WHOLESALE SOURCING MISCONCEPTION FOR AMAZON FBA SELLERS

Wholesale purchasing can be a worthwhile technique to establish an Amazon FBA inventory. Some individuals, on the other hand, maybe afraid of wholesale sourcing and hesitant to get started.

Today let's take a look at the top 5 misconceptions about wholesale sourcing for Amazon FBA.

The Need for Warehouse. Some people believe that if you want to purchase wholesale goods, you must have a warehouse. While those things may come in handy if you're at that stage of your Amazon adventure, they aren't required.

I've worked with a lot of wholesale firms in recent years, and not a single one of them has allowed me to make purchases without using my warehouse. When I first began purchasing in bulk, I was working exclusively from home and received deliveries at my residence with no problems. All I had to do was make sure the freight provider knew they'd need to deliver the cargo at a location with no lift gate or pallet jack available, and they were able to handle it. If you have a prep center to receive your wholesale shipments, they should be able to accommodate them there.

Furthermore, certain wholesale brands will transport your goods straight to Amazon for you.

The need for a lot of capital. The fact is that most wholesale firms demand a minimum opening order and reorders. As a result, many people believe that the minimums must be in the thousands or hundreds of thousands of dollars. However, those figures are merely estimates and may not reflect reality.

Several businesses may demand a large up-front investment to make purchases, but there are plenty of locations where you can place orders for just a few hundred dollars. It might take some legwork to do the study and find them, but it's not impossible. I encourage you to locate these firms and start by making small purchases so that you don't make the same mistakes I did when I initially started and jump in too quickly with an unproven product.

Wholesale firms won’t deal with me because I’m an Amazon reseller.

Some wholesale businesses aren't interested in establishing accounts with Amazon resellers, or they're not allowing any new Amazon merchants to join because they believe they already have enough sellers on Amazon. That does not imply, however, that no other wholesale companies will deal with you.

Several businesses are open to Amazon resellers if you're willing to search for them and build connections with them.

It might take some time to research wholesale vendors that will work with Amazon sellers, but the return may be substantial. You'll be ecstatic you took the effort to look for them once you discover a firm that offers items you can transform into Amazon profits and order repeatedly.

Another reason some companies refuse to sell on Amazon is that they have had several unpleasant experiences with previous Amazon vendors. If you can figure out why a company is avoiding working with Amazon vendors, you may demonstrate that you are not like the past Amazon sellers but rather an Amazon vendor who would be a good fit to sell their products.

Wholesalers always sell at the lowest prices. Traditionally, wholesale businesses have desired to sell their products at keystone pricing — half off the retail price. Purchasing at keystone prices allows you to make money on their goods with a little margin for error.

However, there are methods to make purchases at even lower costs while still making a profit when you sell the goods on Amazon:

You may be able to get a discount for making larger purchases; don't be scared to negotiate.

Sales on specific holidays or occasions - make sure you're signed up for your wholesale firms' email newsletter so you can get discount codes.

If a vendor has sold out of an item and is offering it at a discount, you'll save money if you buy it out. If you've already used this product on Amazon, don't be afraid to snap it up at bargain rates.

Shipping discounts.

It’s hard to find profitable wholesale items.

When you create an account with a wholesale firm, they offer you a PDF or spreadsheet with a list of their items and prices. Now comes the exciting part of looking through those lists in search of profits. Some people believe it's nearly impossible to discover anything profitable on Amazon.

I'm going to tackle this myth from two different perspectives.

To begin, many individuals are simply tackling this problem in the incorrect sequence. They obtain a wholesale account from a random firm and start browsing through the catalog for products to sell. Instead, I recommend you start with Amazon and look for things that have good sales ranks. Then contact the wholesale firm to establish an account so you can sell their items. You already know the Amazon price and sales rank history if you go in this order, so you'll be able to see whether or not it has a chance of making you money.

Second, if you already have a price list from a wholesaler, it does not need to take hours to go through the items and check Amazon product pages to see whether any of them are profitable. With a little planning, you can use tools like Tactical Arbitrage to scan a spreadsheet with prices and UPCs to quickly identify products that match your purchase criteria. You may hire a virtual assistant from a website like Upwork or FreeeUp to convert the PDF into a spreadsheet and then scan it using Tactical Arbitrage.

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