12 Merry Ways to Increase Christmas Sales in 2022 with Amazon FBA Wholesale

January 3, 2022
Written by Jayce Broda
Amazon FBA Wholesale

The year is coming to an end, which means the holiday season is right before us. Spending typically racks up around this time of year due to holiday festivities. People are getting ready to shop for Christmas presents, holiday meals, lights, and decorations, which of course, means things are busy for retailers too.

That’s why, for Amazon sellers, the holidays are a great time to gain momentum, and Amazon FBA wholesale is the perfect strategy to get it jump started. 

Selling wholesale on Amazon is a lucrative opportunity, but it’s important to do some research before diving in. This article will cover how you can leverage Amazon wholesale for your store and wholesale products to sell on Amazon. 

How Does it Work? 

Selling wholesale on Amazon involves purchasing products in bulk directly from a manufacturer or supplier at a discount. This model gives you more access to inventory with extra room to profit depending on the volumes you’re working with.

It’s a great way to jumpstart your e-commerce business without having to go through the hassles of creating a product from scratch. Instead, find a product that works by doing research and assessing the market. Keep in mind that many wholesale sellers already exist on Amazon, so you’re better off avoiding high-competition products that already exist in the marketplace.

Next is to find suppliers. It can be challenging to find the right one for you as you consider MOQ, delivery times, and product quality, so take your time to assess which works best for you. 

Now it’s time to list it on Amazon. Create your listings and prepare your stock. FBA is a great way to streamline your e-commerce process as it covers storage, fulfillment, and shipping, which is especially useful when handling considerable amounts of inventory. 

How Is Wholesale Different from Other Business Models?

There are many different ways to sell on Amazon, but how do they differ from one another? 

Amazon Wholesale is the process of taking advantage of the discounts involved when purchasing in bulk and selling off your inventory. Typically Wholesale model can be conducted via. Vendor Central or Seller Central depending on how you set up your business. 

Similar to Wholesale, Retail arbitrage is purchasing products at a discounted price and reselling them on Amazon. However, the main difference between the 2 is how the inventory is obtained and the quantities in which items are purchased. Wholesale is purchased in bulk, direct from suppliers and manufacturers, and retail arbitrage are typically individual sale items from retailers.

As for private label, in this model, sellers create their products through the coordination of manufacturers/suppliers and sell them on Amazon. The most significant similarity between private label and wholesale is the scalability of the business as they both require direct communication with the suppliers/manufacturer. As for their differences, wholesalers typically have an established known brand, where private label brands must build that reputation. 

Dropshipping on Amazon is an e-commerce strategy that allows sellers to outsource multiple tasks from shipping, fulfilling, and storing inventory. This option is an excellent way for sellers to participate in the marketplace without managing too much product. Dropshipping is an opportunity to sell generic products but is limited in its ability to build a brand or stand out.

What are the Benefits of Selling Wholesale?

  • It’s quick to start up: Once you’ve determined where you will be purchasing your inventory from, and you’ve completed building your listings, the process can run smoothly. This is unlike other e-commerce selling operations that involve creating products from scratch. 
  • It’s easy to look for products: Although it may feel time-consuming at first, putting effort into finding suitable suppliers is a great way to ensure a smooth process to rely on in the long run. Searching for already existing products requires less time than building one. 
  • You get to sell established brands: Instead of thinking about creating products, you can use existing brands’ reputations to help sell your inventory. You’ll be able to build on an already existing customer base while being associated with the brand marketing efforts.
  • It’s scalable: Once you’ve developed a system for a wholesale business, it’s easy to scale up. You’ll be able to add new products to your catalog, but the process remains relatively similar. 
  • You can establish a passive income stream: Amazon wholesale is a great way to earn on the side without taking too much time of your day, especially if you’re using Amazon FBA. Once you have established the framework of your business and have partners to rely on, you’ll be in good shape to start earning passive income.  

10 Ways to Increase Christmas Sales with Amazon FBA Wholesale

Find a good product to sell on Amazon

Before getting started, it’s essential to look for a product with low competition and high demand. Do some research when determining what to sell before you purchase inventory in large quantities. Otherwise, you’re likely to face other sellers selling the same product as you in the marketplace. 

amazon product

To brainstorm goods to sell, visit Amazon for popular products. Categories like Electronics, Clothing, Shoes & Jewelry, Toys & Games, and Books are often the most profitable. Then, keep a list of the best sellers in each category, focusing on products with low competition. 

Find the right suppliers

Once you’ve decided on the product you want to sell, it’s now time to find a suitable supplier. Keep in mind price points, budgets, delivery times, and reliability when searching for a supplier. You should select an organization you can depend on to help build your e-commerce business.

Communicate with suppliers and manufacturers that you’re able to bring value to their brand by selling their product on an e-commerce platform as large as Amazon. 

Here are some ways you can provide value:

  • Identify critical problems you can help resolve by selling on Amazon.
  • Present the opportunities that exist by selling on Amazon

Compute your profit cost ratio

When you sell on Amazon, your goal is to make a profit. Here’s how to evaluate your profitability. 

  1. Set the price for your product. Make sure that it’s within 2% of the current price in the buy box. If your price gets higher, your product risks not winning the buy box. 
  2. Understand product fees. The easiest way to do this is to use Amazon’s FBA calculator. Enter your ASIN into the calculator to review the fees you’ll need to pay. 
  3. Determine your profitability after your expenses. 

Fulfill your orders through Amazon FBA

Fulfillment by Amazon (FBA) is a program that lets you ship your products to Amazon’s fulfillment centers, where they handle the storage, packing, and shipping of orders. This program makes it easier for you to scale your business.

Regularly run promotions

Promotions are an excellent way to increase sales with Amazon FBA wholesale. Sellers offer their products at a discounted price to customers, increasing the conversion rate. There are many different types of promotions available, including discount codes, BOGO, bundles, and more. 

Try using lightning deals 

Amazon Lightning Deals are promotional offers that last for a short period. It is a popular Amazon feature for customers as it is constantly changing with new and exciting offers.

For a wholesaler, lightning deals are a great way to increase sales and quickly reduce inventory. To access Amazon Lightning Deals, you need a professional selling plan. Visit the Lightning Deals Dashboard to see which products are eligible for Lightning Deals. 

Design your Amazon page

Customize your Amazon store just in time for the holidays. Having a festive page during the holidays paints your store as current, relevant, and open for sales. Not only will it draw people in to see your products, but it can also imply that you have deals for the season. 

free shipping

Encourage the purchase of gift cards.

A wide selection of products can often mean difficulty for customers to choose an item as a gift for their friends and family. Amazon gift cards help alleviate this, so encouraging the purchase of gifts cards can help promote sales for your product. 

Create gift bundles

To encourage customers to buy more from your store, offer gift bundles. These gift bundles can be a combination of two or three items at a discounted price.

Send newsletters

If you have an e-commerce website, consider sending newsletters to your email subscribers. This can help announce promotions and sales to keep your customers in the loop. It also builds brand awareness and loyalty by providing consistent communication between you and your customers.  

newsletter

Final Thoughts

If you’re just getting started with e-commerce, a wholesale strategy is a great way to get your foot in the door. Amazon wholesale provides a wide range of opportunities for new and existing sellers looking for lucrative opportunities online.

Consider Amazon wholesale this season and thrive for the holidays. Need help getting started? We can help! Get in touch with us at [email protected]

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