recognized e-commerce platform;
• Keeping your competitive edge with Amazon's brand registry, as it eliminates any chances of competing with a private label offering the same product;
• Saving time and money while concentrating on other facets of your business since Amazon FBA will handle the product packaging, shipping, and logistics for you; and
• Ensuring your customers are happy and likely to purchase from you again with Amazon FBA's excellent customer service.

Despite all these, selling wholesale on Amazon FBA also has its own set of disadvantages, such as: 

• Less control over your product listing and how your products are presented to potential customers; 
• Tight competition with other third-party sellers offering similar products;
• Higher initial investment as the minimum order quantities tend to be larger than retail sales, consider additional selling fees that come with FBA;
• More complex and time-consuming than retail selling as it requires managing inventory levels and maintaining good relationships with suppliers;
• Difficulty in branding your products since the products you are selling are not unique to your business and other third-party sellers; and
• Inability to ensure the quality of your own products from the lack of manufacturing control.

Overall, there are many benefits to using Amazon FBA for your wholesale business, but it's not without its challenges. While selling wholesale on Amazon can be a terrific method to reach more customers, assessing the benefits and drawbacks is crucial before deciding.

Tips for Beginners

As with any business enterprise, there are a few things to remember when getting started. So here are some of the best Amazon FBA tips for those considering being wholesalers for Amazon FBA: 

Have a Clear Understanding of the Amazon Store

Familiarize yourself with the different product categories and understand the competition. You can start selling immediately as soon as you know the landscape you're selling in. So stock up on as much information as you can get your hands on to leverage Amazon’s many features.

Conduct Product Research

Researching profitable products is crucial to ramp up your product's sales. Knowing which products sell and which product category has high demand to place them in is vital to selling in the Amazon marketplace. You can also pick up some great product ideas that can improve your product line.

Sell With Volume

Selling products at lower prices isn't a joke; for it to work, it must be financially feasible. You'll need to be able to sell large quantities of products to make a profit. In doing so, it's crucial to partner with reliable suppliers who can provide you with a steady stream of inventory so you can sell products in volume.

Make Sure Your Prices Are Competitive

Selling on Amazon is a game of numbers. Many sellers opt to price high to make a quick profit, but others prefer to go low to divide the market. If you want to ensure your product sells on Amazon, you need to price competitively—not so high that you'll drive away customers and not too low that you'll be selling just to break even.

Avoid using automated pricing as it usually chooses the best selling price on the market based on an algorithm, depriving you of your business's strategy.

Have a Strong Inventory Management System

It's important to have an excellent inventory management system to avoid stockouts and ensure that orders are fulfilled promptly. Sellers that don't manage inventory often end up with their bestsellers out of stock, losing momentum in the process.

Even FBA sellers choose to consider inventory management as one of their top priorities since it's common for products to go missing in Amazon fulfillment centers.

Build Strong Relationships With Suppliers

A network is the strongest asset of an Amazon FBA seller, which is why it's important to build a solid relationship with your suppliers. You'll need their support to ensure that your products are of the highest quality and always available when you need them. 

Create Compelling Listings

Write compelling product listings that accurately reflect your products and help them stand out from the competition. Add quality images to give your customers an idea about their future purchases. Great listings are key to providing your customers with the relevant information needed to purchase the product.

Provide Excellent Customer Service

As an Amazon seller, your job doesn't end after a sale. Sometimes customers need help with returns or have inquiries regarding a particular product, which is why it's important to have great customer service.

A great customer service experience is sure to gain positive reviews, and great reviews are key to achieving even greater business. So be sure to respond promptly to any customer inquiries and complaints and take measures to ensure that all customer orders are shipped promptly and accurately.

Invest in Search Engine Optimization (SEO)

Every experienced seller knows that investing in SEO is necessary for your Amazon FBA business. SEO can get you more Amazon shoppers and create awareness for your brand by putting your products at the top of search results—a must for Amazon wholesalers.

Use Amazon Advertising

The Amazon Seller app is one of the biggest advertising platforms in e-commerce, making your account one of the most effective marketing tools out there. Through your Seller Central account, you can create campaigns for sponsored products, sponsored brands, and sponsored display ads.

With some effort and planning, you can build a profitable FBA wholesale business that provides a steady income stream amid tough competition.

Criteria to Use When Choosing a Supplier

When it comes to choosing a wholesale supplier, it's vital to choose the right supplier. Here are some things to look for when choosing a wholesale supplier for your business:

Good Reputation

Ask those you know who have partnered with the wholesale supplier before. Check through the internet for online reviews and rating sites to see the product sold and what other consumers have said about the wholesale supplier. 

Competitive Prices

Both you and your supplier have the same goal in mind: making money. Compare prices from multiple sellers to see who can offer you the best deal for your business model.

Low Minimum Order Requirements

One of the keys to growing your Amazon FBA business is to get more inventory, and the most cost-effective way to do this is by creating new product lines that can turn in a profit.

However, new products cannot assure profitable gains. So look for an FBA wholesale supplier with low minimum order requirements so that you can test out different products without breaking the bank.

Fast Shipping

Look for a supplier with good customer reviews for their shipping times and ask about their shipping process to ensure they can meet your needs.

Location

You have to consider borders, national and international, and the shipping costs they come with. Finding an FBA wholesale supplier in your vicinity can be beneficial, as this can help reduce shipping costs and times.

Customer Service

You'll likely have questions or issues during your relationship with your supplier. It's critical to pick a supplier who provides excellent customer service and is easy to reach. 

Flexibility

As your business grows, your needs, too, will evolve. You'll want a supplier willing to work with you through these changes. Finding a reliable business partner is important for business growth, especially as a new seller in the marketplace.

By keeping these factors in mind, you can narrow your options and choose the best supplier for your Amazon wholesale business.

How to Negotiate With Suppliers and Get the Best Prices

If you're a wholesaler on Amazon, you know that finding good suppliers who can provide you with quality products at low prices is a must. Here are a few things that you can do to increase your chances of getting the best possible deals from suppliers:

1. Research the wholesale market for the products that you are interested in. This will help you understand the rates for these items and give you some leverage when negotiating.
2. Develop a rapport and be clear that you're serious about doing business with them. When possible, it's also a good idea to negotiate in person. It allows you to establish rapport and demonstrate your commitment to working together. 
3. When negotiating with suppliers, it's important to be firm but fair. Don't try to undercut them, but don't hesitate to stand your ground.
4. Don't be scared to walk away if a supplier is unwilling to match your price demands. There are plenty of other suppliers out there who will be happy to do business with you.
5. Keep track of all correspondence. It will give you a good record of what was discussed and agreed upon should any issues arise later.

By following these tips, you should be able to get the best possible prices from your Amazon FBA suppliers.

Final Thoughts

Selling wholesale on Amazon FBA can be an excellent method to get your products in front of a larger audience and enhance sales. However, it would be best to keep a few things in mind before you begin. 

You are now prepared to begin your wholesale journey on Amazon FBA! If you need help with your Amazon FBA wholesale venture, you can book a discovery call or call us at 1-800-820-3746.

We understand it can be difficult if you are unfamiliar with the process. Our Seller Interactive team is experienced in helping people like you get started with Amazon FBA wholesale and would happily answer any questions.