Last updated on June 20th, 2023
Written by Ken Zhou
The wholesale business is a lucrative venture if done right. One of the ways to keep it profitable is through the wholesale model of Amazon. If you want to be an established and stable seller in the Amazon marketplace, start as a wholesale seller with Amazon FBA to fulfill your orders.
However, one of the challenges in this type of business is finding Amazon FBA wholesale suppliers. There are plenty of suppliers, but how can you be sure that you've sourced the right one?
In this article, we will learn about a good wholesale supplier's traits and how to find suppliers to jumpstart your wholesale business.
You have two options, either retail arbitrage or wholesale. In retail arbitrage, you will buy low-cost products from brick-and-mortar retailers, then resell these items on Amazon at a slightly higher price. Since you are buying from a retail store, you can't purchase as many products as you want.
On the other hand, the wholesale business model lets you purchase bulk orders for huge discounts. You can resell these products as individual units on Amazon. Moreover, finding wholesale suppliers lets you browse their catalogs to find additional profitable products you can buy in large quantities.
Given that they came from the manufacturer, you don't have to worry about replenishing your stock repeatedly.
Amazon FBA business + selling wholesale products seems a promising e-commerce venture. The tricky part is to find wholesale suppliers that are legitimate and reputable.
Let's look at the ways how to source Amazon wholesale suppliers below:
If you're looking for a supplier for your Amazon business, Google can be a great resource. Start by searching for the products you're interested in selling, along with keywords like "wholesale" or "supplier."
This should give you a list of potential suppliers to investigate further. Take the time to read through their websites, reviews, and pricing information to get a sense of their reliability and suitability for your business.
You can reach out to other Amazon wholesalers in your network to get recommendations for trusted suppliers. Ultimately, finding the right supplier is key to the success of your Amazon wholesale business, so research and evaluate your options carefully.
Your newly found Google tricks would be helpful from here on. Subscribe to every magazine that targets wholesale distributors in your industry.
The easiest way to do this is to search for the publication's website. Once you find it, try to subscribe to their online newsletter and blogs.
Trade shows are the gathering of buyers and sellers from different industries in one place. You can stay updated with industry news and connect with big brands or suppliers.
Usually, wholesalers present their products at stalls or exhibitions; hence, you can check them out. Attending these kinds of events opens you up to various opportunities, such as meeting like-minded people and networking.
No more setting an appointment and waiting for weeks because you're already meeting them in person. A face-to-face discussion is much better than cold-emailing them. You're also talking with the original resource person, thus eliminating false information you might get on the web.
These are third-party manufacturers who produce their customers' products. Private label manufacturers are like outsourcing companies, so don't be confused if you stumble upon a private label manufacturer who is also the actual wholesaler.
Another way of finding trustworthy suppliers is through online wholesale directories. The most popular is Worldwide Brands and SaleHoo.Worldwide Brands has more than 16 million products on its database. They have contact details of suppliers from different industries across the globe. Their list is updated weekly, and you must pay a one-time fee to get in. It also has a "scam protection" feature that veers you away from fraudsters.
On the other hand, SaleHoo maintains more than 2.5 million products. They have this "supplier review system" and no minimum order quantities (MOQ). You can also connect with more than 8,000 leading wholesale suppliers. You can choose between an annual fee or a lifetime fee to start sourcing.
Here are other wholesale directory suppliers you may want to try:
B2B wholesale websites behave like Amazon, but its customers are online retailers and wholesale sellers that want to purchase products in bulk. You don't have to initiate contact with suppliers because it is an online marketplace, and you can buy directly from them. Examples are Alibaba, DHgate, Amazon Business, eWorldTrade, and Global Sources. Here's a list of the best wholesale websites out there if you want to know more.
Usually, a wholesale supplier that works with Amazon sellers and those who work for manufacturers or brands are more reliable. Why? Aside from having better communication and diligence, they know the common problems and mistakes in their industry because of their experience. This allows them to avoid those errors, increasing your chance of success.
For example, suppose you're selling insulated tumblers and already have your design. Your manufacturer might suggest changing some components or packaging to make your products more cost-effective or high-quality.
They can also recommend some upgrades or what they think will make your products stand out from those sold in the current market—all of these thanks to their experience with the same products!
List down the quantities of what you think are the best wholesale suppliers for your business that will meet your specifications.
Which color options do they offer? Do they do direct shipping, and how long does it take? What are their payment terms and their quality control procedures? These things will help narrow down your options, so choose wisely.
You shouldn't alter your product standards to what your supplier can only give you. If you've encountered this situation, it'd be better to consider a different supplier than settle for the next best one available.
Remember, you're not just buying goods from your manufacturer. You are also entering into a long-term working relationship, so it's essential to ask about the things that will affect your ecommerce business, like their storage capabilities and where the supplies will come from.
Make sure you understand what they can offer and note any hidden fees or charges before your closeout deals.
In line with this, large wholesale suppliers for Amazon sellers' suppliers should have an agreement or contract. This sets down clear terms and makes everything easier, especially when problems arise so everyone knows where they stand from the start!
Since most wholesale Amazon sellers suppliers will offer you the same products, it's crucial to find out about their pricing or offers of bulk discounts. This is so you know who can get the lowest possible wholesale prices. It's also vital that you pay your supplier promptly if business is good.
It is best to foster a good working relationship with your supplier so you can get competitive prices or negotiate with them to lower the minimum order quantity. This is helpful if you're working on a tight budget.
Never underestimate how a good working relationship can affect your relationship with your suppliers!
One of the best ways to find out if you have reliable suppliers is to ask other online sellers that employ their services. Ask questions about wholesale pricing, if they have quality products, and their delivery lead time to ensure that you have a consistent supply chain for your business.
Reading reviews about a manufacturer is very helpful, especially if it's your first time sourcing supplies from them. A huge chunk of your business lies in how well your supplier performs and delivers their work, so ensure you screen them thoroughly before signing a deal with them!
Before doing any deal, always check that your supplier is registered and has all the licenses required by law to operate because this shows that they are legit. Sometimes looking into their history and background would help, because it's best to be safe than sorry.
You should also check if your supplier is insured. This will protect you and the supplier from liability should something happen while handling goods or exchanging information/financial transactions between the two parties.
You can never be too careful when looking for suppliers. It's best to get a product sample before placing an order. This ensures that both parties are on the same page since they will only have to dispatch goods once you're fully satisfied with what you've seen.
This way, you can avoid complications. You're not only dealing with substandard inventory if these are produced incorrectly; you're also left with lost time and money.
A wholesale supplier that communicates well usually means they are more organized. This results in a better supply chain flow which means faster deliveries and higher productivity for your business.
Good communication also reduces the chances of errors happening in your orders. Your supplier should be up to date with changes in trends, styles, and colors. This ensures maximum profitable product appearance appeal when it finally reaches your Amazon customers.
One of the factors in building a successful Amazon business is finding the right supplier. This is how you will replenish stock and provide your customers with high-quality products, which you will source from your chosen supplier.
An effective Amazon FBA wholesale can also help you scale your business because it saves time, money, and effort in fulfilling orders. In this way, you can concentrate on your business's core functions and stay on top of the competition.
If you decide to make a wholesale account today, have a solid team with you. At Seller Interactive, we take pride in our team of Amazon experts who can help manage your business and maintain a good profit margin. Book a call with us and start your wholesale selling journey today!
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