Why You Should Consider FBA Wholesale to Sell Your Tool Deals on Amazon

March 16, 2022
Written by Ken Zhou
tool deals amazon

Being an Amazon wholesale seller is no easy feat, especially if you do it alone. You constantly need to keep up with the demand of Amazon customers worldwide. Since products qualified for AmazonGlobal can be shipped to over 100 countries, you must devise efficient methods to deliver your products quickly and accurately. On top of that, you still have to manage aspects of your Amazon business, like marketing, product listing optimization, and account management.

Because wholesale items are typically in demand, you have to handle multiple orders and fulfill them as soon as possible. However, this can be challenging to do on your own if you lack resources and staffing. As a result of inefficiency, you might lose your expected sales and receive negative ratings.

To prevent these things from happening, you can sign up for the Amazon FBA program that can help you manage your wholesale business more effectively. In this article, you will learn what FBA wholesale is and its benefits to tool deals Amazon sellers like you.

What is FBA wholesale, and how can it help you sell your tool deals on Amazon

Selling wholesale on Amazon involves several processes, including sourcing in-demand products, buying them from manufacturers or suppliers for a lower price, and selling them on the Amazon marketplace. But as an Amazon seller, your task does not end with posting your product listings on Amazon. You still have to fulfill your customers’ orders to gain sales and grow your business.

However, not all Amazon sellers have the time, skills, and expertise to deal with various aspects of selling on this e-commerce platform. This is the main reason they opt to sell their products through FBA or Fulfilled by Amazon. In this service, Amazon FBA sellers can ship their items to Amazon warehouses, and Amazon will take care of picking, packing, and shipping them to customers. Also, they will handle customer service and process returns and refunds. 

If you intend to sell tools wholesale, choosing the FBA Wholesale model is a great choice. You can take advantage of all the benefits mentioned above. On top of that, you can gain more customers thanks to the Prime badge that comes with FBA. It is because consumers are more likely to buy from a store offering Prime shipping, which is why Amazon already has 200 million Prime members.

Benefits of managing an Amazon FBA wholesale business

Whether you intend only to sell tools or other products, having a wholesale business can be painstakingly difficult because of its demands. But you can choose to maximize available tools and services to make this endeavor feasible. In this section, you will know some of the benefits you can expect from managing an FBA wholesale business.

1. You have more control over your expenses which helps you save money

In reality, you cannot control your expenses when you first purchase your bulk items from the suppliers or manufacturers because of their wholesale requirements. But, you have control over which items you want to sell. So if you have a limited budget at first, choose the products that fit it.

Additionally, using the professional selling plan for your Amazon FBA wholesale business allows you to manage your expenses well. Under this plan, you are expected to pay $39.99 monthly for all items sold, but the individual selling plan costs $0.99 per unit sold. Through the professional plan, you can already anticipate how much you must pay per month and even save money in the long run.

Most importantly, maximizing the perks of FBA services can help you spend less on logistics and allocate them to other necessities instead. For example, through FBA, you don’t have to buy packaging materials, such as bubble wraps, corrugated boxes, or inflatable air pillows because Amazon takes care of these for you. Furthermore, you don’t have to hire employees to pack your products, saving you a lot of money. 

2. You are not responsible for developing new products

Product development is one of the hurdles entrepreneurs encounter when they opt to sell products under private labeling. This means that they have to come up with unique or exclusive products that bring something new to the market, making buyers anticipate their new releases. This way, they can secure their target market and acquire new customers.

However, these struggles are not present in your wholesale business. Your supplier is responsible for creating new products you can sell in your e-commerce store. Just wait for them to inform you of their new items, and choose whether to sell them or not. Moreover, you can purchase various items in bulk from different suppliers. As long as the products are allowed on Amazon, you can include them in your FBA wholesale business.

3. You do not have to market your tool deals at Amazon extensively

As a wholesale seller, you also do not have to worry about establishing a brand or marketing your products intensively. Especially if you are selling products from well-established brands or companies, they are marketing the products to the public. Moreover, typical wholesale items are popular among consumers, so you do not have to spend time and resources marketing them.

However, this does not mean you will sit idly and do nothing. Because you are selling Amazon, one of the biggest online marketplaces, you will encounter a lot of competition. Therefore, you must optimize your product listings to rank high on the search engine results page (SERP) or become more visible through PPC ads

4. You can take advantage of the established brand’s existing customer base

Another benefit you can enjoy as a wholesaler is the brand’s existing customer base. For example, the company that supplies your products does not have an Amazon store yet, making you the products’ only seller on the platform. Consumers who want to purchase the items through Amazon can simply visit the marketplace and purchase from your store. In this way, you are already taking advantage of the brand’s existing customers. You can even help provide the company with another outlet for sales and grow their business through you.

tool deals amazon

Tips on choosing a supplier for your wholesale business

Now that you know what FBA wholesale is and its benefits, you might feel more motivated to try it yourself. But before you get started on your wholesale business, you must learn how to choose a supplier first. Here are some helpful tips you can apply while searching for the right wholesale supplier.

Read reviews about the manufacturer or supplier

Before starting your FBA wholesale business, you must do extensive research about the products you want to sell and the manufacturers who will supply them to you. Besides knowing the items’ profitability, you must also know if you can trust your suppliers or not. 

One way to do this is by reading reviews about them. Other business owners leave their feedback on various platforms to inform others about their suppliers. Through their comments, you will know their experiences with the supplier’s services and product quality. Also, you can have an idea of how they handle internal problems and delivery concerns.

Order product samples first before buying in bulk

Wholesalers and customer reviews might not be enough to know about the suppliers. Therefore, it is best to buy their products first as a consumer, not a prospective wholesaler. By doing this, you can assess the quality of the products they produce. 

Moreover, ordering product samples allows you to experience their customer service. You will know how they handle customer concerns relating to slow deliveries and damaged, missing, or incorrect items. If you are not satisfied with their products and customer service, you can look for another wholesale supplier right away to not waste time and money.

Join groups, forums, and professional networks related to business and wholesaling

Increasing your network allows you to learn from other business owners and get valuable information about manufacturers and businesses in general. So if you are new to wholesaling and selling tool deals on Amazon, it would be best to join groups and forums where you can pick up helpful tips in growing your business. Look for Facebook groups or join a Reddit community focused on e-commerce and wholesaling.

Key Takeaway

Deciding to start your business journey using the FBA Wholesale business model is one of the best decisions you can make. Through this, you can sell your items while enjoying the benefits of the Amazon FBA program. On top of that, you don’t have to worry about huge costs, product development, and marketing. Also, you can take advantage of the brand’s existing customer base, allowing you to increase your sales and grow your Amazon business.

However, handling your FBA Wholesale business alone is challenging. This is why you should consider working with account managers who can help you manage your business more efficiently, like our experts at Seller Interactive. We can help you grow your wholesale business despite the competition present in Amazon.

If you are interested in working with us, reach out to us today at [email protected].

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