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· 5 min read

How to Find Suppliers for Amazon FBA

Around the world, millions of entrepreneurs are making money selling products on Amazon, and 73% of them use Amazon FBA for their fulfillment. It’s an efficient way for small businesses and startups to launch businesses and products that compete with established companies. If you’re considering starting an e-commerce business that sells products on Amazon, you may be wondering how to find the right products. Here is a brief guide to finding products to sell on Amazon FBA.

How to Choose Which Products to Sell on Amazon

Before choosing specific products and looking for suppliers, you must consider what type of products you want and how you will do business. Here are the most important criteria for choosing which products you will sell on Amazon:

Niche

Your niche should be a product, service, or industry in which you are an expert and offer unique value to your customer. If you carry products available elsewhere, consider how you will compete with other businesses: Will your price or service be better? Will you have unique products or services or unique bundles and promotions? To compete on Amazon, your business has to stand out, so research your niche carefully and figure out what sets you apart.

Profit

You will need to purchase products at a price that will allow you to sell them at a profit. Your profit needs to be large enough to cover all your business expenses, including the cost of your own time and labor, while still being low enough to compete with other businesses in your niche. Calculating all your overhead and expenses will allow you to determine how much you can spend on products and how much profit you can expect from selling on Amazon.

Scalability

There are two crucial aspects of scalability. If your business is successful, you will need to fulfill more and more orders: how quickly can your suppliers scale up and deliver more products? For example, if you sell handmade quilts, there is a limit to how many you can make in a year and, therefore, a limit to the size and scale of your business. On the other hand, scalability will allow you to increase your offerings and grow your business if your business plateaus. Are there related products in your niche that fit into your product line and will enable you to grow? For example, if you sell comic books, your customers may also be interested in action figures.

Practicality

It’s important to consider practicality in your Amazon products. Products, especially large, heavy, or fragile items, are difficult to ship and prone to problems and complaints. Items especially expensive, rare, or need to travel exceptional distances may require special shipping procedures and insurance. Consider the kinds of products people look for and buy on Amazon and how to easily fulfill orders with minimal disruptions.

How to Find Suppliers for Amazon FBA

How to Find Products to Sell on Amazon

Once you have considered your business plan, including costs and prices, it’s time to start looking for the specific products you might sell on Amazon FBA. Some of the best ways to find products for your Amazon business include:

Google Trends is an excellent tool for showing you what products people are looking for, as well as other important information like the specific words and keywords they use, regions where the products are more popular, and search frequency over time. Go to Google Trends and look up your niche and your products. Don’t forget to look at “related queries” for more ideas.

Research Social Media

People often use social media to share the products they are interested in. Pinterest and TikTok are especially powerful for identifying products that are trending and in high demand. Search for your desired niche or product; note how many people are talking about it and what they say. Social media is also a powerful way to identify people’s thoughts and feelings, which can help you identify an opportunity for an unmet need or competitive advantage related to your product.

Many times Amazon itself is a great way to identify desirable products. Amazon Best Sellers show you what products are selling and their categories, subcategories, and related products. Amazon trend reports are another great way to review what is currently popular on the platform, so you can assess opportunities and competition.

Research Other Online Marketplaces

While Amazon is the biggest online marketplace in the world, it isn’t the only one. Other marketplaces, like Etsy, eBay, or AliExpress, may have popular products that are less common on Amazon or appeal to a different audience. If there is an online specialty marketplace for your niche or your customer, research your products on that marketplace. The more information you obtain about what products people want, what price they are willing to pay, what features they require, or what they don’t like about the current offerings, the better able you will be to find the right products for your Amazon store. This research is also integral to the foundation of your marketing plan, so it’s vital for your business in more ways than one.

Conclusion

Choosing products to sell on Amazon FBA is a balancing act between the products that meet your business's needs and those that meet your customer's needs. Fortunately, a vast range of methods and tools will help you identify those products and set your business apart from the competition. The more time you spend planning and researching, the more informed your business plan is, and the greater your chances of success. Take your time, consider all your options, be informed before launching an Amazon FBA business, and set yourself up for success!

· 5 min read

How to Find Suppliers for Amazon FBA

As they say, you have to spend money to make money. Starting your own business selling on Amazon FBA is more affordable than many other businesses. However, there are still startup costs, and it requires careful budgeting. Here is a guide to the cost of starting to sell on Amazon FBA.

Minimum Cost to Start Amazon FBA Business

According to a recent survey, 18% of Amazon sellers started with a budget of less than $500. If you don’t have a lot of capital, here is an overview of the minimum costs to start selling on Amazon FBA.

