One of the first steps to selling products through Amazon FBA (Fulfillment by Amazon) is sourcing inventory to sell. But what are the best places to purchase products to resell on Amazon?
Depending on the type of items you want to sell, there are a variety of options for sourcing FBA products ranging from manufacturers to liquidators. This guide explores the pros and cons of various inventory sources for an Amazon FBA business.
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Buy from Wholesale Suppliers
Purchasing wholesale allows buying products in bulk quantities at lower per unit prices to maximize profit margins. Ways to buy wholesale include:
- Wholesalers – Specialize in specific product categories and sell in bulk quantities only. Offer the deepest discounts but require large orders.
- Distributors – Carry inventory from multiple wholesalers. Require smaller order minimums and provide a wider catalog of products.
- Importers – Import goods from overseas manufacturers at wholesale prices and handle logistics. Focus on trending products.
- Liquidators – Offer steep discounts on excess inventory and customer returns. Great for one-off deals but unpredictable stock.
Source from Dropshipping Suppliers
Dropshipping involves fulfillment handled by the supplier so you don’t take possession of inventory. This reduces upfront costs but provides less control. Vet suppliers thoroughly for reliability and order fulfillment speed.
Purchase from Local Stores and Markets
Finding discounted overstock and clearance items locally can uncover hidden gems, especially for arbitrage opportunities. Check discount stores, flea markets, yard sales, estate sales, and auction liquidations.
Order Samples from Manufacturers
Contact manufacturers directly to order smaller samples during product research. This allows verifying quality and cost from the source before committing to bulk orders. Ensure samples are reasonably priced.
Use Alibaba to Find Overseas Suppliers
Alibaba connects entrepreneurs with manufacturers and suppliers primarily based in China. It allows sourcing directly from factories. Use for finding manufactured products or custom creating unique items.
Consider Private Labeling
Private labeling products involves contracting white label manufacturers to produce items customized with your own branding and packaging. This allows selling more unique products.
Tips for Sourcing FBA Products
No matter your source:
- Thoroughly vet suppliers for reviews, transparency, fulfillment reliability and quality control
- Calculate landed costs including shipping, customs, duties to ensure profitability
- Order samples before committing to large inventory purchases
- Start with small test orders to evaluate suppliers over time
- Ensure your sourcing aligns with Amazon’s policies and standards
With the right suppliers secured, you can focus on growing your Amazon FBA business through smart expansion and reinvesting revenue.
FAQs About Purchasing FBA Products
What is the best product price range to start with?
Look for products in the $10-$50 range while testing demand. Minimize risks and ties up in inventory initially.
How much inventory should I order at first?
Start with small test orders of just a few units per product. Reorder more once you confirm they are selling and profitable.
Should I focus on branded or unbranded items?
Branded products move more easily but have more competition. White label items allow establishing your own branding. Find a balance.
Is domestic or international sourcing better?
For faster shipping and simplicity, domestic wholesalers are ideal at first. Once established, overseas can provide pricing advantages.
What order minimums should I expect from suppliers?
Minimums vary tremendously but can range from 10 units to over 100+ units depending on the source and product costs.
Sourcing the right inventory at the right price is crucial for succeeding with Amazon FBA. Use this guide to explore your product purchasing options.