Amazon Seller Plan | Minimum of $0.99 + Seller Fees Per Item Sold

All sellers need an Amazon seller plan. Plan costs are currently the individual plan, which costs $0 per month + $0.99 per item sold + selling fees, or the professional plan, which costs a flat $39.99 per month + selling fees. An individual plan might be the right choice if you sell fewer than 40 items monthly and don’t need advertising or analytics. The professional plan has many benefits, like advanced reports and analytics, on-site advertising and promotions, and adding multiple users to your seller account.

Amazon FBA Per-Sale Costs

No matter your seller plan, you will pay a wide range of per-item fees when you sell something on Amazon and fulfill your orders through Amazon FBA. Here is an overview of the per-item fees that sellers pay with each transaction:

Amazon Referral Fees

Minimum of $0.30 per item sold. All items sold on Amazon have a referral fee. The fee is a percentage of the sale price, and the rate varies depending on the product category. For example, Amazon device accessories have a referral fee of 45%, while personal computers have a referral fee of 6%. The average referral fee on Amazon is 15%, and the minimum referral fee is $0.30 per item sold.

Amazon FBA Fees

Minimum of $2.47 per order fulfilled. Fulfillment by Amazon is one of the easiest, most affordable ways to manage inventory and fulfillment when selling online, but there are still associated costs and fees. There are two FBA fees: shipping fees for fulfilling orders and storage fees for your inventory. Inventory fees are charged monthly based on the average cubic volume of space your products use in an Amazon fulfillment center. Inventory fees range from $0.48 to $2.40 per cubic foot and triple over the holiday season.

Fulfillment Fees

Fulfillment fees are based on your orders' shipping size and weight, with additional charges over the holiday season. There is also a separate fulfillment category for apparel items. FBA Small & Light orders can ship for as little as $2.47, while oversized and heavy orders can cost upwards of $150 per pound.

Additional FBA Fee

Depending on how much and long you store items in an Amazon fulfillment center, additional fees may exist. Additional Seller Fees Depending on the types of products and services you offer, there are other potential Amazon seller fees, including costs like:

  • Rental book service fees. If you sell textbook rentals on Amazon, there is a service fee of $5.00 per rental.
  • High volume listing fees. If you have many non-media items in your Amazon store that have not sold in 12 months, Amazon may charge $0.005 per item in catalog fees.
  • Refund administration fee. If you refund a paid order to a customer, Amazon refund the referral fee. However, they will subtract a refund administration fee from the amount. The price is either $5.00 or 20% of the referral fee, whichever is less.
  • Miscellaneous seller fees. Depending on the type, size, category, season, or other factors of your specific inventory, additional Amazon seller fees may apply to your business.

Summary of Costs to Start Selling with Amazon FBA

The good news is that getting an Amazon seller account and starting to sell products using Amazon FBA is highly affordable and does not require a significant investment. However, the wide range of fees and costs significantly affect your per-item and per-order prices and profits. To help you price your products correctly, you can use Amazon’s Revenue Calculator to compare fulfillment methods and associated costs. With an individual plan, you can sign up and start selling items on Amazon FBA for a minimum of ~$4.00 per item.

How to Find Suppliers for Amazon FBA

Amazon Programs and Incentives

Amazon has several programs to help new sellers be more successful on the platform. Many of these programs require an investment, but they offer valuable ways to launch and grow your Amazon FBA business. Some of the programs are:

New Seller Incentives

New sellers can benefit from several Amazon programs, including Amazon FBA, Amazon Brand Registry, and Amazon Coupons. Sellers who join these programs can get free Amazon credits for shipping, advertising, or other bonuses.

Perfect Launch

Perfect Launch is an Amazon program designed to help sellers make the most of their first 90 days on Amazon. It provides in-depth education and resources to help you understand and use Amazon FBA, Amazon Brand Registry, Amazon Prime, automated pricing, and other seller tools. On average, Perfect Launch sellers generate more than 6% more revenue in their first year.

SAS Core

SAS Core is more expensive but takes advantage of Amazon’s experts to give you individual guidance, recommendations, and special programs and deals. For $1,600 per month + 0.3% of your sales, you can get personalized operational support, guidance, strategy, and unique opportunities for your Amazon FBA business.

Conclusion

Nearly one-third of Amazon FBA sellers launch their business with less than $1,000 in capital, making it an extremely affordable way to establish a retail business. Choosing the right products and offering them at the right prices is the key to success with Amazon FBA, and you can get started with a small amount of investment capital.

· 5 min read

How to Find Suppliers for Amazon FBA

Once you’ve chosen your niche and researched which products to sell, finding the right supplier is crucial for success on Amazon FBA. The price and quality of products, as well as the professionalism and reliability of your supplier, determines how you will run your business and how much money you can make. Here is a guide to how to find suppliers for Amazon FBA.

Different Types of Wholesale Suppliers

Generally speaking, when you sell products on Amazon, you will purchase them wholesale. This means you will be buying products in large quantities for a discount, so you can resell them for a profit. However, when you have large quantities of products, you also need to consider the cost of storing large amounts of inventory, so make sure to include FBA’s storage fees in your price calculations.

There are several different types of wholesale suppliers. Here are the primary categories:

Manufacturer

The manufacturer is the business that makes the product.

Distributor

A distributor facilitates sales of products from the manufacturer to wholesalers and/or retailers. They may carry products from several different manufacturers but usually specializes in a specific industry or product category.

Wholesaler

A wholesaler buys products in bulk to resell them to retailers. A wholesaler usually carries products from many different manufacturers and may carry products in a wide range of categories.

Retailer

A retailer buys smaller quantities of products to sell them directly to consumers.

As we all know, the more businesses involved in a transaction, the higher the costs because every middleman makes a profit from every transaction stage. Many retailers try to buy directly from the manufacturer to reduce costs. On the other hand, many manufacturers keep their costs down by dealing with a distributor rather than hiring their own sales and distribution staff. Depending on the product and company, you may or may not be able to buy it directly. Remember that when purchasing directly from the manufacturer, you may need to coordinate shipping your wholesale products from the manufacturer to an Amazon fulfillment center. They usually manage moving products from a factory to the fulfillment center when working with a distributor.

One advantage of working with a wholesaler is that the wholesaler usually already has products in your country, regardless of the country of origin or manufacture. This means you don’t have to manage import and customs shipping and fees, making it easier for your products to reach a local Amazon fulfillment center. When importing products from overseas, it can be worthwhile to pay more to work with an experienced wholesaler rather than managing the import process yourself. Finally, buying from a wholesaler can be highly efficient since they specialize in selling and distributing wholesale products and are accustomed to serving customers who will resell the goods.

How to Find Suppliers for Amazon FBA

How to Find Suppliers for Amazon FBA

Depending on your product type, there are many ways to find suppliers for your Amazon store. Here are some of the best ways to find suppliers for products to sell on Amazon FBA:

Go Directly to the Manufacturer

Working directly with the manufacturer gives you the best product wholesale price. You can often find products that sell well on Amazon; look up the manufacturer and contact them to buy directly. Not all manufacturers will sell directly; some work exclusively through certain distributors, but it is worth researching.

Contact a Distributor

In most cases, you can search online for distributors of your specific product or product category. There are specialty distributors for nearly every product type, so use the relevant terms and find wholesale distributors.

Use a Wholesale Directory

There are a number of online directories that list wholesalers, making it easy to find wholesalers in your category. In fact, a number of wholesalers are specialized in Amazon FBA and already have a supply chain that can deliver products to an Amazon fulfillment center for you.

Visit a Trade Show

Trade shows are a great way to meet distributors and wholesale suppliers face to face and allow you to find new and unusual products, setting you apart from the competition. You can see and test products in person by attending a trade show, meeting suppliers, and building stronger relationships. Nearly every industry has an annual trade show, and attending is an excellent investment in your Amazon FBA business.

Purchase the Product At Retail

In most cases, paying retail prices is the most expensive way to supply your Amazon store. However, buying them for resale may be the most efficient method for specialty, rare, or handmade goods.

Because Amazon is such a large marketplace with such a global reach, many suppliers specialize in working with Amazon sellers. If you are new to Amazon FBA, working with an experienced Amazon supplier may be the best option, even if it is not the most affordable.

Every step in your product's journey from the factory to your customer costs money, and various paths are available. Therefore, it is a good idea to calculate your supply chain in several ways to determine which method is most efficient and affordable. Depending on your products, suppliers, and region, there are dozens of ways to configure your supply chain, with differing costs and time frames.

Finally, remember that the suppliers and supply chain that is best for your Amazon store when it is new and small may not be the best option later on as your business grows. It’s a good idea to revisit these questions and calculations every year or two to ensure you are still getting the best deal for your business.

· 6 min read

How to Get Approved for Amazon FBA

Fulfillment by Amazon is a program that has made it possible for ordinary people to start a retail business and deliver orders worldwide. While it is not the only way to manage online order fulfillment, it is simple, affordable, and designed to perfectly complement the Amazon marketplace. It is also the most efficient way to sell products using Amazon Prime, accessing Amazon's most committed customers. Let's learn more about Amazon FBA and how to get approved for Amazon FBA.

What is Amazon FBA?

FBA stands for Fulfilled By Amazon and is Amazon's order fulfillment service. Fulfillment consists of three essential components:

Inventory Storage

Retailers need space to store products before customers order them. This space might be a warehouse, storage facility, or a portion of a retail store where items can be stored. The space must be clean, dry, and organized, so that stored items are not damaged and can be retrieved quickly.

Order Packaging

The necessary items must be gathered in the storage facility when orders are placed and packaged for shipping. In most cases, individual products are packaged in a jar, bag, box, etc., and then they must be placed in a second box, bag, or envelope for shipping. When an order contains multiple products or fragile or delicate items, the items need to be packaged together or with special care.

Order Shipping

Once packaged, orders need to be shipped. Shipping costs usually vary based on the size and weight of the item, and may also have additional charges for faster delivery, etc. With their associated costs, orders are labeled and priced for shipping by UPS, USPS, DHL, and other carriers.

In many cases, online businesses use different services and vendors for these various components of the fulfillment process. Using different vendors may be a good way to fulfill specialty products like hand-blown glass or grand pianos, and may also be more affordable in some instances. However, it also requires the business owner to manage and coordinate different vendors, services, and contracts. Many Amazon sellers find it easiest and most convenient to use Amazon to manage all these aspects of their online retail business.

Benefits of Amazon FBA

Many sellers choose Amazon FBA for convenience and ease of use rather than contracting their fulfillment service (called "self-fulfillment). However, those who use Amazon FBA while selling on Amazon have other unique benefits not available to self-fulfill sellers. The most significant benefits of Amazon FBA for Amazon sellers are:

Amazon Prime

While it is occasionally possible for self-fulfilling retailers to qualify for Amazon Prime (the program is currently closed and waitlisted), sellers who use Amazon FBA can sell using Amazon Prime. Over 200 million people worldwide are signed up for Amazon Prime, and many will only order items that qualify for Prime. In addition, Prime items may be prioritized in Amazon searches. Joining Amazon Prime is a key way to grow your business on Amazon, and it is best accessed through Amazon FBA.

Customer Service

As we all know, sometimes things go wrong with online orders. For sellers who self-fulfill, especially if multiple vendors are involved, it may take extra time and many phone calls to check the status of an order: Has it been packaged? Has it been dispatched? Has it been shipped? Because Amazon and Amazon FBA are a single service, customers can use Amazon to check in on their order status, contact customer service, and process complaints and refunds. This allows sellers to offer excellent customer service and comprehensive information about their orders and refunds without managing these inquiries or tracking down the information.

Inventory Tracking

Keeping track of orders and inventory is always necessary when selling online. The number of items you have in storage needs to be consistent with the number of things you offer in your online shop. There are different tools to help sellers manage inventory. Still, when the retail storefront and inventory storage and fulfillment are handled by Amazon, it is much easier to coordinate how much product you have and how much you need.

How to Get Approved for Amazon FBA

How to Get Approved for Restricted Product Categories

Using Amazon FBA

Naturally, not all products are available on Amazon, and FBA will not carry all types of products. FBA prohibits dangerous goods, hazardous materials, alcoholic beverages, etc. Sometimes, you can offer those products in the Amazon marketplace but not fulfill orders with FBA. If you plan to sell restricted items, carefully check the guidelines.

There are specific categories of products that sellers must be pre-approved to sell on Amazon. Generally, these are expensive products like jewelry and watches, fine art, certain collectibles, game consoles, etc. There are also special restrictions on prestige brands designed to prevent counterfeit products.

Here is how to sell restricted products on Amazon:

  1. When you add a product to your shop, you may see a notification that the product is restricted. There may be an "apply now" button next to the product name.
  2. If there is no "apply now" button, the product is not eligible to be sold on Amazon, even if it has previously been sold.
  3. When you click "apply now," you will be taken to the application to sell. The information required on the application depends on the type of product you are listing. In the case of expensive or designer products, you may be required to submit original purchase invoices, certifications of authenticity, etc. You may also be asked to provide photographs or other compliance documentation. Your application will be denied if any of this information is missing or illegible.

If your request is denied, you can request approval again with the complete and correct documentation.

If Amazon marketplace or Amazon FBA determines the product or your account is ineligible to be listed or fulfilled, you don't have the option to appeal; if you really want to sell or fulfill those products or orders, you need to find another marketplace. However, for most ordinary products and sellers, Amazon FBA is the easiest and most convenient way to keep your business profitable and your customers happy.